Iraq has sought financial backing from the Gulf’s wealthiest nations to advance its $17 billion ‘Development Road’ project, a major rail and motorway initiative stretching from the southern Faw Port to the Turkish border.
In 2023, Iraq, OPEC’s second-largest oil producer, unveiled plans for the ambitious project. By early 2024, Transport Ministry officials announced that Qatar and the UAE—two of the Middle East’s wealthiest nations—had agreed to participate. However, specifics regarding the nature of their involvement remain unclear.
“Partners like Qatar and the UAE will guarantee the project’s success,” said Nabil Al-Marsoumi, an economics professor at the University of Basra. He highlighted that once operational, the railway and Faw Port are expected to generate nearly $5 billion in annual revenue.
The first phase of the project is expected to be completed by late 2029, with the second phase concluding in 2038. A 2023 Transport Ministry study estimated Phase 1 costs at $17 billion, covering a 1,200-kilometer rail line and a parallel motorway from the southern port to Iraq’s northern border with Turkey.
Iraq, home to the world’s fifth-largest recoverable oil reserves, envisions the project transforming the nation into a commercial and trade hub. Transport Minister Razzak Al-Saadawi emphasized that the rail line will initially handle 15 million passengers and 33 million tons of cargo per year.
“This is more than a transport project—it positions Iraq as a regional trade hub, linking the Middle East to Europe through Turkey and cutting shipping costs and time,” Al-Saadawi said.
In early 2024, Baghdad allocated $4 billion from the national budget toward the project but did not disclose how the remaining funds would be secured. Officials later indicated that partnerships with foreign governments and firms could provide additional financing. Iraq invited stakeholders to a Baghdad conference aimed at attracting investment.
“The project faces competition from established global transport routes, making sole reliance on government funds impractical. Strong financial partners are essential,” said Ziad Al-Hashimi, a member of Iraq’s economists network.
Project to Generate 20,000 Jobs and Industrial Zones
Beyond transportation, the Development Road project is expected to create at least 20,000 jobs for Iraqis. A tunnel under construction at Faw Port will direct traffic under the river and connect to the rail and motorway network extending to Turkey.
“The Development Road is an integrated economic project, not just rails and roads,” Al-Saadawi said. He added that the initiative will feature multiple industrial zones, including the Middle East’s largest industrial city near Faw Port, which will host residential, commercial, and tourism facilities.
The project will traverse 11 Iraqi governorates, linking southern Iraq to the northern border with Turkey. Officials hope the route will serve as a key transit corridor between the Middle East and Europe.
Faw Port is set to become one of the world’s top 20 container terminals, with an annual capacity of 99 million tonnes of cargo. South Korea’s Daewoo Company completed the port’s five main berths in December under a $2.6 billion contract, with full commissioning expected in early 2025.
Despite high unemployment, which stood at 14.4 percent in late 2023, officials believe the Development Road will provide critical job opportunities and drive economic growth.
