Facts and practical data that are mentioned below clarify that Iraqi Kurdistan Region is deemed to be one of the most distinctive areas of the world regarding availability of great investment opportunities of various types and sizes because Kurdistan has preserved its natural resources and capabilities while these resources have been exploited and perhaps expired in many other countries around the world.
In addition there is an availability of great human resources and cheap manpower which makes Kurdistan remarkable with its great power of human resources due to the returning of large number of its citizens back home after living for long time in the advanced Industrial countries which have provided them with high level of knowledge, practice, experience and technological development.
Large number, have returned home to contribute in the reconstruction of Kurdistan, and many others are waiting for a better chance to return. There is also a large number of local skilled manpower who has acquired great experience, qualification and skills through working, for many years, with different international companies and agencies in different fields and specializations. Computer system and modern office technology in Kurdistan has become a normal process similar to the developed countries.
Iraqi Kurdistan Region is considered to be one of the most distinctive areas in the Middle East, whereas the availability of investment opportunities exist now and in the future, and it is indeed prepared to receive foreign investors in order to implement strategic Tourism projects which result in obtaining great profits and also targeting the benefit of the peoples of Kurdistan, these investment opportunities may be summarized as follows:
1. Countries that have stability and security , impose hard terms and conditions on foreign investors due to the self-sufficiency prevailing there and in order to make investing exclusive for citizens of the respective country, through imposing hard terms and provisions on foreign Investors especially in taxes , customs , Insurance , banking and other facilities , which have forced many investors to look for new investment opportunities abroad, among them is Iraqi Kurdistan Region , which offers much easier terms and provisions .
2. Due to the unstable conditions of Iraq, mainly Kurdistan, for ages the natural resources and attractions of Kurdistan were kept buried, undiscovered and unexploited, waiting for someone to discover and exploit them. In addition of being a warm Region which is desired by visitors, it also has the advantage of being a “tourism junction” connecting Europe and Asia through the Middle East.
3. Kurdistan Region is a 100% virginal natural area which has not been affected by artificial or technological changes, or by Industrial development, environmental pollution and population crowd, and that itself is an important point to attract a large number of visitors who seek a clean environment and a pure nature.
4. In Kurdistan Region there is abundance of Tourist attractions which are four seasonal and of high international level. Multi purpose tourist attractions exist such as Natural, environmental, therapeutic, entertainment, historical, heritage and religious, and shopping, seasonal and permanent. All the aforementioned potentials and opportunities are still not exploited properly and are waiting for companies and investors to exploit them and utilize their features and high international standards.
5. Iraqi Kurdistan region has been through ages the major center for attracting tourists not only from Iraq but also on the international level especially the Middle East and Gulf region. Iraqi Kurdistan has been a basic tourism center visited by millions when only a part of Kurdistan was exploited by European companies such as French, Italian, German and other Arab tourism companies. Statistics indicate that the number of tourists who visited ‘Shaqlawa’ resort alone for the period of three months of (2005) was (1210000) tourists, who (760,000) of them stayed in ‘Shaqlawa’ for more than two days.
6. Kurdistan is the most peaceful and stable part of contemporary Iraq, and has a high proportion of its educated people skilled in non-Arabic languages. So, it will have initial advantages over the rest of Iraq, as a commercial gateway, and as an experienced manager of international and cross-frontier relations
7. The readiness of Kurdistan regional authorities represented by the (Presidency of the Council of Ministers) to offer facilities for foreign investors by allocating lands for strategic tourism projects or long lease up to (50 ) fifty years, in addition to customs exemption, banking facilities, insurance…etc. All that could be organized through bilateral agreement approved by the highest judicial authorities for the time being until the issuing of the new investment law in the near future which will provide legal rights, advantages and good facilities for foreign investors.
8. The geographical location of Kurdistan and its Mediterranean climate makes it, an international commercial junction which will attract international commerce and also a large number of tourists.
9. Kurdistan region has great opportunities to build international standards of seasonal tourism especially in winter, whereas snow covers most of Kurdistan’s Mountains, valleys and plains, the snow remains on the peaks of some mountains throughout the year, perhaps we can coordinate with certain neighbouring countries especially the gulf states to exploit Kurdistan as an attracting center for high level winter tourism activities.
10. The distinctive demographic nature of Kurdistan people proves through the past that its people have enough capability and flexibility to adopt, harmonize and accept different international cultures without any sensitivity, fanaticism, or seclusion, therefore Kurdistan has become a tourism center for large number of foreign civil and military workers who spend their vacations enjoying Kurdistan security, safety and hospitality.
11. Kurdistan has the availability of opportunities and cheap manpower, the average payment for an unskilled worker is about (10 U.S) dollars daily and for the skilled worker it is about (20 U.S) Dollars daily.
12. Iraqi Kurdistan Region needs new projects, programs, planning and reconstruction, therefore there are great opportunities for foreign investors and companies to contribute in the comprehensive reconstruction campaign that Kurdistan witnesses at the present time.
13. Kurdistan has the privilege of possessing two international airports, one in Erbil and the other in Sulaimaniya. This will facilitate the arrival of investors and tourists by coming directly to Kurdistan.
14. Any existing agreements and contracts made with the Kurdistan Regional Government (or with private parties in Kurdistan) since 1992 are valid, provided they do not contradict the new constitution. Since natural resources are removed from the list of exclusive federal competences that were listed in the Transitional Administrative Law.
15. Kurdistan is now in a position to move from preparing its own draft constitution to validating its own constitution. This will confirm its intentions to provide a wholly regularized, constitutionalized, lawful, predictable and human rights respecting environment in which to conduct business. Investors will have a legal, secure, and certain constitutional environment.
16. Confirmation of the recognition of Kurdistan’s federal regional status by the rest of Iraq will stabilize Kurdistan’s cross-border relations with Turkey, Syria and Iran, which will again be helpful for investment and trade.
As we present true facts and denotations that prove the availability of great investment opportunities in Kurdistan, we would also like to mention an essential point which is the humanitarian responsibility towards an innocent people who have suffered severely of intensive campaigns of oppression , discrimination and massive genocide, therefore it is the responsibility of officials and investors to undertake investment in Kurdistan in order to create job opportunities for these oppressed people, to avoid them being drifted towards trends and different types of fanaticism.
Hospitality and Security
The large areas in Iraq under the control of Kurdish security forces are recognized worldwide for being secure and safe. These include the Governments of Duhok, Erbil, and Suleimaniya. Western visitors accustomed to traveling in Baghdad easily recognize and feel the vast differences between the two security situations.
As part of its rich and hospitable culture the Kurdish Regional Government and its people welcome visitors from other countries and treat them with the highest level of courtesy. This is demonstrated in the region’s investment laws and attention that the government and business give to potential partners
Foreign Investment
“We will do all that we can to encourage foreign investment so that the Kurdistan region becomes the commercial gateway to all Iraq,” “The Kurdistan Region is open for business! We have many needs and thus many opportunities. Nearly everything we use and consume, including much of our food, is now imported from abroad. We need foreign investment in every area of our economy, and my advice is: come here, look at our markets, our people, and our infrastructure, and help us to build our economy…. Fly into our new airports, drive our improving roads, and bring your expertise and knowledge. You will not be disappointed.
Education
“Our greatest resource is our people and only our people can build our country, and a new future for themselves. Government alone can never build a future for our people. We as the KRG are obligated and committed to creating an environment where our people can build their own future.“ (Conference on Education, 22 May 2007) “Nothing is more important for improving the quality of life than receiving a quality education. We cannot have genuine freedom and prosperity until we have effective and contemporary education throughout our Region, for all our people. “ (Conference on Education, 22 May 2007)
Democracy
”Even under the best of circumstances, building a civilized and democratic society is never an easy task. We in the Kurdistan Region face great challenges because of our difficult and painful past, and the complicated situation we find ourselves in today. We must, however, understand that democracy is not a luxury we can wait for. Democracy is the answer to many of the challenges that the Kurdistan Region faces today.” (Conference on Civil Society, 6 June 2007)
Corruption
”This is a problem confronting all of us in both government and the private sector. Corruption is not just an economic problem; it is a moral, ethical, and social one.” (Conference on Civil Society, 6 June 2007)
Labor
”I reiterate that we have to be honest with ourselves and each other. Because of the oppression and suffering of the past, many of our people have learned to be lazy, to rely on the government and the state to provide for their needs. Our people do not show that spirit and dynamism that is needed for economic development. They are not ready to take on difficult work.” (Conference on Civil Society, 6 June 2007)
Moral and Ethical Education
”Civil society has a very important role in the field of moral and ethical education in the Region. The government has no role in this area. We cannot impose this subject on schools, mosques, churches, villages, institutions or families. The moral and ethical aspect of our society is, however, a subject which needs attention. Civil society should try to strengthen respect for the family, promote core values, stress respect for one’s fellow citizens and the importance of collective work, charity work and service to society.” (Conference on Civil Society, 6 June 2007)
"Prime Minister Nechirvan Barzani"
Investment Opportunities and Local Partners
For decades due to lack of resources from international sanctions and chronic central government neglect, the Kurdish people in Iraq have been forced to rely on their own resources and capabilities. These unfortunate circumstances of the past have produced the current situation of large reconstruction needs and investment opportunities accompanied with a self-grown business community eager to partner with experienced western companies in building a strong economy. Some of the investment opportunities advanced by the regional government are the following:
· Industrial Sector: oil and gas, power, and water
· Transportation Sector: Rail, Aviation (air cargo, passenger and other aviation services)
· Agricultural Sector: manufacturing and processing plants for fruits and vegetables, and dairies
· Hospitality Sector: Hotels, Resorts including Golf and Ski, and other Entertainment
· Heath and Education Sectors: hospitals and universities
An entry strategy of accessing a local partner is often useful in international expansions. It is particularly expedient in Iraq as a number of uncertainties remain as the country struggles to bring stability to its political, security, and economic activities. Local partners have access to vital market knowledge; facilitate in regulatory requirements; provide labor and other inputs at more competitive rates; possess pre-established sales network; and maintain other necessary business relationships, i.e. banking, legal, and distribution, which are critical to the success of an operation.
Why Investment Law
