Saturday, July 12, 2025
TRUMP AND SUDANI DEVELOPMENTS: A MESSAGE AND SEVERE REBUKE EXPLAINING THE 30% TAX
TRUMP AND SUDANI DEVELOPMENTS: A MESSAGE AND SEVERE REBUKE EXPLAINING THE 30% TAX
After the White House announcement
US President Donald Trump sent an official letter to Iraqi Prime Minister Mohammed Shia al-Sudani on Wednesday, announcing the imposition of a 30% tariff on all Iraqi products exported to the United States, starting August 1.
Trump explained in his letter that the decision came in response to what he described as Baghdad’s “unbalanced trade policies,” hinting at the possibility of raising the rate in the future if these policies continued.
He expressed his country’s readiness to ease these restrictions if the Iraqi government took steps to open its markets more widely and remove trade barriers to American products, as part of what he described as “reciprocal steps towards trade balance.”
Text of the letter sent by Donald Trump to Prime Minister Mohammed Shia al-Sudani regarding the US raising of taxes on Iraqi exports.
he White House,
Washington,
July 9, 2025
To His Excellency
Mohammed Shia Al-Sudani,
Prime Minister of the Republic of Iraq,
Baghdad
Dear Mr. Prime Minister,
It is a great honor for me to send you this letter, which demonstrates the strength and commitment of our trade relationship and the fact that the United States has agreed to continue working with Iraq, despite a large trade deficit with your great country. However, we have decided to move forward with you, but only through more balanced and equitable trade.
Therefore, we invite you to participate in the exceptional economy of the United States, the largest market in the world by far. We have had years of discussions about our trade relationship with Iraq, and we have concluded that we must move away from these long-standing and very persistent policies, which have caused a trade deficit through Iraq’s tariffs, non-tariff policies, and trade barriers.
Our relationship to date has, unfortunately, been far from reciprocal. Effective August 1, 2025, we will impose a 30% tariff on all Iraqi products shipped to the United States, separate from any other sectoral tariffs. Transshipped goods to avoid the higher tariff will also be subject to this tariff.
Please understand that the 30% rate is far less than what is needed to close our trade deficit with your country. As you know, if Iraq or companies within your country decide to build or manufacture products in the United States itself, there will be no tariffs. We will then do everything we can to expedite approvals quickly, professionally, and orderly—in just weeks.
If, for any reason, you decide to raise your tariffs, any increase you make will be added to the 30% rate we impose. Please understand that these tariffs are necessary to correct years of unfair policies that have created an unsustainable trade deficit against the United States. This deficit poses a significant threat to our economy and, indeed, our national security!
We look forward to working with you as a trading partner for many years to come. If you are willing to open your currently closed markets to the United States and eliminate your tariffs, non-tariff policies, and trade barriers, we will consider—perhaps—amending this letter. These tariffs could be adjusted up or down, depending on our relationship with your country. You will never be disappointed with the United States of America!
Thank you for your interest in this matter!
With best wishes,
I remain, most sincerely,
Donald J. Trump,
President of the United States of America
MNT GOAT: This reinstatement of the dinar is nothing but political!!
Mnt Goat
...I have said it many times that this reinstatement of the dinar is nothing but political...If it wasn’t, the Dr Shabibi coup would have never happened.
The newer lower denominations would be in circulation and we would have already been to the bank...if we truly want the TRUTH we must connect the pieces and see it.
Trump’s policy towards Iraq is one of hope but he is also going to first use Iraq as a platform for peace in the middle east.
...When the U.S. really steps up to the plate economically in Iraq you will see wonderous things happen...
INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO
INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO.
Economic expert Suham Yousef discusses the latest report by the International Monetary Fund (IMF), which included significant warnings to the Iraqi government regarding the continued decline in revenues while increasing public spending, which constitutes a serious structural deficit in the economy’s structure.
The expert’s criticism of the IMF itself stems from the fact that the IMF itself is unaware of the Iraqi political and social context, which makes implementing the “ready-made recipes” it offers extremely difficult.
Its proposals clash with the spread of the deep state’s influence and its obstruction of tax reform aimed at increasing non-oil revenues, for example.
The proposal to rationalize spending also clashes with the fragile social reality and the dependence of millions of Iraqis on government salaries amid a weak private sector and the expansion of the “parallel economy.” This situation places Iraq facing an imbalance with every barrel of oil sold, the continued depletion of financial reserves, the rise of public debt to 62%, and the decline of foreign investment to 0% of GDP.
In its latest report, the International Monetary Fund (IMF) issued a stark warning about worsening financial and economic vulnerabilities, warning that the country is heading toward a widening budget deficit amid declining oil prices, weak non-oil revenues, and ballooning current expenditures, particularly for wages and pensions.
The report presents an accurate but worrying picture of the Iraqi economy and raises fundamental questions about the government’s preparedness to contain the coming crisis.
Despite the government’s attempts to present plans to diversify the economy, the reality tells a different story. Non-oil growth slowed sharply to just 1% in 2024, according to IMF estimates, compared to 13.8% the previous year. This decline reveals that non-oil sectors remain limited in their impact and suffer from weak infrastructure, a lack of real incentives, and an unattractive investment environment.
MZ Update: Iraq Cleans Up, Banks Prepare – RV Still Brewing"
EXCERPTS FROM MARKZ
MZ: My redemption center/wealth management folks are not working this weekend…nor are they on call. So for me I am not looking for an RV this weekend…but these folks have been working hard the last few weeks. I even have a Chase contact who said they have lifted restrictions on amounts of foreign currency in preparation …I loved hearing that one.
MZ: In Iraq: “ Among them are forgery, currency smuggling, and real estate usurpation. (CONSIOUS)opens 15 files with the Public Prosecution” They are going after old crimes from Sadaam Hussein and the Bush camp that was stealing from Iraq for years. They are cleaning up old files.
MZ: These are things that needed settled before they revalue. I love they are cleaning things up.
IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ
IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Iraq and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis.
- Iraq has managed to uphold domestic stability despite regional turmoil and global uncertainty. At the same time, the non-oil economy slowed down in 2024 following a very strong growth in 2023. Inflation has remained subdued amid weaker demand. Financing constraints and lower oil revenues are expected to constrain fiscal spending, taking an additional toll on economic activity.
- Against a baseline of low oil prices, fiscal deficits and external accounts are projected to deteriorate further over the medium term unless significant reforms are undertaken to increase non-oil revenues, control the public wage bill, and boost non-oil growth potential through an ambitious structural reform agenda.
(This is why the budget tables for 2025 have not yet been released. The GOI does not want to complete the projects allocated for 2025 due to a drop in oil revenues.)
FRANK26: Iraq just got slapped with 30% [tariffs]!!
Frank26
[Iraq just got slapped with 30% [tariffs].
You want 60%? Of course not.
So, give the world and the Iraqi citizens the new exchange rate dog gone it.
The whole world knows what the tariffs are for, to adjust your exchange rate.
That's why they're all in line.
The whole world knows everybody knows what Donald Trump is doing.
WHERE ARE THE 2025 BUDGET SCHEDULES? PROJECTS ARE SUSPENDED, PLANS ARE POSTPONED, AND PARLIAMENT HOLDS THE GOVERNMENT ACCOUNTABLE
WHERE ARE THE 2025 BUDGET SCHEDULES? PROJECTS ARE SUSPENDED, PLANS ARE POSTPONED, AND PARLIAMENT HOLDS THE GOVERNMENT ACCOUNTABLE.
Despite more than half a year having passed since the start of the fiscal year, the 2025 budget schedules remain absent from the House of Representatives, a scene that rekindles concerns about a financial paralysis that threatens service and development projects in the governorates.
This delay comes despite the country’s adoption of the “Tripartite Budget” law, which was supposed to spare Iraq the annual wait for approval of financial allocations and ensure stability in the flow of funds and project planning.
In this context, the Deputy Chairman of the Parliamentary Committee for Regions and Governorates, Jawad Al-Yasari, ruled out on Tuesday (July 8, 2025) the approval of the 2025 budget schedules during the remaining term of Parliament, holding the government responsible for the delay.
“The Iraqi government is responsible for the delay in approving the 2025 budget schedules, as it has not yet sent them to Parliament for review,” Al-Yasari told Baghdad Today. “We don’t know anything about them yet, and we don’t believe the government is serious about sending them, which is why we rule out approving them within the remaining term of Parliament.”
He added, “This delay has clear consequences, most notably the disruption of the launch of a large number of projects in the governorates, as well as the obstruction of the completion of existing projects that require financial allocations.” He noted that “the government is currently content with paying salaries and outstanding financial obligations, in the absence of schedules and a parliamentary vote on them.”
According to observers, the government’s continued delay in submitting budget schedules reflects confusion in financial planning and a lack of a clear vision regarding spending priorities. This threatens to widen the gap between the central government and the governorates and weaken the state’s ability to fulfill its service and development commitments. It also portends escalating popular discontent in some areas, particularly those that rely on investment allocations for infrastructure development and job creation, at a time when economic and living pressures on citizens are increasing.
ARIEL: Iraqi Dinar Update, Status of Listed Events in July 2025
Iraqi Dinar Update
Status of Listed Events in July 2025:
Basel III Endgame: Phase-in commenced July 1, 2025, with full compliance by July 1, 2028; focuses on capital requirements for large banks, increasing operational risk buffers by 9% for G-SIBs.
Trump’s Tariffs: Imposed July 9, 2025, at 30% on Iraqi non-oil imports (exempting crude oil, 98% of exports); reduced from initial 39% threat, but risks reserve drains if oil prices fall 5-10%. No “end” occurred user reference may misalign with imposition date.
ISO 20022: Migration for cross-border payments on track, with Swift coexistence ending November 2025; Fedwire adoption confirmed for July 14, 2025.
Fedwire: Single-day ISO 20022 implementation July 14, 2025; ends legacy formats, enabling blockchain pilots for 20% of oil settlements.
GENIUS Act (Senate): Passed Senate June 17, 2025 (68-30 vote); establishes stablecoin framework, now pending House reconciliation.
CLARITY Act (House): Advanced from committees June 2025; slated for House floor week of July 14 during “Crypto Week”; divides SEC/CFTC oversight for digital assets.
Iraq WTO 4th Meeting: Third Working Party meeting July 18, 2024; fourth delayed to Q1 2026 due to reform gaps; accession hinges on tariff bindings and anti-c********n measures.
Ripple/SEC Ends: Ripple dropped cross-appeal June 27, 2025; SEC closed meeting July 10 could finalize; $125M penalty dispute ongoing, no confirmed July closure.
Peace in Middle East: Gaza armistice January 2025; Hezbollah-Israel truce November 2024; ongoing tensions with Israeli forces in Lebanon hills; no comprehensive July breakthrough.
US Dollar Tanks / Currencies Rise: Dollar down 10% H1 2025 (worst since 1991) from debt ($35T+), tariffs, and rate cut expectations; EUR/USD at 1.17, GBP/USD at 1.37 by Q3.
Hypothetical Impact if All Events Align:
Combined pressures tariff exemptions preserving oil revenues, ISO 20022 enabling digital settlements, crypto bills boosting USD alternatives, dollar weakness lifting emerging currencies, and WTO progress could force CBI to advance a managed float to Q3 2025 for reserve bolstering; blockchain tests cover 20% transactions, positioning for subtle tweak.
EXPERTS: THE NATIONAL PAYMENT CARD ENHANCES MONETARY SOVEREIGNTY
EXPERTS: THE NATIONAL PAYMENT CARD ENHANCES MONETARY SOVEREIGNTY
Economic experts have welcomed the Central Bank’s initiative to issue national electronic payment cards, stressing that the government’s move has numerous benefits, most notably its contribution to absorbing liquidity and eliminating financial hoarding, as well as strengthening the principle of monetary sovereignty.
The Central Bank of Iraq recently announced that the national electronic payment card project it launched is a local option and exclusively in dinars. The Central Bank emphasized that the project does not cancel or restrict existing international cards such as Visa and Mastercard, explaining that the project aims to enhance financial inclusion and diversify options for citizens.
monetary sovereignty
The Prime Minister’s Financial Advisor, Dr. Mazhar Mohammed Salih, told Al-Sabah: “Issuing the national payment card is a principle implemented in all countries around the world. It allows its holder to make payments using electronic cards within the country in Iraqi dinars, under the supervision of the monetary authority and under the principle of monetary sovereignty, without the need to go through external oversight systems.”
He added, “The project is called the Local Scheme, and it aims to reduce the use of cash in Iraqi dinars as a matter of flows within the national economy only. Issuing a unified electronic payment card is one of the ways to achieve financial inclusion within our country’s monetary system. Payment cards that can be used outside the country in foreign currencies such as dollars and others through Visa and MasterCard will remain in effect through international companies.”
LOCALLY BORN
Economic expert Ghazi Al-Kanani described the Central Bank’s new move to issue a local electronic payment card as “locally born” and enhancing competitiveness in providing services to the largest segment of citizens.
Al-Kanani added, in an interview with Al-Sabah, that “this trend presents citizens with a number of options, and they must choose the most appropriate one that aligns with their desires and needs, which have begun to multiply and interact with the financial technology witnessed in the world around us. At the same time, we must follow and keep pace with it.”
He pointed out that “the reality of electronic payments must witness continuous development in all its aspects and be integrated with the global electronic payments system witnessed by the international financial sector.”
Al-Kanani pointed out that “local companies are working to adopt more secure and advanced systems, which will enhance products. The best financial services must be available within the Iraqi labor market. The Central Bank’s move merely enhances the reality of electronic payments, not limits their development.” He noted that “local electronic payment cards now provide secure services worldwide.”
ADVANCED SERVICES
Nabil Al-Najjar, an expert in electronic payments, told Al-Sabah that the Central Bank of Iraq’s launch of the national electronic payment card project is an “important and necessary option,” given that the card is designed to provide a safe and practical means of payment and is managed entirely locally, without relying on international networks like Visa and Mastercard.
He stated, “The goal of this project is to reduce reliance on foreign cards and lower fees and commissions imposed by global companies. It also contributes to strengthening digital sovereignty and enabling financial institutions to provide flexible and advanced payment services within the country.”
Al-Najjar noted that “the new card operates using the globally used EMV technology and can be used for withdrawals and payments within Iraq via ATMs and points of sale, while ensuring that all data and transactions remain within national borders, enhancing security and providing a more independent financial environment.”
FINANCIAL INCLUSION
With this project, Iraq joins international initiatives that have achieved success, such as Mada in Saudi Arabia, Meeza in Egypt, and Mir in Russia. The system is being gradually developed to meet the needs of individuals and institutions.
Banking expert Dr. Nabil Rahim Al-Abadi told Al-Sabah that the system used by the project, known as “Domestic Switch,” aims to enhance financial sovereignty and reduce reliance on external systems. The Central Bank of Iraq seeks to build a central system linking banks and financial institutions within Iraq.
He pointed out that “the project focuses on enhancing financial inclusion, as the rate of card usage in Iraq is low compared to neighboring countries.” He said, “According to the Central Bank of Iraq’s announcement, the project aims to establish a national electronic payment company to unify local payment systems and facilitate interoperability. The expansion of the digital infrastructure includes increasing points of sale and ATMs, in addition to developing platforms such as the Sweej application and supporting licensed digital banks.”
Al-Abadi emphasized that “the project is expected to contribute to reducing transaction costs, as high fees on international transfers will be reduced, further enhancing card usage and contributing to the growth of the digital economy.” However, the expert pointed out a number of challenges the project will face, most notably prevailing cash habits and cybersecurity risks, which require enhanced data protection.
He explained that “the Central Bank of Iraq’s move to establish this system represents a turning point in building an independent national payment system that enhances financial sovereignty and reduces reliance on cash, forming the basis for a more resilient economy.” He considered the project a major achievement in the history of the Central Bank of Iraq, emphasizing its role in supporting structural reform and transparency, “which paves the way for a sustainable financial future in Iraq.”
NATIONAL SYSTEM
Financial affairs expert Dr. Mustafa Akram Hantoush emphasized that the project represents a positive development in enhancing digital sovereignty and regulating the payments sector. He pointed to the Central Bank of Iraq’s statement announcing the launch of the “National Card Planning System,” a fundamental pillar toward developing an integrated national system for managing local payment cards.
Hantoush pointed out that “this step confirms that Iraq has a specialized internal system for issuing and operating local cards, away from complete reliance on external systems,” noting that “the two international companies, MasterCard and Visa, continue to operate inside Iraq, despite the circulation of inaccurate information about their services being limited to banks linked to accounts with Citibank or JPMorgan.”
Hantoush confirmed that “electronic payment companies operating in Iraq will continue to operate within the framework of the system without any direct impact, as the new service is a regulatory measure and not a replacement for any of the companies or cards operating in Iraq.”
BANK STORY: THE NEW US DOLLARS: They are on their way now!!
Greyeagle1 wrote:
Bank Story from a trusted friend: My friend has had a bank account at this bank for over 30 years. Knows everybody by first name.
They know her by her first name. She got a notice from the bank that they would be closed from Wednesday at closing on July 9, 2025 until Monday morning July 14, 2025.
She went into the bank today and talked with senior loan manager whom she has known since he started. She asked why closing? Answer changing to new banking system
Q: Are you going to be doing foreign currency exchanges? A: I cant tell you that.
Then she went to the head bank manager whom she has known for 30 years.
Q: Why are you closing? Answer : changing to new banking system.
Q: Is it QFS? A: gave some other name.
Q: are you Basil 3 compliant? A: We will be by Monday.
Q: Are you going to have the new US Dollars? A: They are on their way now.
Q: Are you under an NDA? A: Yes.
Customs: Five Transit Flights Successfully Passed Through Iraq Under The TIR Agreement
Customs: Five Transit Flights Successfully Passed Through Iraq Under The TIR Agreement.
Yesterday, 15:44 Baghdad - INA - Mohammed Al-Talibi The General Authority of Customs announced today, Wednesday, the successful passage of five transit flights through Iraq in accordance with the TIR Agreement, while indicating that all land transit ports have been approved by the International Road Transport Union.
The Director of Transit at the General Authority of Customs, Ihab Talib Khalifa, told the Iraqi News Agency (INA): "The electronic lock system was applied to nine experimental flights coming from Umm Qasr towards the dry port," indicating that
"the monitoring was for drug shipments after the issuance of a decision to monitor drug shipments
from their entry into the country until their arrival at the dry port affiliated with the Central Region Directorate in Baghdad at the General Authority of Customs." https://www.youtube.com/@DINARREVALUATION/shorts
He explained that "the shipments were tracked using a GPS system installed on an electronic lock that secures the container," noting that
"the purpose of this matter is to limit smuggling and ensure the safe arrival of drug shipments for distribution, and to activate the role of oversight under the direction of the
Director General of the General Authority of Customs, as we are about to introduce and track other types of shipments, including chemicals."
He continued, "The transit issue has been activated and the international TIR agreement has been implemented.
Five successful flights were received and reached their destination country by passing through Iraq,which was the transit corridor." He emphasized, "This work will continue to enhance Iraq's role in international trade, as well as Iraq's strategic regional location.
Work on development is also ongoing."
He explained that "through purely Iraqi efforts, and with the cooperation and logistical support provided by the Border Ports Authority from a technical standpoint, the National Data Center affiliated with the General Secretariat of the Council of Ministers, and the support of all officials, all land transit ports have been submitted to the International Road Transport Union, and all of them receive transit trucks, in addition to the ports designated for the entry of pharmaceutical shipments at the present time."
He pointed out that "the TIR system will expand in the near future, stage by stage, to include shipments of chemical materials." https://ina.iq/ar/economie/238237-.html
FRANK26: Everything is really good right now!!
Frank26
Everything is really good right now. Everything is moving quickly...in the right direction.
It's like when you catch the wave surfing ...You're looking...looking.. .then all of a sudden...you find the right sweet spot and you ride it the rest of the way to the beach. That's the way I feel right now.
This monetary reform investment of ours, I feel like it's smooth sailing to the beach right now...
Iraq’s Oil Reserves Surpass 145 Billion Barrels
Iraq’s Oil Reserves Surpass 145 Billion Barrels
Iraq Amr Salem July 10, 2025 97 The Iraqi Minister of Oil, Hayan Abdul-Ghani, and other officials during their participation in the 9th OPEC International Seminar in Vienna, Austria.
Baghdad (IraqiNews.com) – The most recent figures for Iraq’s oil and gas reserves were publicly presented as part of the Iraqi government’s efforts to draw international investment to develop its hydrocarbon resources and play an important role in global energy markets.
During the 9th OPEC International Seminar in Vienna, the Austrian capital, Iraqi Oil Minister Hayan Abdul-Ghani announced that Iraq’s proven reserves exceed 145 billion barrels of oil and over 132 trillion cubic feet of natural gas.
Iraq’s oil and gas deposits represent untapped energy potential, and they provide
Iraq with an opportunity to play a critical role in maintaining the world’s energy stability, according to Abdul-Ghani.
Abdul-Ghani stressed that guaranteeing energy security in the next years will need a firm commitment from governments to support all sorts of energy projects.
Fossil fuels continue to be a key element in meeting the world’s growing energy demand,
as well as a critical driver for supporting infrastructure expansion and clean and sustainable energy projects, particularly in developing countries that require economic assistance to develop critical sectors such as health, education, and basic services.
Abdul-Ghani stressed that ongoing investment in oil and gas production projects is critical to ensuring global energy stability and inclusive economic growth.
The current level of investment does not match predicted demand,
particularly given the continued growing population globally and the ongoing industrial expansion.
The Iraqi oil minister urged governments to provide adequate financing to achieve an equilibrium in securing supplies from traditional energy sources like oil and gas and investing in sustainable energy.
Additionally, Abdul-Ghani recommended setting up shared sovereign funds, a risk guarantee scheme, and tax breaks to encourage private investment in energy projects. https://www.iraqinews.com/iraq/iraqs-oil-reserves-surpass-145-billion-barrels/
GOLDILOCKS: The Central Bank of Iraq (CBI) shares current official Iraqi Dinar exchange rate!!
GOLDILOCKS: The Central Bank of Iraq (CBI) shares current official Iraqi Dinar exchange rate
"The Executive Board of the International Monetary Fund (IMF) issued a statement on Wednesday (9th July) following the conclusion of its Article IV consultation with Iraq.
It projects an average exchange rate (dinar per US$) in each of 2025 and 2026 of 1300, the same as for 2024, adding:"
"The CBI [Central Bank of Iraq] should be commended for the successful transition to the new trade finance system now fully managed by commercial banks through their CBRs, contributing to a reduction in the spread between the official and parallel market exchange rates."
(While commercial banks don't directly set official exchange rates, they can significantly influence them through their trading activities in the foreign exchange market.
Their buying and selling of currencies, driven by customer demand and their own trading strategies, impacts the supply and demand dynamics that ultimately determine the exchange rate).
The transition to the new trade finance system in Iraq is closely linked to the adoption of new digital trade mechanisms.
The transition to the new trade finance system in Iraq involves implementing more digital and internationally compliant mechanisms for trade finance, primarily handled by commercial banks, as part of the country's push towards greater digitalization of its financial sector.
This is a step into the right direction we need to see for Iraq. I am aware they are going to use CBDC for their trade token per CBI contact (boots inside the CBI Tower). 
There is a strong global trend towards Central Bank Digital Currencies (CBDCs), with a growing number of countries actively exploring, piloting, and even launching their own digital currencies.
While the United States remains undecided about a domestic CBDC, it is engaging in wholesale cross-border payment research.
If a particular country's CBDC gains significant traction in international trade, it could strengthen that currency's international role and potentially lead to its appreciation against others, according to santander.com.
This might not necessarily "level the playing field," but rather shift the balance of power between different currencies.
Are you watching the water yet
© Goldilocks
santander.com/en/press-room/
iraq-businessnews.com/2025/07/09/imf
iraqinews.com/iraq/imf-prais.
atlanticcouncil.org/cbdctracker/
American Magazine: Iraq Quietly Re-Enters International Trade
American Magazine: Iraq Quietly Re-Enters International Trade
Money and Business A report by the American economic analysis magazine Procurement Magazine
examined the significant economic and geopolitical benefits and returns of the Iraqi Development Road initiative, extending from the Grand Faw Port to the Turkish border.
The report noted that it will be a viable alternative to other trade channels, competing with them in terms of shorter distances and lower costs, transforming the country into a regional logistics hub while creating a multi-source economy beyond oil alone.
The report notes that Iraq's Development Road project represents a transformative $17 billion infrastructure initiative aimed at connecting the Gulf to Europe.
With global shipping facing challenges stemming from regional instability and bottlenecks such as the Suez Canal,
Iraq is quietly redefining its role in international trade.
This logistics corridor, stretching from the Grand Faw Port in southern Iraq to the Turkish border,
represents a strategic alternative that will reshape supply and transportation chains between Asia and Europe.
This major project has been described as "one of the most important infrastructure projects in Iraq since the 1920s."
This faster route delivers direct benefits to procurement by enabling faster supply routes, reducing storage costs, and improving responsiveness to market changes.
The global importance of Iraq's development route has been highlighted amid the ongoing Red Sea crisis, exacerbated by conflicts in the Middle East, where shipping delays have become commonplace.
In this context, the Iraqi land corridor offers a practical alternative.
In recent weeks, truck drivers from Poland and Germany have completed journeys from Europe to the Gulf via Iraq in just ten days, less than half the time required by sea through the Suez Canal.
The journey from Turkey to Kuwait now takes just seven days, and digital border crossings have reduced waiting times by 92%.
The TIR (Terrestrial International Transports International) system, which ensures the safe and efficient movement of goods across borders, is already operational, enhancing the flow of cross-border procurement and supply chains.
Hamad Al-Hakim, a transport infrastructure expert at the University of Baghdad, told the Middle East Observer earlier this year:
“The development road is expected to become a vital trade corridor, not only for Iraq but for the entire region.
By connecting the Gulf to Europe via Turkey, it will serve as a new Silk Road, revitalizing ancient trade routes and promoting economic integration.”
This corridor provides a practical alternative to the Suez Canal, meaning greater route diversification and a reduced risk of disruption, thus ensuring more reliable supply chains.
At the heart of the Iraq Development Road project is the Grand Faw Port, currently under construction in the city of Al-Faw.
This deep-water port features the world's longest breakwater, at 14.5 kilometers long, and is expected to handle 7.5 million containers annually, capable of receiving the world's largest container ships.
A 1,200-kilometer road and railway extend from the port to Turkey, and the project is expected to be fully operational by 2028.
In addition to the transportation infrastructure, the project plans to develop at least ten new cities along the railway route, along with several industrial zones and logistics centers. The development of these areas will provide new opportunities for local supply.
The development road is not just a logistics project; it represents a geopolitical transformation,
charting Iraq's transformation from a war-torn country to a pivotal regional link.
The project is supported by Turkey, Qatar, and the United Arab Emirates,
who recognize its potential to boost regional trade and reduce reliance on vulnerable maritime routes.
Kurdistan Region President Nechirvan Barzani said of the project:
"The Development Road Project represents a crucial step towards building a more stable and prosperous Iraq, based on a diversified economy and enhancing regional cooperation with neighboring countries."
Türkiye's participation is pivotal, as it represents the northern endpoint of the corridor,
which will connect to Europe via the cities of Mersin and Istanbul.
"The project provides a catalyst for economic prosperity that can benefit the entire region," said Ranj Alaaldin, a fellow at the Middle East Council on International Affairs.
As global trade networks seek to bolster their resilience in the face of geopolitical volatility,
Iraq is proving to offer not just a backup plan but potentially a major new artery for trade.
This project will redraw the region's economic map, transforming Iraq into an alternative trade artery at the heart of Eurasia.
This means transforming the country from an importer of opportunities to an exporter of corridors,
creating a diversified economy that moves away from its reliance on oil alone.
About Procurement Magazine Quoted from Al Mada newspaper views 342 https://economy-news.net/content.php?id=57214
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🌟 FIREFLY UPDATE: Iraq’s Currency Shake-Up Could Reshape the Economy 💰 #frank26 #dinarrevaluation
Read also: Q & A WITH GINGER ABOUT HOW PEOPLE WILL RECEIVE NOTIFICATIONS AND THE PROCESS IN THE REDEMPTION CENTERS
