Oman seeks stake in Iraq’s Development Road

Oman has informed Iraq it wants to be part of a multi-billion-dollar rail and road project along with Turkey, Qatar and the UAE, Iraq’s transport minister has said.

Reuters | The Development Road project is intended to connect the Faw port with the border of Turkey

• Development Road to cost $17bn

• Major infrastructure project

• Oman to join Qatar, Turkey and UAE

The request came on the heels of Iraqi prime minister Mohammed Al-Sudani’s visit to the sultanate last week and Baghdad’s disclosure of plans to construct an oil pipeline to Oman to bypass the Strait of Hormuz.

“Iraq has received new applications to join the Development Road from some countries, mainly Oman,” Razzak Al-Saadawi said in local press comments on Monday.

The Development Road project, costing at least $17 billion, involves the construction of a 1,200km rail line and a parallel motorway from Faw Port to the northern border with Turkey, where it is then linked to Europe via a Turkish rail network.

Iraq has sent officials to several countries to seek partners to secure funds for the project, which it hopes will turn the country into a major commercial transit hub.

The US management consultancy firm Oliver Wyman has been contracted with preparing a study on the project’s potential returns once it is commissioned.

Iraq officials said in late 2024 that investors would be rewarded with at least $4 billion a year through the first phase, which is scheduled to be completed in 2029.

Iraq has not disclosed the shareholding of each partner but local experts have said Qatar and the UAE will provide a large part of the finance while Turkey provides logistics.

Besides rail and roads for freight and passengers, the scheme also includes the construction of cities as well as hundreds of rest houses.

A transport ministry official said in July that Baghdad intends to invite bids for the Development Road from international companies in late 2025.

The project will be offered to contractors in several packages as it also comprises 15 industrial and economic zones, said Maytham Safi, the ministry’s information director.

By Nadim Kawach

September 16, 2025, 6:20 PM