Development Road Project: Turkiye to Host Regional Summit on Multi-Billion-Dollar Initiative
As part of its ongoing efforts to enhance regional connectivity and economic growth, Turkiye is set to host a pivotal summit with Iraq, Qatar, and the United Arab Emirates (UAE) on August 29, 2024, to advance the Development Road project. This ambitious initiative seeks to link the Iraqi port of Basra on the Persian Gulf to Turkiye and beyond through an extensive rail and road network, aiming to significantly reduce the cost and time of trade between China and Europe.
The Development Road Project: A Strategic Link
The estimated $20 billion project was formalized during Turkish President Recep Tayyip Erdogan’s official visit to Baghdad in April 2024. It will connect Basra’s al-Faw port, currently under construction, to Turkiye via a 1,275-kilometer (792-mile) rail and road network. The meeting, to be held at the historic Dolmabahce Palace in Istanbul, will bring together relevant ministers from all four countries to make significant decisions regarding the project’s progress.
Economic and Strategic Importance
Iraq is home to roughly 10% of global oil reserves and accounts for 5% of global production. Energy will play a pivotal role in the scheme, with the project expected to significantly reduce the cost of trade between China and Europe. Turkish academic Nejat Tamzok highlighted the strategic importance of the project in a recent essay, noting that it could reduce transport times between Shanghai and Rotterdam from 33 days to 15 days, offering an alternative to the Suez Canal.
Potential Investors and Sponsors
Qatar and the UAE are potential investors in the project, which was formalized during Erdogan’s official visit to Baghdad in April 2024. The initiative is expected to consolidate economic ties between the two neighbors and turn Iraq into a transit hub, connecting Asia and Europe with a link between the country’s Grand Faw Port in the oil-rich south and Turkiye in the north.
Advancing the Project
Turkiye is moving into a critical phase following the signing of the memorandum of understanding on the Development Road Project. Transport and Infrastructure Minister Abdulkadir Uraloğlu announced that the first Four-Minister Summit would address every detail of the project, with sides making key decisions. The summit is expected to contribute significantly to Turkiye’s economic growth and regional development by creating a reliable and efficient trade corridor between Asia and Europe.
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