Iraq launches joint-stock company to lead Development Road project

New model allows citizens and investors to co-own strategic infrastructure initiative linking Gulf to Europe

BAGHDAD, Iraq (MNTV) – Iraq has established a public joint-stock company to manage the ambitious Development Road project, marking a qualitative shift in the country’s economic governance strategy. 

The move introduces a participatory model aimed at mobilizing domestic and international investment while encouraging citizen ownership in one of Iraq’s most significant infrastructure ventures.

The new company, which will oversee the Development Road linking the Arabian Gulf to Europe through Iraq and Turkey, will open its shares for public subscription. Iraqi citizens, local firms, and foreign investors will all be eligible to buy into the project. 

Officials say the approach moves away from traditional state-led financing toward a model that promotes transparency, community engagement, and economic revitalization.

“This is not just a regulatory measure,” said Mohammed Al-Najjar, Executive Director of the Iraq Development Fund, in remarks to Al-Sabah newspaper. “It is a shift in economic philosophy. The state will supervise and regulate, but not implement directly. This project will be owned and developed by Iraqis, with support from global partners.”

The Development Road aims to transform Iraq into a vital transit hub on the global supply chain, connecting the Arabian Gulf with European markets. 

The initiative includes constructing a railway and integrated logistics network, enhancing Iraq’s infrastructure, and positioning it as a strategic economic corridor amid changing regional trade dynamics.

According to Al-Najjar, the government is currently working to attract international corporations with proven experience in large-scale transportation and logistics projects. 

These partnerships are expected to boost the project’s success while integrating Iraq into broader regional infrastructure systems.

The new initiative also comes as Iraq ramps up international cooperation through bilateral agreements and memoranda of understanding, especially with Turkey and members of the European Union, to ensure smooth implementation beyond Iraq’s borders.

Investment expert Amer Al-Jawahri emphasized that the initiative could reshape Iraq’s national economy—particularly if international strategic partners with financial and operational expertise are engaged early.

Al-Jawahri also recommended that the state retain a 25–30% ownership stake to maintain supervisory authority while enabling greater participation from private investors. 

He likened the model to Egypt’s Suez Canal expansion, which was successfully funded through citizen investment rather than relying entirely on state funds.

“This experiment, if professionally managed, could help unlock billions in frozen liquidity in the local economy,” Al-Jawahri said. “It offers citizens a stake in national development and provides a direct route to stimulate growth outside the limits of the general budget.”

The Development Road initiative includes complementary projects such as the Banana Island Adventure Park and other tourism efforts, signaling a wider national drive to diversify Iraq’s economy. 

However, experts warn that success hinges on institutional readiness. This includes hiring international consultants, establishing transparent legal frameworks, and engaging with key stakeholders such as transport companies, trade unions, and manufacturers.

Observers widely agree that if implemented effectively, the Development Road project will elevate Iraq’s role in international trade and usher in a new era of economic participation for its citizens.