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Türkiye finalizes $17B deal for Development Road, awaits Iraq’s post-election green light

Aerial view of a construction site at Iraq’s Grand Faw Port on the Persian Gulf, the starting point of the Development Road corridor in Basra. (AFP Photo)
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Aerial view of a construction site at Iraq’s Grand Faw Port on the Persian Gulf, the starting point of the Development Road corridor in Basra. (AFP Photo)
October 23, 2025 10:07 AM GMT+03:00

Türkiye’s Transport and Infrastructure Minister Abdulkadir Uraloglu said the $17 billion financing framework for the Development Road Project—a strategic transport corridor linking the Persian Gulf to Europe through Iraq and Türkiye—has been finalized, adding that groundbreaking is expected after the Iraqi elections.

Uraloglu said the participating countries had reached a consensus on the financing model, which was launched through a memorandum signed in Istanbul in 2024 by the transport ministers of Türkiye, Iraq, Qatar, and the United Arab Emirates.

Awaiting Iraq’s post-election process

"The project is complete in design. We have held all necessary discussions and agreed on the financing method. The funding will be provided by the four countries, totaling nearly $20 billion, and we expect Turkish contractors to undertake major roles," he told pro-government news outlet Hurriyet.

According to Uraloglu, the project’s joint decision-making mechanism among the four nations is operational, but some steps have been delayed until after Iraq’s elections.

Iraq is scheduled to hold parliamentary elections on Nov. 11 to elect 329 members of the Council of Representatives, who will choose the president and confirm the prime minister. The vote is widely viewed as a test of public engagement, with turnout expected to draw more attention than the distribution of seats.

"We expected to make progress this year, but due to elections it seems postponed to next year. If no obstacles arise, completion could take around five years," he noted.

Uraloglu added that the financing agreement itself implies that construction is ready to begin once political conditions align.

An aerial view of the Grand Faw Port as the Development Road Project, which starts at the Port, is under construction in Basra, Iraq, on Oct. 7, 2025. (AA Photo)
An aerial view of the Grand Faw Port as the Development Road Project, which starts at the Port, is under construction in Basra, Iraq, on Oct. 7, 2025. (AA Photo)

Corridor to connect Basra to Europe through Türkiye

The Development Road Project aims to establish a continuous 1,200-kilometer (745.64-mile) railway and highway network stretching from Iraq’s Grand Faw Port on the Persian Gulf to Türkiye’s border at Ovakoy, before extending through southeastern cities such as Cizre, Mardin, Sanliurfa, and Gaziantep, and ultimately reaching Kapikule on the Bulgarian frontier.

The corridor will serve as a new regional backbone, enabling goods to move from the Gulf to European markets without sea transfer. Cargo departing from the Grand Faw Port could, for example, reach London entirely by land.

The project is estimated to cost $23.9 billion and generate an economic boost of around $50 billion, along with over 60,000 jobs.

It will also include a high-speed railway component, with Türkiye prioritizing the rail segment in its planning. The route will also connect to Mediterranean and Black Sea networks, strengthening Türkiye’s multimodal transport capacity.

October 23, 2025 10:07 AM GMT+03:00
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