The development road and the port of Faw are redrawing regional trade maps.
The development road and the port of Faw are redrawing regional trade maps.
31/7/2025
At a pivotal moment in Iraq’s economic history, the Development Road and Grand Faw Port project stands out as the largest strategic attempt to reposition Iraq at the heart of global trade.
The project is not just a local infrastructure development plan, but a regional geo-economic hub, linking the warm waters of the Gulf to the cold European markets, passing through Iraq and Turkey. The project has the potential to become one of the most important dry canals alternative to the Suez Canal over the next two decades.
Iraq, which for decades has been dependent on oil revenues, is beginning to take a new position as a transit country linking Gulf ports to Europe via a land and railway route extending from the port of Al-Faw in Basra in the south to the Turkish border in the north, a length of more than 1,200 kilometers.
The route, which some experts have described as the “New Silk Road,” will shorten the transport time for goods from Asia to Europe from 33 days to about 15 days, a reduction that could reduce logistics costs by up to 40%, according to initial estimates.
The Faw Port, the largest maritime project Iraq has witnessed since the founding of the modern state, will be the starting point. According to official data by mid-2025, the completion rate of the basic infrastructure has reached more than 90%, including a 22-kilometer navigation channel and the longest sea tunnel in the Middle East .
The port is scheduled to begin partial operation in 2026, with an initial capacity of 3.5 million containers, increasing to 25 million containers in its advanced stages.
Grand Faw Port
Iraq seeks to improve its logistics services through the Grand Faw Port project (Iraqi Press)
The path to development is a safe choice
What distinguishes this project is not only its geographical location, but also the scale and level of the regional partnerships that support it. In April 2024, Iraq, Turkey, Qatar , and the UAE signed a quadripartite agreement that serves as the executive and financial foundation for the development path. The agreement was not merely a statement of intent, but rather a reflection of a shared economic vision that believes that strengthening regional connectivity is not a luxury, but a necessity to keep pace with the transformations of the global economy and global supply chains.
The participation of Turkey and the Gulf states in this project represents a qualitative shift in the region’s investment philosophy, from a traditional focus on real estate and energy to investments in cross-border infrastructure. This not only serves Iraq, but also provides the Gulf states with a strategic alternative to congested sea routes threatened by geopolitical tensions. In the event of any maritime congestion, the development route will be a safe and effective option for transporting Gulf goods to European markets.
The project’s potential returns go beyond the direct financial dimensions. According to local economic models:
The project could generate over $4 billion annually in non-oil revenues by 2040.
It creates more than 100,000 job opportunities in the fields of transportation, logistics, industry, warehousing, and digitalization.
The project is expected to contribute to a cumulative increase in non-oil GDP of 15–18% over the next decade, reshaping the Iraqi economy in favor of diversity and sustainability.
As for Turkey and the Gulf countries, investment in this project:
It enhances its long-term economic and commercial security.
It gives them a greater role in interacting with the European market, not only as energy exporters, but also as partners in an integrated transportation and supply chain system.
It opens new horizons for exporting non-oil Gulf industries to Europe and Central Asia via Iraq.
It offers Turkish and Gulf investors opportunities to enter the logistics sectors and free economic zones planned along the route.
While the project faces challenges, including security concerns in some Iraqi provinces and political risks arising from any regional tensions, the current Iraqi plan, supported by the Gulf’s willingness, represents a real opportunity to shift the economic geography in favor of a region that has long been described as a region of tension rather than one of transit and integration.
The development road and the port of Faw are not a local project, but rather a regional project par excellence:
The Gulf countries and Turkey benefit from it through Iraq.
Iraq benefits from it through Gulf investment, financing and expertise support.
Türkiye benefits from it as a transit point to Europe.
Europe itself is using it as a safe alternative amid rising tensions in maritime lanes.
We are facing a new structure for Arab-Turkish-European economic integration, and Iraq is at the heart of this equation.
Hence, the project’s success should not be measured solely by construction achievement indicators, but rather by the ability to leverage this project to reposition Iraq on the global economic map.
Iraq is no longer just an oil field, but a strategic corridor where the interests of Asia, the Gulf, and Europe intersect. If properly exploited, this route could be the bridge that transforms Iraq from a rentier economy to one that shares production, transportation, and distribution.
aljazeera.net
