With the Development Road Project, Iraq plans to turn itself into a regional transportation hub. By this vision, Iraq plans to develop its road and rail infrastructure, linking Europe with the Middle East via Turkey.
The Development Road Project begins at the Grand Faw Port in Basra, which is poised to become one of the largest ports in the region once completed. The initiative aims to link Basra to Europe via a 1,200-kilometer highway and railway system. The road traverses Turkey and reaches the Mediterranean through Istanbul. The project also includes the development of industrial cities along the route and will serve as a key corridor for oil transportation.
While the project sounds attractive, a thorough examination of the details is necessary. There is significant geopolitical and geoeconomic competition over regional trade connectivity projects. This is why, some countries either oppose the Development Road project or remain unsupportive of it.
The project dates back to the 1980s and was called “Dry Canal” in Iraq. In 2023, Turkey proposed the Iraq Development Road, which aims to connect the Persian Gulf to Europe via Turkey. This came as an alternative to the India- Middle East- Europe Economic Corridor (IMEC), since the IMEC bypasses Turkiye. American-led initiative IMEC, connects Europe directly with Asia via the Middle East.
The main aim of both projects is synonymous, except for the geopolitics implications.
Grand Faw Port
By 2050, Iraq aims to complete a robust corridor comprising high-speed railways, highways, and port infrastructure. This route connects the United Arab Emirates, Qatar, Iraq, and Turkey with the European Union.
At the heart of the project is the Grand Faw Port (GFP), located in Basra on Iraq’s Gulf coast. GFP is scheduled for completion in 2025. The GFP is expected to become the largest container port in the Middle East, surpassing even Dubai’s Jebel Ali with its projected 90-berth capacity. From there, a 1,200-kilometer highway and railway network will run north through Karbala, Baghdad, and Mosul before reaching Turkey. There, the road will be integrating into European transit systems via Turkey’s Customs Union with the EU.
Challenges of the Development Road Project
Security Risks and Political Uncertainty
The proposed route traverses areas of Iraq that have historically experienced instability, conflict, and the presence of non-state armed actors. Ensuring the security of construction sites, transport infrastructure, and future logistics operations will require sustained investment in law enforcement and state capacity.
Iraq’s political landscape remains volatile, with frequent changes in government and competing internal interests. This environment complicates long-term planning and poses risks to continuity and institutional coordination. Additionally, the project’s success depends heavily on close collaboration with regional partners such as Turkey, which may be hindered by shifting diplomatic priorities.
Kurdistan Region of Iraq and Syria
Moreover, the exclusion of the Kurdistan Regional Government (KRG) from the Development Road project poses a significant threat to its sustainability. The KRG, as a key geopolitical intersection and a powerful player in Iraq’s political landscape, is crucial for the success of national projects. Therefore, the exclusion of the KRG could, at best, diminish support and investments from the Gulf Cooperation Council (GCC), and at worst, derail the project entirely.
Furthermore, it is important to consider the potential role of the United States in the project’s success. The U.S. could view the Development Road as a strategic asset that aligns with its national interests in the region. This is especially relevant given Washington’s ongoing concerns about countering IS and Iranian influence, as well as its efforts to protect Kurdish interests in both Iraq and Syria. Notably, the Kurdish region’s geopolitical importance is heightened in this context, especially with the Kurdish-controlled areas in Syria.
Additionally, the political landscape in Syria further complicates matters. With the fall of Assad, the Kurdish government in Syria has emerged as the largest and strongest military force in the country. This government’s control over the Syrian-Iraqi border, which is a vital route for the Development Road, adds another layer of complexity to the project. This government, moreover, is supported by the United States, which amplifies the importance of considering Kurdish interests in both Syria and Iraq.
International Investments in Iraq
Furthermore, bypassing the Kurdistan region may limit the project’s economic reach and reduce its attractiveness to international investors. Because international investors view the Kurdistan region of Iraq as a stable and business-friendly environment.
Given these factors, excluding the Kurdish region from such a critical infrastructure project could destabilize not only Iraq’s internal unity but also its relationships with key international partners, including the United States. Therefore, for the Development Road project to succeed, it is crucial that Iraq integrates the KRG into national initiatives. Only through this inclusive approach can Iraq ensure political cohesion, attract investment, and secure long-term sustainability.
Financial and Investment Constraints
The Development Road Project is estimated to cost between $17 -$20 billion. The scale of the Development Road Project demands substantial public and private investment.
Despite being a national priority under PM Sudani, the Development Road faces persistent economic and investment-related obstacles. In the past, similar mega-projects stalled due to Iraq’s political instability, governance issues, and internal conflicts.
Although Turkey remains committed, Turkey’s economic outlook should be taken into consideration too. Because, Turkey is facing a significant economic crisis characterized by high inflation, a depreciating lira, and rising borrowing costs.
Considering the large sums of money required for this project, the UAE and Qatar are anticipated to make mostly public investments. However, the Gulf countries are adopting a more cautious investment approach. Their hesitation stems from Iraq’s volatile economy and lack of consistent, demonstrated financial commitment to such initiatives. Thus, Baghdad must prove its seriousness through concrete actions—not just promises—to gain trust from potential investors.
Moreover, Iraq’s economy remains highly dependent on oil, exposing it to global price fluctuations and fiscal uncertainty. This vulnerability significantly limits Iraq’s ability to self-finance large-scale infrastructure projects such as the Development Road.
At the same time, regional investment is increasing elsewhere in Iraq, but it remains fragmented and politically influenced. For instance, the UAE continues to expand its presence through Dana Gas and Crescent Petroleum in the Kurdistan region of Iraq. Qatar has a 25 percent stake in the Gas Growth Integrated Project. Although it remains unclear what concrete commitments Qatar and the UAE will make to the project, both have already been investing in Iraq.
Similarly, Saudi Arabia is investing in Anbar and participating in the GCC electricity interconnection initiative.
Yet, foreign investors demand clear signs of political stability and governance reforms before scaling up their commitments.
Iraq’s Growing Population
Additionally, Iraq’s rapidly growing population presents major fiscal challenges in the years ahead. Since 2003, the population has grown from 27 million to over 40 million, and projections suggest it may reach 50 million soon.
Each year, around 700,000 young Iraqis enter the job market, pressuring the government to expand employment opportunities. This youth bulge could intensify discontent if economic prospects remain limited, especially outside the public sector. If left unresolved, such demographic pressures may increase instability, affecting investor confidence and the Development Road’s sustainability.
Consequently, without broader reforms, Iraq’s current economic model cannot support the scale or ambitions of the Development Road.
Geopolitical Competition
The Development Road faces tough competition from major regional connectivity projects like China’s Belt and Road Initiative (BRI) and IMEC. These initiatives could limit external investment in Iraq’s project. Additionally, they may create geopolitical tensions, which could complicate cooperation across the region.
IMEC, a U.S.-backed project, connects India, the UAE, Saudi Arabia, Jordan, Israel, and the EU through infrastructure. Its scale and ambition make it a strong competitor to the Development Road.
Technical and Logistical Challenges for the Development Road Project
Building a 1,200-kilometer highway and railway system, along with multiple industrial zones, presents significant technical and logistical challenges. Iraq must secure specialized expertise in large-scale infrastructure projects to meet international standards. The complexity of managing such an expansive program requires strengthening institutional capacity.
Effective cross-border coordination with neighboring countries, particularly Turkey, is crucial for the project’s success. Iraq must address differences in regulatory frameworks, customs procedures, and infrastructure standards. These differences could slow the movement of goods and people, hindering the Development Road’s potential as a vital trade route to Europe.
Additionally, Iraq faces challenges in ensuring the consistent quality of construction materials and adherence to safety standards throughout the corridor. These complexities highlight the need for careful planning and long-term investment to ensure the project’s sustainability and success.
The UAE’s experience in managing large ports, particularly in Dubai, positions it well to support Iraq’s General Freight Port (GFP). Iraq’s Prime Minister Mohammed Shia` al-Sudani expressed interest in Emirati help during his 2023 visit to Abu Dhabi.
In April 2024, Abu Dhabi Ports Group and Iraq’s General Company for the Ports of Iraq signed an agreement. This partnership aims to develop the GFP and its economic zone.
Optimistic Outlook for the Development Road Project
Despite significant challenges, several factors work in favor of Iraq’s Development Road project, offering hope for success. Regionally, there is a trend toward cooperation and de-escalation, benefiting Iraq’s investment efforts. The Gulf states, particularly the UAE, Saudi Arabia, and Qatar, are proactively strengthening their presence in Iraq. These countries are investing heavily in gas, electricity, and real estate, signaling confidence in Iraq’s future stability.
Iraq is rebuilding strong ties with Turkey, which has deep economic and political connections in the region. The growing trade relations, totaling $19.9 billion in 2023, highlight Iraq’s strategic importance to its neighbors.
Domestically, Iraq is stable under Prime Minister Sudani’s leadership. He has managed internal tensions, improving relations with the Kurdistan Regional Government (KRG).
Though Iraq faces challenges related to oil dependence and socio-political issues, its growing population and economy offer long-term growth potential. The Development Road can address these concerns by creating jobs and expanding infrastructure, especially if Iraq diversifies its economy.
Although factional rivalries and corruption persist, the scale of the Development Road presents a unique opportunity. Iraq can demonstrate its commitment to reform and stability. The collaboration of regional powers like the UAE, Saudi Arabia, and Qatar, along with stronger ties to Turkey, can drive the project’s success. With the right approach, the Development Road can pave the way for Iraq’s brighter future.
