Kuwait and Iraq Compete in $13bn Megaport Development Race

Kuwait and Iraq are engaged in a high-stakes competition to develop two massive port projects that promise to redefine trade routes and economic power in the Gulf region. With an estimated combined investment of $13 billion, the projects—the Grand Faw Port in Iraq and the Mubarak Al Kabeer Port in Kuwait—are set to become major hubs for global shipping.

Iraq’s Grand Faw Port, situated in the southern Basra region, aims to be one of the largest in the Middle East. This project, which has faced delays and funding challenges, is now gaining momentum with an expected completion of its first phase by 2025. The port is designed to handle over 100 million tons of cargo annually and is a crucial part of Iraq’s efforts to boost its economy and reduce its dependence on oil revenues. It also includes plans for an extensive rail network, potentially linking Europe and Asia through Iraq.

Meanwhile, Kuwait is making strides with its Mubarak Al Kabeer Port, located on Boubyan Island. The project, which is part of the country’s broader “New Kuwait 2035” development vision, is expected to become a key transshipment hub, leveraging Kuwait’s strategic location. This port is set to support Kuwait’s ambitions to diversify its economy and increase its role in regional logistics and trade.

The rivalry between the two ports is not just about economic gain but also about geopolitical influence in the region. Both countries are seeking to capitalize on their strategic locations along the Arabian Gulf, with aspirations to attract global shipping traffic and reduce reliance on neighboring ports in the UAE and Saudi Arabia.

As both projects advance, they could reshape the economic landscape of the Gulf and have significant implications for global trade. The outcome of this competition will likely influence regional dynamics and could determine which country becomes a key player in the global logistics industry.