"We are the most appropriate country for both the political and physical reconstruction of Iraq," Erdogan told a gathering of industrialists here.

"We will take our place in the Iraq market. We are expending efforts to that purpose," he added.

The prime minister said Turkey could be a role model for Iraq as the only Muslim democracy in the region -- a characteristic much-touted by key ally the United States.

"I believe Turkey will have a very important role" in helping Iraq adapt to a democratic system without problems, Erdogan said.

On the economic front, Turkey offers the cheapest facilities, material and transport opportunities, he added.

"I believe it is the best way for countries such as Britain and the United States who are experts on finance management to make use of Turkey's experience and cheap opportunities," Erdogan said.

Turkish officials have already rolled up their sleeves to get a share of Iraq's reconstruction, and recently held a meeting with key businessmen to discuss possible projects.

Among the ideas discussed were the participation of Turkish firms in the construction, infrastructure, telecommunications sector as well as the oil and natural gas sector, sources close to the talks said.

Participants also agreed to look into ways to boost bilateral trade with Iraq, launch direct flights to Baghdad and open a second border gate, a project that has been on Ankara's agenda for years.

Iraq used to be Turkey's most valuable trading partner before the 1991 Gulf War and the sanctions imposed on the Baghdad regime for its 1990 invasion of Kuwait.

Ankara says the lost trade has cost the country billions of dollars.

SPACE.WIRE