Major Progress in Iraq: Iraq Completes Major Portion of the Development Road Project
IQD investors are highly interested in Iraq's Development Road Project because it signals long-term economic stability, increased foreign investment, and a potential rise in the value of the Iraqi dinar (IQD). This massive infrastructure project—linking the Al-Faw Grand Port to Turkey and Europe via road, rail, and pipeline—positions Iraq as a central trade hub between Asia and Europe. As a result, it could dramatically boost Iraq’s non-oil revenues, create jobs, and diversify the economy, all of which are essential criteria the International Monetary Fund (IMF) looks for when evaluating currency stability and value.
For IQD investors, the Development Road is a strategic economic indicator. A functioning trade corridor of this scale increases Iraq’s global integration and credibility, drawing in foreign direct investment and reducing dependency on oil exports. When Iraq successfully builds this trade route, it strengthens the case for the IQD to gain international recognition and possibly revalue over time—something many investors have long speculated on. In short, the project represents a pathway to greater financial sovereignty for Iraq, so dinar investors are watching it closely.
The Development Road initiative is not only about cargo. It's a multi-modal transportation corridor that includes railways, highways, and pipelines, aimed at linking Gulf ports with European markets via Turkey. Designed to rival Egypt’s Suez Canal in regional importance, this strategic infrastructure could redefine Iraq’s economic landscape and restore its role as a central hub for global trade.
Iraq has completed a major portion of its ambitious Development Road project, a vital part of the $17 billion infrastructure initiative aimed at transforming the country into a strategic trade corridor between Asia and Europe. The General Company for Ports of Iraq (GCPI) announced on Monday that the first segment of the highway, spanning 62 kilometers and linking the Al-Faw Grand Port with Umm Qasr, is now complete. This newly built stretch features three lanes dedicated to heavy trucks, fortified by a high-quality safety wall, and lit by solar-powered streetlights to align with modern energy sustainability goals.
Of the total road, 51 kilometers connect directly from Al-Faw Grand Port to a submerged tunnel, with the remaining 11 kilometers stretching toward the town of Safwan near the Kuwaiti border. The project also includes two main bridges, measuring 805 meters and 300 meters respectively. Meanwhile, Transport Minister Razzaq Al-Saadawi confirmed that the first phase of the Al-Faw Grand Port is on track to be completed by the end of 2025. Once operational, this port—set on a 54-square-kilometer open-sea site—will become the largest of its kind in the Middle East, surpassing even Dubai's Jebel Ali Port.
The initial phase of the Al-Faw project consists of five completed piers, a 2,400-meter underwater tunnel under the Khor Al-Zubair Channel, a container yard, and a new ship canal. These features will integrate the Al-Faw Grand Port into Iraq’s broader transportation infrastructure, including the Development Road network, which is designed to connect Basra to Turkey and onward into Europe.
South Korea’s Daewoo Engineering & Construction has built five container berths at the port, each capable of handling ships with a capacity of up to 23,000 twenty-foot equivalent units (TEUs). When the full project is completed by 2038, the port is expected to have 100 berths with the capacity to manage 7.5 million TEUs annually—far exceeding Dubai’s current capabilities. By 2028, the first phase alone will be able to handle 4 million TEUs per year.
