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Iran-Iraq competition in regional maritime and overland transit corridors
[Shafaq News] In recent years, Iraq has become one of the leading destinations for Chinese investments in the Middle East and a crucial link in Beijing's Belt and Road Initiative (BRI). To capitalize on its geostrategic location and central position within the Chinese BRI, Iraq is seeking to develop a sprawling new 54-square-kilometer port project in the far southern town of al-Faw, known as al-Faw Grand Port, which will reduce the country’s reliance on Arab Gulf ports and overland transit from Iran and Turkey for its imports. The project also underscores Iraq’s growing economic rivalry with neighboring Iran, as both countries seek to carve out a similar niche in handling regional transit traffic.IRAQ’S HURDLES TO DEVELOPMENT A number of hurdles have hampered Iraq’s efforts to diversify its economy, including extreme underinvestment and widespread corruption. There are some signs that change may be on the horizon, however. Earlier this month, Baghdad reached an agreement with France’s TotalEnergies to move forward with a massive, long-delayed $27 billion energy project, highlighting the potential for foreign investment and partnerships to contribute to Iraq’s economic growth and development. This follows an earlier deal, announced in July 2021, between the Iraqi Ministry of Oil and China National Chemical Engineering Co. (CNCEC), whereby CNCEC will develop an integrated petrochemicals and refining complex at al-Faw capable of producing 300,000 barrels per day (bpd) of oil as well as, in a later second phase, 3 million tons per annum (mtpa) of petrochemicals. Posted by: trailing wife 2023-04-16 |
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