Development Road project set to add 20% to Iraq’s economy

Shafaq News – Baghdad

The $17 billion Development Road project linking the Gulf to Europe through Turkiye could contribute up to 20% toward diversifying Iraq’s national economy, the financial adviser to Prime Minister Mohammed Shia al-Sudani said on Monday.

Speaking to Shafaq News, Mudher Saleh described the 1,200-kilometer corridor—connecting Iraq’s al-Faw port in the south to Turkiye via railways and highways—as one of the largest logistics projects in the region, pointing out that the initiative would anchor free economic zones, industrial cities, and advanced logistical services, providing a long-term contribution to Iraq’s GDP.

Saleh estimated the project could also generate employment for around one million Iraqis while attracting sustained regional and international investment.

“This road will enhance Iraq’s economic sustainability and improve resilience against global market fluctuations,” Saleh said. “If integrated with national plans to strengthen industry, trade, and services, its long-term impact could rival that of oil.”

The Development Road agreement was signed in April 2024 by Iraq, Turkiye, the United Arab Emirates, and Qatar, under the sponsorship of PM al-Sudani and Turkish President Recep Tayyip Erdogan.

Read more: Iraq’s Development Road: Geopolitics, rentierism, and broader connectivity