The path to development… a golden corridor that brings Iraq back to the forefront

The path to development… a golden corridor that brings Iraq back to the forefront

5-30-2025

Sky News Arabia – Abu Dhabi
The Iraqi economy has long been captive to a single equation: oil versus revenues. But with the rise of calls to break free from the shackles of a rentier economy, the “Development Path” project has emerged as an ambitious strategic initiative that redraws Iraq’s position on the global geoeconomic map.

Stretching over 1,116 kilometers from south to north and with a budget estimated at billions of dollars, this road holds promise to transform Iraq into a vital trade corridor between Asia and Europe. This was confirmed by economist and banking expert Mahmoud Dagher during his appearance on Sky News Arabia’s “Business with Lubna,” where he offered an in-depth insight into the project’s role in breaking traditional constraints on the Iraqi economy and unleashing its potential for development.

Development Road: More than just an infrastructure project
At a total cost exceeding $17 billion, including $10.5 billion for the railway network and $6.5 billion for the highway, the foundation stone was laid for the development road as a transcontinental economic project starting from the Grand Faw Port in Basra and ending at the border with Turkey .

The project includes an integrated infrastructure of highways and railways, with an operational capacity of 35 million containers annually from the port of Faw alone. It is expected to provide 100,000 job opportunities by 2028, with annual revenues reaching $5 billion.

But more important than the numbers is the structural transformation the project reflects in Iraqi economic thinking, as Dagher asserts: “The Development Road Project is the true escape from a one-sided economy toward diversification. It is not only possible, but beneficial not only for Iraq but for the entire region.”

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Dagher: The development road project will free Iraq from its dependence on oil.

An expert’s view of the opportunities and challenges of logistics transformation
Since the project’s introduction in 2022, Mahmoud Dagher has been an early supporter, describing it as a “promising and feasible project,” believing its success will lift Iraq out of the “extremely negative oil economy,” as he put it.

In his detailed interview with the “Business with Lubna” program, Dagher explained that the Iraqi government has established a specialized company, combining local and foreign expertise, to undertake the project’s implementation. It has also enlisted the help of the American consulting firm Oliver Wyman as a technical and strategic advisor. This step, he believes, represents a qualitative shift in the government’s approach to major projects, both in terms of planning and implementation.

“I began intellectually supporting the project in 2022, and my support for it increased after the 2023 conference, which included participants from the Gulf, Turkey, and foreign companies who expressed their admiration for the initiative,” Dagher noted. He also emphasized that “the idea received widespread support locally and internationally.”

Iraqi oil
Iraq’s oil production target is 6 million barrels.

From rent to diversification… Will the project redefine the Iraqi economy?
The “Development Path” represents a strategic turning point in Iraq’s resource management philosophy , shifting from near-total reliance on oil exports , which reached $99 billion in 2024, to diversifying sources of income by activating the logistics, industrial, and commercial sectors.

Iraq, which currently produces 4 million barrels per day and aims to reach 6 million, has oil reserves of $10.6 trillion.

However, Dagher sees this as a double-edged sword, warning against long-term reliance on these resources without building sustainable economic alternatives.

“A rentier economy does not sustain a country in the long run. Iraq must be commercially linked to the region and the world,” Dagher says.

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The Development Road Project connects Iraq to the world.

Geopolitical Dimensions: Iraq Between the Gulf and Turkey
Iraq’s geographical location is a cornerstone of the project. The “development route” begins at the Grand Faw Port, which is being developed at a cost of $4.6 billion and is poised to become one of the world’s ten largest ports, and extends north toward Türkiye, reaching Europe.

Dagher emphasized the importance of the “first wave of investments ,” which must be Iraqi and supported by the general budget, alongside regional investment coordination. He believes that linking with advanced infrastructure in Turkey “provides a realistic possibility for completing connectivity with Europe,” noting that “the link between the port of Faw and the dry canal north of Mosul is the area that must be focused on.”

“Iraqi and foreign companies should be granted a joint mandate to carry out excavation, addition, and development work. Turkey’s infrastructure is ready, and Iraq is the missing link that will complete the logistics chain between the Gulf and Europe,” he said.

The battle for funding and trust: Can the Iraqi budget support the project?
Given the economic challenges and pressures on the general budget , legitimate questions arise about Iraq’s ability to finance the project during its three phases, which will extend until 2050. But Dagher remains optimistic, based on a rational analysis of the potential returns:
“The Iraqi budget, despite the difficulties it faces, reason, logic, and economic returns all confirm the necessity of completing the project.”

After Al-Faw… The birth of a new Iraq?
The “Development Road” is not, in essence, merely a trade corridor. Rather, it reflects a bold attempt to redefine Iraq as an economic player in the region and a link between the continents of the world.

Mahmoud Dagher’s statements place the project within a broader strategic framework that transcends geography and maps: breaking our dependence on oil, liberating the economy from its structural constraints, and creating a different future for Iraq and its people.

Could this project be the beginning of an economically diversified Iraq, globally connected, and capable of exporting value rather than just fuel?

The answer may be pending on the implementation path, but the road… is beginning to be paved.

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