Iraq, Turkey, Qatar, and UAE Sign Agreement for 'Development Road' Project

Iraq, Qatar, the United Arab Emirates, and Turkey signed a quadrilateral memorandum of understanding (MoU) on April 23, 2024, to collaborate on the strategic "development Road" project. Turkish President Recep Tayyip Erdogan and Iraqi Prime Minister Mohammed Shia al-Sudani oversaw the signing ceremony, which took place in Baghdad.

The MoU, signed by the transport ministers of the four countries, aims to establish frameworks for implementing the project, which is expected to stimulate economic growth, strengthen regional and international cooperation, promote economic integration, and enhance regional economic prosperity by increasing international trade, facilitating movement and commerce, and providing a new competitive transport route.

The 'Development Road' project, valued at approximately $17 billion, is a major transportation link spanning 1,275 kilometers from Basra, Iraq to the Turkish border. It includes a railway for transporting goods, a highway for land transport, pipelines for energy transportation, and the Al-Faw Grand Port with an industrial city. Qatar and the UAE are expected to sponsor the project.

During his visit to Baghdad, the first by a Turkish leader since 2011, Erdogan and Iraqi officials also signed a Strategic Framework Agreement for Joint Cooperation and 24 memoranda of understanding covering various fields, including energy, trade, and water sharing. Bilateral trade between Turkey and Iraq was worth $19.9 billion in 2023, down from $24.2 billion in 2022.

Why this matters: The 'Development Road' project is expected to turn Iraq into a transit hub connecting Asia and Europe, significantly reducing travel times for shipments. The project holds strategic significance as an alternative route in the event of regional conflicts or disruptions and is seen as a cornerstone of Iraq's transition to a sustainable, non-oil-based economy.

Many Arab, regional, and European countries have expressed interest in participating in the project either through investments or construction work. The project is expected to generate $4 billion in annual returns and create at least 100,000 jobs. Turkish President Erdogan stated that the new deals represent "a new turning point in our relations with Iraq" and that the road project would promote trade.

Key Takeaways

• Iraq, Turkey, Qatar, UAE sign MoU for $17B 'Development Road' project.
• Project aims to establish transport links, boost trade, and diversify Iraq's economy.
• Qatar and UAE to sponsor the project, which is expected to generate $4B annually.
• Project to create 100,000 jobs and turn Iraq into a transit hub between Asia and Europe.
• Erdogan and Iraqi officials also sign 24 MoUs covering energy, trade, and water sharing.