Exclusive: Iraq's "Development Road" Clarified Amid Kuwaiti Concerns and Regional Dynamics, 26 APRIL

Exclusive: Iraq's "Development Road" Clarified Amid Kuwaiti Concerns and Regional Dynamics

Shafaq News/ Following the recent signing of a quadripartite memorandum of understanding between Iraq, Qatar, the UAE, and Turkiye to establish the "Development Road" project, concerns and misunderstandings have arisen, particularly from Kuwaiti officials, regarding the project's impact on their national interests.

Quadripartite MoU Signing for Development Road 

Last week, Iraqi Prime Minister Mohammed Shia Al-Sudani and Turkish President Recep Tayyip Erdogan led the signing ceremony of a quadripartite Memorandum of Understanding (MoU) in Baghdad, involving Iraq, Turkiye, Qatar, and the United Arab Emirates (UAE).

The MoU aims to bolster cooperation regarding the Development Road project, drawing the participation of high-ranking Turkish and Iraqi delegates.

Iraqi Minister of Transportation Razzaq Muhaibis and Turkish Minister of Transportation and Infrastructure Abdul Qadir Uraloglu signed the memorandum on behalf of their countries. 

Minister of Transportation Jassem bin Saif bin Ahmed Al Sulaiti represented Qatar, while Minister of Energy and Infrastructure Suhail Mohammed Faraj Al Mazroui signed on behalf of the UAE. 

The MoU outlines the commitment of the signatory countries to establish the necessary frameworks for the project's implementation.

However, some regional countries are concerned about the repercussions of such projects in their own economy.

Kuwaiti Concerns Over Development Road 

More than a third of the Kuwaiti assembly's 50 members expressed their concerns regarding the signing of the "Development Road" project in Baghdad. They viewed this action, especially amid the stalled progress of the "Mubarak Port" project, as indicative of shortcomings in Kuwaiti government policies concerning development and port enhancement. Their demands included immediate actions such as resuming work at the port and establishing investigative committees to delve into the causes of the delay and evaluate its impact on Kuwait's interests following the recent signing of the project's memorandum of understanding.

Notably, the Kuwaiti Mubarak Port, situated across from the Iraqi Faw Port in the Basra region, is poised, through the "Development Road" initiative, to link Asian markets with European ones.

Certain Kuwaiti MPs have attributed Kuwait's exclusion from the project to the underdevelopment of Mubarak Port. They have voiced discontent over what they perceive as a lack of progress in completing the Silk City development project (Subiya and Bubiyan Island), which encompasses Mubarak Port, which has been operational since September 2007. 

In response to the Kuwaiti concerns, Diaa Al-Nasiri, Advisor to the Iraqi Prime Minister, addressed the situation in an interview with Shafaq News Agency, clarifying that "there is no overlap between the "Development Road" project and Kuwait's interests, as the road starts from Iraq's Faw port and extends to the Fishkhabour border crossing, through Turkiye to the European Union. Therefore, no similar road passing through Kuwait would be affected by this project."

Al-Nasiri highlighted that the "Development Road" project aims to "open up broad horizons not only for Iraq but also for some countries in the region that want to contribute to it. Kuwait was among the first countries invited to be an integral part."

Significance Of The Development Road

Iraq's "Development Road" initiative, first proposed by Prime Minister Al-Sudani during his diplomatic visit to Ankara a year ago, has become an important strategic beacon.

The "Development Road" project is an integrated road and railway system from Iraq to Turkiye and its ports. Stretching 1,200 kilometers within Iraq, its primary objective is to facilitate the transportation of goods between Europe and the Gulf countries.

With an investment budget of approximately 17 billion US dollars, the project divides funding by 6.5 billion for the highway and 10.5 billion for the electric railway.

Implementation occurs in three phases, concluding the first by 2028, the second by 2033, and the final phase by 2050.

Projections indicate that the project will create roughly 100,000 job opportunities at its outset, escalating to one million upon completion.

Observers suggest that projects like this become increasingly attractive to trade movements between East and West if Baghdad and Ankara effectively promote and solidify its success. However, they warned that such projects could hinder other countries' economies.

Against the backdrop of escalating tensions and what some term a "proxy war," the project assumes heightened relevance, particularly in light of disruptions to maritime navigation along critical routes like the Bab el-Mandeb and the Red Sea—vital lifelines facilitating around 15% of global trade.

With anticipation building around Erdogan's imminent visit to Iraq in the coming days, the "Development Road" project is poised to take center stage. This initiative, envisioned as a transformative transportation corridor; garners increased attention as both Iraq and Turkiye seek to bolster regional connectivity and foster economic growth.

In this intricate geopolitical landscape, Erdogan's longstanding vision of positioning Turkiye as a pivotal nexus for energy and trade finds resonance with Al-Sudani's ambition to leverage Iraq's strategic geographical position, rekindling its historic role as a bridge between East and West.

Moreover, recent disruptions in maritime trade, notably the downturn in activity at Israel's port of Eilat—a linchpin for Red Sea access—highlight the fragility of regional commerce amid heightened tensions. 

Israeli estimates indicate that "the port has incurred an 85% decline in its operations. Plans are currently underway to lay off half of the port's workforce, a consequence of the onset of hostilities initiated by the Houthis in November." 

Notably, this route was frequented by over 21,000 ships annually before the outbreak of the Israel-Gaza war and the Yemeni involvement, within the framework of what is termed the "Axis of Resistance," in defense of Palestinians.

Global insurance companies assert that shipping costs in the area have skyrocketed to unprecedented levels. This surge is attributed to several factors, including increased insurance premiums due to heightened risks, such as insurance covering vessel structures, cargo, protection, and compensation.

According to international estimates, maritime insurance costs have escalated five to tenfold compared to pre-war levels. 

For shipping companies, the losses could be significant. In addition to rising insurance premiums, costs have escalated since ships no longer traverse the Bab el-Mandeb and the Red Sea, necessitating longer voyages around the African continent via the Cape of Good Hope. 

This elongation of journeys, sometimes by 10 to 20 days, entails additional expenses for fuel, labor, and other resources.

Consequently, observers suggest that projects like the "Development Road" would become increasingly attractive to trade movements between East and West if Baghdad and Ankara effectively promoted and solidified its success.

Concerning the implementation timeline for the Development Road, Al-Nasiri clarified that "The Faw Port is the initial phase, but it is still under construction and requires another year and a half before investment activities can commence. Once the preliminary preparations are finalized and the Faw Port connects to Basra via rail, it will signify the beginning of this project."

He further mentioned, "There are approximately 170 kilometers of railway within Turkish territory that require linking. We've been informed that Turkish contributors and companies have started to work on this stretch of the railway."