Erdogan Boosts Iraq's Development Road Project

Reuters reporting that Turkey President Recep Tayyip Erdogan and Iraqi Prime Minister Mohammed Shia' Al Sudani have signed a memorandum of understanding with Qatar and the UAE to cooperate in the Iraq Development Road Project.

• The USD$17 billion infrastructure project would turn Iraq into a transit hub connecting Europe and Asia via Iraq's southern commodities hub, the Grand Faw Port, and Turkey.
• The Carnegie Middle East thinktank notes that the project could stabilise Iraq politically by diversifying its economy but will likely be beset by investment concerns including insecurity and geopolitical challenges from alternate infrastructure projects including China’s Belt and Road and the US-led India-Middle East-Europe Economic Corridor.
• However, Turkey’s approval of the project, likely in return for Iraqi support in combatting the PKK, could significantly improve the chances of the project’s success. Turkey’s approval may also carry more weight considering a recent bolstering of diplomatic relations with Iran – seen as another potential geopolitical spoiler to the project.
• Carnegie notes that, “Iraqi officials say the Development Road will enhance trade between Asia and Europe, reducing the time period for transporting goods between the Chinese port of Shanghai and the Dutch port of Rotterdam from thirty-three to fifteen days.”