International summit in Istanbul to advance USD20B "development road" project linking Iraq, Turkey
Date
8/29/2024 8:51:48 AM
(MENAFN) On Thursday, Istanbul is hosting a high-profile international summit with representatives from Turkey, the UAE, Iraq, and Qatar coming together to discuss the ambitious "Development Road" project. This significant initiative aims to create a major transportation link from the Iraqi port of Basra on the Arabian Gulf to Turkey and beyond, facilitating trade and investment between the regions. The meeting, taking place at the presidential office in Dolmabahce Palace, is expected to result in pivotal decisions concerning the project, which has an estimated investment value of around USD20 billion.
The "Development Road" project, initially approved during Turkish President Recep Tayyip Erdogan's visit to Baghdad in April, will establish a 1,275-kilometre (792-mile) road and railway network connecting the Faw port in Basra, currently under construction, to Turkey. The UAE and Qatar are anticipated to play a significant role as potential investors in this venture. The Abu Dhabi Ports Group has already entered into a preliminary agreement with the General Company for Iraqi Ports to develop the Faw Port and its associated economic zone.
In April, a quadripartite memorandum of understanding was signed by the UAE, Iraq, Turkey, and Qatar to collaborate on this "Strategic Development Road" project. Iraq, which holds approximately 10 percent of the world’s oil reserves and contributes 5 percent to global production, views this project as a transformative development. The Iraqi government expects it to significantly cut trade costs between China and Europe by positioning Iraq as a crucial transit hub. The project, often referred to as the "dry canal," will connect Asian and European markets through the Grand Faw Port and extend to the Iraqi-Turkish border. The development is planned in three phases, with the first phase set to conclude in 2028, the second in 2033, and the third by 2050.
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