Iraq’s Dry Canal: A new overland trade route linking the Gulf to Europe

Business Tech 03-04-2026 | 12:47

Iraq’s Dry Canal: A new overland trade route linking the Gulf to Europe

The ambitious infrastructure project aims to boost economic growth, create tens of thousands of jobs, and position Iraq as a strategic logistics hub between East and West.
Iraq’s Dry Canal: A new overland trade route linking the Gulf to Europe
The Iraqi Dry Canal
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The Dry Canal is an Iraqi project that connects the Grand Faw Port on the Arabian Gulf with Turkey and Europe through a network of railways and highways, serving as an alternative and fast route for transporting goods.

 

Development consultant Amer Al-Jawahiry told Annahar that the project aims to strengthen connections between Iraqi provinces and improve infrastructure, contributing to economic and social development. He described it as one of the most important government initiatives to support sustainable growth, create job opportunities, and encourage both domestic and foreign investment.

 

What is its goal?
The project aims to transport goods from Gulf ports across Iraqi territory to the Turkish border and from there to Europe. It is designed as an overland trade route that provides an alternative to long sea routes, especially during crises, such as the current closure of the Strait of Hormuz by Iran and threats by its ally, the Houthis, to navigation in the Red Sea.

 

What does it include?
The project includes a double railway line and a highway that stretches from Basra in the south to Iraq’s northern border. It also involves the construction of industrial cities and commercial zones along this route.

 

Why is it important?
According to Al-Jawahiri, the Development Road project is a strategic economic lifeline for Iraq, linking production areas, ports, and industrial centers. This facilitates the movement of goods and reduces transportation costs. He emphasized that the project is not just a transit route but a hub for sustainable development, opening wide opportunities for investment and stimulating the local economy in multiple regions.

 

How much will it cost?
Al-Jawahiri estimated the project’s cost at between 8 and 12 billion dollars according to preliminary assessments. This includes building roads, bridges, tunnels, and connecting existing routes to local and international trade outlets. Iraq has the technical and financial capabilities to complete the project, but it requires coordinated government efforts, international support, and the maintenance of security and political stability across all provinces.

 

What is expected from it?
The development consultant said that the Development Road is expected to improve access to basic services, support the agricultural and industrial sectors, and enhance the efficiency of domestic and international transport. It will also strengthen Iraq’s regional position as an important logistical hub between East and West. The project is expected to create more than 50,000 direct and indirect jobs during its implementation, helping to reduce unemployment and support the national economy.

 

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