A preliminary agreement was signed between Iraq, Turkey, Qatar and the United Arab Emirates for cooperation on Iraq’s ambitious development road project in the Iraqi capital Baghdad.
Development Road Project
- This “Road of Development” connects Iraqi ports on the Persian Gulf to the Turkish border in the north.
- It involves building approximately 1,200 km of two-way rail track and a new motorway from Al Faw port in Iraq’s Basra province to the Turkish border in the north.
- Iraq’s ambitious $17 billion project is presented as an alternative to the region’s current only international sea route through the Suez Canal.
- This development road was first announced as a government project in 2010.
- Goal: The project aims to promote a sustainable non-oil economy and strengthen regional connectivity.
- It is also important to revive Iraq’s aging transportation network and open up development opportunities across the country’s vast region.
Economic importance
- The development road project aims to build a sustainable economy connecting East and West, promote international trade, facilitate mobility and commerce, establish a new competitive transportation route, and promote regional economic prosperity.
- It is a key pillar of a sustainable non-oil economy. Besides, this will also lead to development of vast areas of Iraq.
- It is estimated that the Vikas Road project could generate annual revenues of $4 billion and at least 100,000 jobs.
Geopolitical importance
- Strategic geographical position: Through this project, Iraq wants to take advantage of its strategic geographical position. With the development of the project, direct connectivity can be established from the Persian Gulf to Eastern Europe countries via Turkey. The project has the potential to establish Iraq as a transportation hub for goods and passengers between the Gulf, Turkey and Europe.
- Option of IMEC: Both Iraq and Turkey are pursuing this project rapidly, in fact both these countries are not included in the India-Middle East-Europe Economic Corridor (IMEC). Unlike IMEC, this development road has a significant reduction in transportation costs and transit time due to fewer loading and unloading points.
- Regional stability: It can be helpful in improving the region economically. The development path will not only bridge distances but also act as a bridge connecting the people of the region and their cultures. This will support security and stability in the region.
Benefits for india
- This project can provide a short and efficient trade corridor option for India, reducing transportation time and cost for Indian goods to reach European markets.
- Due to Gaza crisis and mistrust of Arab countries towards Israel, challenges are increasing in materializing the project of India-Middle East-Europe Economic Corridor.
- In such a situation, Iraq’s Development Road Project can provide an option to take India’s growing export economy to the Gulf countries as well as Eastern Europe and Russia via Turkey.