By Anas al-Bar | 2024-12-13

Iraq has opened five new docks at Grand al-Faw Port in Basra province, which is on track to become a major oil and gas export hub, making Iraq a global economic player and reducing its dependency on other nations.

At the November 7 inauguration ceremony, Iraqi Prime Minister Mohammed Shia al-Sudani noted the port's potential to "transform Iraq from a country dependent on the ports of others to a maritime state with a full presence on the Gulf."

He highlighted Iraq's future role as a "fundamental pillar of the global economy."

The completed docks, constructed by South Korean company Daewoo, span 1.7km, per Iraq's General Company for Ports director Farhan al-Fartousi.

"Work on the remaining projects is progressing faster than planned," he said.

The port is expected to reach maximum capacity by 2028, handling 3.5 million containers and establishing a shorter transportation corridor between Asia and Europe, he told Reuters.

The port project initially faced obstruction from influential supporters of Iran, which fought to have it awarded to a Chinese company instead of Daewoo.

Iraq signed the contract with Daewoo in December 2020 after excluding the Chinese Maritime Customs Service company from competition as it was not specialized in port construction, Iraqi officials said at the time.

Economic diversification

Iraq "depends on oil for 90% of its resources," said Iraqi MP Mustafa al-Karaawi, who serves on the parliamentary finance committee.

The development moves Iraq closer to economic diversification, he explained, as ports offer dual revenue streams through "oil export and reception of oil tankers" and "the entry of goods."

According to al-Sudani's transport affairs advisor, Nasser al-Asadi, "the importance of these berths lies in opening the door for Iraq to make the al-Faw Port project a reality that transforms it into a diversified economy."

The United States has been a strong supporter of Iraq's diversification, providing it with $150 million in economic development assistance in 2023 alone.

The two nations reinforced their collaboration during recent US-Iraq Higher Coordinating Committee discussions.

Iraq's path to energy independence by 2030 is achievable through its abundant natural gas resources and investments in energy infrastructure and renewables, the committee said in an April statement.

The port project also has catalyzed broader regional cooperation.

In April, Iraq, Turkiye, Qatar and the United Arab Emirates pledged to promote investment along trade routes, potentially reducing regional tensions while fostering peace through economic partnership.