The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), part of the Islamic Development Bank Group, has approved €135 million in insurance to support Türkiye’s Kars–Iğdır–Aralık–Dilucu (KIAD) High Standard Railway Project.
The coverage, for Non-Honoring of Sovereign Financial Obligations, underpins financing arranged through a Murabaha facility by MUFG Securities EMEA plc.
The 223.9-kilometre railway, linking Kars to Dilucu at the Turkish-Azerbaijani border, is a key section of the Silk Road Economic Belt and connects to the Kars–Tbilisi–Baku corridor. The line, with five stations serving Kars and Iğdır provinces, is part of Türkiye’s 12th Development Plan (2024–2028).
Officials say the project will shift freight from road to electrified rail, cutting logistics costs by an estimated 40% by 2030, boosting supply chain efficiency, and supporting regional industries. About 3,000 jobs are expected at peak construction.
The fully electrified, double-track railway will also cut 498,276 tons of CO₂ annually, achieving 95% energy efficiency, making it one of the region’s greenest transport projects.
Dr. Khalid Khalafalla, ICIEC CEO, said the project strengthens regional trade, supports cleaner transport, and reinforces confidence among financiers, accelerating completion.
The railway aligns with Türkiye’s 2053 Net Zero vision and ICIEC’s broader goal of promoting sustainable infrastructure, contributing to UN Sustainable Development Goals on economic growth, infrastructure, and sustainable cities.
