Iraq Pursues Joint Investment Fund With Türkiye to Deepen Economic Partnership

ERBIL (Kurdistan24) - Iraq is working to establish a joint investment fund with Türkiye to finance major infrastructure and development projects, a move that Iraqi officials presented on Thursday as a new step toward strengthening the long-term economic relationship between the two neighboring countries.

The proposal emerged during a meeting in Baghdad between Iraqi Prime Minister Ali Falih al-Zaidi and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar, who led a delegation for talks focused on expanding bilateral cooperation and advancing shared strategic priorities.

According to a statement issued by the Iraqi Prime Minister's Media Office, the discussions centered on mechanisms for broadening cooperation across multiple sectors while building on what both sides described as longstanding historical ties, geographic proximity and shared economic interests.

During the meeting, al-Zaidi announced that the Iraqi government is working to establish an Iraqi-Turkish Investment Fund intended to finance large-scale investment and infrastructure initiatives. According to the Prime Minister's Media Office, the proposed mechanism is designed to accelerate the implementation of strategic development projects while reinforcing the economic partnership between Baghdad and Ankara.

The announcement places investment financing at the center of Iraq's broader efforts to modernize infrastructure and attract greater regional investment. While officials did not disclose details regarding the structure or timeline of the proposed fund, the initiative was presented as part of a wider strategy to support long-term development and deepen economic integration with neighboring countries.

The Iraqi Prime Minister also emphasized that the two countries possess substantial opportunities to expand cooperation across a range of sectors, reflecting what his office described as shared interests that extend beyond traditional diplomatic engagement.

The proposed fund represents an effort to create a more institutional framework for financing major projects, linking investment with broader economic development objectives and long-term bilateral cooperation.

For Türkiye, energy remains a central pillar of that partnership.

According to the Iraqi Prime Minister's Media Office, Bayraktar conveyed greetings from Turkish President Recep Tayyip Erdogan and reaffirmed Ankara's commitment to strengthening its relationship with Iraq. He described Iraq as an important regional partner and emphasized Türkiye's interest in expanding strategic cooperation in areas that support the development priorities of both countries.

Bayraktar highlighted President Erdogan's continued support for the Development Road Project, presenting it as an initiative with significant economic and strategic importance for Iraq, Türkiye and the wider region.

The Development Road Project has become one of the flagship areas of cooperation between Baghdad and Ankara, reflecting a shared interest in improving regional connectivity and supporting cross-border trade and infrastructure. During Thursday's meeting, however, it formed part of a broader discussion on long-term economic collaboration rather than serving as the primary focus.

The Turkish minister also reaffirmed Türkiye's readiness to broaden cooperation in key sectors including oil, natural gas, electricity and regional energy interconnection. According to the official statement, he said Ankara is prepared to pursue comprehensive strategic partnerships that advance mutual interests while supporting development in both countries.

Taken together, the discussions underscored the increasingly economic character of Iraq-Türkiye relations, with investment, infrastructure and energy emerging as interconnected priorities for both governments.

Although officials did not announce specific agreements during the meeting, both sides presented the proposed Iraqi-Turkish Investment Fund as an important component of a broader effort to institutionalize economic cooperation. According to the Iraqi Prime Minister's Media Office, the initiative is intended to provide a financing mechanism for strategic development projects while strengthening the long-term partnership between Baghdad and Ankara across investment, infrastructure and energy.