Turkiye Launches New Trade Strategy with Syria and Iraq
Ankara expands regional cooperation through new security and economic agreements with its neighbors.
Updated on Oct. 31, 2026 in International Trade
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Turkiye is implementing a dual-track security and economic strategy to strengthen state-to-state relations with Syria and Iraq. This regional initiative seeks to leverage transport hubs like the Development Road Project and the Hejaz Railway to expand commercial ties.
Why it matters
Turkiye aims to solidify its position as a central trade, transport, and energy hub in the region. The agreements also serve to contain Iranian influence and secure the borders between these nations to prevent militant activity.
Bilateral trade between Turkiye and Iraq hit $17 billion as of July 2026, with an ambitious target of $30 billion. Meanwhile, trade between Turkiye and Syria reached $3.7 billion in 2025, with officials aiming for a $5 billion near-term goal.
The players
Recep Tayyip Erdogan
He serves as the President of Turkiye and is the primary architect of the nation's regional economic and security outreach strategy.
Ali Al-Zaidi
He is the Prime Minister of Iraq who is actively pursuing deeper integration with Turkiye and regional partners.
Ahmad Al-Sharaa
He is the current President of Syria following the 2024 collapse of the prior political regime.
The details
The strategy includes a military cooperation agreement with Syria and a water management deal for the Tigris and Euphrates rivers with Iraq. These initiatives also involve the gradual handover of a northern Iraqi military camp to local control.
Timeline
2011 marked the beginning of strained relations between the three nations.
2024 saw the collapse of the Assad regime and a visit to Iraq by Recep Tayyip Erdogan.
2025 saw bilateral trade between Turkiye and Syria reach $3.7 billion.
July 2026 marked total bilateral trade with Iraq reaching $17 billion.
October 2026 saw the Iraqi Prime Minister visit Damascus for strategic talks.
Market Dynamics
The current economic cooperation agreements with Iraq and Syria follow the logistical framework established by the Development Road Project. These diplomatic moves represent a shift toward integrating infrastructure corridors to secure long-term regional trade stability.
Investors tracking emerging markets should monitor the development of the Hejaz Railway and the Development Road Project as indicators of trade capacity. These long-term transport initiatives are likely to shift logistics costs and energy distribution routes for firms operating in the region.
The takeaway
The normalization of regional trade routes suggests a pivot toward infrastructure-led diplomacy in the Middle East. Businesses should track these cross-border agreements as they define the new regulatory framework for trade along the 600 km shared border.
What happens next
President Recep Tayyip Erdogan is currently scheduled to conduct a state visit to Syria to further solidify the newly signed cooperation agreements.
Further reading
For more on evolving economic ties, see the International Trade section.
Source note: This article includes information reported by The Frontier Post.
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