Why Iraq says this road will fix the Middle East

Summary

Iraq is undertaking a $7 billion mega project, the Developmental Road Project, to build a 1200 km highway and railway to transform itself into a major trade node connecting Asia to Europe. The project aims to bypass the Red Sea and provide a safer, faster alternative for East-West trade, potentially generating 250,000 jobs and earning Iraq up to $4 billion annually in transit fees. However, the project faces challenges including environmental issues, corruption, and regional disputes. Despite these, success could shift Iraq from a hub for extremism to a cornerstone of international trade.

Takeaways

• 🌍 Iraq is constructing a massive Rail and Road Network to connect the Gulf region to the Mediterranean, aiming to boost trade and stability.
• 🤝 In April 2024, Iraq and Turkey signed over 24 deals, including agreements on water distribution and cooperation against the PKK.
• 💼 Iraqi diplomats are actively seeking investors and partnerships, including deals with Qatar and the United Arab Emirates.
• 🚧 The Iraqi Corridor is one of several vying for dominance in East-West trade, distinguishing itself by involving regional power brokers.
• 🏗️ The Grand Faw Port, a key part of the project, is set to become the largest in the region with a 15 km breakwater, the longest in the world.
• 🚚 The project aims to generate about 250,000 jobs and earn Baghdad up to $4 billion annually in freight transit fees.
• ⏱️ The Iraqi Corridor could cut the average time for Asian exports to Europe by up to 10 days, potentially siphoning off Red Sea trade.
• 🌐 Regional powers like the UAE and Qatar support the project, seeing it as a way to maintain influence and contain other regional powers.
• 🚧 The project faces challenges including environmental complications, corruption, and territorial disputes that could undermine its ambitions.
• ⚖️ The success of the Iraqi Corridor could reshape regional dynamics, affecting the balance of power and trade in the Middle East.

Q & A

What is the main goal of Iraq's massive Rail and Road Network project?

The main goal of Iraq's project is to connect the Gulf region to the Mediterranean, facilitating billions of dollars in trade and potentially increasing the country's prosperity and stability.

What significant meeting took place in Baghdad in April 2024?

In April 2024, Baghdad hosted a meeting between Turkish and Iraqi leadership, marking the first such meeting in 13 years, where they signed over 24 deals.

What commitments were made by Turkey and Iraq during their April 2024 meeting?

Turkey agreed to be more generous in the distribution of water in the Tigris and Euphrates, while Iraq committed to taking a stronger stance against PKK militants.

How does Iraq's project fit into the competition for East-West trade dominance?

Iraq's project aims to involve regional power brokers rather than exclude them, setting it apart from other corridors like the Chinese-backed Middle Corridor, Russian-backed North-South Corridor, and the India Middle East Europe Economic Corridor.

What are the environmental complications that could hinder Iraq's developmental ambitions?

Environmental complications, corruption, and ongoing territorial disputes are challenges that could undermine Iraq's ambitions for its developmental Road Project.

What is the significance of the Grand Faw Port in Iraq's developmental Road Project?

The Grand Faw Port, located on an artificial island at the mouth of the Shatt Al Arab River, is set to become the largest port in the region and is a key component of Iraq's plan to transform into a major trade node.

How does the Iraqi Corridor project potentially impact the Red Sea trade?

If successful, the Iraqi Corridor could cut the average time for Asian exports to Europe by up to 10 days, potentially siphoning off trade from the Red Sea and impacting Cairo's revenue from freight levies.

What are the geopolitical implications of the Iraqi Corridor for neighboring countries?

The Iraqi Corridor could affect regional power dynamics, potentially reducing Iran's influence and undermining its role as the anchor of the Gulf region, while also providing Turkey with an opportunity to increase its trade and defense cooperation with Iraq.

How does the instability in the Red Sea affect the viability of the Iraqi Corridor?

The instability in the Red Sea could make Iraq's offer of a safer and faster alternative for East-West trade more attractive, potentially giving the Iraqi Corridor an advantage over other routes.

What are the internal challenges Iraq faces in implementing the developmental Road Project?

Internal challenges include corruption, sectarianism, militarism, and the risk of insolvency, which could hinder the progress and success of the developmental Road Project.