Iraq Infrastructure Boom Opens New Trade Routes for Greece and European Investors

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Direct air travel between Athens and Baghdad is resuming, reopening a route long closed by regional difficulties. Aegean Airlines announced flights will start on 16 December to Iraq.

Greek Foreign Minister Giorgos Gerapetritis shared news of the launch during a Baghdad visit. Aegean is a pioneer among European airlines offering a direct route to Iraq’s capital.

Airlines follow money. Investment tends to go where potential returns justify the exposure.

A Calmer, More Stable Iraq

Business confidence grows because Iraq is working to maintain its stability. A senior Iraqi security official confirmed that pro-Iran groups are cooperating with the government to preserve Iraq’s neutrality in regional matters. 

Prime Minister Al-Sudani also publicly prohibited using Iraqi territory or airspace for attacks on neighbouring countries.

During a recent confrontation, Iraq’s Iran-aligned militias remained noticeably quiet, and the country remained outside the fray. Athens paid attention, as Greek ministers visited Baghdad at a time stability is a central factor in business decisions.

Building the Future: Iraq’s Infrastructure Push

With parliamentary elections set for 11 November, 2025, Iraq focuses on development. Foreign Minister Fuad Hussein said the two countries look into cooperation in agriculture, investment, and tourism. 

Hussein noted that recent visits from European leaders affirm Iraq’s growing stability. A main part of effort involves fixing up infrastructure, which attracts carriers.

This push includes awarding a major contract to overhaul Baghdad International Airport to a consortium including Corporacion America Airport and Amwaj International. 

An even bigger project is the "Development Road." 

In April 2024, Iraq signed a memorandum with Turkey, Qatar, and the UAE for road and rail construction. It’s designed to connect the new Grand Faw Port to the Turkish border. Progress is already visible.

The General Company for Ports of Iraq has completed the initial road section. Transport Minister Razak Muhibis Al-Saadawi confirmed the port’s first phase should finish by late 2025.

The World Bank backs Iraq’s railway plans, approving money for financing in June 2025 to rebuild the railway from Umm Qasr Port to Mosul. 

Jean-Christophe Carret, the World Bank’s Middle East Division director, stated that better trade can spur growth, create jobs, and help Iraq diversify its economy. Iraq started using the TIR Convention on 3 July, 2025, positioning itself as a secure transit hub.

The planning moves quickly. Iraq finished the design for telecommunications services along the Development Road in June 2025 and has finalised all preliminary designs for the road and railway sections. 

In September 2025, the Iraqi Ministry of Planning announced plans for a high-speed rail network.

Greece and Europe See an Opening

Greece sees itself as a partner in this.

At the Manama Dialogue, Foreign Minister Gerapetritis described Greece as a hub for energy, connectivity, and supply chains. Athens actively engages with the Gulf region.

Connections are already well-established. Gulf Air carried passengers between Athens and Bahrain in 2024. Traffic has more than doubled its 2019 levels. Athens International Airport handled passengers in the first half of 2025, showing healthy growth.

The broader European Union is involved. The EU and Iraq held their fourth Cooperation Council in October 2025 to discuss economic recovery.

The EU, which amounted to Iraq’s third-biggest trade partner, has allocated funds for Iraq through 2027 to support stability and economic diversification. 

A "Team Europe Initiative" coordinates efforts from Germany, France, Italy, and others to support Iraq's commercial development.

Trade Follows Infrastructure

Ultimately, pragmatic calculations drive these moves. Greece moves where commercial calculations make sense. Baghdad builds infrastructure designed to generate measurable revenue through transit and service fees. 

Baghdad operates in a space where Tehran and Washington interests meet, through oil revenues and strategic location.

Airlines calculate passenger loads and fuel costs before launching routes. They connect cities with sufficient traffic volumes. The Development Road offers a new way for cargo to get from Asia to Europe through Iraqi territory. 

Keep up with Daily Euro Times for more updates! 

Read also:

Strategic Silence: Why Iraq Is Staying Out of Iran’s War 

Iraqi Kurdistan: Lost Stability and Baghdad’s Strengthened Position

Greece’s €1.6 Billion Bet: Can Money Solve the Demographic Crisis

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