Iraq and Turkey have opened discussions on a joint financing mechanism for major development projects. Iraqi Prime Minister Ali al-Zaidi presented the proposal during talks with Turkish Energy Minister Alparslan Bayraktar. The planned Iraq-Turkey investment fund could accelerate strategic projects and strengthen economic cooperation. Both sides also explored wider partnerships across several important sectors.
The talks covered energy, oil, gas, electricity, agriculture, and regional transport connections. Moreover, both governments examined opportunities that could support trade and long-term investment. Al-Zaidi stressed Iraq’s desire to attract greater Turkish participation in national development. He also encouraged Turkish companies to expand their operations across Iraq.
Specifically, the prime minister highlighted livestock, agricultural production, and integrated supply chains. These areas could strengthen food security while creating jobs across rural communities. Furthermore, Turkish companies could provide capital, equipment, expertise, and access to regional markets. Such cooperation could also help Iraqi producers improve efficiency and expand commercial output.
The proposed fund would focus on financing investment and development projects inside Iraq. Consequently, the mechanism could reduce delays surrounding large strategic initiatives. It could also connect government priorities with experienced Turkish businesses and investors. However, both countries still need to determine the fund’s size, structure, and project criteria.
Regional connectivity also occupied a central place in the discussions. Bayraktar emphasized Turkey’s strong interest in Iraq’s Development Road project. He said Turkish President Recep Tayyip Erdoğan closely follows the initiative. Turkey considers the route strategically and economically important for the wider region.
The Development Road could create new transport links between Iraq, Turkey, and international markets. Therefore, both governments view improved connectivity as a foundation for deeper commercial ties. The route could attract logistics businesses, industrial projects, and supporting infrastructure. Additionally, faster connections could improve Iraq’s position within regional trade networks.
Energy cooperation formed another major part of the meeting. Bayraktar confirmed Turkey’s readiness to pursue broad partnerships with Iraq. These partnerships could cover oil, gas, electricity, and supporting infrastructure. Meanwhile, stronger coordination could help both countries address supply needs and expand cross-border trade.
The Iraq-Turkey investment fund could support some projects emerging from these discussions. However, officials must still agree on financing rules and decision-making procedures. Clear oversight could help the fund attract confidence from companies and public institutions. Likewise, transparent project selection could direct money toward practical and high-impact proposals.
Bayraktar also delivered greetings from Erdoğan and underlined Turkey’s commitment to bilateral relations. The message reflected Ankara’s interest in maintaining regular economic and political coordination with Baghdad. In response, Iraq highlighted investment as a central tool for advancing the partnership. Both sides signaled interest in moving from discussions toward practical cooperation.
For Iraq, Turkish investment could support diversification beyond traditional oil revenues. New agricultural, energy, and transport projects could create jobs and strengthen domestic production. For Turkey, closer ties could open commercial opportunities in a neighboring market. Moreover, improved regional connections could benefit exporters, transport companies, and energy businesses.
The discussions showed that both countries want a broader economic relationship. Nevertheless, the fund’s success will depend on clear agreements and effective project management. Future cooperation will also require stable policies and continued coordination between both governments. If both sides advance the proposal, the fund could become a key investment channel.
