- Oman has requested to join multi-billion-dollar Development Road project.
- The $17bn scheme links Faw Port to Turkey and Europe via rail and motorway.
- Qatar, Turkey, and the UAE are already involved, with Oman now seeking a role.
Oman has notified Iraq of its interest in joining the $17bn Development Road, a flagship infrastructure project designed to transform Iraq into a regional transit hub. Iraqi Transport Minister Razzak al-Saadawi confirmed Muscat’s request after Prime Minister Mohammed al-Sudani’s recent visit to Oman, during which Baghdad also revealed plans for an oil pipeline to bypass the Strait of Hormuz.
The Development Road involves a 1,200km rail line and parallel motorway from Faw Port to Iraq’s northern border with Turkey, linking into Europe’s rail network. Iraq hopes the project will transform it into a major commercial transit hub.
(Photo from Anadolu Ajansı)
Consultancy firm Oliver Wyman has been commissioned to study the project’s returns, with estimates suggesting at least $4bn annual investor revenue from the first phase, due in 2029.
Partners and Financing
Signalling rising regional interest, Iraqi Transport Minister Razzak al-Saadawi said Iraq has “received new applications to join the Development Road from several countries, primarily Oman,” suggesting that additional Arab states may soon participate.
While Baghdad has not disclosed the specifics of Oman’s potential stake, regional analysts expect Qatar and the UAE to provide much of the financing, with Türkiye offering logistical expertise. International contractors are expected to be invited to bid by the end of 2025, as Iraq pushes ahead with the $17bn corridor linking the Gulf to Europe.
Why it matters?
The Development Road carries strategic weight far beyond Iraq. By linking the Gulf directly to Europe via rail and road, the project offers an alternative to traditional maritime routes through the Suez Canal and the Strait of Hormuz. This diversification could reduce vulnerabilities to regional chokepoints and shipping disruptions, while bolstering Iraq’s role as a land bridge between Asia and Europe.
For Gulf states like Oman, participation promises both economic and geopolitical benefits. Muscat gains a new export corridor for oil and goods, reinforcing its bid to become a logistics hub while avoiding the heavily militarised Strait of Hormuz. For Iraq, the project represents a chance to diversify away from oil dependency, attract foreign investment, and stabilise its post-conflict economy through infrastructure-led growth.
The Development Road also intersects with broader regional competition. Türkiye sees the corridor as complementing its Middle Corridor trade initiative linking Asia to Europe, while Gulf rivals eye influence over Iraq’s economic revival. Analysts suggest that the project, if completed on time, could reshape the economic geography of the Middle East, tying Iraq more closely to Gulf and European markets and reducing reliance on unstable sea lanes.
