by Sebastien GOULARD
At the end of June, AD Ports Group launched a new logistics service linking Khalifa Port in the UAE with the Iraqi port of Umm Qasr.
Through this new service, AD Ports Group aims to establish a new trade corridor connecting the Gulf to Europe via Iraq, Türkiye, and Syria.
In Syria, the company is exploring investment opportunities in ports and industrial zones to develop new commercial links with the Iraqi port of Umm Qasr. One of the projects currently under discussion with the Syrian authorities involves the establishment of a logistics hub at Al-Tanf, on the Iraqi-Syrian border. Until February of this year, Al-Tanf hosted a U.S. military base, meaning that the area already possesses a number of basic infrastructures that could facilitate the development of new transport services between Syria and Iraq.
A More Attractive Syria
After years of isolation, Syria is seeking to develop new partnerships with the international community, particularly with its Arab neighbours. On 30 June 2026, Syrian Minister of Economy and Industry Nidal al-Shaar announced the opening of business centres with Jordan and the United Arab Emirates. In 2025, non-oil trade between Abu Dhabi and Damascus doubled, reaching USD 1.4 billion. The UAE is regarded by Damascus as a reliable partner capable of investing in the country’s modernisation. According to World Bank estimates, rebuilding Syria after years of conflict will require approximately USD 216 billion. The Syrian government has announced its intention to open the country’s economy more broadly to foreign investors. In October 2025, Syria signed memoranda of understanding worth USD 14 billion with international investors.
The crisis in the Strait of Hormuz has further increased Syria’s attractiveness to the Gulf states, particularly the UAE. The Emirates have strengthened the capacity of Fujairah Port, located on the Gulf of Oman, east of the Strait of Hormuz. At the same time, they are seeking to diversify their trade routes in order to reduce their exposure to potential Iranian actions in the Strait of Hormuz, as well as to threats posed by the Houthis in the Red Sea. In this context, the creation of a corridor crossing Mesopotamia towards Syria or Türkiye is increasingly viewed as an additional and more secure alternative.
This strategy could also contribute to the revival of Syria’s Mediterranean port of Tartus. The country’s second-largest port after Latakia requires substantial modernisation. In July 2025, the Emirati company DP World signed a 30-year concession agreement with the Syrian authorities to operate the Port of Tartus.
Another major challenge facing the Syrian government is the reconstruction of the country’s railway network. This will not only strengthen domestic connectivity but also facilitate trade with neighbouring markets.
Iraq and Regional Connectivity
Like Syria, Iraq is seeking to modernise its railway infrastructure. In June 2025, Baghdad secured USD 930 million in World Bank financing to support the rehabilitation of its railway network, particularly the line connecting Umm Qasr Port in the south with Mosul in the north.
In June 2026, the World Bank also approved financing for the rehabilitation of Iraq’s road network along the main corridors leading to Türkiye, Syria, and Jordan. Upgrading Iraq’s transport infrastructure is expected to facilitate investment beyond Baghdad and stimulate economic development across the country.
Iraq remains heavily dependent on oil revenues, which it hopes to increase by expanding production. The overwhelming majority of its oil exports transit through the Strait of Hormuz. Developing alternative export routes that provide direct access to European markets via the Mediterranean has therefore become a strategic priority for Baghdad.
An Extension of IMEC?
This new corridor through Iraq and Syria could eventually serve as a secondary branch of the India–Middle East–Europe Corridor (IMEC), launched in 2023 but significantly delayed by the resurgence of the Israeli-Palestinian conflict following Hamas’ attacks of 7 October 2023.
The Strait of Hormuz crisis has encouraged the Gulf states to accelerate the development of alternative maritime and overland trade routes. Among them, the UAE appears to be one of the most determined actors, seeking to reduce its dependence on Iran’s control of the Strait of Hormuz in order to safeguard its commercial flows.
The construction of the UAE-Iraq-Syria corridor will require considerable time and substantial investment. Nevertheless, for the Gulf states, this new route is increasingly seen as essential to strengthening their strategic autonomy and reducing their vulnerability to potential disruptions originating from Iran.
