Türkiye's role in Development Road Project Gateway to economic growth, regional connectivity

The Development Road Project signifies a crucial advancement in regional connectivity and Türkiye-Iraq relations, embodying a new diplomatic era focused on cooperation and counterterrorism. This ambitious initiative is progressing steadily, bolstered by Turkish President Recep Tayyip Erdogan's April visit to Iraq, which attracted new regional partners like the UAE and Qatar. The first phase is expected to be operational by 2028.

Expanding transportation routes has immense potential for economic growth, but moving goods is just the beginning. As the leading stakeholder, Türkiye can gain more than transit fees and tariffs; the project should drive economic growth for both Turkish and Iraqi economies, as well as for participating nations, Caliber.Az reports via Turkish media.

The Development Road Project will enhance regional connectivity by integrating existing trade routes. However, to fully exploit this opportunity, an export-driven economic model with a sector-focused approach should be prioritized. Establishing free trade zones in strategic locations, starting with southeastern Anatolia, and leveraging public-private partnerships can attract investment. Business councils like DEİK can play a crucial role in fostering state-private sector relations, incorporating Turkish companies' experience in Iraq's reconstruction.

Expanding this project into European markets can enhance key sectors dominating EU trade, such as motor vehicles, iron and steel products, and textiles. Modernizing the rich agricultural potential of southeastern Anatolia with advanced techniques can transform the Development Road Project into a vital corridor for Türkiye's agro-food exports. The EU's energy and food security issues, exacerbated by the Russia-Ukraine war, offer Türkiye a unique opportunity to address emerging needs and capitalize on its market proximity.

The project's success can be elevated by integrating it with other major trade routes, like the China-Pakistan Economic Corridor (CPEC). Connecting this route to the sea via Gwadar Port offers a cost-effective transportation option compared to the Maritime Silk Road. The Türkiye segment of the Middle Corridor also presents opportunities for alternative highway and railway connections, aiming for efficient transportation. Türkiye can leverage its central position in this network to tap into new markets through multilateral agreements.

Türkiye's construction industry, one of the most active worldwide, can play a significant role in building new infrastructure in Iraq, supported by Qatari and Emirati financial institutions. Reflecting on China's Belt and Road Initiative, Türkiye can optimize its construction industry and foreign exchange reserves by extending loans and participating in the construction boom.

Incorporating digital advancements, particularly AI, into the Development Road Project is essential for future success. Connectivity projects must include a digital dimension supported by sophisticated optimization software for effective planning and seamless flow of goods. By leveraging these technologies, Turkish service companies can conduct risk analyses, optimize finances, and plan export products efficiently, revolutionizing investment and production.

By harnessing a sector-based export model, a thriving construction industry, and innovative digital technologies, the Development Road Project offers Türkiye and participating nations significant economic opportunities.