Türkiye to Finalize $17B Development Road Project Linking Asia and Europe via Iraq

Türkiye announced on Thursday that it is close to concluding an agreement with Iraq on the $17 billion Development Road Project, a landmark infrastructure initiative aimed at establishing a strategic freight corridor between Asia and Europe.

The Development Road, unveiled in 2023, will link the Grand Faw Port in Basra, southern Iraq, with Türkiye through an expansive network of railways and highways, enabling efficient cargo movement to European markets. The route is expected to rival the Suez Canal in terms of freight efficiency and transit time.

Türkiye Positioned as a Key Logistics Hub

Speaking at an OECD event in Istanbul, Türkiye’s Transport and Infrastructure Minister Abdulkadir Uraloğlu emphasized that the country serves as a natural bridge between the East and West and plays a pivotal role in both north-south and east-west transportation corridors.

“Türkiye acts as a keystone for the intercontinental transportation network. As more trade routes connect through Türkiye, its logistics capacity will multiply significantly,” said Uraloğlu.

He stressed the global importance of transportation investments, noting their impact on lowering trade costs, stimulating growth, and fostering sustainable development.

Multinational Collaboration: Iraq, Qatar, UAE, and Türkiye Aligned

The Development Road Project is a multinational initiative involving Iraq, Türkiye, Qatar, and the United Arab Emirates (UAE). It aims to transform Iraq into a transit hub, dramatically shortening the freight route between the Gulf and Europe.

This aligns with Türkiye’s ambitions to enhance its influence along the Central Corridor—a trade route connecting China to Europe through Central Asia and the Caucasus.

Trade Minister Highlights Global Economic Shifts and Green Transformation

At the same event, Trade Minister Ömer Bolat highlighted how the global economy has been reshaped by geopolitical tensions, supply chain disruptions, and emerging protectionist trends.

Bolat also pointed to two defining trends impacting global economic policies:

1. Climate change, particularly in developing nations, which has disrupted food security and driven inflation.

2. The digital transformation, offering new opportunities to economies that lagged behind during the industrial revolution.

“Green transformation is now central to economic policy, requiring structural change in how economies produce and consume,” Bolat stated.

He also noted that digitalization is a game-changer, enabling developing countries to leapfrog into more competitive global positions.