Iraq has appealed for closer transport and logistics co-operation with the UAE and other Gulf states, arguing that deeper economic integration can help build “lasting and sustainable peace” in a region grappling with the fallout of the Iran war.
In an interview with The National, Iraqi Transport Minister Wahab Al Hassani said Baghdad saw regional infrastructure projects as more than commercial ventures. He said shared economic interests could reinforce political stability after the conflict exposed lingering security strains across the region.
Iraq-Gulf relations have been strained since the outbreak of the Iran war in late February as Tehran-backed armed groups in Iraq launched attacks against US assets in the region. Iraqi officials have sought to reassure Gulf neighbours that Baghdad remains committed to strengthening economic partnerships despite the tensions.
On Wednesday, the escalation took a new turn when Saudi Arabia for the first time launched air strikes with the US against Iraq's Popular Mobilisation Forces, a government-sanctioned group of paramilitary forces comprising mainly Iran-backed militias. The strikes killed and wounded dozens of PMF fighters across Iraq, just a day before Iraqi Prime Minister Ali Al Zaidi's scheduled visit to Riyadh.
Mr Al Hassani said Iraq's co-operation with the UAE on developing ports and transport logistics was an example of how economic integration can reshape regional ties.
The UAE possesses “world-leading expertise in ports management and logistics, while Iraq offers strategic geography and enormous opportunities”, he said. “This harmony has created a solid foundation and a genuine partnership that serves the interests and economies of both countries and the wider region.”
Negotiations with Emirati companies are continuing, he added. They are focused on container terminals and logistics zones around the under-construction Grand Faw Port on the Arabian Gulf, and infrastructure linked to Iraq's Development Road project, a multibillion-dollar transport and energy corridor linking the port and Turkey.
UAE companies, particularly the AD Ports Group, have been heavily involved in ports and logistics projects in Iraq.
In June, the AD Ports Group launched an integrated logistics service linking the UAE’s Khalifa Port with Iraq’s Umm Qasr Port with a weekly direct shipping lane for container and roll-on/roll-off (Ro-Ro) goods. It provides a speedier and more efficient commercial corridor between the two countries, and greater access to markets in the Gulf, Turkey, Europe and the entire Middle East.
Early this month, the UAE-headquartered logistics company Gulftainer launched a dedicated feeder service linking the UAE and Umm Qasr, 17 years after it established Iraq’s first modern container terminal at the port. The facility offers storage, customs, freight consolidation and other services to improve supply chain efficiency and reduce delays.
Mr Al Hassani said the expected investment from UAE companies was “very promising, and together we are drawing up an implementation road map that will translate these agreements into major projects on the ground”.
Rather than competing with Gulf ports, Iraq wants to integrate its ports into a regional transport network. “In modern economic thinking, smart ports do not compete, they complement one another as part of a single network facilitating global trade,” he said.
“UAE ports are major global transshipment and distribution hubs, while Al Faw and Umm Qasr represent the fastest and shortest land gateway connecting that trade to Europe through Iraqi territory,” he added.
He described the link between Iraq and Gulf states as “the artery of the 21st century, shortening time, bringing together the interests of nations, and establishing a lasting and sustainable peace through genuine economic partnership”.
Development Road
At the heart of Iraq's strategy is the Development Road, a $17 billion transport corridor linking the Grand Faw Port on the Gulf to Turkey through an integrated network of railways and motorways before continuing into Europe.
In 2024, Iraq, Turkey, Qatar and the UAE signed a preliminary agreement in Baghdad for joint co-operation on the project. Italian consulting companies are finalising the road and railway designs.
Mr Al Hassani rejected suggestions that the corridor was designed to compete with the Suez Canal or other routes proposed in the region.
The Development Road does not “present itself as an alternative or a project that excludes others”, he said. “It is the most natural and realistic route, shortening both time and distance.”
Unlike traditional maritime routes that often require multiple cargo transfers, the corridor would connect sea, road and rail transport directly, making it more efficient in terms of cost, speed and operational performance, he said.
He added that Iraq's long-held ambition to become a bridge between Asia and Europe had become achievable because the country had moved beyond “theoretical planning to actual implementation on the ground, with rapidly accelerating rates of progress”.
“The realism comes from genuine political will, tangible security stability and a legal framework that supports investment,” he said.
Global demand for shorter, safer and more resilient supply chains has created a historic opportunity for Iraq to capitalise on its strategic location, he said.
“The world today is searching for transport routes that are shorter, safer and less costly. Iraq offers the optimal geographical and economic answer to that urgent international need.”
Mr Al Hassani spoke to The National before Prime Minister Al Zaidi's visit to Ankara on Tuesday, where the Iraqi Transport Minister and his Turkish counterpart signed a memorandum of understanding related to the Development Road, the details of which have not been made public.
At the ceremony, overseen by Mr Al Zaidi and Turkish President Recep Tayyip Erdogan, Mr Al Hassani at first refused to sign the MoU, but did so after being asked by the Prime Minister. In a clarification issued on Wednesday, he blamed "technical and protocol issues" without giving details.
Separately, Iraq last year joined the Transports Internationaux Routiers (TIR), a customs transit system under a UN mandate that allows goods to travel across international borders in sealed compartments without undergoing customs checks or paying duties at each transit point.
Marking the first year in April, the world road transport organisation IRU said the system had created more than six new “efficient” and “secure” routes through Iraq as a vital land bridge between the GCC, Turkey and Europe. Transit times had fallen sharply to less than 10 days, it said.
Package of reforms
Mr Al Hassani said his ministry had introduced a package of reforms to reduce bureaucracy and speed up cargo movements. They include the digitisation of customs procedures, introducing a single-window clearance system, simplified visa procedures for lorry drivers and modernising inspection systems at ports and border crossings.
“The aim is to reduce waiting times to internationally recognised minimum standards,” he said.
He said Iraq's investment environment was now protected by modern legislation and high-level government guarantees, while existing international partnerships demonstrated growing confidence in the country.
“Economic and investment stability in Iraq is supported by a national consensus and a state vision that transcends governments,” he said.
Investment agreements are protected by legal and sovereign guarantees, as well as international arbitration mechanisms, he added, providing global companies with confidence that projects will continue regardless of political change.
He also sought to encourage investors still hesitant about entering the Iraqi market.
“Our message is clear: Iraq's development train has already left the station,” he said. “The biggest opportunities are created at the beginning.
“Hesitation today means missing the opportunity to establish a presence in what will become the region's most efficient and future-oriented trade corridor.”
Mr Al Hassani said Iraq was looking at the “most important strategic opportunity in its modern history, to transform its unique geography into a living and sustainable economic force”.
Whether it succeeds will depend on maintaining political stability, sustaining implementation and strengthening transparent partnerships with regional and international partners.
“Geography alone is a gift of nature, but it does not build an economy without action,” he said.
“We are determined to make this opportunity succeed not only for Iraq, but for the prosperity and integration of the entire region.”
