Doing Business in Kurdistan
Doing Business in Kurdistan
Doing Business in Kurdistan
Table of Contents
Preface .............................................................................................................................. 5
I – Key features: understanding Kurdistan of Iraq ................................................... 6
A – Territory, climate and natural resources ...................................................................... 6
Territory and climate...................................................................................................................... 6
Natural resources: ........................................................................................................................... 7
B – Population and society...................................................................................................... 8
1)Population & Society................................................................................................................... 8
2) Demographic indicators ........................................................................................................... 9
C – History & Political landscape ....................................................................................... 10
1. Key historical events and geopolitical environment .................................................... 10
2. Political Institutions ................................................................................................................ 12
3. Regional Institutions ............................................................................................................... 13
II – Investment opportunity in Kurdistan .................................................................18
A. Kurdistan Region .............................................................................................................. 18
1. The other Iraq ............................................................................................................................ 18
2. Reconstruction in Iraq: a driving force for the region’s economy ............................ 19
3. Foreign Direct Investments (FDI) and the role of the private sector: Kurdistan as
the gateway to investments in Iraq (inventory). ................................................................ 20
B. Limits of the private sector in Kurdistan ..................................................................... 22
1. A private sector that lacks diversification ........................................................................ 22
2. The burden of bureaucracy: .................................................................................................. 23
3. The lack of qualified workers and middle management .............................................. 24
C. Sector Analysis .................................................................................................................. 24
Energy ............................................................................................................................................... 24
Oil, Gas & Minerals ........................................................................................................................ 26
Transportation............................................................................................................................... 30
Information Technology ............................................................................................................. 31
Communications............................................................................................................................ 32
Agriculture ...................................................................................................................................... 34
Environment & Water ................................................................................................................. 37
Health................................................................................................................................................ 38
Housing & Construction .............................................................................................................. 39
Tourism ............................................................................................................................................. 40
Distribution Sector ....................................................................................................................... 41
III – International trade ...............................................................................................43
A. International trade in Iraq .............................................................................................. 43
B. Balance and structure of exchanges ............................................................................... 44
C. A Focus on intellectual property and technological transfers ................................... 46
3.1 Legislation ................................................................................................................................ 46
3.2 The regulation on importations ........................................................................................ 47
3.3 Iraq’s steps towards the WTO............................................................................................ 47
IV – Implementation, Investments and Business Laws ...........................................48
A – Implementation: .............................................................................................................. 48
1.2 Regulation on business disputes: the clause on international arbitrage ............ 50
1.3 The terms of applying for an investment project at the BOI ................................... 50
1.4 Costs and delay for registering a company in Kurdistan of Iraq: the choice of a
good business lawyer on the spot............................................................................................ 52
B - Relationship with the central State ............................................................................... 54
C – The industrial zones ....................................................................................................... 55
Electrical Appliances.................................................................................................................... 76
C. Corporate communication ............................................................................................ 76
1. Advertisement ........................................................................................................................... 76
2. The Fairs ...................................................................................................................................... 77
D. Organising a prospective trip ...................................................................................... 77
1. Accommodation ........................................................................................................................ 77
2. Transportation .......................................................................................................................... 80
E. Looking for a commercial & residential premise ................................................... 82
1. The residential or "housing villages” ................................................................................ 82
2. Real estate agencies ................................................................................................................. 82
F. Daily life ............................................................................................................................. 84
1. Settlement Process in the Region. ....................................................................................... 84
2. Paperwork relating to daily life ........................................................................................... 85
3.The educational system ........................................................................................................... 89
G. Leisure Activities ............................................................................................................. 93
2.Sport Centres .............................................................................................................................. 94
4. Tourist Attractions ................................................................................................................... 95
6. Learn Kurdish ............................................................................................................................ 96
7. Kurdish basic words (in Kurdish and phonetic), such as “I want to go to the hotel
............................................................................................................................................................. 96
Bibliography............................................................................................................... 101
Contact List ................................................................................................................. 105
D
Kurdistan Board of Investment & General Consulate France - Erbil
[Doing BUSINESS IN THE KURDISTAN REGION] 5
Foreword
The Guide “Doing Business in the Kurdistan Region” was a common project between
the Board of Investment (BOI-KRG) & The French General Consulate, the
Correspondant in Erbil of the Economic Department of the French Embassy.
The project was initially proposed by BOI.
Drafted By:
- Mr Hemin Mahmoud Osman – Kurdistan Board of Investment ;
- Miss Aurelie Gaudron – French Economic Department, French General
Consulate in Erbil ;
Area: The Kurdistan Region of Iraq has an area of 40, 000 square kilometres, which is approximately
the size of Switzerland and is four times the area of Lebanon – with 36, 000 square kilometres of land
and 4, 000 square kilometres of water1. Its geographic coordinates are: N: 37.7° N. E: 46.6° E
The capital of the Region is Erbil, also known as Hawler other large cities include Suleimaniah and
Dohuk, cities that are the capitals of the three governorates, which constitute the Kurdish region of
Iraq.
Borders: The Region borders Syria to the west, Iran to the East and Turkey to the north, with the rest of
Iraq to the south.
Relief: Most of the Kurdish territory is mountainous, with an average height of about 2,400 metres,
rising to 3,000–3,300 metres in places. The mountains are part of the larger Zagros mountain range,
which is also present in Iran. The highest peak, Halgurd, is near the border with Iran and measures
3,660 metres. The highest mountain ridges contain the only forestland in the Region.2
Water resources: Kurdistan is the land of water: it is traversed by the Sirwan River and the Tigris and
its tributaries, the Greater Zab and the Little Zab
Climate
The climate of the Kurdistan Region is semi-arid continental: very hot and dry in summer, and cold and
wet in winter. Spring is the most beautiful season in Kurdistan and the time when Kurds celebrate
Nawroz, the Kurdish New Year, on the spring or vernal equinox. The high temperatures range from 13-
18 degrees in March to 27-32 degrees in May. Summer months (May – September) are hot and dry,
especially on the Erbil Plain, often reaching temperatures as high as 48 degrees Celsius. In July and
August, the hottest months, the temperatures range from 39-43 degrees, and often reach nearly 50
1
Google Earth Coordinates.
2
KRG. “ Kurdistan’s Geography & Climate” .
http://www.krg.org/articles/detail.asp?rnr= 140&lngnr= 12&smap= 03010300&anr= 18656
degrees. However, it is cooler in the evenings and in the mountainous regions around Dohuk and
Suleimani.
Autumn is dry and mild, and, like spring, is an ideal time of year to travel in the Region. Average
temperatures are 24-29 degrees in October, cooling slightly in November. The winter months can be
surprisingly cold with frequent snowfalls – there are plans to build a ski resort. Winters are mild,
except in the high mountains: high temperatures can reach 7-13 degrees Celsius, while low
temperatures are 2-7 degrees Celsius.3
Natural resources:
Kurdistan owns lots of natural resources, especially oil, gas and mineral resources.4The KRG Ministry
of Natural Resources lists 49 oil and gas concessions.
Reserves:
Iraq has the third-largest proven petroleum reserves and some of the lowest extraction costs.
Iraq’s proven reserves, based on dated 2-D seismic surveys, are around 115 billion barrels. Experts
estimate that the unproven fields in Iraq could yield another 160 to 200 billion barrels.
Kurdistan: Estimates by the experienced PSC company managers and geologists interviewed indicate
that reserves for Kurdistan Region range between 10 billion to possibly as high as 45 billion barrels.
The 45 billion reserve estimate could place KR reserves on par with oil resources projected for Nigeria
and Libya 5.
About 43.7 billion out of 115 billion of Iraq’s proven reserves lie in the Kurdistan Region – including
the field of Kirkuk and the disputed territories. That is about 38% of Iraq’s proven reserves. Most of
these reserves are within Erbil governorate, and not within Kirkuk governorate6 (was stated in Invest in
the Future).
Exports: According to Dr. Ashti Hawrami, Minister for Natural Resources, Kurdistan is capable of
exporting 100, 000 barrels per day (bpd) this year (2009), increasing to 1 million bpd after three years
(I in future, BoI).
b. Gas7:
Reserves:
Iraq: Iraq’s proven natural gas reserves are 112 trillion cubic feet (Tcf). It is the 10th largest in the
world. Probable reserves range from 275 to 300 Tcf.
3
KRG. “ Travel to the Kurdistan Region in Iraq” . November 1, 2010.
http://www.krg.org/uploads/documents/Travel_Kurdistan_Region_Fact_Sheet__2010_11_01_h19m43s32.pdf
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
4
USAID. « Kurdistan Region. Economic Development Assessment ». Décembre 2008. p. 48.
http://www.kurd.org/doc/EDA%20Report_English.pdf
5
Ibid., p.51.
6
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 96 – 97.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
7
USAID. « Kurdistan Region. Economic Development Assessment ». Décembre 2008. P. 52.
http://www.kurd.org/doc/EDA%20Report_English.pdf
Kurdistan: estimated potential reserves for two major fields in the Kurdistan Region is 11.7 Tcf of gas.
Unproven KR gas reserves could exceed 82 Tcf (EDA).
Older Iraqi reports and studies indicate the presence of more than 100 tcf of gas, which mostly lies in
the Kurdistan region. The latest exploration activities in the Kurdistan Region have led to an upward
revision of that figure: to more than 200 tcf of potential gas reserves8.
c. Mineral resources
The Kurdistan Region is rich in still – untapped mineral resources – which is why officials in the
KRG’s Ministry of Natural Resources are working to draft a mining law designed to generate increased
rate in mining development in the KR.
Iraq has mineral deposits located throughout its various provinces and regions, including key minerals
such as: sulphur, phosphorate, salt, gypsum, limestone and ironstone, as well as a range of metallic
minerals9.
Kurdistan: The geological environment in KRG bordering Iran and Turkey in a belt approximately 15-
25 kilometers wide is considered as a highly potential area for the existence of mineral deposits such
as: Iron, Chrome, Nickel, Platinum, Cobalt, Copper, Zinc, Lead, Pyrite, Silver, Gold, Talc, Asbestos,
Barites & Coal10.
There are 1,713,461 inhabitants in the governorate of Erbil; 1,800,769 inhabitants in the governorate of
Sulaimaniya, and 1,176,709 in the governorate of Dohuk12.
Ethnicity:
The population is principally Kurdish: they represent the majority of Kurdistan’s population.
But there are also lots of different ethnic and religious groups in Kurdistan: Arabs, Chaldeans,
Assyrians, Turkmen, Armenian, Fayliis, Shabaks, Yezidis, and Zoroastrians.
According to the constitution, all these communities are equal in rights and suffer no discrimination.
Their rights are guaranteed by the Kurdistan Region Constitution. 11 seats have been allocated to
minorities so that they can freely elect their representatives13.
8
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 97.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf ; et: USAID. « Kurdistan Region. Economic Development
Assessment ». December 2008.http://www.kurd.org/doc/EDA%20Report_English.pdf
9
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 111.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
10
Fathi M. Ali Abdullah. “ Kurdistan, the commercial gateway to Iraq” . p. 13.
11 KRG. “ The People of the Kurdistan Region” . May 20, 2010.
12
Ibid.
http://www.krg.org/articles/detail.asp?rnr= 141&lngnr= 12&smap= 03010400&anr= 18657).
13
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 13.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
Religion: The majority of citizens in the Kurdistan Region are Sunni Muslims, mainly of the Shafi’i
School. Some Muslims in the Region follow Sufi orders. There are also Faili Kurds, e.g. Shi’ite Kurds.
There are also a large number of Christians of different churches, such as Syrian Catholic, Syrian
Orthodox,Assyrian Church of the East, Armenian, and Catholic Chaldean.
A religion that is practiced only in Kurdistan is Yazidism, which has tens of thousands of adherents.
The Kurdistan Regional Government protects people’s freedom to practice their religion and promotes
inter-faith tolerance
Iraqi Constitution, article 2.2: “the Constitution guarantees the Islamic identity of the majority of the
Iraqi people and guarantees the full religious rights to freedom of religious belief and practice of all
individuals such as Christians, Yazidis, and Mandean Sabeans”14.
Christians (mainly Assyrians and Chaldeans): between 700 00 and 900 000 Christians in Iraq, among
which one third are in Kurdistan, and 15 000 à Kirkuk.
Yezidis: between 400 000 and 550 000 in Iraq, but only 10% in the Kurdistan Region (eg: 40 000 –
55 000 in Kurdistan). Most of them live in the province of Ninive/Mossul, around 45% live in
Sinjar/Shengal, and nearly 35% live in the province of Bashiqa and Bahzani, near Mossul (Lalish is the
center of the community)15.
Turkmens: mainly living in the Kurdistan Region, representing between 500, 000 to 4, 5 million
people. 16
2) Language
The people in Kurdistan speak Kurdish, an Indo – European language. There are several Kurdish
dialects, the main ones being Sorani and Kurmanji. Other dialects spoken by smaller numbers are
Hawrami (also known as Gorani) and Zaza17.
2) Demographic indicators18
Median Age: The median age in Kurdistan is just over 20 meaning that more than 50% are
less than 2019.
14
KRG. “ Religious Freedom and Tolerance” . June 27, 2010.
http://www.krg.org/articles/detail.asp?rnr= 150&lngnr= 12&smap= 03013100&anr= 18688
15
Sanatamaria, Magalie. « Iraq ». Refugee Forum. July 2008.
www.forumrefugies.org/en/.../FR2008_08_fiche%20pays%20Irak.pdf
16
Helen Chapin Metz and the Federal Research Division of the Library of Congress. Iraq: A Country Study, p. 86.
17
KRG. “ The Kurdish Language ” . June 27, 2010.
http://www.krg.org/articles/detail.asp?rnr= 142&lngnr= 12&smap= 03010500&anr= 18694
18
Inter – Agency Information and Analysis Unit. « Sulaymaniyah Governorate Profile ». July 2009.
http://www.iauiraq.org/documents/463/GP-Sulaymaniyah.pdf
19
KRG, population, from: UNDP Iraq Living Conditions Survey 2004, Volume 1 Tabulation Report, Table 1.6: Age in broad
groups, mean and median age).
20
2010 est., KRG statistics office
21
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
Literacy
Illiteracy: According to the UN data, the illiteracy rate is of 27.8% in total in 2009, 18% for
men and 37.7% for women, higher than for the rest of Iraq (11% for men and 24% for
women).
Literacy: the literacy rate is of 74.1% in the Kurdistan Region, according to the UNESCO in
2006. (84.1% men & 64.2% women).
School Life Expectancy: school life expectancy is of 10 years on average, 12 years for men
and 9 years for women, in 2005.
Unemployment: Globally, the poor would be fewer in Kurdistan than in the rest of Iraq, but
the unemployment rate is still quite high: 11.3% of unemployment among men and 22.3%
among women (against 12% for men and 13% for women in the rest of Iraq).
Economic Data
GDP per capita = $ 3,60022
GDP (million current U.S. $, 2009): $ 65 837 million23.
Current account balance in 2007: $ 15, 519 million.
Tables, data for 2010 (EBS/10/28)
Oil production: 2.6 Million Bpd
Oil Exports: 2.1 Million Bpd.
Inflation: 6% change.
Gross domestic investment: 31.5% of GDP.
Gross inland consumption: 85.2% of GDP.
Gross national savings: 10.5% of GDP.
Investment balance - saving: -21% of GDP.
External debt (projected for 2010): 41.8% of GDP.
1920 - Treaty of Sevres, signed by the defeated Ottoman government, provides for a Kurdish state,
subject to the agreement of the League of Nations.
1923 – Treaty of Lausanne, led to the establishment of the Turkish State, the Kurds were betrayed as in
the Treaty of Sevres they were promised an autonomous Kurdish region.
1943 - Mullah Mustafa Barzani leads another uprising, and wins control of large areas of Irbil and
Badinan.
1946 August - Iranian Kurds led by Qazi Mohamed, who founds an independent Kurdish state called
the “Republic of Mahabad”.
1951 - A new generation of Kurdish nationalists revives the KDP. Mullah Mustafa Barzani is
nominated president while in exile in the Soviet Union.
22
2010 est., KRG statistics office
23
WTO. “ Iraq’s Trade Profile ” . October 2010.
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country= IQ
24
Adlig, Bérévan. « Le Kurdistan irakien ». Hérodote. Premier trimestre 2007 : http://www.herodote.org/spip.php?article271;
BBC. “ Timeline: Iraqi Kurds ” . August 1, 2009:
http://news.bbc.co.uk/2/hi/middle_east/country_profiles/2893067.stm ; « Invest in the Future, 2009 ». Kurdistan Regional
Government Publication. Ed: Professor Brendan O’Leary. P. 38 – 43:
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf ; KRG. “ Contemporary History” . June 28: 2010.
http://www.krg.org/articles/detail.asp?lngnr= 12&smap= 03010600&rnr= 143&anr= 18710
1970 March - Iraqi government and the Kurdish parties agree a peace accord, which grants the Kurds
autonomy. The accord recognises Kurdish as an official language and amends the constitution.
1974 March - Iraqi government imposes a draft of the autonomy agreement and gives the KDP two
weeks to respond. Mullah Mustafa Barzani rejects the agreement.
1975 March - Algiers Accord between Iran and Iraq ends Iranian support for the Kurdish uprising,
which collapses.
1975 June - Jalal Talabani, a former leading member of the KDP, announces the establishment of the
Patriotic Union of Kurdistan (PUK).
1983 - PUK agrees to a ceasefire with Iraq and begins negotiations on Kurdish autonomy.
1987 - Jalal Talabani and Massoud Barzani join forces with a number of smaller Kurdish factions to
create the Kurdistan Front.
1988 - As the Iran-Iraq war draws to a close, Iraqi forces launch the "Anfal Campaign" against the
Kurds (Saddam used chemical weapons, razed villages and started ethnic cleansing). This led to tens
of thousands of Kurdish civilians and fighters being killed, and hundreds of thousands forced into
exile, in a systematic attempt to break the Kurdish resistance movement.
1988 16 March - Thousands of Kurdish civilians die in a poison gas attack on the town of Halabjah
near the Iranian border. Human rights watchdogs and Kurdish groups hold the Iraqi regime responsible.
1991 April - Coalition forces announce under the UN resolution 688 the creation of a "safe haven" on
the Iraqi side of the border. International aid agencies launch a massive aid operation to help the
refugees.
1992 May – The first Parliamentary elections held in areas under Kurdish control. The two parties
KDP & PUK are equally balanced in the first regional cabinet.
1996 May - UN agrees "Oil-for-Food" programme with Baghdad; 13% of the proceeds from Iraqi oil
exports are earmarked for the three northern governorates, which are largely under Kurdish control.
Kurds were faced with double embargoes, on one side from the international community and on the
other side from central government.
1998 September - Jalal Talabani and Masoud Barzani sign a peace agreement in Washington, but
government of the Kurdish region remains split between the two rival administrations. This was signed
after two years of civil war in the region.
2003 20 March - US-led coalition forces invade Iraq and begin bombardment of Baghdad and other
cities. Mosul and Kirkuk near the Kurdish enclaves come under heavy fire.
2005 April - PUK leader Jalal Talabani is elected as interim Iraqi president by MPs.
2005 June - First session of Kurdish parliament held in Irbil; KDP's Massoud Barzani is president of
autonomous region.
2009 June - The Kurdish government begins crude oil exports to foreign markets. Contractors are to
pump 90,000-100,000 barrels a day from two northern oilfields to Turkey. The central government is
allowing its pipeline to be used in return for a share of revenues.
2009 June - Massoud Barzani is re-elected as president of Kurdish autonomous region. Ruling two-
party coalition wins parliamentary election, but with reduced majority.
2010 December – Jalal Talabani is re-elected as the President of Iraq by the Iraqi National Assembly.
2. Political Institutions
a. The region’s powers
The Powers of the region according to the 2005 Iraqi Constitution (Section 5):
Iraqi Constitution Article 116 – 124
The KRG has assumed the role of a government in a federal region of Iraq. As stipulated by the Iraqi
constitution, Iraq will be divided into federal regions that will handle their own domestic affairs while
the Baghdad central government will deal with international affairs
In the wake of the ratification of the Iraqi constitution in October 2005, Iraqi Kurdistan reconstituted
itself as a federal region under the new constitutional framework. Kirkuk's status with respect to the
federal region should, under that framework, be decided by a simple majority vote in the provinces.
Iraq is made up of a decentralized government, capital, regions and governorates as well as local
administrations. The constitution recognises the region of Kurdistan as a federal region. According to
the constitution each region shall adopt there own constitution however until now the Kurdistan
region’s constitution has not been ratified due to a delay by central government and disagreements on
revenue sharing, hydro-carbon law along with article 140. The Region is allocated an equitable share of
the national revenues sufficient to discharge its responsibilities and duties according to the needs of its
percentage of population (17 %). The KRG is responsible for administrative requirements of the
Region, especially security such as police and regional guards.
b. The Federal State and the Region: exclusive and shared competencies25
Iraqi constitution:
Article 110: the federal government shall have exclusive authorities in the following
matters:
The exclusive powers of the federal government consist of formulating foreign policy and
diplomatic representation, signing and ratifying international treaties and agreements, debt,
economic & trade policy. The federal gouvernement is also exclusively responsible for
formulating & executing national security policy, including establishing and managing armed
forces to secure the protection and guarantee the security of Iraq’s borders to defend Iraq.
Article 110.5: regulating issues of citizenship, naturalization, residency, and the right to apply
for political asylum.
Article 110.8: planning policies relating to water sources from outside Iraq and guaranteeing
the rate of water flow to Iraq and its just distribution inside Iraq in accordance with
international laws and conventions.
25
Iraqi Constitution. 2005: http://www.uniraq.org/documents/iraqi_constitution.pdf
The constitution states the shared competencies between the regional and federal government,
in regards to oil & gas: “oil & gas are owned by all the people of Iraq. Both federal &
regional governments discuss strategic policies to develop the oil and gas wealth in the
interest of the Iraqi people.
Article 114: shared competencies between the federal authorities and regional
authorities:
Shared competencies between the federal and regional authorities policy are regulated by law
in the benefit of the whole country in order to manage customs, to share sources of energy, to
formulate environmental policy, to develop & plan general policies related to public health &
education, water resources.
Article 115: all powers not stipulated in the exclusive powers of the federal government
belong to the authorities of the regions and governorates that are not organized in a region.
With regard to other powers shared between the federal government and the regional
government, in case dispute priority shall be given to the law of the regions and governorates
not organized in a region.
Transition: until this date, disputes remain between the central Iraqi government and the
Kurdish government about the status of the city of Kirkuk and of other disputed territories
especially in regards to Article 140.
3. Regional Institutions
a. The President27
The Presidency of the Kurdistan Region is a political, administrative, and legal institution that was
promulgated by the Kurdistan National Assembly, the national parliament, in 2005 under Law 1,
Article 1. The President of the Kurdistan Region has the highest executive authority in the Kurdistan
Region. He or she is elected by secret ballot in a popular vote every four years and can stand for
election for a second term.
On 31 January 2005, the Kurdistan National Assembly elected Mr Masoud Barzani as Kurdistan
Region’s first President. He was re-elected during the 2009 Iraqi Kurdistan elections. Presidential
elections are conducted by secret popular ballot by the people of the Kurdistan Region.
At national and international levels, the President represents the people of Kurdistan, oversees relations
between the Region and the Iraqi federal authorities and represents the people of Kurdistan at Iraq’s
Political Council for National Security which includes the Iraqi President, the two Vice Presidents, the
Iraqi Prime Minister, and the Speaker of Iraqi Council of Representatives.
To secure the rights of the people of Kurdistan in the Iraqi Constitution, the President of the Kurdistan
Region will represent the Region when conducting negotiations and consultations with other parties in
Iraq and will oversee coordination between the Kurdistan Regional authorities and the Iraqi federal
authorities.
The law sets out the relationship between the Presidency of the Kurdistan Region and the Presidency of
26
OIL AND GAS LAW OF THE KURDISTAN REGION - IRAQ Law No. (22) – 2007 Article 111-113
27
Kurdistan Regional Presidency. « Kurdistan Regional Presidency ». 2008:
http://www.krp.org/eng/krp/default.aspx?gid= 4&sm= 10
the Council of Ministers. The President of the Council of Ministers is also known as the Prime Minister
of the Kurdistan Regional Government (KRG). All applications for special appointments and
promotions will be submit to the Presidency of the Kurdistan Region. After the President’s approval
and through Regional Decrees, the applications will be returned to the Presidency of the Council of
Ministers.
The law also stipulates the relationship between the Presidency of Kurdistan Region and the Presidency
of Kurdistan National Assembly. The President must ratify any law passed by the Kurdistan National
Assembly before it is enacted. The President has the power to return any law passed by the Assembly
for further debate. This must be done within ten days of the passage of the law. The decision of the
Assembly after the referral is final.
b. The Parliament28
The Kurdistan Parliament is the Kurdistan’s Region democratically elected legislature. The Parliament
consists of one elected chamber. Its three main functions are:
There are 111 seats in the Assembly, as stipulated in Law N°1 passed in 1992. The Kurdistan
Parliament is led by the Speaker Dr Kamal Kirkuki, who is assisted by the Deputy Speaker, Dr Arslan
Bayez.
Parliamentary elections:
They are held at least every four calendar years (as stipulated in Article 8 of the Kurdistan Electoral
Law). The last elections were held on 25 July 2009.
Anyone aged 18 or over who is a citizen of the Kurdistan Region and is on the electoral registering is
eligible to vote in a direct, universal and secret ballot. Elections for the Kurdistan Parliament are based
on a closed party-list proportional representation system where a number of seats are allocated to each
governorate. Electors vote for a party’s list of candidates rather than for an individual candidate. After
the election results are announced, each party is allocated seats in proportion to the number of votes it
received, using the ranking order of candidates on its list.
28
KRG. “ About the Kurdistan Regional Government ” . May 15, 2010
http://www.krg.org/uploads/documents/Fact_Sheet_About_Kurdistan_Regional_Government_KRG__2010_05_15_h13m42s9.pd
f
The Kurdistan Parliament shares legislative power with the federal authorities in the following areas,
but priority is given to the Kurdistan Parliament’s laws: customs, electric energy and its distribution,
general planning, internal water resources.
In addition, under article 121 of the Iraqi federal constitution, the Kurdistan Parliament has the right to
amend the application of Iraq-wide legislation that falls outside of the federal authorities’ exclusive
powers.
The democratically elected Kurdistan Regional Government (KRG) exercises executive power
according to the Kurdistan Region’s laws, as enacted by the Kurdistan Parliament.
The current government, led by Prime Minister Dr Barham Salih, assumed office on 28 October 2009.
His Deputy is Mr Azad Barwari.
The government coalition consists of several political parties, reflecting the diversity of the Region’s
people, who are Kurds, Turkmen, Chaldeans, Assyrians, Syriac, Yazidis living together in harmony
and tolerance.
The cabinet is made up of members of the Kurdistani List coalition, which won the region’s
parliamentary elections in July 2009, together with other parties. The coalition government consists of
the Kurdistan Democratic Party (KDP), Patriotic Union of Kurdistan (PUK), Kurdistan Islamic
Movement, the Chaldean Assyrian Syriac Council, Turkmen representatives, Communists and
Socialists. The government has 19 ministries29.
Ministers appointed to the Kurdistan Regional Government’s sixth cabinet on 28 October 2009, listed
alphabetically by ministry.
29
KRG. “ Kurdistan Regional Government ministers” . October 28, 2009.
Minister for the Interior Karim Sinjari (Abdul Karim Sultan Sinjari)
Council of Ministers:
When an order is given out by the council of ministers to a relevant ministry, the ministry then passes
on the order to be implemented by the relevant Director General, once the order is implemented the
council of ministers is alerted that it has been completed, the council of ministers sets up a follow-up
committee to monitor this order.
The KRG has 11 offices abroad: in Germany, Australia, Austria, Spain (and Portugal), United
States - States, France, Iran, Italy, UK - United Kingdom, Switzerland and the European
Union.
See full list in Chapter 8.
The Department of Foreign Relations is the main point of contact between the
Kurdistan Regional Government and offices maintained by foreign governments in
Erbil.
There are 17 diplomatic foreign representations in Erbil: 2 embassies, 5 consulates,
and 10 other representations.
2 Embassy offices: The Republic of Korea and the United Kingdom both maintain an
embassy office in the Region.
5 Consulates: France, Germany, the Islamic Republic of Iran, the Russian Federation,
and Turkey have opened consulates general.
Other representations: Austria, the Czech Republic, Greece, and Italy hold economic
or trade offices. Japan, Denmark, the Netherlands, Spain, and Sweden have appointed
honorary consuls to the Region, and the United States is represented by its regional
reconstruction team (RRT). Egypt has recently opened a consulate in the region. The
US will formally become a consulate soon.
30
See the list of representations of KRG abroad in Chapter 8, or: KRG. "How to contact KRG representations worldwide
” . January 26, 2011.
The Kurdistan Region enjoys a stable security situation. The Kurdistan region is
proud of its stability and is known to take pride in keeping it the safest region in the
area. Till now no attacks have occurred in the region due to its safety. The peaceful
security situation in the Region has had a positive effect on the local community and
has helped to restore Kurdistan and to boost its economy32.
This stability has been vital to investment by foreign investors in the region, as they
feel reassured that their investments are safe in the region. They do not have this
sense of safety and security in other parts of Iraq, what hinders investment in the rest
of Iraq. It reduces operational costs for companies, as they do not need security
guards for their staff in commercial premises in the region.
All three governorates of the Region (Eril, Suleymaniye and Dohuk) have become a
safe haven for citizens from central and southern Iraq who are facing the fear of
terrorism and attack in their towns and cities. The responsibility of security in the
Region is in the hands of a handful of security organisation that currently operate as
Asaish, Zanyari Agency & Parastin Agency along with the police & peshmergha
forces33.
Kurdish security agencies have worked hard in combating terrorism and uncovering
major terrorist networks in the region. One of the most important factors behind this
healthy security situation in Kurdistan is the cooperation between citizens and the
Security agencies, as citizens have trust in their security forces and report anything
with ease if they deem it a security breach.
The security achievements in the Region can only be stabilised by the current forces
working together to keep law & order in the Region. On going cooperation between
citizens and security agencies maintains Kurdistan’s peaceful status quo. The
Kurdistan Region boasts a remarkable security record. Since the war that toppled Saddam
Hussein from power in 2003, not a single US soldier has been killed in Kurdistan Regional
Government (KRG)-controlled territory34.
Kurds from the Region have utilized this local success to aid important policing and security-
related missions in other parts of Iraq. Recognized for their discipline and commitment to
duty, Kurdish troops have fought alongside coalition forces in major campaigns throughout
the country. Many Kurds are now serving in the Iraqi forces, and several all-Kurdish
battalions have served with distinction in places with high levels of inter-communal tension
31
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary:
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
32
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 23:
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
33
KRG. “ Travel to the Kurdistan Region in Iraq” . November 1, 2010:
http://www.krg.org/uploads/documents/Travel_Kurdistan_Region_Fact_Sheet__2010_11_01_h19m43s32.pdf
34
Kurdistan Regional Presidency. “ Security” . 2008: http://www.krp.org/eng/issues/security.aspx
such as Kirkuk, Mosul, and Baghdad. The crime rates in the region according to H.E. Minster
of Interior have decreased by 40%35.
Another major avenue of reform has been efforts to abolish the use of torture in the KRG, a
truly remarkable feat given the isolation and cruelty forced upon Kurds under Saddam's
regime. While there is still work to be done, the KRG is committed to achieving the highest
standards of human rights protection and has actively cooperated with independent
monitoring bodies such as Human Rights Watch and the UN Human Rights Commission in
order to address potential problems 36.
1.2 Kurdistan’s strategic role for the rest of Iraq as a gateway to importations
The Kurdistan region has borders with Turkey and Iran, its two main trading partners.
Controlled border points allow a steady flow of trade between neighbouring countries. The
development of cargo terminals in both Erbil and Sulaimaniah airports has allowed imports
from around the world to enter the Region: these products/materials can then be distributed to
the rest of Iraq37.
The investor friendly environment in the Region has accommodated many foreign businesses
to open trade links and office branches in the Region. As the security situation in the rest of
Iraq has been steadily improving, more and more of these companies are operating beyond
the boarders of Iraqi Kurdistan, making it the perfect starting point for foreign companies in
Iraq. Erbil International Airport and the new terminal in Sulaymaniah are turning the Region
into a hub as they provide better-cost efficient cargo routes between Asia and Europe.
Regular flights from Erbil/Sulaymaniah to Baghdad are making it easy to commute between
both cities.
Prior to the war in Iraq, Kurdistan was a region lacking many of the basic requirements that
are needed for a fully functioning society, specially a lack of basic services. From the first
Iraq War in 1991 till the second Iraq War in 2003, Kurdistan functioned as a de facto state.
Eeconomically Kurdistan faced double sanctions: besides from the international sanctions on
Iraq, Baghdad had sanctions on Kurdistan. These facts had to be put in a historical context.
With the development of infrastructure roads, buildings, commercial premises and shopping
malls has come the enhancement of the civil society, the new airport terminal in Erbil being a
key cornerstone to this transformation of the Region. The new terminal building in Erbil has
16 gates and one of the largest runways in the Middle East. The airport is not the only new
development project in the Region: there are many real estate developments and numerous
shopping malls popping up across the Region (Family Mall, Nistiman Mall, Hawler Mall,
Naze Mall, Majidi Mall, Caso Mall, Rand Gallery, Zara Market), all with a certain local and
Kurdish touch.
The Kurdistan Regional Governments role should not be overseen on this matter. With the
most liberal investment laws in the Middle East the regional government have created
incentives for the arrival of foreign companies with a lot of expertise and capacity,
furthermore creating jobs and opportunities for local Kurdish citizens 38.
35
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary. P. 52 - 53.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
36
Kurdistan Regional Presidency. “ Security” . 2008. http://www.krp.org/eng/issues/security.aspx
37
See Chapter 3 of Trade in Iraq.
38
Interview with Sheikh Baz, Chairman of Kar Group.
3. Foreign Direct Investments (FDI) and the role of the private sector: Kurdistan
as the gateway to investments in Iraq (inventory).
It is difficult to gather precise figures on foreign direct investment (FDI) in the Region: we
can nevertheless rely on the following figure from the Kurdistan board of investment, projects
that include only FDI licensed by the Board of Investment since 2006. From these figures we
can see that nearly $4 Billion dollars of FDI has been invested by foreign, with Kuwait
having the lion share of $1.5 Billion of investment in the region39 (which still today is not
realized : it is still an intention of FDI).
Foreign Investment
Investor Nationality Capital (USD) Investment Type (%) By Overall capital (%)
Joint Ventures
Nationality investor Capital (USD) Investment Type (%) Per capital (%)
partners in a joint -
venture
39
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary, p. 162 – 165.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
However, these figures do not represent all FDI made in the Region. Indeed, many
local companies are Iraqi official agents and representatives of major foreign groups.
This is particularly the case of Turkish companies: local Iraqi companies invest on
their behalp in the Region. That is the reason why accordin to the brochure "Invest in
the Future" published in 2009 the 10 major countries investing in the Kurdistan region
are:
1) Turkey
2) Iran
3) United States of America
4) Lebanon
5) United Kingdom
6) Jordan
7) United Arab Emirates
8) Germany
9) Kuwait
10) Italy
The French group Lafarge has heavily invested in the Kurdistan Region in joint
venture with his partner UCC, both in Bazian and Tasluja cement plants
(Governorate of Suleymaniye). Lafarge employs over 3000 employees in Iraq
with 2000 employees in the Kurdistan Region. Lafarge entered the Iraqi cement
market through the acquisition of Orascom Construction, an Egyptian Group.
Thanks to its “star staff policy”, Lafarge has trained many local workers and now
depends only on around 120 expatriate staff against 400 in 2007. Currently UCC
Lafarge is employing 750 government workers on the Tasluja site. The
Investment made by UCC-Lafarge altogether amounts to $750 Million US Dollars
in both plants ($400 million as a green field investment in the Bazian plant which
had recourse to the most state of the art technologies, $ 350 million for the
renovation the Tasluja unit). Lafarge produces 4.5 million tons of cement, which
represents 30% of the country’s consumption, i.e. 1/3 of Iraq’s cement. Lafarge is
taking an important role in the reconstruction of the country40.
The high dependency of the Kurdish society on foreign skilled labor during the recent years
of boom in building up the infrastructures and reconstruction activities is a direct result of the
low quality of education and vocational system. This situation is itself a result of a long
period of lacking resources, organizational changes, and rapid expansion of the capacity and
even mismanagement of the higher education. Since 2003 significant resources have been
allocated to universities. It is desired that the outcome of such investment is evaluated to
quantify the effects and its distribution across different universities and institutes of the higher
as well as lower education. Currently from the regional budget around 3%-4% is spent on
education in the region.
This education system produces graduates that are lacking the appropriate training or
creativity and not sufficient modern in technology upgrading to form a society with high
degree of self-sufficiency in skilled and educated work force. These negative qualities of the
workforce together with low incentives and work moral ? deontology ? are factors responsible
for the fact that not enough jobs are created to absorb the young and graduate labor force42 .
This negative trend is shown in the recent increasing wish of the young population to
emigrate to Europe considering that their skills are not fully utilized in the Region. Instead of
learning new skills and repatriate in future, very likely under the best conditions they end up
in low skilled jobs, where they lose their earned university skills. In the worst case the
emigrants will depend on the host countries social security system and become a burden for
those societies and to no help to the Federal Region of Kurdistan. Thus, quality of education
and necessary training to acquire skills useful in practice are crucial determinants of job
creation and welfare of the citizens 43. The lack of technical and vocational schools has also
been a problem in the region for teaching materials such as being as working in Hotels &
Restaurants.
1.2 The eviction effect of the construction industry onto other sectors of the
economy
Construction is the key industry in the Region. However this as most of the private companies and the
government have been devoting the efforts to construction projects, other sectors. The tendency for
companies to invest in quick profit construction projects has led in this respect to slow growth in other
sectors, specially agriculture. Health and banking have been left behind too, less emphasis being given
to long term projects beneficial for the Region 44.
40
Day 1 Investing in Kurdistan, case studies Marcel Cobuz, CEO, Bazian Cement, Lafarge Group Iraq,
http://www.youtube.com/watch?v= ZwCAFeYV_xg
41
Interviews with Miss Amelia Banzet, director of the French Cultural Centre, Mr Sabah B. Solaka expert mathematics
curriculum at the Ministry of Education, and Mr Dilshad, general manager of engineering and projects at the Ministry of
Education.
42
Labor Market Policy Options of the KRG. IZA DP N° 3247. Almas Heshmati (University of Kurdistan). Institute for the Study
of Labor (IZA). December 2007: http://www.econstor.eu/dspace/bitstream/10419/34782/1/560200897.pdf
43
Interview with Mr Dilshad, Director General of engineering and projects at the Ministry of Higher Education
44
Talib, Murad. “ Pure agricultural projects excluding agro – industry ones” . September 2010.
The government has been taking initiatives in Agriculture, Banking and Health as it understands that
the development of these three sectors will help social and economic security to the Region.
The current wage & non-wage expenditures amount to 70% of the regions budget 45. The KRG is taking
steps in cooperation with international partners USAID, KPMG & PwC to find a feasible solution to
reduce this amount. Former Iraqi government was based on a socialist system where the public system
is the biggest one and the Government the main employer. KRG has been taking steps to encourage its
citizens to work in the private sector by giving incentives in order to reduce its wage expenditure.
Another issue is the delay and mechanisms of budget allocation with the federal government.
These issues are still ongoing, however with the formation of the new federal government, resolutions
between Baghdad & Erbil are being found.
Ongoing projects take longer than expected because of a lack of project planning and mismanagement
of funding. Therefore, this leaves very little room for expenditure on new development projects.
Capital budget is used for current projects instead of new ones.
2.2 The public distribution system (PDS) and the preferences induced by the
food allowance programme (under discussion by the World Bank)
Iraq’s internally displaced are in desperate need of assistance as the Public Distribution System (PDS)
that they and other Iraqis depend on for food and fuel is broken. Poor management is to blame for its
shortcomings, as well as terrible security and a general lack of political will on the part of the
Government of Iraq to acknowledge the scope of the crisis. (incomprehensible)
With the central government unable or at times unwilling to protect and assist Iraqi civilians, donor
governments must step in to fill the gaps. Reform of the PDS should be a priority, and agencies such as
the US Department of Agriculture and the UN World Food Program (WFP) must provide the technical
assistance required to ensure the system is once again fully functional and able to reach the most
vulnerable Iraqis. Sans rapport avec le precedent §
Under the former regime of Saddam Hussein every Iraqi had the right to receive rations through the
PDS system established during the sanctions period in the context of the Oil for Food program that
began in 1995. Run by the Iraqi Ministry of Trade, the PDS was one of the most efficient institutions of
the Iraqi state. Iraq, which had once been a net exporter of food, was depending on food imports,
importing up to four hundred and eighty tons of food per month before the war. Eighty percent of
Iraqis benefited from the PDS. For sixty percent of them, the food basket was the only source of
outside support. Ministry of Trade distribution warehouses throughout the country fed local branches.
Each family had a card that it could redeemd for food in the PDS branch of its neighborhood where it
was tied to.
Following the American-led military coalition’s overthrow of the former regime, the Oil for Food
program was interrupted. The UN World Food Program (WFP) stepped in to fill the vacuum
supporting the existing infrastructure. After the war, food rations became more important than ever as
there were fewer jobs and no salaries.
The new Iraqi government was able to resume running the PDS. The efficiency of the system proves in
45
Interview with Jack Pascal, Advisor to the Ministry of Planning.
2004 when Iraqi elections were being organized for January 2005. The PDS rolls supplied the data
used for voter registration. The quality of the data was remarkably accurate. Ninety percent of people
found themselves on the list46. Food was simply swapped for ballots. Thus the PDS cards acquired a
new political significance, and this significance still lasts today, even though the cards are technically
separated.
With around one million Iraqis internally displaced before the March 2003 war and the additional
recent displacement of nearly one million Iraqis due to factional violence, the PDS system is now more
important than ever to reach these vulnerable people, who often have no source of livelihood47. The
effectiveness and efficiency of the PDS, however, have declined significantly. Roads throughout Iraq
have become increasingly treacherous as the result of criminal gangs and militias. This has meant that
PDS supply trucks are often unable to reach their destined governorates, leaving much of the country
cut off. Administrative corruption has weakened the efficiency of the distribution system. Those supply
convoys that do reach their destination often carry only limited amounts of the PDS basket, with key
items missing.
Like other UN agencies, the WFP views its role as supporting the Iraqi government 48. Thus, the
government manages its assistance programs, and it does not act unilaterally or against the
government’s will. Taking over the management of the crumbling PDS would be another indicator that
the Iraqi state is failing, and WFP and other agencies are reluctant to take any step that would suggest
this is the case.
Lack of skilled workers has been an issue for many foreign companies however with the development
of enhanced public and private schools and universities and the development of better training
academies this issue is slowly being solved. Currently middle management and the delegation of
authority and has been a problem in both the public and private sector of the Kurdistan.
C. Sector Analysis
Energy495051
The Kurdistan Regional Government is increasing electrical energy output through foreign assistance
and private investment projects and as a result, electricity capacity continues to grow. The latest figures
indicate around 14 hours per day; the peak so far has been around 20 hrs per day.
The Kurdish provinces of Erbil, Sulaimaniye and Dohuk are the highest rated provinces for supplying
electricity in Iraq. The provinces meet from 83% to 99% of demand.
The KRG’s Master Plan for electricity has been prepared in 2009 up to 2030. It will be updated in
2011. The aim of the Master Plan is to provide an integrated Power Sector Investment Programme to
support the Ministry in providing sustainable electricity supply at the appropriate level of reliability.
The Master plan was created in cooperation of Parsons Brickenhoff. International Organizations as
JICA have helped the Iraqi KRG ? government develop the electricity sector by giving the government
loans.
46
Entretien avec Mr Riad Al – Khouri, Doyen de la BMU, université franco – libanaise de Erbil, et : Al – Khouri, Riad. Extrait
de rapport sur : “ Public Distribution System & agriculture in the Kurdistan Region” , extrait. 2009.
47
Nir Rozen. « Fix the PDS system to meet needs of IDPS ». Refugees International. April 10, 2007 :
http://www.refintl.org/policy/field-report/iraq-fix-public-distribution-system-meet-needs-displaced
48
WFP. « WFP and Iraqi Ministry for partnership to strengthen food distribution capacity ». News Release 16 december 2009:
http://www.uniraq.org/documents/WFP%20and%20Iraqi%20Ministry%20Form%20Partnership%20to%20Strengthen%20Food
%20Distribution%20Capacity%2016-12-09%20EN.pdf
WFP. “ Development Project Iraq 200104: « Capacity development to reform the Public Distribution System (PDS) and
strengthen social safety nets for vulnerable groups in Iraq ».
49
Interview with Mr. Farhad Othman, director of distribution planning at the Ministry of Electricity.
50
KRG US Representation (http://knowkurdistan.com/about/energy)
51
Intervew with Mr. Asaad Abdullah Mohammed, General Director of Planning and Project Implementation 2010
• Balancing generation with existing and forecast new generation plants in progress or under
planning,
• Reducing technical and non -technical losses to acceptable levels,
• Improving reliability of distribution networks,
• Improving safety,
• Updating and improving staff skills and knowledge levels.
The KRG also commissionned two new private plants (BOT) each of 500 MW capacity and imports
electricity from Iran and Turkey.
Renewable Energy
An intensive education and encouragement will be needed to establish the concept of renewable energy
in all classes of Kurdish society. Renewable energy in Kurdistan is relatively unexplored and needs to
be further investigated. The ministry of electricity is currently carrying out feasibility investigations
into windenergy and hydropower sites. Other options will be considered once the supply-demand
situation has stabilized and resources can be diverted to more renewable options.
The recorded climate conditions will be used in the investigation. Rainfall rate, wind speed, sunshine,
temperature and solar radiation act as indicators to predict specific types of renewable energy.
Hydropower in Kurdistan:
- The early society in Kurdistan was dependent on agriculture, therefore grain mills were common and
water flow was the only source of energy to spin them. Currently hydropower is the only source of
renewable power generation in Kurdistan region; however hydropower potential is not fully utilized.
From annual rainfall rate and discharge information of existing rivers and streams in the region a
reasonable judgment on hydropower availability can be laid out.51Therefore collecting information
from weather stations will be the first step. There are meteorological stations throughout Kurdistan
region supervised by the local government, but unfortunately they have no reliable recorded data for
long periods.
Fortunately during the years 2000 to 2003 the Food and Agriculture Organization of the United Nation
(FAO) installed and operated a number of agro-meteorological stations in Kurdistan region to
investigate and study the climate of the region for agricultural research purposes. These stations have
properly recorded and organized information, which can be used in other fields than agricultural
researches.
Wind energy
In 2009, the Dutch company Mainwind BV installed two windpowerplant in the Kurdistan Region to
gather wind data, being the first company to invest in wind energy in Iraq. The winowerplants are
located in Karadaq and Haroota, and after evaluation, the Kurdish government will consider further
windpowerplant purchases
A. Oil
Iraq has the third largest oil reserves worldwide, with one of lowest extraction costs. Based on
seismic surveys, the proven oil reserves of Iraq are estimated at 115 billion barrels52, the unproven
ones could amount 160 to 200 billion barrels even 350 billion barrels, what would make Iraq the
largest oil reserve in the world. "Iraq is sitting on a lake of oil53."
According to the Kurdish Minister of Natural Resources, Dr. Ashti Hawrami, the potential oil
reserves of Kurdistan are estimated at 45 billion barrels54, representing 39% of proven Iraq's
reserves and the reserves of Nigeria and Libya55. Most of these reserves are located in the
governorate of Erbil56.
In 2007, Iraq was producing 2-2.5 million barrels per day (bpd) for $ 41 billion57.
The federal government's objective is to produce 8 to 10 million bpd.
Two refineries have been built in the region of Kurdistan (in Kalak and ChamChamal) and a third
one on the Tawqe oil field with a capacity of 7,000 bpd.
Exporting:
The KRG is currently exporting 90 000 bpd with a capacity to export 110, 000 bpd, or even 150,
000 - 200 000 bpd by the end of 2011. The KRG hopes to export 1 million bpd by 201459,
according to the agreements signed with Baghdad, what will represent a 50% increase in the
amount of the actual production from Iraq (2,2 M bpd). Exports are currently from the fields of
Tawqe and Taq Taq 60.
52
Clement - Davies, Christopher, et Philip Woodruff. « Iraq’s Oil and Gas Legal Framework” . Fullbright & Ja worski
International LLP. January 2009.
53
Ibid.
54
Interview with Michael Howard, Communications adviser to the Ministry of Natural Resources: & USAID. "Kurdistan Region.
Economic Development Assessment. December 2008, p. 48:
http://www.kurd.org/doc/EDA% 20Report_English.pdf
55
Ibid.
56
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary, p. 96 – 97.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
57
Clement - Davies, Christopher, et Philip Woodruff. « Iraq’s Oil and Gas Legal Framework” . Fullbright & Ja worski
International LLP. January 2009.
58
Mr Ashti Ha wra mi, Minister of Natural Resources at the meeting of the Foreign Relations Department February 8, 2011.
59
« Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary, p. 96 – 97.
60
Kurdistan Times. “ Kurdistan Region of Iraq. Resources riches fuel reconstruction and progress” . February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
Date Bpd
Predicted
30/04/2011 110,000
30/06/2011 140,000
28/09/2011 160,000
27/12/2011 200,000
The KRG has decided to encourage the sharing and production contract. This type of contract
involves the oil company that insures risks of exploration and gets a share of the profit62. KRG
receives 90% of the profit and the remaining 10% go to the operating companies. Revenues from
operations KRG Natural Resources are paid into a federal account to Baghdad to be distributed.
All companies who prospect must provide a detailed profile of their business and sign a
confidentiality agreement 63.
Agreements
43 contracts for production sharing oil and gas were signed by the KRG with about 40 oil
companies including 16 from countries (United States, Turkey, UK, France, Austria, China,
Canada or the United Arab Emirates64).
Legal framework:
The hydrocarbon sector in the Kurdistan region is framed by the law on gas and oil from the
Kurdistan Region - Iraq, enacted in August 2007.
Note that the investment law passed by the KRG in 2006 (Act No. 4) does not affect oil and gas
companies. Also, these are not exempt from taxes65.
2) Problems
61
Ibid.
62
Interview with Michael Howard, a communications adviser at the Ministry of Natural Resources
63
According to the Minister in Mr Ha wra mi: Kurdistan Times. "Kurdistan Region of Iraq. Rich oil resources and reconstruction
progress. "February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
64
Interview with Michael Howard, Communications Adviser at the Ministry of Natural Resources, and:
Kurdistan Times. "Kurdistan Region of Iraq. Rich oil resources and reconstruction progress. "February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
65
Article 59.2: Presidency of the Kurdistan Region. “ Oil and Gas Law of the Kurdistan Region – Iraq. La w N°(22). 2007” .
http://www.krg.org/uploads/documents/Kurdistan%20Oil%20and%20Gas%20La w%20English__2007_09_06_h14m0s42.pdf
66
Donovan, Thomas W. “ The December 2010 Iraqi Unity Government and its Impact on the Domestic Upstream Petroleum
Sector ” . Iraq La w Alliance PLLC. December 2010.
67
The terms of the contract are detailed in Chapter 7 of the La w on Kurdish oil.
share and production contracts by KRG. While KRG has ex nihilo start the exploration and the
production of oil, the federal government has to restart the operation of existing fields. That is the
reason why KRG68 has offered production-sharing contracts, taking in account the fact that the oil
fiels are much less abundant than the ones in the rest of Iraq.
Faced with conflicting positions within the federal government, the KRG continues to honour the
agreement it signed with the federal government and has resumed oil exports.
3) Investment Opportunities
- Infrastructure: the Region needs oil and gas infrastructures in order to exploit Iraqi oil7273.
- Petrochemical industry: with the development of oil by-products industry, petrochemical
industry may arise in the future.
B. Gas
Gas production has greatly decreased in Iraq from 215 bcf in 1989 to 87 bcf in 200574.
Proven natural gas reserves equivalent to 112 Iraqi trillion cubic feet (Tcf)75. This is the tenth
world gas reserve. Probable reserves of gas in Iraq are estimated at 275 trillion to 300 Tcf76.
According to the Kurdish Ministry of Natural Resources, the gas reserves in the region of
Kurdistan are estimated at 3-6 trillion m3, equivalent to the French gas consumption during 100
years7778. Potential reserves in the region of Kurdistan are estimated at 11.7 Tcf of gas but could
actually reach 82 or even 100 trillion Tcf79.
68
Article 24.2:
http://www.krg.org/uploads/documents/Kurdistan%20Oil%20and%20Gas%20La w%20English__2007_09_06_h14m0s42.pdf
69
USAID. « Kurdistan Region. Economic Development Assessment ». December 2008.
http://www.kurd.org/doc/EDA%20Report_English.pdf
70
Interview with Mr Michael Howard, communications adviser at the Ministry of Natural Resources.
71
Ibid.
72
Ibid.
73
Donovan, Thomas W. “ The December 2010 Iraqi Unity Government and its Impact on the Domestic Upstream Petroleum
Sector ” . Iraq La w Alliance PLLC. December 2010.
74
Clement - Davies, Christopher, & Philip Woodruff. « Iraq’s Oil and Gas Legal Framework” . Fullbright & Ja worski
International LLP. January 2009, Op.Cit.
75
Clement - Davies, Christopher, et Philip Woodruff. « Iraq’s Oil and Gas Legal Framework” . Fullbright & Ja worski
International LLP. January 2009, Op.Cit.
76
Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan O’Leary, p.
97:http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf & USAID. « Kurdistan Region. Economic Development
Assessment ». December 2008.
http://www.kurd.org/doc/EDA%20Report_English.pdf
77
According to the Minister in Mr Ha wra mi: Kurdistan Times. "Kurdistan Region of Iraq. Rich oil resources and reconstruction
progress. "February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
78
France consumes about 40 billion m3 of natural gas per year, according to French economic mission in Arbil.
79
According to the minister Mr Ha wra mi, in: Kurdistan Times. "Kurdistan Region of Iraq. Rich oil resources and reconstruction
progress. "February 3rd, 2011
Nabucco:
In order to more easily distribute its gas, the KRG has established the Nabucco project.
The Nabucco project intends to bridge the supply of gas between Asia and Europe connecting
Aerbaijan, Turkmenistan, Iraq to the European market. In Iraq the source of supply for Nabucco
would be the ChamChamal gas field the reserves of which are estimated at 3 to 6 trillion m3 and
the recent gas field of Miran distant of 60 km from Shamshamal.
Nabucco would have the capacity to carry 30 billion m3 per year, over a length of 4000
kilometres. The cost of the project is estimated at 20 - 25 billion €.
The three main shareholders of the project are OMV (Austria), RWE (Germany), MOL (Hungary)
Botas (Turquie), Bulgarian Energy Holding and Transgaz (Romania). IPIC (International
Petroleum Investment Company - Abu Dhabi) could join the Nabucco Pipeline Consortium.
So far, oil and gas companies have invested 6.3 billion pounds for the initial phase80.
The pipeline should be started in 2011 and completed in 2014.
2) Problems
- Dispute between the KRG and the federal government: following the example of oil, gas is a
subject of tension between the two governments;
- Need of infrastructures: there is no industrial nor gas distribution infrastructure. Investors are
reluctant to invest to produce gas that cannot be sold nor exported 81.
- Lack of skilled labour.
3) Investment Opportunities
Investment opportunities in the gas sector are manifold as the sector is not developed.
- Infrastructure: There is a great need for infrastructure to handle the gas and export it (refineries,
factories, pipelines,...)
- Training: foreign teachers could teach in universities in the region and also to train local
teachers. Specific training centres should be open to better train the local workforce.
C.Minerals
1) Untapped resources
There is currently no reliable study on the subject, but the region of Kurdistan is rich in untapped
untapped resources : it is estimated that a belt of 15 to 25 kilometres wide close to the borders of
Iran and Turkey contains minerals such as iron, chromium, nickel, cobalt, platinum, copper, zinc,
lead, pyrite, silver, gold, talc, asbestos, barite, coal, as well as abundant industrial stones such as
marble, the igneous rocks of various colours and types as sulphur, phosphorus, salt, gypsum,
limestone as well as a range of metallic minerals and iron ore.
Moreover, Kurdistan region accomodates many quarries of pure rocks, limestone, gypsum,
bentonite, sand, clay and gravel. Till now there was very little mining activity, mostly in marble,
gypsum, limestone and iron ore which were discovered on various sites.
It is too early to say if the KRG could create a viable systematic exploration and development of
mineral wealth approach should be adopted in using the experience of different countries,
companies and institutions.
Under the constitution, the mining sector is under the shared responsibility with the KRG and
Federal Government. It is not under the sole responsibility of the federal government. In this
regard KRG should have the right and the responsibility to extract minerals existing in the
Region. This new legal vacuum would create a new situation of tension between the two
governments. The Department of Natural Resources is preparing an ore-act. This law will cover
all aspects and activities related to exploration and extraction of metal and non-metal ores, in
80
Kurdistan Times. “ Kurdistan Region of Iraq. Resources riches fuel reconstruction and progress” . February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
81
Herbert Smith. « Key legal issues in the third licensing round for Iraq’s gas fields” . Energy E-bulletin. June 15, 2010.
http://www.herbertsmith.com/NR/rdonlyres/26935554-DFC9-4F20-AAEF-
E99A768D4683/0/IraqGasFieldsThirdLicensingRound.htm
harmony with the procedures and methods adopted at international level. This will therefore
encourage investment.
2) Investment Opportunities
KRG wants to develop the mining sector in order to increase its revenue and to create jobs. He is
willing to encourage investment in this area82.
Additionally, having these resources would avoid importing them, and thus facilitate the
development of other sectors, especially in building materials and metallurgy, agriculture, and
rehabilitation of local communnities.
The private sector already already plays a role in the mining industry especially in marble, gravel
and sand83. Local companies show interest in the rock mining industry too. Foreign companies are
interested in investing in the Region but wait for the promulgation of the Kurdish Mining Act84.
Contact:
Transportation
Transport infrastructure and roads and airways are fully developed. Various plans for these
improvements are made at an advanced stage.
The government has developed a national strategy for transport in order to improve and update the
infrastructure of the Region and allow the Kurdistan capitalize on its natural geographic advantages.
The Ministry of Transport and Communication deals with three types of transport: passengers, general
cargo and transportation of oil.
In the Region of Kurdistan, there are no major transport systems belonging to the government.
Transportation companies for freight and private oil have certificates issued by the Ministry of
Transport. There are about 300 companies in this sector for the whole Region.
The Ministry of Transport and Communication has established a master plan with two key-projects:
- A railway line with a length of about 650 km, linking the towns of Zakho - Duhok - Faida - Shikhan -
Bar darash - Khabat - Erbil - Koysenjaq - Dokan - Tasluja - Sulaimania - Arbat - Said Sadiq -
Nalpariaz – Penjewin ;
- A light railway transportation system detailed feasibility study for the cities of Arbil (60 Km),
Sulaimaniya (60 Km), and Duhok (40 Km).
Foreign companies can help by investing in the master plan prepared by the Department, especially by
investing in projects above - mentioned. Very few foreign companies have so far invested in the
82
The KRG has no more specific information about this area, and 2 to 3 studies were conducted by the USGS group.
83
Fathi M. Ali Abdullah. “ Kurdistan, the commercial gateway to Iraq” . p. 13.
USAID. « Kurdistan Region. Economic Development Assessment ». Décembre 2008. P. 111 :
http://www.kurd.org/doc/EDA%20Report_English.pdf
84
Interview with Mr Michael Howard, Communications adviser at the Ministry of Natural Resources.
transport sector.
The region has developed a network of roads interconnected with the rest of Iraq. Good road connect
the main cities of the Region, and the Ministry is about to create extensive road systems within cities to
facilitate movement, in the manner of the 100 meters Road in Erbil.
Road construction to double - has recently started routes and visas to facilitate travel between major
cities in the region, such as between Erbil and Koya. It aims to create better transport and better road
networks for businesses and individuals.
Businesses can contact the Department of Transport and Communications if they want to invest and do
business in the area.
Contact:
Ministry of Transport and Communication
And Media Relations Manager
Mr Rasul Rasul Seleh
Email: [email protected] [email protected]
Tel: +964 (0) 750 495 7485, +964 (0) 66 223 3794
Information Technology
The IT sector is headed by the KRG Department of IT.
Highest emphasis has been put on IT sector at the highest levels of KRG as well as leading the
provision of policies, strategies, guidance, resources, and support needed for the realization of
Kurdistan’s IT vision.
KRG IT Strategy Development and Implementation Roadmap Project, in cooperation with
PricewaterhouseCoopers (PwC) has been initiated to develop the KRG IT 2011-2016 master plan to
provide KRG a clear vision (direction and budget) over the next 5 years. It is currently in its final stage.
Once it starts implementation, the project will help develop IT in the region based on seven domains it
identified in its initial stages.
In addition, information technology is now a motor of economic development in modern societies and
Kurdistan is going to be first region in Iraq that has an outlined 5 year IT strategy, which will enhance
the future of Kurdistan. Early adoption of an IT strategy is at the heart of the KRG efforts. Kurdistan is
almost a greenfield site. Fresh platform to start making real developments in IT infrastructure. Making
a democratic ‘ e-governance’ a reality, from ministerial laptops to disadvantaged citizens. The strategy
is over 3000 pages, with every detail, in order to have a very practical strategy the KRG estimates a
budget in the region $600-$700 million.
The KRG Employee ID Card Directorate, with its central office in the Council of Ministers, conducts
its operations and card issuance through 6 sub-offices across the Kurdistan Region. It issues standard,
professional, biometric and smart ID cards to all of the KRG employees. Information Technology
Academy (ITA), a state-of-art facility, trains human resources in the field of IT for the government and
region of Kurdistan. Officially a Microsoft Certified Partner, ITA has been continuously striving to
deliver modern IT courses. It has been used thus far to train government employees, university
lecturers & students. It can also be rented out to other organization for workshops and seminars.
The main problem that the Information Technology sector is facing just like most of the other sectors
in the region is the lack of skilled staff. A lot of training is needed to create efficient IT staff. This is a
brand new industry in the region and is relatively new worldwide. So training is always in need. The
understanding of Information Technology in the Region has also been another factor as many people in
the region believe that basic services should be improved before investing in technology.
IT Penetration and Private Sector Development are key areas for achieving the Vision, Mission and
Objectives of KRG IT Strategy. IT Private Sector Development proceeds from from a supply
perspective and IT Penetration from a demand and utilization of final product perspective. It is thus
important to see both the segments as complementary to each other.
The key objectives that will be achieved through the IT Private Sector and Society initiatives include:
Several key foreign companies such as Microsoft, Cisco, Google, and You Tube have visited the
region and noted substantial potential in investing in the region. Upon the implementation of the KRG
IT Wide Strategy and Roadmap Project, there will be many opportunities for both international and
local ICT companies to help implement the KRG IT projects over the next 5 years8586.
Communications
The communication sector in Kurdistan has taken a turn towards the development and maturation
during the last decade. The KRG has enacted the "Law on the" misuse of communication facilities in
the region of Kurdistan - Iraq, Act No. 15 approved by Parliament in 2008.
The Ministry of Transport and Communication is responsible for overseeing the work and actions in
these two sectors.
The communication sector is composed of:
Telecommunications, media and Internet have greatly developed thanks to advances in technology.
Northern Iraq has boomed from a backward and isolated region in the early 1990s to the world of a
thriving economic region, with several mobile phone networks, radio stations and independent
television and the emergence of free media.
In 2001, there were only two mobile operators in the Region, each with their own regional
circonscription : Asiacell (Sulaymaniah) and Korek (Erbil & Duhok) are now in an healthy
competition in Regionand throughout Iraq88.
The Ministry works with the organization and distribution of television channels and radio frequencies
in the Region. He oversights as well operations (transmission, quality of equipment, filters, and towers
and their location). He also wants to organize the transmission between TV channels so there is no
interference with each other.
The level of investment in the communications sector indicates the sector's strong position in the
85
Delivering Modernisation 1,2 & 3 KRG DOIT Publication
86
Interview with Mr. Botan Osman, Head of Dept of IT
87
Rasul Seleh Rasul, Manager of Relations & Media MOCT Q&A December 2010
88
«The Kurdistan Region. Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan
O’Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
Region: there is healthy competition between different mobile telecommunications, which has led to
demand better services affirmed mobile communication.
Thanks to the stability of the region, the local telecommunications providers have been able to hire
foreign experts for example Asiacell and Korek are led by experts, advisers and foreign directors. This
was the key o the success in the formation and development of the local workforce.
For Internet services, there are two major suppliers under public ownership - private: Newroz Telecom
in Erbil and Duhok, 30% of which belong to the Ministry of Transport and Communication, and
KurdTel in Sulaymaniyah, 28% of which belong to the same Ministry89.
One of the strategies the department was to create a global network. Also, he attended Nawroz KurdTel
and in their cooperation with international providers of Internet. Previously, the region used the V -
Sat, which cost 75% more expensive than the system used today90. The price is still high but with
improved security and stability in the area, prices of internet will drop in the next 2 years. 8 companies
are working in the region to establish wireless systems. Tarin Net provides free Internet access to
government institutions and universities.
The government has decided to pay for this service to promote Internet use and its benefits. The
Ministry of KRG works closely with IT-PC federal government.
Given the difficulties in Baghdad, it was difficult to privatize it in the Kurdistan region.
The Ministry does not provide Internet service: it simply gives the private sector the opportunity to sell
their services, but also protects investors.
The KRG also recognizes the power of the Internet and decided not to censor the Internet.
This industry includes companies involved in activities operation, maintenance and Internet Service
Provider services and technologies that enable the transmission of voice, data, text and video networks
using wireless communication.
It also includes simple transaction to purchase the access and the ability of owners and operators.
Cellular communications form a major part of this industry. (not necessary)
The population of Kurdistan is young and growing: 36% of the population is under 14 years, 50% are
under 20 years, and only 4% are over 63 years91.
Education has been improved for this generation (which one ?). The demographic studies show that
there is a potential for investments in the fields of telecommunications and internet services. There are
currently problems with distribution of access because of the mountainous region. WiMax technology
is about to overcome this obstacle, but the lack of communication between the region and wired
Internet remains a problem. It can be solved with the right investment to provide broadband Internet
access with high bandwidth to the entire region.
The master plan of the Ministry is currently implemented in the region. Management master plan
should not start because of lack of infrastructure quality (contradiction).
The development of the sector required the help of international companies. One project - key master
plan- is the management of frequencies and frequency tools to prevent interference.
Training of individuals is always a challenge in the Region. Emphasis was placed on the skills of the
population to assist in the implementation of this technology. The sector needs people with high skills
in communication and programming.
The development of the sector is slowed for several reasons (contradiction): the Ministry's budget is
insufficient; the Ministry also faces the bureaucracy in the rest of Iraq and the lack of cooperation with
the Ministry of Communications in Baghdad (contradiction). There is also a lack of centralized
information.
89
Ibid.
90
Ibid.
91
«The Kurdistan Region. Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan
O’Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
Foreign companies wishing to invest in the region should move there and be present at the place to
look for local partners, so that there is direct communication between business and government
(incomprehensible). Foreign companies can also participate in capacity building projects in the area
and belong to the economic development of the Kurdistan region.
Contacts:
Ministry of Transport and Communication
And Media Relations Manager
Mr Rasul Rasul Seleh
Email: [email protected] [email protected]
Tel: +964 (0) 750 495 7485, +964 (0) 66 223 3794
Contact Mr Karwa Director General, Techinical Affairs.
Agriculture
Agriculture has a strong economic potential.
The Kurdistan region has very fertile land: 1.3 million hectares of arable land, 13.12% of Kurdish
territory, but only 0.61% of this land is grown continuously and 13% of it is irrigated (150,000
hectares)92.
In addition, there is abundant water for irrigation: in fact, Kurdistan has 60 billion m3 of surface water,
to which groundwater93 must be added.
The average annual rainfall in the region vary from 328 mm to Khanaqin over 1 263 mm Penjwin94.
Previously the Kurdistan region was the breadbasket of Iraq. However in 1987, the Iraqi central
government declared, "agriculture is now banned in the Kurdistan region." From 1986 to 1989,
Saddam led the Anfal campaign, which resulted in the destruction of M Iraqi Kurds in 1991.
The Ministry of Agriculture and Natural Resources is composed of 7 directorates and employs about
13,320 workers. A five-year strategic plan was established in 2009 in partnership with the Ministries of
Trade and the Ministry of Planning. The objective of this plan is to develop the agricultural sector to
make it the economic engine of the region. The KRG is looking to reach self - sufficiency and to
become again the breadbasket of Iraq. The will of ensuring food security is indeed crucial for the
Region (cf Dr. Talib Murad95).
Despite these goals and the dedication to make agriculture the No. 1 priority of the KRG, the budget
devoted to agriculture represents only 2.5% of total budget ($ 250 million)96. Therefore, the means
provided cannot serve the ambitions shown by the KRG.
An Agricultural Bank was established to help farmers cultivate their land by granting them loans. So
far the Bank has supported 1,245 projects. The maximum loan amount in 2009 was 50 000 USD,
70 000 USD in 2010 and will be 100 000 USD in 2011. However, these loans are small compared to
those granted by the federal government ($ 14 million)9798.
Agricultural Bank provides loans at 0% repayable over 5 years from 5 years (NB : these conditions are
subjected to change as they indeed change every 3 months) :
- Loans to 60% of the project (50% for tractors)
- 80% of loans are devoted to the launch of activities,
A farmer wishing to obtain a farm loan must apply to its sub-districts that send the request to the
Ministry of Agriculture. If the Ministry approves the project, the Bank of Agriculture grants the loan.
The applicant must own minimum 30 ha irrigated. A committee inspects the land and assess in
particular they are well irrigated.
92
Presentation by Mr David Merceron. "Agriculture and agricultural machinery in Iraqi Kurdistan. " November 2010.
93
Interview with Mr. Hussam Barznji Hakim, Director General of the Kurdistan Economic Development.
94
KRG. “ Investment Guide. Kurdistan Region – Iraq” . P. 4-5.
95
“ The survival of a country depends on its ability to feed itself and not on the wearing of western clothes, possession of mobile
phones etc.” Dr Talib Murad. “ Agriculture in Kurdistan and Iraq” . Erbil, January 18th, 2010, p. 20.
96
Interview with Dr. Talib Murad, Advisor for Agriculture and Food Security to the Prime Minister.
97
Interview with Mr Anwar Omer Qader, Director General for planning and monitoring at the Ministry of Agriculture and
Water Resources.
98
Interview with Dr. Talib Murad, op.cit.
Kurdish Agriculture curve is 15% production to 20% of agricultural needs in the region of Kurdistan.
According to USAID, it represents a significant share of agricultural production in Iraq: it produces
40% of the oats in the country, 50% wheat, 98% tobacco, 30% cotton and 50% of fruits99. Its strategic
agricultural productions are cereals (wheat, barley, maize, sunflower and rice), fruits and grapes
(grapes, apples, figs and pomegranates). Main crops are cucumbers, tomatoes and eggplant. The
average yield is 0, 8-1, 5 tons / hectare100. Agriculture is a sector, which is currently uncompetitive:
production costs are higher than in neighbouring countries, since wages are higher.
Problems:
- Rural exodus: it is now very difficult to bring farmers back to their villages and countryside, as they
have become used to city life that gives them more comfort than life in the countryside.
- Training: there are very few students who graduate in agriculture. There are only 5 schools of
agriculture, what is insufficient for the Region. These schools have no means or nor competent teachers
in the field101. There are only 5,000 veterinarians throughout the whole Region.
- Mostly agricultural products are imported: a major obstacle to agricultural development in Kurdistan
is that about 95% of food is imported102, this food being more competitive that the local production and
being sold at a lower price. As a matter of fact, to develop agriculture in Kurdistan implies that
agricultural products will be sold at a higher price than the imported ones: a local cucumber grown in
Suleymaniye costs 200 ID, while an imported one from Iran is sold 100 ID103. A company producing
120,000 tons of chicken 104 a year closed down its activity to import Brazilian chicken that costs half as
less as local chicken 105.
- Free distribution of food: the public food distribution system also distorts the agricultural market: the
individuals receive food parcels of basic subsistence products (flour, sugar,...). Consequently they buy
less, or not, products sold by local farmers.
- Products of poor quality and health risks: the quality control on imported food products is still low.
However, this control is particularly important for livestock: in fact, Kurdistan has become a hub
between many worlds, through which are transported sheep and cattle, what creates a risk of spread of
transboundary animal diseases106.
- A five-year plan unsuited to the realities: from the economic point of view it does not make sense to
provide farmers thousands of tonnes of improved seeds disregard of soil fertility, use of fertilizers,
pesticides, herbicides.
- Lack of infrastructure and agricultural equipment: There is a lack of adequate equipment for planting
and cultivating the land, lack of storage infrastructures and marketing services which are also essential
to the whole agriculture chain (in 2009 the lack of storage equipment in Sulaymaniye resulted in the
lost hundreds of tons of wheat).
The same applies to equipment: agricultural machinery in the region is old and poorly developed: there
are only 16,000 tractors, 90% of them being unable to work as they date from the 1970s. There are 925
harvesters - combines, but only 30 of them are in use (the units are too old).
To renew the fleet of machines, Kurdish farmers have three options. Opt for:
- The Turkish material, good quality and competitive prices.
- The Iranian equipment, poor quality and very cheap price.
- The French product, excellent quality but too technologically advanced and too expensive.
- Weakness of agricultural banking: loads awarded by the Agricultural Bank and local banks network
are limited.The banking sector is weak. Agriculture requires modernized and powerful bank system in
order to be a partner for those who have the capacity to borrow in order to expand their activities.
Opportunities
The Kurdistan region must develop its agricultural sector to meet its food needs of a growing
population and to insure its food security and self sufficiency. Private investment is encouraged by the
KRG.
99
USAID. « Kurdistan Region. Economic Development Assessment ». December 2008. P. 14:
http://www.kurd.org/doc/EDA%20Report_English.pdf
100
Presentation of Mr David Merceron, op.
101
Ibid.
102
Ibid.
103
Interview with Dr. Mohammed Karim, director of the Grass Company.
104
Interview with Mr. Salim Kako, deputy member of the Committee on Agriculture and Irrigation, the KRG parliament.
105
Interview with Dr. Mohammed Karim. Op Cit.
106
Dr Talib Murad Ali. “ Agriculture in Kurdistan and Iraq” . Erbil, January 18th, 2010. 27 p
BMU
Riad Al Khouri: [email protected]
Dean of Business School
Tel: +964(0) 750 71 44 865;
Jordan: +962(0) 77 999 5000; Lebanon: +961(0) 3 842 567;
Switzerland: +41-795 248 051
Grass Company
Dr. Muhammed Karim
Email: [email protected]
Tel: +964(0) 7701523502
KRG relies upon an Environmental Committee (formerly the Ministry of Environment). Appointed by
the Council of Ministers, the President (currently a woman) has the rank of Minister.
This committee is composed of 3 environmental general directorates:
- The Directorate General for Administration and Finance
- General Directorate for the Technical Department,
- General Directorate for education.
This committee has laboratories to control environmental pollution: working without expertise, traned
workforce, this committee has poor results as awareness of the population toward environmental issues
is still very low.
Environmental law was issued in 2008 (Act No. 8 of 2008). A new legislation is being prepared.
One of the disposition of the law will require companies and investors to complete an 107"Assessment
of Environmental Impact", through which the company commits to follow a number of steps to protect
the environment.
The association "Together to Protect Human & the Environment", managed by Dr. Saadia, deals
mainly with education and awareness about the environment.
Since 2007 she has set up activities on this theme in the three governorates, including
- Teacher training,
- Educating students through the creation of environmental associations in different schools (e.g. Tav
Club)
- Student exchange program: 60 Arab students from Baghdad and Erbil, Kurdish 60 students gathered
each year to discuss the environment for there to be exchanges between the two groups, with the
support of the Ministries of Environment in Baghdad and Erbil.
- Tree planting campaigns (with USAID assistance).
To ensure better protection of the environment, the association suggests that the GRK implement an
environmental management system (ISO 14000)108, modelled on the project that Japan has done.
It also suggests introducing a tax funding a government fund to protect the environment.
Problems
- Lack of awareness and education: courses and interventions on the subject should be included in the
programs of the Ministry of Education. In addition, awareness campaigns should be organized to reach
the entire Kurdish population.
- Lack of funds: associations and NGOs are in the position to conduct ongly small scale environmental
activities and programs.
- Lack of involvement of the private sector which are not involved in environmental protection.
- Lack of control by the government which has not the capacity to monitor each company’s compliance
with the Environmental Impact Assessment, inspectors being not trained for this type of task.
Investment Opportunities
- Awareness: There is an urgent need to raise awareness in the region of Kurdistan in order the Kurds
to realize the importance of the environment. Thus, foreign experts could offer their services to help the
government develop awareness campaigns (advertising campaigns or television broadcasts).
- Training: it is urgent to train teachers on environmental matters, to teach teachers.
- Recycling activities: the recycling industry is completely missing from the industrial landscape.
- Renewable energy: investment in renewable energy should be fostered since the wind patrimony is of
good quality in the region of Kurdistan.
107
Environmental Impact Assessment.
108
Environmental Management System (EMS).
Sadia F. Hassoon
Chairman
E-Mail: [email protected]
Tel: +964 (0) 7507361549
Tel: +964 (0) 7703979560
Health
Until 1991, the health sector was flourishing and in better shape than today: medical services worked
well, and the Kurds had access to all types of medicine. In 1991, this sector as the rest of the economy
of the Kurdistan region collapsed: hospital infrastructures were destroyed and neither medicine nor
equipment was available. The situation improved with the implementation of the "food for oil
program”. Health centres opened, delivering better medicines and training to local staff.
The Ministry of Health oversees seven directorates: Directorate of Erbil, Koya, Sulaymaniye, Dohuk
Rania, Germian and Sharzour109.
Erbil counts 18 hospitals, 203 primary health centres, 13 specialized medical centres, 8 private clinics,
11 public clinics (health insurance), 4 clinics, 4 schools and maternity nurses for a population of
1, 800, 000 inhabitants in total.
Hawler Medical University is the only University that specializes in medicine. The doctors who make
the courses are university graduates. About 100 to 150 doctors graduate every year.
The Ministry of Health has prepared a master plan for 5 years to provide basic health services in
Kurdistan, such as oncology, mental health. The plan focusses especially on modernization of
hospitals, with the purchase of dialysis systems, scanners MRI ... There are now plans to build
hospitals (maternity hospitals, paediatric and cardiology centre), to create a DNA laboratory and to
implement quality control by extending the existing facilities.
Many contractors are local and Turkish. The design of hospitals is oftenly done by Lebanese
companies. Committees are set up to monitor projects110. Projects over 50 million IQDs should be
published in newspapers. If the project is less than 50 million IQDs, the Ministry of Health can freely
choose the company with which it wishes to grant the project (provided that the company is registered
in the region of Kurdistan). Foreign companies have no obligation to use the Kurdish Workers111. They
can submit their offer to answer a tender launched by the Ministyr of Health. Regarding a private
investment, they have to contact the BOI, Board of Investment.
The Ministry of Health agrees that changes have to be made in the field of health: on 24 February 2011
he organized a Health congress (experts, professors,...) to discuss the restructuring of the health system
in the Kurdistan region112.
Problems:
- Lack of hospitals and relevant specialized services: no private or public hospital can meet the needs
of the health sector. Many patients have no other choice but to go abroad for treatment, even for the
slightest illnesses. Many services (buildings, staff, skills,...) are failing: no cancer, mental or heart
centre, no center for burned people, no blood bank in the region (only a limited blood bank in each
hospital).
- Training: Training is a major problem. Hospital staffs worked little and sometimes combine a job in a
public hospital with another one in a private hospital, what leads overworked doctors to commit
misconduct, endangering the life of patients.
The public health care is free low wages do not motivate to work hard. In addition, medical staff has no
training on new techniques or modern medicine. Nursing services are indigent.
- Lack of equipment and medicine of good quality: medical equipment, imported from Turkey and
China, Syria, Jordan, Iran and Gulf countries, are of poor quality.
- Lack of coordination and cooperation between the 2 ministries: the federal government purchases
109
Interview with Dr. Omar Ali Amer, Head of office for the Minister of Health.
110
3 teams within the Department of Health and the Council of Ministers.
111
Provided that the company is registered in the Kurdistan region
112
www.healthcongress2011.org
drugs and equipment for the region of Kurdistan. The orders of KRG are not attended the right way.
They are supplied with many mistakes and oftenly do not cover the needs of the Region.
- Lack of budget: health is free but KRG has no means to improve medical infrastructure because of a
lack of budget leading to a deterioration of public hospitals services. The financing of the health system
must be reformed.
Opportunities:
- Construction of hospitals and specialized services: given the inability of private hospitals to take care
of the sick Kurdish population, a state of the art hospital (cardiology, oncology) is needed.
To build a private hospital, a foreign firm must contact the BOI to obtain a license and address a letter
to the Ministry of Health to introduce its project.
Local businesses should contact the Department to obtain approval.
- Training and management skills: hospital staff desperately needs to be better trained, both in terms of
medical expertise, administrative and management.
- Training of of local doctors.
- Medicine: the Kurdistan region needs to import good and original medicine from European countries.
KRG must strengthen the legislation from the intelllectal propert point of view to encourage foreign
companies to come.
- Equipment, radiology: hospitals need medical equipment, radiology equipment, scanners, X-rays,
laboratories better equipped and with modern facilities. Personnel require tp be trained to use this new
equipment.
- Finally KRG should benefit advice to reform its health system.
The Ministry has established a master plan for the networks of communication, based on assessment of
needs. Some of these projects are under construction and will be over end of 2011, while others will be
completed in 2020: the highway from Zakho to Sulaimaniya via Erbil, the project of road connecting
Kirkuk to main towns of the Region, the road between Qandil and Shaqlawa.
The Ministry does not deal with urban planning. The Ministry of Municipalities is in charge.
Most foreign companies in the construction sector are Turkish. They control the market because they
113
Interview with Mr Farhang S. Omer, Director of Public Relations and Media Department of Housing and Reconstruction.
are geographically close to the Kurdistan region and also because they are patient. Indeed, some of
them are in the area for 2 years waiting for projects. Foreign companies also come from Iran, Gulf
countries.
Since 2009, the KRG has established quality standards and inspection systems for quality control of
materials used in construction. But these norms are not implemented.
When a private real estate project is submitted to the BOI, the latter submits it to the Ministry of
Housing to assess the quality of the infrastructure and the plan ... The architect may be a foreign one.
Companies wishing to obtain land should write a letter to the Ministry of Municipalities.
To participate to tenders foreign firms must be registered in the Kurdistan region.
Companies can do business in different ways:
- Participate to tenders, and why foreign companies should be registered in the Region,
- Receive a letter of invitation from GRK: the company did not need to be registered in the region,
- Investments: materials must be approved by the Ministry. When a company does not honour its
contract, the Ministry notifies it.
Investment Opportunities
- Construction of roads: the roads are in poor condition. There is a great need for foreign companies to
rehabilitate them, especially since 2020, the Ministry of Housing and Construction is to have two-lane
roads for all of Kurdistan. For this, the KRG needs of recognized companies in the field, skilled
technicians and equipment of good quality.
- Housing: facing the growth of the population, the Region has enormous housing needs: the shortage
of housing, according to the Ministry, is estimated to 120 000 dwellings. There is a lack of
infrastructure such as hospitals.
- Training centers: it is difficult to find qualified local employees. Loca and foreign companies should
train local employees though ther is no obligation for them to hire local employees. Anyway, this could
become a condition of implementation of a project. Moreover, once the project is over, still there is no
local staff able to operate and maintain the infrastructure. Training is needed.
Tourism114
The three provinces that officially form the autonomous region of Iraqi Kurdistan are designated as a
location of refuge and safety. The Kurdistan region serves as a direct haven and a tourist attraction for
many Iraqis who want to escape the perilous state that the rest of the country currently remains in. For
the Iraqi people, natural beauty and historical sites are the hallmarks of the governorates of Erbil,
Sulaymāniye and Dohuk.
The bourgeoning demand for tourism in the Kurdistan region can be viewed as an outcome of the
stable security monitored by KRG. Since 2006, FDI has flooded into the tourism secto. 40 licensed
projects have been licensed to the sector, mainly to cover the increase of the new hotels demand.
Tourism infrastructures have started to be built in 2003 after the end of Saddam’s era. The Directorate
of Tourism in the Ministry of Municipality and Toursim is responsible of the tourism strategy. The
goal is by 2015 to build 2,500 hotels to accommodate 1,350,000 visitors annually.
114
Interviews with Mr Hubert Debbasch, president of Whole Earth (Babel Towers), Mr Mawla wi, Director General of Tourism,
Ministry of Municipalities, Mr. Shareef Kharouba, Director of Sales and Marketing for Rotana Hotel - Erbil, and Mr Ahmed
Hearsh Chawsheen President of Kurdistan Hotels and Restaurants Association.
A committee in the Association of Hotels & Restaurants credits respective hotel/restaurants with a stars
rating. It also has to approve the commissioning of a new hotel/restaurant. The Association works
closely with similar organisations across the Middle East.
The city of Erbil, which is one of the most ancient and continuously inhabited cities in the world,
appears to be at the forefront of the gentrification that is currently ongoing in the tourism market of
northern Iraq, with the number of Five Star and International Hotels being established in the Region
The city of Erbil hosts the world oldest citadel, from the times when old empires would use the citadel
as a fortress. Now it is undergoing a facelift as the citadel is an element of the KRG’s tourism drive to
the Region
Sites of historical and natural beauty make ideal places for tourism related investment, completed
projects such as Pank Tourism Complex in Rawanduz is a clear example of how the investment law
has enabled the establishment of a modern tourist complex with a rollercoaster and amusement rides
placed on a Gorge near the town of Rawanduz. The scenery is breathtaking like no other seen in the
Middle East, taking in the snowy mountaintops in the winter and the green plains in the spring.
Kurdistan has the natural infrastructure to but it currently lacking adequate facilities
Opportunity of investment: Safeen Master Plan, Dukan tourism complex and Erbil green belt
Potential Tourism projects are in the pipeline in the town of Shaqlawa, about 50 kilometres from the
capital Erbil, at the base of Mount Safeen of nearly 2,000 meters high : Safeen Master Plan will
become a tourist complex with hotels, chalets and other activities spotted around the mountain creating
an amazing hideaway for families and travellers looking for a tranquil break.
Other proposed investment opportunities are Dukan city master plan and Erbil Green Belt master plan.
Travelling to the region has never been easier. To accommodate the expansion of air travel to the
Region, KRG has just opened a $400 Million International Airport in Erbil to accomaodate the increase
of travellers and cargo traffic. Last year alone 290,000 travellers flew to Erbil International Airport.
Tourism has the potential to become a job catalyst to the Region and is one of the three pillars with
hydrocarbon and agriculture of the economic development. job opportunities have arisen from the
tourism sector in recent years with the emergence of new hotels and complexes. A problem in the past
has been that during festivals and holidays, hotels and restaurants close because there are staff were not
willing to work. Now the restaurants/hotels have decided to stay open during these days. Training of
these staff is vital to development of this sector. AGEF has been providing housekeeping training
which has been effective to the development of skills in the tourism sector.
In 2011 GDP per head amounts to around $4,500 compared to the rest of Iraq ($3,600), with 1.5% of
GDP growth rate in 2007 to 4.3% in 2009, it is estimated to reach over 7% this year and around 8%
next year with the economy booming, tourism is gradually becoming the forefront of investment in the
region.
The Directorate of Tourism has a strategic plan to develop tourism : KRG is in need of companies to
enforce it. A tender will be launch to implement this master plan. A letter of interest will be attached to
this tender. The companies that apply must be registered in the Kurdistan region. The strategic plan
relies on private companies, KRG has only drawn up the draft.
Distribution Sector115
115In Erbil are supermarkets and hypermarkets Naza Mall, New City, City Centre, Team Mart Abu Shahab, and shopping malls
Majidi Mall, Mall Sofy, Tablo Mall, Mega Mall, ... and the recent Family Mall. A Sulaimaniye, supermarkets and hypermarkets
Zara Mall Zagros Mihrako, Rand Supermarket, etc.. and malls Rand Gallery, Zagros Mall, Mall Chavy, Sulaimany Mall ... and
soon the new Majidi Mall. In Dohuk, supermarkets and hypermarkets: Mazi Mall, Bahar City, Mini Market, etc., and shopping
centers Maxi Mall, Istanbul Bazaar, Cashemir, Panorama, KOC, etc.. In addition to these outlets, others are under construction
or still in projects such Galeriya, Kayseriya ...
household appliances, furniture, automobiles. Major investments were also made in the fields of
telecommunications and information technologies (multiple service providers of mobile telephony and
internet).
The distribution network landscape consists of 3 main components : convenience stores (traditional
grocery), specialized shops and supermarkets/hypermarkets. However, the distribution landscape is
changing very fast. With many shopping centres being built, the Region gradually appears as a
consumer society built on the western model
- The traditional local shops (grocery stores or traditional) : it occupies a prominent place in the
distribution landscape, particularly with regards to food distribution representing 75% of the retail
sector. Like other countries in the Middle - East, people are filling up in the stores which remain open
late at night. Traditional grocery stores are laid on surfaces of 80m2 to 400m2 and reference about
1 000 to 5 000 products (food, hygiene products, personal care and beauty, cooking utensils and small
household appliances). If the choice is limited (products of low and medium range), frequency of
purchases is high, almost daily.
With the growing use of private cars, consumers are increasingly using their vehicles to go to malls and
shop in supermarkets. This mentality change comes at a time when the purchasing power goes up
(4 000 USD per capita per year in the region of Kurdistan against 3 500 USD in the rest of Iraq) and
when the consumer is looking for products that contribute to improve his well-being and quality of life.
- Supermarkets and hypermarkets are still few in Kurdistan, but this emerging distribution platform is
gaining ground: 2009 saw the opening of a large shopping mall, Mall Majidi, with a hypermarket run
by City Centre from Koweit and a mall modelled on those in vogue in UAE. The product selection is
broad to satisfy all customer classes. Almost all the goods are imported (80% from Turkey due to the
geographical and cultural proximity with the Region, from China, Thailand, Middle - East and Europe.
German, Italian, French products start to appear on the market.
10% to 20% of the Kurdish population are considered belonging to the higher class, 30% to the middle
class and the remaining 50% to the lower class. The Kurdish middle class is gradually adopting a
lifestyle similar to the upper class. In this regard shopping in hypermarket becomes in up to date and
fashionable. Investors and developers do not hesitate to fall in behind this trend: their response is the
construction of many shopping centres able to meet the needs of modern consumers and to influence
the consumption patterns of the population.
Shopping malls are becoming more and more numerous in the three main cities of the Region: Family
Mall where Carrefour will open its first hypermarket (12 000 m2) by the end of 2011 in Erbil, Mazi
Mall in Dohuk, Mall Sulaimany in Sulaimaniyeh, Ainkawa Mall in Ainkawa the Christian village
contiguous to Erbil.
Price still prevails on the quality in the purchasing act and on the brand. However customers gradually
desire to adopt new consumption patterns. Rising living standards have led to quality expectations. In
this regard, European suppliers could test the Kurdistan region as a gateway for their products for the
whole Iraq.
The concept of partnership is in the middle of the commercial relationship, local operators looking
beyond the simple "contract of sale," a relationship of trust and exchange.
a. Turkey
Before the 1990s, Iraq was the major market for exports from Turkey. Today, Iraq is the 5th
partner for export to Turkey, after Germany, the United Kingdom, Italy and France.
Turkish exports to Iraq in 2007 were between 2.8 and $ 3.5 billion, according to official
figures from the Turkish government. The Turkish Minister of Trade, Kursad Tuzman,
estimated that the total trade between the two partners were $ 3.5 billion in 2007 and $ 6
billion in 2008, with a target of $ 10 billion by 2009.
Exports from Turkey and destined to Iraq accounted for $ 5.3 billion in 2009 and $ 6.3 billion
in 2010, according to the Consulate General of Turkey in Kurdistan (Turkish General
Consulate in Erbil).
Most Iraqi exports to Turkey are linked to oil: Iraq exports 650 MUSD of oil to Turkey,
800 MUSD in 2009 and 1 bnUSD in 2010, according to Turkish government figures given by
the Consulate General of Turkey in Erbil.
b. Iran
As far as the non-oil market is concerned, Iraq is the second major partner of Iran.
In 2006 Iraq bought about 1.3 to 1.8 bn USD of goods in Iran, nearly 2.8 bn USD in 2007
(including $ 1 billion to the solde region of Kurdistan -Iran Daily. August 18, 2008-),
4 bn USD in 2008. Both partners are expecting that total trade between their two countries
significantly increases. Iraq imports a wide variety of goods from Iran, including air
conditioners, construction equipment, office furniture, rugs, clothing, medicines, fish, spices
and fruits.
b. Iraq : Profile of Trade and Trade Balance (according to IMF figures, Stand By Arragement
28 October 2010117 in MUSD
Exports $48, 826 000 000
Exports of Crude Oil $ 47, 906 Million
Other Exports $ 920 Million
Imports $ 51.234 Million
Government imports $ 26. 291 Million
Imports of Capital unrelated to oil $ 12.814 Million
Imports of consumption $ 8, 091 000 000
Imports of oil-related capital $ 3.576 Million
Refined petroleum products $ 1, 811 million
Imports by the private sector $ 24, 943 000 000
Imports of refined petroleum products $ 4,225,000
116
USAID. « Kurdistan Region. Economic Development Assessment ». December 2008.
http://www.kurd.org/doc/EDA%20Report_English.pdf
117
International Monetary Fund. "Iraq - First Review Under the Stand - By Arrangement, Request for Waiver of Performance
Criterion has Nonobservance of, Waiver of Applicability, and Rephasing of Access, " September 20, 2010.
http://www.imf.org/external/pubs/ft/scr/2010/cr10316.pdf
a. Trade
In the 1980s, all the surrounding countries (Turkey, Iran, Syria) and Iraq during their actions
against Iraqi Kurds. Today the situation is completely different: the Kurds are no longer
regarded as enemies but as partners, especially from a business perspective. The Kurdistan
region is considered as a gateway to supply the booming Region and a country of 30 million
people under reconstruction.
KRG now enjoys good cooperation with foreign governments and international companies.
This cooperation is central to fufill its strategic vision and its economic development’s one.
Over the past 5 years, there has been considerable improvement in relations between the
Kurdistan region and neighbouring countries, especially with Turkey which become a major
contributor to foreign presence in Kurdistan. In addition, keeping good coperation with the
Arab world is one of KRG’s priorities: Lebanon is the 2nd largest investor in the Region.
The 10 major countries contributing to the foreing presence in the Kurdistan region are:
1) Turkey: 500 companies
2) Iran: 125 companies
3) USA: 25 businesses
4) Lebanon
5) United - Kingdom
6) Jordan
7) United Arab Emirates
8) Germany
9) Kuwait
10) Italy
11) France
According to USAID, the foreign trade accounts for the region are between $ 5 - $ 5.5 billion.
Imports account for 85% of the annual foreign trade. Most goods imported into the region are
not exported as value-added products.
- Turkey120
Relations between the KRG and Turkey have improved dramatically. The KRG wants to be
118
WTO. Iraq’s Trade Profile. October 2010.
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country= IQ
119
«The Kurdistan Region. Invest in the Future, 2009 ». Kurdistan Regional Government Publication. Ed: Professor Brendan
O’Leary. P. 24 – 25; &: USAID. « Kurdistan Region. Economic Development Assessment ». December 2008. P. 89, 94 – 96.
120
Ibid.
more present in Turkey in order to strengthen its ties with the Kurds of Turkey. Turkey sees
the KRG as an ally, a partner of great importance. Both governments have many interests in
common121. Turkey is the largest trading partner of Kurdistan through the front door of
Ibrahim Khalil, near Zakho, at the Iraqi-Turkey borders.
It is difficult to have data on the foreign trade of the region of Kurdistan. However, it is
estimated that 60 to 70% of trade with Turkey is that Iraq is in reality with the region of
Kurdistan, or about $ 4 billion. Much of this trade comes under the construction sector (about
3 bnUSD).
At this stage no oil exports from the Region to Turkey as oil export from the Kurdistan region
has resumed only on February 1 st 2011. because no grants with the federal government of Iraq
had been found to allow oil to be exported via pipeline to the North Turkey. However an after
the agreement reached between the Central government and KRG on this issue.
- Iran
Iran is the second major trading partner of the Region.KRG enjoys cordial relations with this
neighbour. The majority of goods exported from Iran come through the borders points of
Bashmakh, Haji Omran, and Perwaiz-Khan, entry points alternatively closed and reopened by
Iran. Iranian trucks must unload their vehicules at the border to load the Iranian good on
empty Iraqi trucks.
In 2007, Iran exported nearly $ 2.8 billion of goods to Iraq; including around 1 bn USD to the
Region of Kurdistan. Iraq imports a wide variety of goods from Iran, including air
conditioners, construction equipment, office furniture, rugs, clothing, medicines, fish, spices
and fruits. However, given the length of the border that Iran-Iraq share, it is difficult to
accurately estimate the value of black market which is done through unofficial crossing points
to the Region. Based on interviews with members of the Kurdish administration, this market
could amount to 1 bn USD.
To this volume of imported goods from Turkey and Iran through road transport must be
added volume coming through international airports of Erbil and Sulaymaniyah.
While there are some Kurdish agricultural exports, most exports Kurdish consist of re-exports
121
Interview with Mr. Professor Brendan O'Leary.
122
Turkish Consulate Erbil
of alcohol and tobacco from Turkey to other countries such as Iran. While the Iraqi
constitution gives the federal government the power to establish a minimum set of national
standards, the KRG should not be prevented from promoting its products as premium brands
that meet higher standards set by law or regional by international conventions.
According to USAID, the future of exports from the Kurdistan region depends on the
reactivation and development of the agricultural sector and development of food processing
and industrial products.
According to USAID, the foreign trade accounts for between $ 5 and $ 5.5 billion, according to the
Ministry of Finance in Erbil, the KRG's economic advisers and economic statistics of the exporting
countries in the region.
Imports account for 85% of the annual foreign trade. Most goods imported into the region are not
exported as value-added products.
A law regarding Intellectual Property has been passed under the authority of the CPA (Coalition
Provisional Authority (CPA Order N°81. “Patent, Industrial Design, Undisclosed Information,
Integrated Circuits and Plant Variety Law”. April 26 2004123:
http://www.mindfully.org/Farm/2004/Iraq-Plant-Variety-Law26apr04.htm
However, the concept of intellectual property does not exist in Kurdistan (as well as in Iraq), and the
law is not implemented. Indeed, the tools to control the implementation of the law do not exist and in
practice many infractions are noted.
A new text is being drafted which will be compatible with the Aspects of Intellectual Property Rights
regarding Trade to prepare Iraq access to WTO. Iraq is a member of the Paris Convention on
Intellectual Property.
- Brands protection: a brand registered at the Trademark Registration Office in the KRG Ministry of
Planning is protected for a period of 10 years renewable once. The owner of these rights can transfer of
grant licenses to use his brand. Some famous brands are protected even though they are not registered
in Iraq, when they are widely used.
- Patents’ protection: Once a patent has been registered at the Central Organization of Standardization
and Quality Control of the Ministry of Planning and Development Cooperation, it is protected for 20
years. Iraq has not signed the Madrid Convention regarding the international recognition of patents, so
it is strongly advised to locally register a brand 124.
There are specific procedures for chemical products, integrated circuits, plants and production
processes.
- Author’s rights protection: Iraq protects literary125, artistic and scientific works during the life of their
author and during 50 years after the author’s death. The author can register for free his work at the
Copyright Committee of the Ministry of Culture in Baghdad.
123
CPA Order N°81. “ Patent, Industrial Design, Undisclosed Information, Integrated Circuits and Plant Variety La w” . April 26,
2004
http://www.mindfully.org/Farm/2004/Iraq-Plant-Variety-Law26apr04.htm
124
Economic Mission of the Embassy of France in Iraq. "Investing in Iraq. "
http://www.tresor.economie.gouv.fr/se/irak/documents_new.asp?V=1_PDF_156425
125
Ibid.
Currently the Ministry of Culture in the Kurdistan region is in the process of drafting a new intellectual
property & copyright law for the Region. A working committee has been designated to draft the law, in
cooperation with artists and academics. The new law expeted to be passed in 2011 will protect
international artists. One of the disposition of the law will refere to shop owners who are selling copied
products : they will have 15 days to stop selling these illegal products, if not the shop will be closed.
Once the law is approved shop owners will have to sign an agreement according which they accept to
comply with the new law and to sell only copyrighted products.
The lack of a regulatory structure that provides compulsory enforcement of quality standards
has resulted in transforming Iraq including the Region of Kurdistan into an ideal market of
substrandard, even rotten or contaminated goods, food and medicine included : diluted,
tainted, expired goods which are repackaged, medicines and veterinary supplies routinely
enter the Region127. Strict enforcement of existing import regulations and enactment of
appropriate new import regulations will be important steps in re-establishing the Kurdistan
Region’s trade sector128 and reversing the import – export balance of trade. This will assist the
Region in becoming a net exporter, rather than an importer of food, over – the – counter drugs
and other construction materials, and prevent substandard products from being dumped into
the Kurdistan market.
There are neither regulatory standards for the food sector nor basic food safety standards.
Virtually all product inspection is based on visual assessment only rather than in laboratories
able to test in order to ensure the quality of the product.
1) The Trade Inspection Committee (TIC): with a few inspectors, the TIC only checks the
expiration dates of packaged food sold on the markets;
2) The Health Inspection Committee (HIC): the HIC employs a few trained inspectors. They
seldom make visits on the spot (businesses offices, factories or border points).
Their responsibility is to supervise or check:
- Meat sold in the market (processes or unprocessed),
- The expiration date of any food item,
- Restaurant health inspection and certification.
Customs policy is the exclusive prerogative of the Iraqi Federal Government (article 110,
Constitution). But the management of customs is a power that can be shared with the Federal
Government and the regions, unless the Region decides to claim the power as its own (Article
110, Constitution). In this case, the KRG has opted to manage the customs crossing. Those
revenues collected in the Region remain in the Central Bank.
On December 13, 2004, the General Council of the WTO established working committees to
go through the membership application of Iraq that Iraq submitted in September 2005.
On May 25, 2007, WTO starts membership negotiations with Iraq: working committees met
with Iraqi representatives to assess its trade legislation and the conformity of the latter with
WTO principles.
126
USAID. « Kurdistan Region. Economic Development Assessment ». December 2008. P. 89, 95 – 96.
127
Ibid and interview with Dr. Abdulrahman Muayad Koji, Senior Advisor for quality control to the Prime Minister
128
Article 110 of the Iraqi constitution.
129
WTO. “ Accessions: Iraq” : http://www.wto.org/english/thewto_e/acc_e/a1_iraq_e.htm
Next steps are the following ones: Iraq will prepare documents on agriculture, services, trade
technical barriers (TBT), sanitary/phytosanitary measures (SPS) and intellectual property
rights (TRIPS) as well as information on its domestic support and export subsidies for
agriculture products. Members requested more information on Iraq's pricing policy, tariffs,
investment rules, import licences, customs law and state trading enterprises, regulations about
free zones and telecom licences. Iraq will also prepare a general legislative action plan
providing WTO with an inventory of its current and future legislation.
On April 2, 2008, WTO reviewed Iraq’s trade legislation and supported Iraq’s rapid accession
arguing that this would contribute to the country’s integration into the world economy. Iraq’s
Trade Minister, H. E. Dr. Al-Sudani, stated that Iraq was determined to overcome the
country’s difficult circumstances to move forward on the accession process and added that
Iraq’s membership would represent a significant addition to the international community.
No date has been set up for the accession of Iraq to WTO but as Reuters 130 reported it in
November 2009, Iraq could get membership in the World Trade Organization by the end of
2011 if it actively pursues accession, which could help the country's rebuilding efforts by
boosting trade and investment, a U.S. official said.
Indeed, Iraq’s Former Trade Minister H.E. Dr. Al-Sudani stated “Iraq's joining the WTO is an
important step towards its integration into the global trading system and restores its position
within the international community after decades of isolation”. He emphasized that WTO
accession was essential to integrate into the global economy and a priority for his
Government131132.
A – Implementation:
1. The BOI, Board of Investment, the Kurdish institutional body for direct investment
Investment Law was passed by the Kurdistan National Assembly in July 2006. On this basis
an Investment Board was established in 2006 to manage & promote investment, the purpose
of the board along with relevant governmental bodies and other professional institutions, is to
promote domestic and foreign investment to boost economic growth and prosperity in the
region of Kurdistan
The Board of Investment is responsible for creating investment opportunities in the region,
providing investors a professional service and a working frame to rebuild Iraq through the
Kurdistan region. BOI prides itself of provinding foreign investors with simple, transparent
and lawful procedures. BOI is supervised by the Council of Ministers headed by the Prime
Minister and the Deputy Prime Minister of KRG.The Council of Ministers includes key
ministers of the KRG cabinet, including the Chairman of BOI.
BOI consists of the following administrative components:
- The chairman who enjoys the grade of Minister, runs, supervises and controls the
work of the following departments:
130
Reuters News Agency http://www.reuters.com/article/idUSGEE5AL03P._CH_.2400).
131
http://www.wto.org/english/news_e/news07_e/acc_irak_25may07_e.htm
132
‘Iraq's joining the WTO is an important step towards its integration into the global trading system and restores its position
within the international community after decades of isolation” , source: WTO. “ WTO starts negotiations with Iraq for
membership” . May 25, 2007.
http://www. wto.org/english/news_e/news07_e/acc_irak_25may07_e.htm
The areas of Investment that BOI deals with are the following one
•Manufacturing
•Agriculture & agro-industries
•Hotels & Tourism
•Health & Environment
•Science & Technology
•Communication & Transport
•Banks & Insurance
•Infrastructure Projects
•Free Zones
•Education
Incentives133134
•Foreign Investors & capital are treated the same way as national investors & capital. By law they
enjoy the right to own the capital related to a project;
•Projects approved by BOI are granted land by way of lease or usufruct, in some cases investors may
acquire ownership of land;
•Investors are exempted of all taxes during 10 years;
•Imported equipment and machinery related to the project within 2 years following the start of the
project are exempted of customs rights & taxes;
• Imported spare parts for the project, provided that their value does not exceed 15% of the price of the
related equipment and machinery are exempted of customs right and taxes;
• Imported machines tools and tools required to extend, develop, upgrade or modernize the project are
exempted of customs rights and taxes;
• Imported raw materials for production are exempted of customs duties.
Guarantees135
• Foreign investors are entitled to employ local as well as foreign staff required for the project
• Foreign investors may repatriate profits and interests of his capital abroad;
• Non-Iraqi members and staff outside the Kurdistan Region belonging to the project may transfer their
wages abroad;
• Foreign investors may rapatriate their capital abroad upon winding up or disposal of the project;
• Foreign investors may totally or partly transfer their investment to another foreign investor or to a
national investor, or may assign the project to their partner with the approval of the Board.
• Foreign investors may open bank accounts in national,foreign currency, or in both, in banks located
inside or outside the Kurdistan Region.
Application Procedure136
•Investor must file an application with the Board of Investment (www.kurdistaninvestment.org)
•BOI must decide whether to issue a license within 30 days from the date of the technical, legal and
economic conditions of the Investment Law are fulfilled.
•BOI must consult the relevant authorities to collect their point of view within thirty days
133
Article 2 of Investment La w
134
Article 4,5 & 7 Investment La w
135
Article 4
136
Article 8
Process of Rejection
(a)In accordance with Section II Article 17 concerning arbitration issues the law states that
- Investment disputes shall be settled in accordance with the contract concluded between both
parties, and if there is no clause in the contract on this regard, the disputes shall be settled
amicably between both parties.
- If they fail to reach an amicable settlement, they may refer the matter to arbitration whose
regulations are stated in the laws applicable in the Region, or in accordance with the rules of
dispute settlement mentioned in any of the mutual or international conventions of which Iraq
is a member. Some courts include: the 1965 Washington Convention, or the regulations and
rules of the International Centre for the Settlement of Investment Disputes (ICSID) between
States and Nationals of other States;
(b) The rules set out in the ICSID additional facility adopted on 27th of September 1978 by the
Administrative Council of the ICSID between States and Nationals of other States, whenever a foreign
party does not meet the requirements provided for in Article 25 of the Washington Convention;
(c) The Arbitration Rules of the United Nations Commission on International Trade Law
(UNCITRAL);
(d) The arbitration rules of the London Court of International Arbitration (LCIA);
Or
(e) Other rules of recognised entity (as agreed by the Parties, in respect of the conditions for
implementation, including the method for the designation of the arbitrators and the time limit within
which the decision must be made).
1.3 The terms of applying for an investment project at the BOI 139
Requirements to get the Investment License: how to submit a proposal to the BoI ? Here is the list of
required documents:
I. Submission of the Request:
The investor submits a written request to the Chairman of the BoI. His request must include the
following items:
1. Project name and particulars of the future project owner (company or person).
2. Nature of the project (industrial, commercial, service, etc).
3. A brief on the project, its components, size of allocated land and total budget to be invested in it. In
addition, the investor should attach a site plan of the land. The investor should also list in his request
the type and the nature of the projects implemented before by him with all details of his experience and
qualification for implementing such projects.
II. Board of Investment Committee
The Board Committee, consisting of Director Generals, shall review the request and take action
accordingly. If the committee rejects the request, the investor shall be informed in either written or
verbal answer with the reasons.
III. Project Proposal Requirements
III.1. Technical Requirements:
This relates to the preparation of all designs and drawings of the project components including the bill
of quantities and the project proposal. Each of these components will be referred to the concerned
137
http://wwww.mondaq.com/article.asp?articleid=45310)
138
UN Commission on International Trade Law - 1985 La w With 2006 amendments:
http://www.gjpi.org/wp-content/uploads/2009/02/uncitral-model-law-on-international-arbitration1.pdf
139
Form available at the following site: http://www.kurdistaninvestment.org/
working committee in the BOI for checking and review as per the template adopted by the BoI “Project
Preliminary Requirements Review”. The investor shall be provided with this template when applying
for investment.
a. Requirements pre land allocation
Site plan detailing the dimensions, project units and activities.
Architectural plans of the project.
Narrative description of the project with all the major components:
Size of the building(s).
Construction system.
Project estimated budget.
Project duration.
Cooling and heating system.
Identifying water and electricity units amount and distribution.
Bill of quantities for the civil, electrical and mechanical works.
Human resources.
Project front view.
Logo and project description on CD
Any other information the investor may provide.
Original plans printed on A3 paper. These plans must be prepared by an architectural bureau or
architect having membership in Kurdistan Engineers’ Union with working license.
b. Requirements post land allocation
-Topographic survey
-Copy of land registration and boundaries identification document
-Project economic feasibility study
-Project environment impact
V.Estimation Committees
After completing the aforementioned steps, the project proposal shall be sent to the following
Estimation Committees:
1. Estimation Committee of land price (square meter): this committee consists of following members:
- BOI
- Ministry of Finance
- Ministry of Municipalities
- Ministry of Justice
The reason for estimating the square metre of land is to determine the total estimated price of the
allocated land for setting up the project and to compare it with the investment planned asset. This will
give an idea if the proposed project and its budget are commensurated with the land price and location.
2. Budget Estimation Committee
This committee consists of engineers (Architecture, Electrical, Mechanical, Civil) and Administrators
working at the BOI. A General Director is heading this committee and its task is to estimate the project
budget through plans, drawings and bill of quantities. The committee also reviews the economic
feasibility study and compares it with the capital allocated for the project by the investor.
VI. Project License
After completing all the requirements mentioned above, a final review shall be carried out to ensure
that there is no un-met requirement in the project proposal file. The file will be then referred to the
Director General of Legal office and to the Director General of Promotion, Assessment and Licensing
of Projects for approval and signature on the project licensing document which will then be signed
finally by the Chairman of the Board.
The investor shall then coordinate with the BOI Legal Department to complete the procedure for land
allocation (owning or hiring).
Note: The strategic projects will be passing through all the above-mentioned procedure and stages;
however, the approval of the Supreme Council of Investment (SCoI) shall be required followed then by
all the other procedures mentioned above. In some cases, after implementing the project, the investor
may require submiting a request to the BoI to consider his project as a strategic one: the project will be
reviewed to assess if he meets the special criteria of strategic projects. Once verified by BoI, the
request will be referred to the SCoI for approval.
1.4 Costs and delay for registering a company in Kurdistan of Iraq: the choice of
a good business lawyer140
The new investment law allows foreigners to own or hold stakes in companies in the Kurdistan
Region in Iraq. It is currently necessary for all shareholders to be resident in Kurdistan and hold a
Residents’ permit.
A local lawyer and accountant can undertake most of the procedures outlined below.
Accountants must be registered with the Kurdish syndicate of accountants. Accoutants cannot work in
a company if they are not a member of the Syndicate of accountants.
Foreign accountants can workfor foreign companies too: then they do not need to register at the
Syndicate of Accounting Body.
To open a branch in the Kurdistan Region the following documents are requested in English, Kurdish
or Arabic.
140
Registration form available at: http://www.br-iraq.com/English/formsandinstructs.htm
In case that the company registered in the Region is due to operate in the rest of Iraq, a special request
will be sent to the directorate of Company registration in Erbil which will at its turn send a letter to the
Company registration office in Baghdad. This letter will contain all information about the company
registered in Erbil so that the Registration Office in Baghdad get all the necessary information to
authorize the company to operate in the rest of Iraq.
Without this letter signed by the Registratio Office of the Region of Kurdistan addressed by him to his
counterpart in Baghdad, then the registered company in the region will have to do the whole
registration procedure in Bagdad to be able to do business in the rest of Iraq. The same procedure is
followed when companies operating in Baghdad, Basra, and other parts of Iraq want to operate in the
Kurdistan Region.
ERBIL
Mr Dlzar Ismail Ahmed, General Manager of Companies Registration
Register of Companies in Kurdistan Region
00964 (0) 752 446 6793 et 00964 (0) 770 446 6793
[email protected]
BAGDAD
Mrs KHANSA Tel 0790 1907551 et 0770 548 3508 (Mr Dlzar Ismail Ahmed,
General Manager of Companies Registration’s homologue) :
141
Interviews with Professor Brendan O'Leary, and Dr. Mahmoud Othman, a member of the Iraqi National Assembly.
“ The Kurdistan Region is the key to make the Iraqi Federation work: It should make democracy work. Without the
142 142
Kurdistan Region, Iraq’s future is very bleak, that is why the Kurdish experiment is important” , Dr Brendan O’Leary
Kurdistan Board of Investment. “ Sulaimani Economic Free Zone. The Fateway to Iraq. Overview of Integrated Real Estate
143
infrastructure. KRG will conduct a competitive tender process involving a Request for Qualifications
(RFQs) and a Request for Proposals (RFPs) to select the preferred Private Sector Developer.
The SFEZ will be well positioned to be linked to major transportation networks:
- 2 major roads: Tasulja – Sulaimani Road and a new highway Sulaimani – Kirkuk will run
near the SFEZ and may be linked to the SFEZ through a feeder road.
- Railways: a new railway line is planned to the south of the SEFZ and may be linked to the
SFEZ and/or the duty free sector of the airport through a feeder line.
- Airport: the SFEZ is situated close to Sulaimani International Airport and the SEFZ may be
connected to the Airport through a direct feeder road.
The Concept Master Plan: 3 clusters of activities
Business Park, logistics centre, clean manufacturing zone : prospective developers will have the
opportunity to propose changes to the Master Plan before it is approved by KRG.
- The Business Park: a mixed land use with commercial space (offices, showrooms,) and
lifestyle space (hotel facilities, high and residential accommodation for company managers,
conference centre, retail stores, food and beverage amenities including cafés and restaurants
and social services. It will also includes a zone for administration offices and a “one stop
shop” for investors and tenants to deal with the SEFZ and KRG authorities, as well as
facilities for rent as well as land for lease or purchase by firms to build their own buildings.
- The Logistics Centre: it will provide storage and shipping facilities that enable companies to
import and export a wide range of goods for commercial and consumer purposes on a more
efficient and cost effective basis. It will be a bonded area that includes a customs office;
facilities built by the SEFZ for lease to tenants as well as serviced land for lease or purchase
by firms to build their own facilities. Facilities include warehouses, cold storage rooms,
shipping offices and other logistical support buildings.
- The Clean Manufacturing Zone: it consists in houses production facilities that enable
companies to produce a wide range of value-added, environmentally-friendly light industrial
goods on an efficient and cost effective basis.This Zone includes light industrial units by the
SEFZ for lease to tenants as well as serviced land for lease or purchase by firms to build their
own manufacturing facilities.
Each cluster is integrated with significant green space including park areas, walkways and open areas
that sustain a secure and supportive environment.
The conduct of heavy industry is prohibited within the SEFZ.
The SEFZ is to be developed in phases in keeping with market demand:
- 2011 – 2015: 589, 000 m2 (27%)
- 2016 – 2020: 711, 000 m2 (33%)
- 2021 – 2025: 853, 000 m2 (40%).
The SFEZ will appeal to companies in sectors such as: general trading, IT, Communication Services,
financial services, warehouses, cold storage facilities, shipping offices, trans – shipment facilities, oil &
gas services, construction materials, furniture and furnishing, food and beverage processing, medical
supplies, and other light industry.
Site Analysis:
Given its proximity to metropolitan Erbil, the road to Mosul and the north nand the new Erbil
International Airport, the Metropolitan Erbil site was found to be well-situated for logistics and
144
AECOM. “ Feasibility and Development Plan for Sulaimani Free Economic Zone” . September 26, 2010.
distribution, production, imports and an expanded produce and wholesale market. With a nearby labour
pool in Erbil, as well as in surrounding villages, the site would be able to attract sufficient numbers of
workers for production and distribution activities.
The site can be diversely used as a mixed- use location with industrial, logistics, agric- business,
distribution, health, and education and retail activities.
The following sectors were deemed to be the most likely candidates for new, relocation, and expansion
investment at the EIZ:
- Construction and building materials,
- Residential and office furniture and furnishings,
- Food and beverage processing,
- Plastics and rubber,
- Metals, machinery, and equipment,
- General trade, transportation and logistics (including cold storage),
- Construction services,
- Oil field services,
- Business and financial services,
- Other, including light manufacturing.
Benefits to settle in the Erbil Economic Free Zone are the following ones :
- Services, infrastructure and land available at reasonable market rates, through transparent procedures,
with benefits provided by law for investment,
As an industrial zone, the laws relating to economic zones and industrial zones govern the EEFZ:
- Federal Iraqi law No. 20 of 1998 on industrial investment by the private and public - private.
- The existing federal Iraqi law on free economic zones
- And Kurdish drafted legislation currently on the status of free economic zones.
A. Financing a company
1. The financial and banking system
1.1 Overview
As the region has been welcoming been accommodating for foreign companies and banks we have
seen the emergence of many new banks in the Kurdistan region. The banking system is the backbone to
any economy. All banking services provided to citizens of Kurdistan in 1992 were paralyzed for a long
period in which banking services were very limited. Citizens in the region suffered huge losses
145
Interviews with Mr Baban, Economic Adviser to the Prime Minister, Mr Shwan Ibrahim Taha, president of Rabee Securities,
Mr Alex Azoury, Director of Byblos Bank in Erbil, Mr. Daham Meaza, director of the Dar Es Salaam Investment Bank, Mr
Serkawt, director of the Warka Bank, Ms. Gheed Qasim Khalil, Director of the Trade Bank of Iraq, Dr. Aseel Anton, Director of
International Negotiation Institute, Mr Adhma Karim, Director General of the Central Bank of the Kurdistan Region, Mr
Abdullah A. Abdulrahem (Abo Bangin) president of the Arbil stock, Center for International Private Enterprise. "Kurdistan
Business Agenda. 2007. http://www.cipe.org/regional/mena/iraq/kba.php: and USAID. "Kurdistan Region. Economic
Development Assessment. December 2008.
http://www.kurd.org/doc/EDA% 20Report_English.pdf
resulting from the expiry of the currency because the central bank stopped exchanging currencies in the
Kurdistan region 146.
There are more than 84 public & 64 private banks in the Kurdistan Region, since 2005 this situation
has been improving. The Branch of Central Bank of Iraq (CBI) “Harem Bank” controls foreign
exchange, the Iraqi Dinar and supervises the banking sector in the region. The monetary policy is set
up by the Central Bank in Baghdad. After the people of Kurdistan lost confidence in the banking
system consecutive the freezing of their account by the old regime, confidence is growing again with
more and more banks establishing in the region along with an increasing number of foreign companies
as the latter need better banking and financial services147.
Currently banking service offer is still limited: services such as credit cards, retail loans and mortgages
are very limited. Banks in Iraqi Kurdistan follow the principles of Basel I & II, USAID having
provided training on Basel I and II to Kurdish Banks. Four new Turkish banks have recentlu
established branches in Kurdistan, VakifBank, Ziraat Bank (2 branches) & Içbank148.
Problems
The Kurdistan region’s economy is still very much a cash economy. The sector is characterized by
• under developed services as banks’size and capacity are limited ;
• lack of confidence in the banking sector due to the implication of the previous regime in the
past; moreover some banks in the Region are experiencing financial issues, what increases the
degree of lack of confidence150;
• The lack of liquidity of banks, as citizens are used to keep money at home;
• The lack of private sector banking transactions : no loans are provided;
• A Cash Economy as 70 %– 80% of transactions are cash one;
• No use of cheques, what is an obstacle to commercial exchanges;
• High level of minimum liquidity imposed by Central to banks which may increase to
200,000,000 IQD.
• Lack of qualified & trained staff in the sector, along with minimal in-house training
facilities151;
• Reliance on state owned banks rather than on private banks;
• Lack of coordination & communication between CBI-Kurdistan & CBI Bagdad;
• Mismanagement.
As a result, current services provided by banks are not sufficient to facilitate the local economic
development.
Investment Opportunities
The demand for professional banking is growing with the emergence of the oil & gas sector on one
hand and the increasing number of foreign companies establishing in the Region on the other hand,
both being in need of a range of banks services currently not provided. As a matter of fact, private
banks as well public banks –especailly The Central Bank- are looking for international consulting
companies with long-term experience (5-10years) to help setting up plans to develop this sector in
Kurdistan (new services, new techonologies, computerized system). Foreign companies ask for better
banking services on account of the numerous weaknesses of the system. Future of the Sector
As companies come to the region to restructure, organize and provide guidance to banks. More and
more banks will settle in the region. Moreover, since the Kurdish region is booming economically
146
Center for International Private Enterprise. "Kurdistan Business Agenda. 2007. P. 87-90.
http://www.cipe.org/regional/mena/iraq/kba.php
147
Interview with Sheikh Baz, Chairman of Kar.
148
Interview with Mr. Deniz Kutlu, commercial attache at the Consulate General of Turkey to Erbil Répibluqe.
149
Interview with Mr. Adham Karim, Director General of the Central Bank of the Kurdistan Region.
150
Interview with Mr Daham Meaza, director of the Dar Es Salaam Investment Bank
151
"This Is The Main Problem in Iraq: We Do not Have people, " Mr Ibrahim Shwan Taha, president of Rabee Securities.
more & more foreign companies move there, and they subscribe to banks that they are familiar and
which they are the customers of origin.
1.1.2. Information collected with a few Banks in Erbil
Trade Bank of Iraq (TBI), wholly owned by the Ministry of Finance, was established in July 2003 to
facilitate Iraq's international trade and the reconstruction of the country after the expiration of the UN
Oil-For-Food Programme. It has 2 central branches in the Region: one in Erbil and the other in
Sulaimaniyah with other smaller offices across the Region.
The bank quickly developed into a highly credible and effective organization. In a short period of time,
TBI built relationships with an international network of 134 prime banks - the Consortium banks being
at its core - covering 63 cities in 39 countries. This gave TBI a truly global reach, a competitive
advantage and the ability to provide a diverse range of services. By the end of 2007 TBI was fully
capitalised at over 100 MUSD and had total assets of over 6.1bnUSD.
An early success was signing agreements with 17 of the largest Export Credit Agencies around the
world. Another was the fact that TBI was one of the first Iraqi banks to receive lines of credit from
major international financial institutions.
TBI has a sound credit policy in place and among the many other 'firsts' the bank can claim is the
introduction of Iraq's first fully automated online banking system, being the first Iraqi bank to issue
VISA credit cards, and the development of the first nationwide network of ATMs in the country. TBI is
also the most experienced Iraqi bank in the issuance of Letters of Credit and Letters of Guarantee.
Building on its early success, TBI is now introducing modern, innovative products and services to the
Iraqi market. These include Project Finance, Salary Accounts, Saving Accounts, and Credit Cards.
The bank offers the following services:
TBI provides services to individual’s private and public exchange of money, savings accounts and
deposit accounts, letters of guarantees, letters of credit transfers. The bank support investors for
projects such as electricity stations or a refinery.
Bank accounts: There is a special department at the head office involved in money laundering in charge
of cheking the money and clients’s origin.
TBI cooperates with other banks the all-important one being with CBI of Kurdistan Region – Iraq.
a. Presentation
Dar Es Salaam bank opened in 1998 in Baghdad. In 2005, the bank joined HSBC which did not change
the name of the banks. Dar es Salaam’s name has remained. The bank opened two branches in the Iraqi
Kurdish region, one in Erbil and Dohuk. A third one will open in Sulaymaniyah. The bank has a
temporary branch in Mosul. Irish James Hogel is responsible for the bank and Ms. Athir is the manager
of the bank to Iraq. They are both based in Baghdad.
b.Services:
The bank provides all kinds of services: letters of credit, letters of guarantee, transfers, and savings
accounts for businesses and individuals. Following the exemple of TBI, Dar Es Salaam controls the
origin of money following the HSBC regulations. Despite all these investigations, the bank admits that
it is still difficult to really know where the money comes from. The bank has 22 employees and
thousands of customers in the region, over 400 employees throughout Iraq working in 17 branches.
Byblos Bank154
In 2006, Byblos Bank obtained the license from the Central Bank to open in Baghdad and Erbil (16th of
May 2007, the first foreing bank in the Region). Next step will be the opening of a branch in Basra and
in 2012 two branches respectively in Dohuk and Sulaimaniya. Byblos owns 100% of its capital and is a
leading entity in its sector. Byblos Bank in Erbil among its banking services provides payments,
transfers, letters of credit, letters of guarantee and documentary credits. The branch relies on staff of 15
employees split between Iraqi and Lebanese national. The Erbil Branch benefits from the know-how
and expertise of Byblos Bank Lebanon, uses the same IT platform and all advanced and flexible
152
Interview with Ms. Qassim Gheed Khalil, Director of the Trade Bank of Iraq.
153
Interview with Mr Daham Meaza, director of the Dar Es Salaam Investment Bank.
154
Interview with Mr. Alex Azoury, Director of Byblos Bank in Erbil.
banking systems in function at the Group level. All operations are centralized at the Group’s Head
office in Beirut and benefit from the state of the art technologies backing the Bank’s expansion. The
bank has one Insurance and Reinsurance Company as a partner along with the French bank Natixis.
Byblos does not provide loans.
Seven branches have opened in the region of Kurdistan with ATM services available at their premises.
The Central Bank of Kurdistan (CBK-I) gets its budget from the Kurdish MoFinance. The role of the
CBK is to regulate and monitor other banks. In particular CBK-I deals with transactions of cash in the
Region.
Cooperation with Baghdad:
Kurdish Brank and Iraqi Central Bank keep up very little cooperation. In this regard a law is being
drafted by KG to establish the modalities of communication between the two entities. This law will be
put forward to the Kurdish Parliament.
Budget allocated to KRG:
The commercial transactions with Baghdad occur at the Central Bank of Iraq (CBI).
The budget intented by Baghdad to KRG passes first through the CBI-K, then reaches the Kurdish
Ministry of Finance which then allocates it..
3. The Hawala
The traditional Islamic hawala system is based on trust. This system is considered by users faster and
cheaper than the formal banking system. Biggest firms are licensed by the Central bank and rely upon a
network of associates all over the world. Cost of this type of transfer is subject to the transferred
amount. The hawala system is still strong and is still being used in many part of Iraq.To have recourse
to a hawala, a residency card (ID our passport), a permit of residence in Kurdistan is required. A form
will be filled (personal information, whom the money is sent to, the purpose, the origin of this money).
155
Interview with Mr. Adham Karim, Director General of the Central Bank of the Kurdistan Region.
4. Loans
As banks are experiencing liquidity problems, they have no capacity to allocate loans. Some banks
allocate loans subject to specific requirements and in a very limited amount.
- TBI provides loans to support projects (power plants, refinery, and commercial center).
- Dar Es Salaam bank does not provide loans to private sector except for service projects. It will never
provide a loan for a real estate project. To apply for a loan and in order to facilitate the procedure, a
foreign company must provide a letter of guarantee issued by one of the HSBC Branch belonging to
the international network. The company can obtain as much as it could apply in the branch which
issues the guarantee letter.
- Byblos Bank provides loans subject to the following conditions:
. Byblos Bank is not an investment bank: in this regard Byblos does not award any loan to real
estate and construction projects. The bank takes only commercial projects into consideration.
. The ban will require 35% of the loan as a guarantee (mortgage).
. The company will provide copies of its financial statements over the past 3 years, his list of
customers.
. Interest rates for loans vary between 8% and 12% in the form of monthly payments.
. In the long run, the loan amount depends on the project.
5. Debt Recovery
Normally a bank gives a loan to an individual or a company with a guarantee of repayment. In case of
no payment, the bank will seize the asset put in guarantee until payment is made.
6. Fees
The fees charged by TBI are listed on its website.
Here are some rates:
- 2% per million, for a less than 10 MUSD transfer,
- 1.5% per million, for a more than 10 MUSD transfer,
- Letters of credit support specific fees.
Banks apply interest rates that vary according to the company, the economic sector and the customer.
Interest rates generally range from 8% to 16%
NB Exchange rates are different from one city to another one in Iraq.
To open a bank account requires ID/passport, residency permit (an attestation that the
applicant is allowed to stay in Kurdistan).
156
PriceWaterHouseCoopers. « Iraqi Tax Workshop ». December 2010.
http://www.pwc.com/m1/en/tax/ME-tax-update-december2010.pdf
Accountants must be registered with the Syndicate of Accountants. They cannot work in a company if
they are not a member of the Syndicate of Accountants.
Requirements to be a member of the Syndicate: to become a member of the Accountants Syndicate, it
is required to be an university graduate in accountancy, or in trading, or any chartered accountants.
Acounants working for foreign companies must hold university degrees. Each accountant can
maximum work for 3 local companies and 1 foreign company.
Companies must introduce their financial accountants to the Syndicate.
Corporation between the Syndicates: there is good cooperation between the Accountants Syndicates of
Dohuk and Erbil. Concerning Sulaimaniye, he cooperation is in process but still no mechanism has
been established.
Foreign companies do not pay any taxes for their employees.
Foreign accountants can be working for foreign companies too, then they do not need to register at the
Syndicate of Accountants.
157
Interview with Mr. Salim, accountant member of the Syndicate of Accountants
158
PriceWaterHouseCoopers. « Iraqi Tax Workshop ». December 2010.
http://www.pwc.com/m1/en/tax/ME-tax-update-december2010.pdf
159
Interview with Mr. Mohammed Baban, economic advisor to the Prime Minister.
160
Source for this info - below: ME Baghdad. Taxation: a simple and attractive & Ibid.
areas and practice and precedent in respect of matters not directly dealt with in the law often remains
open to interpretation and application in a hazardous and inconsistent manner.
Tailored made to address certain areas of concern to the Coalition activities in Iraq.
Taxation in Iraq is based on the concept of “Trading in” or “trading with” Iraq
By the application of the Tax Law, all profits from commercial activity are subject to income tax. The
Tax Law explains in more detail that non-residents are not subjected to tax unless trade, commercial
business, vocations or any other transaction of a commercial nature, from which the gains and profits
have arisen, are carried on in Iraq. The financial authority shall differentiate between trading “in” and
“with” Iraq, and their decision shall be subject to appeal. A number of regulations aiming at setting the
perimeters for the taxability of contracts (supply and services) that are concluded between Iraqi and
foreign (non-Iraqi) entities for the supply of goods and related services were enacted.
4. Social Secutiry
The social security regime in Iraq is governed by law no. 39 of 1971 as amended (the “Social Security
Law”). The contribution of Social Security is 17%, the employer contributes 12%, the employee 5 %.
The Social Security Law requires each private or public sector employer to grant its employees a social
security cover. The social security deductions are based on the employee basic salary earned in January
of each year provided that the wage (basis for deduction) is not less than the minimum wage.161
Social security is paid within 30 days following the end of each month; late payment would entail a late
payment penalty of 5% of the amount due for each month of delay.
If the foreign employee can proof that he is covered by the relevant state social security of his country
while working in Iraq, the requirement to pay social security in Iraq may be waived.
According to the Ministry of Finance, three private insurance companies have been licensed to provide
insurance and reinsurance services in the Region. KRG regulates the sector and audits these companies
to verify that they are abiding by the law. Training in the insurance sector to make it gain in efficiency
and professionalism is urgently needed.
Public awareness of the population toward toward risk whether it concerns life insurance or real
estate/assets one is the biggest challenge of the insurance development163.
Paying an insurance premium can be a religious taboo due as one may only trust God to insure and
protect one's life and assets. Religion has a significant influence in this matter. Insurance with reliable
banking system are keystones to attract foreign businesses and investors164.
Here after are the names of the existing companies in the Region :
- Harem Insurance Company (Public)
- Starkar Insurance Company (Private)
- URI Insurance Company (Private)
- AAIB Insurance Company (Private)
Here are some estimated premiums on certain loans in the Kurdistan region.
Per mill means that the number divided by thousand as 3.7% per mill = 37/1000 for example your car
sum 25000$ and the rate 3.7% per mill calculation become as below
161
Ibid.
162
Interviews with Mr Rafiq Nawzad, CEO of Star Insurance Company, Mr. Mohammed Al Kubaisi, Director General
International Insurance Co. of UR (URIIC).
163
Interview with Mr. Mohammed Baban, economic advisor to the Prime Minister.
164
Interview with Mr Alexi Azoury, Director of Byblos Bank in Erbil.
Car Insurance
Range is between 3.5 %o to 5.5%o (per mil)
It mainly depends on the type, model, size and the general use of the car.
A car valued 25.000 USD will support a 925 USD insurance premium.
Construction Insurance
Ranges between 0.5%o to .6%o per mil
Depending on the work site, the risk factor and duration of the construction site.
Cargo Insurance
Ranges between 1.5%o to 3%o per mil
Depending on the type of goods, cargo route, type of packaging and the type of insurance cover clause.
These estimations have been given by the StaKar Insurance Company165.
The commission in Baghdad believes that there is only one market, one of Baghdad, and only one
award, the Iraqi stock exchange. Here, many companies have been established to obtain licenses from
Baghdad to Erbil create the scholarship, but there are some problems: By law, in order to establish the
scholarship of Erbil, they need to have the downstream and be monitored by the security committee of
Baghdad. However, the KRG wants to establish its own safety committee.
The reason behind the establishment of the scholarship of Erbil is that, until now, banks do not issue
loans, so to be able to finance projects in the Kurdistan region needs to have a scholarship in Erbil.
165
Interview with Mr Rafiq Nawzad, CEO of Stakar Insurance Company.
166
Interview with Mr Ibrahim Shwan Taha, president of Rabee Securities, Mr Mr Abdullah A. Abdulrahem (Bangin Abo),
president of the Arbil stock exchange, Dr. Muhammed Baban, and Dr. Nabil, International Negotiation Institute
167
Interview with Dr. Mohammed Baban, op.
168
Dr. Nabil, International Negotiation Institute.
VI – Social enactment
A. Labour law
1. Texts applicable to the labour law: the Iraqi Kurdish dispositions
The Kurdistan Region operates under Iraqi Labour Law.
This law was passed in 1961 and modified in 1987 under Act No. 71 promulgating the Labour Code of
27 July 1987 (LC). It is the basis source of Iraqi and Kurdish labour legislation169.
Iraqi labour law states that no discrimination should be made against the employee on gender, religion
language or race.
KRG intends to draft its own legislation regarding labour to fit the development of the private sector, to
make the employment process more efficient for investors and to foster the emergence of free market
in the Region.This law should be passed during 2011.
Presently all labour contracts in the Region of Kurdistan must respect Iraqi Labour law until a new
regional Kurdish labour is passed. As far as Government employees are concerned, the Public Civil
Service law will be implemented.
2. Recruitment:
Iraqi labour law does not impose an obligation on employers to employ a percentage of Iraqi nationals.
The Social Department within the Ministry of Labour & Social Affairs provides help companies to
recruit local workers. Foreign companies frequently put advertisements in local newspapers, TV,
magazines and more recently on internet in ordre to recruit their employees.
When a company hires an Iraqi citizen, the latter must notify the Social Department of the Ministry of
Labour and Social within 10 days following the date of recruitment.
An employer before employing a worker may request a medical and security survey to get some
background information on the future employee.
3. Labour contract170
The key elements that are mandatory when drafting a labour contract are as follows:
• Type of Work
• Wage Amount (must be paid in IQD)
A contract of employment is an agreement concluded by a worker and an employer under which the
worker undertakes to perform specified work for the employer, subject to the employer’s direction and
supervision, in return for the employer’s payment of an agreed wage172.
There are 2 types of contract (depending on the nature of the work)
- Determinate
- Indeterminate
The labour law enables employers to hire employees on a 90-day probationary period in which the
employee or employer can decide to terminate the contract. 173174
The employer is responsible for registering the employee at the Social Department in the Ministry of
Labour and Social Affairs. 17% of the salary goes to social insurance. The employer will pay 12% of
the salary and the employee 5%. The minimum salary amounts to 190, 000 IQD (around 160 €).
169
Iraq Labor Code. Act n°71 of 1987, dated July 7th, 1987: http://files.wp-irak.de/gesetze/Labor_71_1987_En.pdf
170
Article 42,
171
Article 10 of the Iraqi law on labour and social affairs.
172
Article 29
173
Article 31
174
Article 10
Termination
The law includes a comprehensive list of grounds for the termination of a labour contract. The
termination procedure must be approved by the Ministry of Labour’s Social Department. 176
1. Mutual written agreement
2. Expiry of the current contract
3. Will of employee after a certain amount of warnings
4. Illness which prevents the employee not to work for more than 6 months
5. Inability to work at 75% or more substantiated by medical reports.
6. A shortfall in the employers business, the Ministry of Labour and Social Affairs must be
aware of this.
Dismissal 177
If an employee is regularly absent from work the employer can take the following disciplinary action
according to Article 126:
A worker who has committed an infringement of the rules shall be subject to one of the following
penalties:
(1) A warning;
(2) A wage deduction for up to 3 days, as long as the amount deducted does not exceed 20% of the
worker's monthly wage;
(3) An up to 6 month suspension of the annual wage increment;
(4) The withdrawal of the annual wage increment for the year during which the infringement was
committed;
(5) Dismissal.
www.krg.org/.../Kurdistan_Region_business_factsheet__2008_10_23_h12m36s34.pdf
176
Article 34, Article 42
177
Article 127
178
Article 36-40
8. Sentence by the final judgement of a court to imprisonment for a period of more than 1 year.
Dispute Resolution 180
When conflict breaks out, the employer or union must notify the Ministry of Labour and Social Affairs
and the Confederation of Trade Unions. The Ministry requires the employer to take steps to resolve the
conflict. The confederation of unions tries to resolve the conflict.
The worker may appeal the decision to the competent labour tribunal within 15 days of having received
the notification; a decision of dismissal may be taken to the court of appeal (sec. 129(1), LC). When
the penalty of dismissal has been imposed and the tribunal has decided to revoke it or to replace it by
another penalty, the worker shall be reinstated to his or her job. The employer shall be required to pay
the worker’s entire wages for the period of suspension from work and to make the contributions for
that period to the Workers’ Social Security Service (sec. 129(2), LC).
90 (1) The word "minor" applies to any person who has not reached yet18 years of age.
(2) Minors may neither not be employed in the hereafter types of work nor be present on premises in
which the latter are carried out:
(a) Work which may lead to occupational or contagious disease or to serious contamination or
work which presents a danger to life, morality or health of the person involved in it, because of its
nature, the procedures used or the circumstances under which it is carried out. Such types of work shall
be determined by the Ministry of Labour and Social Affairs;
(b) Work performed by trimmers and assistant trimmers on board vessels.
91. (1) Minors having reached 15 years of age may be employed in day work, but not in jobs which are
hard or harmful to health or in any type of work prohibited under Section 90(2) of this Code.
(2) Minors having reached 17 years of age may be employed in day work, night work and overtime
work, but not in the types of work prohibited under Section 90(2) of this Code.
(3) A minor may be employed only if his physical aptitude has been medically attested by a certificate
issued by the relevant medical service184.
92. (1) A minor who has not reached 16 years of age may not work for more than 7 hours per day.
(2) Daily hours of work shall include one or more rest periods accumulating at least 1 hour in order to
allow the minor to rest; the rest periods shall be arranged so that no period of work lasts more than 4
consecutive hours.
The maximum number of daily working hours is eight hours per day during six days a week; the
minimum number of working hours is 35 hours a week, the maximum is 48 hours a week185.
However in cases when overtime is paid for work beyond 48 hours a week, this overtime must be paid
50% to 100%186 more than the normal hourly wage. The conditions for different types of overtime are
as follows187:
2) (a) in industrial activities, which are performed in shifts, no more than one hour per day, shall be
worked as overtime;
(b) In performing preparatory or complementary work in industry or in handling extraordinary
work, no more than 4 hours per day shall be worked as overtime;
(c) In non-industrial activities, nor more than 4 hours per day shall be worked as overtime.
Regarding the payment of this overtime it works as follows Section (2),
180
Article 129-136
181
Article 35
182
Article 91
183
Article 90-97
184
Article 92
185
Interview with Ms. Shadan Mohammed Tahir, an officer in child protection for UNICEF in Erbil.
186
Article 55
187
Article 58-66
(2) Wages shall be doubled when overtime work is performed at night or when hard or harmful work is
performed. Wages will be increased by 50% when overtime work is performed during the day.
- Maximum of 4 hours of overtime during working days,
- Maximum of 10 hours of overtime during the holidays,
- Maximum of 100 hours of overtime during 1 month.
- Overtime must not represent more than 50% of the salary.
Government sector working days are Sunday-Thursday however in most of the private sector, Saturday
is considered as a normal working day; staffs usually work from 8:30am – 4:30pm.
4.4 Pension
The company is responsible for registering the employee at the Social Department at the Ministry of
Labour and Social Affairs. The company will pay 12% of the salary and the employee 5% for social
insurance. The Social Department of the Ministry deals with paying the pension to these employees.
The employer must fill in a form with all the information. At the time being the retirement allowance is
around 80% of the working salary. The State Pension System (SPS) covers civil servants, military and
security forces, and employees in state-owned enterprises (SOEs). The Social Security System (SSS)
covers workers of the private sector. All schemes were designed as defined benefit arrangement with
essentially pay-as-you-go financing the accumulation of working time spent.
4.5 Bonus189
Whereas companies can draft their own bonus schemes however they must take in consideration the
enactment of Article 43 of the Labour law.
The percentage of sales or profits awarded in the frame of an employment contract is considered as a
bonus (Article 44).
Wages can be attached to the work or to any other system to determine the amount of wages in relation
to the worker’s productivity provided that the wage level does not fall below the minimum wage of a
non - qualified worker (Article 45).
If it is the either the individual’s fault they will take full responsibility or if it’s the company’s fault
then they will be responsible.
If it is the fault of a third party or due to natural disaster, then the company’s fault will be reduced: the
company will pay less damage.
If no mention of agreement is stated in the contract regarding the fault/payment between the insurance
company and the employee, then the dispute will be solved in a court.
Key obligations to be implemented by the employer in regards to safety on the work place are
highlighted in Article 107, 108 & 110 of the labour law.191
188
189
Article 43-45
190
Article 80-86
191
Article 107-110
Article107.
An employer shall inform the worker in writing and prior to his hiring of the occupational hazards and
the measures of protection to be taken. The employer shall also provide prominently posting
instructions which indicate the occupational hazards and the measures of protection to be taken in
accordance with instructions drawn up by the Ministry of Labour and Social Affairs.
Article 108.
(1) The employer shall:
(a) Take the necessary measures to ensure the on-the-job protection of workers agains hazards which
are harmful to their health and against dangers posed by the work and by machinery;
(b) Supply means of protection against occupational hazards; no sum may be deducted from a worker's
wages in exchange for the supply of such means of protection;
(c) Provide first aid;
(2) Means of protection and protective devices, along with their operation manual or user’s guide, shall
be listed according instructions issued by the Ministry of Labour and Social Affairs after consultation
with the National Centre for Occupational Health and Safety.
(1) It is one of an employer's basic obligations to provide measures of protection and to implement the
instructions referred to Sections 107 and 108 of this Act (110)
The employer must pay a contribution to social security service employees in return for benefits
provided to non-worker - insured
- If the injury resulted in partial disability of the worker, the contribution will be up to 50% of the daily
wage or monthly over a period of one year, if the injury resulted in total incapacity or death of the
worker, the contribution will be at 100% of daily wage or monthly over a period of one year.192
Nursing mothers should have a break (nursing break) during maximum 1hour counting as one hour of
work. A female who works and having one or more children aged under 6 years may be absent from
office without pay for a maximum period of three days when one of her children is sick and needs care
(Article 87)
When the woman is back tot work, she has the right to leave work one hour before the end of his
workday to pick up his child in kindergarten which usually closes between 15:00 – 1600h. This right is
granted for a period of 4 months to 1 year. This is not mentioned in the law, as it is at the discretion of
the company.
3. Sickness leave and health insurance 194
195
The sickness leave is of 30 days, with a full salary. It needs to be approved by a doctor. If the
sickness leave goes beyond 30 days, then the employee will not be paid. If the employee is so sick that
he/she cannot recover, the company can terminate her/his contract.
- If a company has more than 50 employees, a nurse must be compulsory in the company premises.
- If a company has over 50 employees, a doctor compulsory must work of the working place.
192
Article 112.
193
Article 84-87
194
Article 111,1112
195
Article 77
C. Expatriates regulations
1. Entry and visiting conditions
All foreign workers are granted a 10 days visa, and then they need to extend it: the company will have
to write a letter to get a residency card (plus a longer visa) to the Department of Residence of the
Ministry of Interior. Arab workers do not need a work permit and are treated like Iraqis.
Foreign workers will be asked to do a blood test. To make the procedure easier, it is advised to go to
the Department of Residence of the Ministry of Interior with a Kurdish speaking individual.
To carry out the extension of the visa the following documents are required:
• Passport
• 2 Passport Size Photos
• A supporting Letter from the company
2. Social protection
AAIB Insurance Brokers provides social insurance and repatriation.
Contact: Peter Worby, regional director based in Baghdad.
Tel: Baghdad: +964 (0) 781 410 0774 / Erbil: +964 (0) 770 044 4105.
Email: peter.worby @ AAIB-insurance.com Website: www.aaib-insurance.com
www.grammarly.com
In the Kurdistan region people will often speak in vague terms, bring forth stories and metaphors
during negotiations. Rather to irritate you, this is an effort to get to good communication especially
when your counterpart does not share your ideas: instead of telling it to you sharply -what locally will
mean “making somebody to lose face”- he had rather to use soothing words. Never loose your control.
196
See Chapter 8 for details for translator
197
Ibid to see KRG offices abroad.
Never speak or behave blunt: such behaviour can be fatal to a deal. On the contrary be subtle and
always promise to consider the request put forward.
Make sure that everbody understands exactly what is about and do not hesitate to hire a Kurdish
speaking translator.
4. How to communicate?
The best way to communicate is always face-to-face. If this isn’t possible, make a phone call. Kurdish
people are not good at writing: that is the reason why your letters and e-mails will remain unanswered
for some time if you don’t do a follow up by phone. Business doesn’t really happen seriously by phone
or email with foreign companies: a personal contact or visit is far away the best option.
5. Be patient
Decisions may take a long time, probably longer than you are used to. Don’t be impatient, as
sometimes this will reflect badly on your reputation. Be flexible and prepared to adapt to new
schedules. In fact, patience, courtesy and friendliness are the most valuable qualities you can
demonstrate throughout your business and social life in the Kurdistan region, especially during the
most frustrating situations: you will surely reap the rewards.
6. Be persuasive
With more and more companies entering the Kurdistan region you will face more and more
competition. Be persuasive to sell your product which you must introduced as the most competitive.
7. Implementation
Training is the key word of your long term success in the Region of Kurdistan together with
maintenance. You must anticipate training and maintenance during the phase of implementation of
your project.
The KRG is taking steps to reduce bureaucracy and time delay with an E-Government strategy to help
reduce red tape and procedures to make doing business in Kurdistan easier.
Kurdistan Federation Chamber of Commerce & Industry (and Erbil Chamber of Commerce &
Industry)
Tel: +964 66 222 2175 / +964 66 2222162 / +964 66 2222014 / +964 66 2230671
E-mail : [email protected]
Site web: www.arbilchember.org
Minister Falah Mustafa Bakir is Head of the KRG Department of Foreign Relations, based in the
Council of Ministers in Erbil, the Region's capital. To contact the Department of Foreign Relations,
email dfr(at)krg.org
The KRG has official representations in several countries. As part of the KRG's restructuring and
outreach to the international community, we hope to open more representations abroad in the near
future.
Email: france(at)krg.org
appointments can be made for visits on Mondays or Thursdays from 11.00 to 16.00 UK time.
EU JUST LEX
Mr. Tomas Seven Head of Office
[email protected]
0750 364 5180
10 loaf /1000 ID
1 kg meal / 14000 ID
1 kg chicken / 5500 ID
1 eggs seat /3500 ID
1 kg sugar / 1000 ID
1 kg Fat cooking / 1500 ID
1 kg tomato / 1000 ID
1 kg potatoes / 750 ID
Erbil
Sulaimani
Duhok
Mazi Mall: opposite the Technical Institute of Dohuk. +964 (0) 62 760 9900
Bahar city: Barzan Street.
Electrical Appliances
On Shorish Road there are specialised shops in electrical applicancies where you can
find leading international brands such as Arcelik, Bosch, Samsung, Toshiba, LG,
Beko, General, Sony, Phillips, Mitsibushi
Opening Hours
C. Corporate communication
1. Advertisement
1.1 Main media supports and the advertisement market in Kurdistan or Iraq
G.E.G Reklam:
Tel: +964 (0) 750 490 0600 / +964 (0) 750 490 5757
Website: www.gegreklam.com
2. The Fairs
1.1 The International Fair in Erbil
http://www.erbilfair.com/
http://www.dbxkurdistan.com/Duhok/
1. Accommodation
Erbil
In Erbil
Erbil International Hotel (Sheraton)
30 Metre Road.
Price: Single room: $ 200. Double room: $ 240.
Junior Suite: $ 300 +10% service charge. Executive Suite: $ 500 +10% service
charge.
Breakfast - lunch included. Business center. Internet available in rooms.
Tel: +964 (0) 66 223 4460 / +964 (0) 750 449 5517
Email: [email protected]
Website: www.erbilinthotel.com
Hawler Plaza
Road to Kirkuk, Erbil near the stadium.
Single room: $ 170. Double room: $ 190. Breakfast - lunch included. Internet
available.
Tel. : +964 (0) 66 222 8990 / +964 (0) 66 254 0050
Email: [email protected]
Website: www.hawlerplaza.com
Rotana Hotel
Gulan Street.
Tel.: +964 (0) 66 210 5555
Email: Shareef.kharouba @ rotana.com
Website: http://www.rotana.com/rotanahotelandresorts/iraq/erbil/erbilrotana
Nobel Hotel
Qazi Peshawa Street (street 100 meters), Ankawa, Erbil.
Tel.: 964 (0) 66 225 2630-225 2620 / 964 (0) 750 431 2244 / 964 (0) 771 193 6300
Email: [email protected]
Website: http://www.noble-hotel.com/
Arabella Grand
Tel: +964 (0) 750 499 1984 / +964 (0) 66 591 984
Email: [email protected]
Website: www.arabella-hotel.com
DimDim Hotel
30 Metre Road
Tel.: +964 (0) 66 222 2723
E - mail: [email protected]
Zaitun Hotel
30 Metre Road, between the Media Hall
+964 (0) 66 222 9024
[email protected]
Sulaimani
Sulaymaniyah Palace
End of the Street Salm
Suite: 190 USD.
Tel: +964 (0) 53 212 4141 / 47
Parezh Hotel
Tel.: +964 (0) 770 000 0000
E - mail: [email protected]
Website: www.perizhotel.com
Dawa Hotel
Tel: +964 (0) 748 015 6259 / 60/61/64
E - mail: [email protected]
Website: www.dawahotel.com
Duhok
Delshad Hotel
Dohuk Main Street, opposite Mazi Supermarket
Single room: 115 USD.
Tel: 964 (0) 62722 7601-9
Email: [email protected]
Website: www.dilshad-palace.com
Sulava Hotel
Tel: +964 (0) 62 722 1955 / 722 1956 / +964 (0) 750 445 7004 / + 00 87 37 61 58 67
29.
Email: [email protected], [email protected]
Website: http://www.sulavco.com/hotel.htm
Slivan Hotel
14 Athar Road
Tel: +964 (0) 62 722 5683, +44 702 86 00 001.
2. Transportation
a. Air transports:
Erbil:
Zagros
[email protected], [email protected]
Shabaq,
Tel: +964 (0) 750 773 2333, +964 (0) 750 452 0111, +964 (0) 750 773 2444
Email: [email protected]
Website: http://www.flyiraquna.com
Zozik,
+964 (0) 750 401 7333, +964 (0) 750 401 8333
[email protected]
Sulaimani
Duhok
In Erbil:
Now taxi (and rental agency): +964 (0) 750 427 7002, +964 (0) 750 465 3558
Hello Taxi: +964 (0) 750 417 9000 0, +964 (0) 750 418 0000, +964 (0) 750 419 0000
Mr driver Jijis: +964 (0) 750 449 1845. $ 150 a day (7am to 18:30).
Chaufferur Mr Ako (only between midnight and 4am): +964 (0) 750 482 0984.
In Sulaymaniyah:
Sulaymaniyah Office: near the University of Sulaimaniya. +964 (0) 53 327 0975
Hana Office: Azadi opposite dup arc. +964 (0) 53 327 0900
American Village
Tel: +964 (0) 750 413 6420 / 1
Email: [email protected]
Price: customer selects him - even the elements that make up his house. Also, the price depends on the
materials requested.
Dream City
Tel: +964 (0) 66 251 0773, +964 (0) 66 251 0779
Email: [email protected]
Naz City
Tel: +964 (0) 750 416 9826
Email: [email protected]
Price: 2 000-3 000 USD
Italian City
Tel: +964 66 256 4844, +32 48 445 1315
Email: @ yahoo.com hemn_co.group
Price: 2 000-3 000 USD
English Village
Tel: +964 750 445 2102
Email: [email protected]
Price: 2 500 - 3 000 USD
Notes:
- most of these housing developments also provide office space.
- the rent does not include the cost of electricity, water, internet and other charges.
Erbil
Virand Company:
Route 30 meters, as opposed to Dream City.
Abdullah: +964 (0) 750 445 4230. Farman: +964 (0) 750 446 8615.
Sulaimani
Dilan Office:
Address: Salim Street.
Tel: +964 (0) 770 152 1633
Liza Office:
Address: Guran Road.
Tel: +964 (0) 770 141 4141
Sulaymaniyah Office:
Tel: 3270975
Hana Company
Address: Park in front of Azadi
Tel: 3270900
Homa company:
Address: Rue Salim.
Tel: 3190111
Sabaq Company:
Tel: +964 (0) 770 155 7004
Twana Ali:
Tel: +964 (0) 53 330 1415
Duhok
Araz Office
11 Aylul Road.
Tel: +964 (0) 750 410 8321
Dakhaz Office
Lawand street.
Tel: +964 (0) 62 760 9192
3. Miscellaneous:
F. Daily life
- Mobitel: www.mobitel3g.com
- Zain www.Zain.com
- Atheer: www.atheer.net.sa
Fixed telephone (landline)
- Aria Phone
- Reber
. Internet Providers
Tarin net
Website: www.tarinnet.org
Ster TarinNet Sales Office in Tower:
Tel: +964 (0) 750 418 3060
Email: [email protected]
TarinNet Sales Office in Erbil:
Tel: +964 (0) 750 478 5049
Address: Street Mudhafaria, Erbil
Shaqlawa:
Address: Sarmaydan near the supermarket Bana.
Tel: +964 (0) 750 765 3069
Pirmam (Wall)
Address: Main Street, near Sarban
Tel: +964 (0) 750 765 3068
Newroztelecom (Reber)
Street Karez, Ainkawa, Erbil
Tel: +964 (0) 66 225 3000
Email: [email protected]
Website: www.newroztelecom.com
Sellers:
Engineer Meqdad: Muthafaria Street, Erbil. Tel: +964 (0) 750 454 2999
Dani: Ainkawa, Erbil. Tel: +964 (0) 750 468 1533
Baker: Shaqlawa. Tel: +964 (0) 750 449 4227.
Nawand Telecom:
www.nawand.net
WEGO Layers Net:
www.mywego.com
Ankawa
Tel: +964 (0) 66 225 0448
Open from 8:30 a.m to 22:30, Saturday to Thursday
c. Electricity
Currently in the Kurdistan region there is around 16-20h of electricity daily.
Unite
Price KWH Categories
(ID)
15 1-450
20 451-900
35 901-1500
60 1501-2100 Domestic
75 2101-3000
150 3001-5000
200 5000
25 1-600
35 601-900
50 901-1500
60 1501-3000 Commercial
80 3001-5000
90 5000+
60 0.416kv
50 11kv
Industrial
30 33kv
20 132kv
30 Agriculture
60 Governmental
In Erbil:
Dar Al Salaam Bank for Investment
Address: Route 60 meters
Tel.: +964 (0) 750 446 3063, +964 (0) 66 256 0006
Byblos Bank
Address: Street No. 6, near the sports stadium
Tel: +964 (0) 66 223 3457, +964 (0) 750 478 4404
In Sulaymaniyah
Rashed Bank: +964 (0) 53 312 0145
Rafedeen Bank: +964 (0) 53 312 1568
b. Sending mail
In Erbil
Directorate of Posts and Communications of Erbil.
Address: downtown, near the court building.
Tel: +964 (0) 66 223 8028, +964 (0) 750 449 6264
In Dohuk
Directorate of Posts and Communications in Dohuk.
Tel: +964 (0) 62 724 4545
Email: [email protected]
In Sulaymaniyah
Directorate of Posts and Communications to Sulaimaniya.
Address: Street Mawlawi
Tel: +964 62 318 00 61
DHL Express
33, $ 3 per kilo
Customer Service Center:
Address: Erbil, Ankawa, Khabat Street, Area 41
Tel: +964 (0) 750 423 7772, +964 (0) 770 461 7111, +964 (0) 66 225 1221
Email: @ Erbil.iq dhl.com
Sulaymaniyah:
Address: Main Street Jawahiri, sarchinar near Abo sana Shaswar Hotel Building
Area 119
Tel: +964 (0) 770 461 8111, 964 (0) 533 194 355
Email: @ Sulaimania.iq dhl.com
UPS
Mohammed DLere
UPS Sales and Operations - Erbil
Tel: +964 (0) 750 314 0045
Email: dler.mohammed. Moveoneinc.com @
The International Driving Permit is not accepted in the region of Kurdistan. You
must go to the General Directorate of Traffic in Erbil (located on the road 60
meters, near New City)
d. Useful contacts
- Police Station:
Police emergencies: 144, 134, 124, 104
Directorate of Erbil Police: +964 66 22 23 2968
Sulaymaniyah Directorate of the Police: +964 53 312 3544
Directorate of Dohuk Police: +964 62 722 1707
- Directorate of firefighting
Erbil: +964 (0) 66 115
Sulaymaniyah: +964 (0) 53 312 6977
Duhok: 964 (0) 62 115
- Directorate of Traffic in Erbil:
Address: street of Kirkuk
- Directorate of Passports:
Sulaimany: Mahmoud Malek Street. Tel: +964 (0) 53 319 3815
Dohuk: Mahabat neighborhood. Tel: +964 (0) 750 450 9384
- Directorate of Tourism
Erbil: +964 (0) 66 257 7001
Sulaimany: +964 (0) 53 318 3880
Dohuk: +964 (0) 62 762 1210
e. Health contacts:
Phone:
General: +964 (0)66 223 6633
In Sulaymaniyah
Hospital emergency: +964 (0) 53 327 05 11
Sulaimaniyah General Hospital: +964 (0) 53 312 1498
Tawari General Hospital – TuMalik District
In Duhok
Schools:
Universities:
Cihan University:
Address: 100-meter street, Erbil.
Tel: +964 (0) 750 738 1000
Website: http://www.cihanuniversity.org/about.php?tab=tab1
Koya University:
Tel: +964 (0) 748 012 6191
Email: [email protected]
Website: http://www.koyauni.ac/
Sabis University:
Address: Route Ainkawa, direction Salahaddin.
Tel: +964 (0) 750 716 9400
Email: [email protected]
Website: http://www.sabisuniversity.net/
Salahaddin University:
Tel: +964 (0) 66 222 4122
Website: http://www.suh-edu.com/
a. Business Cards
100 cards = 25, 000 ID, 200 cards = 40,000 ID
In Erbil:
Office Batel
Address: rue de Aras
Tel: +964 (0) 750 414 4205
In Dohuk
Hawar Printing press:
Tel: +964 (0) 62 722 1280
Khani Printing press:
Address: District Ashti
Tel +964 (0) 62 722 1479
In Sulaymaniyah
Gash Office: +964 (0) 770 156 0615
Akam Office: +964 (0) 770 141 1243
b. Translators
Mr. Haval
Tel: +964 (0) 750 467 1827
Email: www.havaldalo.net
MAULDE
Tel: +964 (0) 750 445 9589, +964 (0) 750 453 9191
Yaqoob Saadallah
Born in Mosul, speaks Arabic, French and English.
Tel: +964 (0) 770 181 4001
Email: [email protected]
Dara Sinjari
Email: [email protected],
Omar Mohsen
Email: [email protected],
c. Security Companies
GardaWorld (Formerly Vance)
Address: 31 Old Burlington Street, London W1S 3AS
Iraq (excluding Erbil): +964 (0) 770 158 7939
Iraq (Erbil): +964 (0) 750 451 2588
London office: +44 (0) 20 7734 5361
Email: @ oliver.westmacott kept-world.com
Ster Group
Tel: +32 48 445 6378
Reed Security
Tel.: +964 (0) 750 449 8294
Hart Security
Tel.: +44 (0) 20 7751 0771
Email: [email protected]
d. Calendar Holidays
Please note that of the national holiday falls at the weekend (Friday or
Saturday), then the next working day is taken as the national holiday and
government offices are closed.
These are working days at the KRG Council of Ministers, and businesses
are open. Special events take place around the Region to mark these
dates.
Follows the Muslim calendar, Islamic holiday dates are estimated only.
G. Leisure Activities
1. Restaurants
Kurdish Restaurants:
Tarin Restaurant: Route Massif / Salahaddin,
- Abu Shahab Restaurant: Rue Gula
- Marina: Road Ankawa Baherba
- Venus: Ankawa Road, near the Marina Restaurant.
- Sapphira: Ainkawa Road, opposite the Abu Shahab Restaurant
- B & M Street Shoresh
- Restaurant Erbil: Ainkawa road. Tel: 225 15 33.
- Restaurant Shahi Zhiyan: road from Kirkuk. Tel: 226 2035.
bazaar in Erbil.
International cuisine:
- Khanzada Hotel:
Salahaddin road, 15km from the center - city of Erbil
- Erbil International Hotel Sheraton Gold: international cuisine (Asian, ...)
Salahaddin road. Tel: 223 44 71 / 223 44 70.
- Rotana Hotel: International cuisine, Italian and Lebanese.
Gulan Street.
- Bouba Restaurant: Lebanese cuisine.
A Ainkawa, before the former Directorate of Immigration.
- Restaurant Mille et Une Nuits: Iranian cuisine
Fast foods:
- Primarily in shopping malls (Mall Majidi, Family Mall, ...)
- Daddy Jones (pizza):
Gulan Road, near the English village.
- Restaurant Texas Chicken: road from Kirkuk.
- 2b2: road to Kirkuk.
- 007: Franco has cost the state Hariri
- Saj Al - Reef: Kurdish and Lebanese cuisine.
Road to Kirkuk, after the University of Salahaddin.
2.Sport Centres
Blue sports center:
The center is open for women from 9 to 14 every day except Tuesday and Thursday, days reserved for
universities.
The price is 60,000 ID per month.
The center is open for men from 15h to 20h daily. The price is de120.000 ID per month.
The center is closed on Fridays.
Address: Rue de Sulaymaniyah
Tel: +964 (0) 750 707 3355, +964 (0) 750 707 3366
Email: @ yahoo.com Bleu.center
AquaTarin Center:
Address: Route Salahaddin
Website: www.aquatarin.com
3. Entertainment
- Bowling center and games room: Majidi Mall
- Karting: Speed Center.
- Pool: Ainkawa.
- Rink: Family Fun.
4. Tourist Attractions
City of Erbil
- The Citadel of Arbil
- Sheikh Choli Minaret,
- Museum of Civilization in Erbil: road between Kirkuk roads of 30 meters and 60 meters, near
the Sheraton and the Warka Bank.
- Bazaar
- Al Jalil Khayat Mosque.
- Mosque Sawwaf: street 30 meters, near the Central Bank of Kurdistan.
- Church of St Joseph's main road Ainkawa.
- Arts: Media Hall, Culture Hall, Palace of Arts.
Erbil Governorate
- Castle Khanzada: Road Shaqlawa.
- Castle Deween
- Shaqlawa Resort
Hotels to sleep on site:
Shaqlawa Palace Hotel: Tel: +964 (0) 66 252 1333, +964 (0) 750 445 4569
Media Palace Hotel: Tel: +964 (0) 66 252 0799, +964 (0) 750 453 7015
Jihan Restaurant: Tel: +964 (0) 750 445 7581
Safin Hotel: Tel: +964 (0) 66 252 0635, +964 (0) 750 252 1118
- The monastery of the monk Rabban Beya: located in the valley of Beya, the monastery,
dating from the 4th century AD, 1 hour of escalating public road, overlooking the sub - district
Shaqlawa.
- Cave Shanider and Neanderthal: the cave of Shanidar is located in the mountains
of Bradost., 2 km from the village of Shanidar at 2500 feet above sea level The cave overlooks the
Upper Zab. We have found evidence confirming the presence of Neanderthal man in the region.
- Bestoon Cave: The cave is located 39km south west district of Soran. Can
access via a road that goes connected to the south near the village of Hawdiyan. Then the road
climbs to Mount Bradost, where we found two caves. The first is the cellar Diyan, and the second
one Bestoon. In 1951, exploratory missions have found stone tools of the modern Stone Age. Of
these two caves, there are stalactites, stalagmites and water.
Dohuk Governorate:
- Gali Duhok,
- Historical monuments in the mountains Shada in Duhok, the temple STIN 4 (4 columns)
- Sulava Resort
- Sarsenk,
- Mount Gara,
- Zawita,
- Inishkea,
- Amedia,
- Akreh,
- Zakho, the old bridge (Pera Dalal)
- Lalish: the center of the Yazidi religious community.
Sulaymaniyah Governorate
- Halabja: memorial of Halabja
- Dokan,
- Waterfalls Sarchinar,
- Highlands Goija.
5. Souvenirs
You can find traditional clothing, crafts, Kurdish and typical food products in
Erbil Bazaar, and the Textile Museum Shop which is located in the Citadel.
6. Learn Kurdish
Kurdish language courses for beginners and conversation courses in Kurdish.
Classes are held 2-3 times per week.
Rates language courses are $ 100/month /
For more information, contact Ms. Irene Dulz, head of languages and training in
information technology.
Tel.: +964 (0) 750 496 5288
Email: [email protected]
Address: Askari Qr. Near the hospital Sardam, opposite the University Hawler
Technical University, and near the Ministry of Municipalities Part 6.
Pronouns راﻧﺎو
I: Min ﻣن
You: Tu ﺗؤ
I need to go to: Min pewista birom bo… ﻣن ﺛﻳَوﻳﺳﺗﺔ ﺑرؤم ﺑؤ
I’m learning Kurdish: Min fera kurdi booma من ﻓﻳَري ﻛوردي دةﺑم
I can’t think anymore: Min natwanam bir’bekamawa ﻣن ﻧﺎﺗواﻧم ﺑﻳر ﺑﻛﺔﻣﺔوة
I’m fine thanks, and you? Min bashim, supas, ay toh? ﺋﺔي، ﺳوﺛﺎس،ﻣن ﺑﺎﺷم
ﺗؤ؟
Directions
Is it far? Doora? دوورة
Time frames
Yesterday: Dowéné َدوﻳَﻧﻲ
Numbers : ذﻣﺎرةﻛﺎن
Two: Du دوو
Bibliography
Kurdistan Regional Government
AECOM. "Feasibility and Development Plan for Erbil Industrial Zone. September 26, 2010.
Kurdistan Board of Investment. "Sulaymaniyah Economic Free Zone. The Fateway to Iraq. Overview
of Integrated Real Estate Development Opportunity. " April 12, 2010.
"The Kurdistan Region. Invest in the Future, 2009. " Kurdistan Regional Government publication.
Ed: Professor Brendan O'Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
Laws references:
CPA Order No. 81. "Patent, Industrial Design, Undisclosed Information, Integrated Circuits and Plant
Variety Law. April 26, 2004:
http://www.mindfully.org/Farm/2004/Iraq-Plant-Variety-Law26apr04.htm
Iraq Labor Code. Act No. 71 of 1987, dated July 7th, 1987.
http://files.wp-irak.de/gesetze/Labor_71_1987_En.pdf
Presidency Of The Kurdistan Region. "Oil and Gas Law of the Kurdistan Region - Iraq. Law No. (22).
2007 ".
http://www.krg.org/uploads/documents/Kurdistan 20Oil% 20and% 20Law%%% 20Gas
20English__2007_09_06_h14m0s42.pdf
Report Agencies:
International Monetary Fund. "Iraq: First Reviex Under the Stand - By Arrangement, Request for
Waiver of Performance Criterion has Nonobservance of, Waiver of Applicability, and Rephasing of
Access." IMF Country Report No. 10/216. September 18, 2010.
http://www.imf.org/external/pubs/ft/scr/2010/cr10316.pdf
Inter - Agency Information and Analysis Unit. "Sulaymaniyah Governorate Profile. July 2009.
http://www.iauiraq.org/documents/463/GP-Sulaymaniyah.pdf
UNDP Iraq Living Conditions Survey 2004, Volume 1 Tabulation Report, Table 1.6: Age in Broad
groups, mean and median age).
World Bank February 2006. Rebuilding Iraq: Economic Reform and Transition. Economic and Social
Development Unit, Middle East Department. 30 October 2007.
http://siteresources.worldbank.org/IRFFI/Resources/IraqFM-final.pdf
For World Food Program. "WFP and Iraqi Ministry for Partnership to Strengthen food distribution
capacity". News Release.December 16, 2009.
http://www.uniraq.org/documents/WFP% 20and% 20Iraqi 20Ministry%%% 20Form
20Partnership% 20to% 20Food% 20Distribution 20Strengthen%%% 2016-12-09% 20Capacity
20EN.pdf
World for Food Programme. "Development Project 200,104 Iraq: Capacity development to Reform
the Public Distribution System (PDS) and Strengthen social safety nets for vulnerable groups in
Iraq."
http://one.wfp.org/operations/current_operations/project_docs/200104.pdf
World Trade Organization. "WTO Negotiations With Iraq starts for membership". May 25, 2007.
http://www.wto.org/english/news_e/news07_e/acc_irak_25may07_e.htm
Other info:
Al - Khouri, Riad. Excerpt from report: "Public Distribution System & Agriculture in the Kurdistan
Region". 2009.
Benard, Alexander, and JP Schnapper - Cast. "Northern Exposure: Kurdistan After the Withdrawal."
World Affairs. July / August 2010.
http://www.worldaffairsjournal.org/articles/2010-JulyAugust/full-Benard-n-JPSC-JA-2010.html
Clement - Davies, Christopher, and Philip Woodruff. "Iraq's Oil and Gas Legal Framework". Fulbright
& Jaworski International LLP. January 2009.
Crawford, James. "The Auhority Of The Kurdistan Regional Government over Oil and Gas" under
the Constitution of Iraq. " Clifford Chance LLP. January 29, 2008.
http://www.krg.org/uploads/documents/James_R_Crawford_Kurdistan_Oil_Legal_Opinion_Englis
h__2008_07_09_h11m23s26.pdf
Donovan, Thomas W. "The Iraqi Unity Government December 2010 and Its Impact On The Domestic
Petroleum Upstream Sector". Iraq Law Alliance PLLC. December 2010.
Helen Chapin Metz & the Federal Research Division of the Library of Congress. Iraq: A Country
Study. p. 86.
Herbert Smith. "Key Legal Issues in the Third licensing round for Iraq's gas fields." Energy e-
newsletter. June 15, 2010.
http://www.herbertsmith.com/NR/rdonlyres/26935554-DFC9-4F20-AAEF-
E99A768D4683/0/IraqGasFieldsThirdLicensingRound.htm
Heshmati, Almas (University of Kurdistan). Labor Market Policy Options Of The KRG. IZA DP No.
3247. Institute for the Study of Labor (IZA). December 2007:
http://www.econstor.eu/dspace/bitstream/10419/34782/1/560200897.pdf
Kurdistan Times. "Kurdistan Region of Iraq. Rich oil resources and reconstruction progress. "
February 3rd, 2011
http://www.krg.org/uploads/documents/KurdistanTimes_2011__01.pdf
Nir Rosen: "Fix the PDS system to Meet Needs of IDPS. Refugees International. April 10, 2007.
http://www.refintl.org/policy/field-report/iraq-fix-public-distribution-system-meet-needs-
displaced
Talib Murad. "Agriculture in Kurdistan and Iraq." Erbil, January 18th, 2010, p. 20.
Talib Murad. Pure Agricultural Projects EXCLUDING Agro - Industry ones. September 2010.
Economic Mission of the Embassy of France in Iraq - Erbil service. Panorama of the distribution
in Kurdistan. " July 2010. Study by Evin.
Economic Mission of the Embassy of France in Baghdad. "Bilateral trade France - Iraq." Synthesis
by Mr and Mr Choblet Kerdoncuf.
"The Kurdistan Region. Invest in the Future, 2009. " Kurdistan Regional Government publication.
Ed: Professor Brendan O'Leary.
http://www.krg.org/uploads/documents/invest_in_kurdistan_2009.pdf
http://kurdistantheotheriraq.com/directory.pdf
http://wwww.mondaq.com/article.asp?articleid=45310)
Contact List
On behalf of the Kurdistan Board of Investment & the General Consulate France – Erbil we would like
to thank the following people for their help and efforts in order to make this publication possible.
Agriculture
BMU
Riad Al Khouri: [email protected]
Dean of Business School
Tel: +964(0) 750 71 44 865;
Jordan: +962(0) 77 999 5000; Lebanon: +961(0) 3 842 567;
Switzerland: +41-795 248 051
Grass Company
Dr. Muhammed Karim
Email: [email protected]
Tel: +964(0) 7701523502
Byblos Bank
Alex Azouri
Branch Manager – Erbil
Email: [email protected]
Tel: +964 (0) 662560017/9 / Tel: +964 (0) 7507377454
Ster Group
Tiina Kantola, Marketing Manager
Email: [email protected]
Tel: +964(0) 7507379704
StarKar Insurance
Nawzad A. Rafiq, General Manager
E-Mail: [email protected]
Tel: +964 (0) 7504617977
Warka Bank
Mr. Serkawt, Branch Manager
Tel: +964 (0) 662539699
Rabee Securities
Shwan Ibrahim Taha, Chaiman
E-Mail: [email protected]
Web: www.rabeesecurities.com
Tel: +964 (0) 17180696
Board of Investment
Hayder Mustafa Saaid, Director General – Dept. of Studies & Information
Email: [email protected]
Web: www.kurdistaninvestment.org
Tel: +964 (0) 7504450447 / Tel: +964 (0) 7704450447
Sardar Kareem Ghafoor, Head of Information & Studies Directorate
General Directorate of Investment / Sulaimani
E-Mail: [email protected]
Tel: + 964 (0) 770 211 5432 / Tel: + 964 (0) 750 127 5432
Falah Haji Hassow, Head of Information & Studies Directorate
General Directorate of Investment / Duhok
E-Mail: [email protected]
Tel: +964 (0) 750 4504589
Aziz I. Abdo
General Director of Trade
E-Mail: [email protected]
Tel: +964 (0) 7504451422
Planning
Ministry of Planning
Zagros Fatah
Director General – Development Coordination & Cooperation
E-Mail: [email protected]
Tel: +964 (0) 7504923604
Jack Pascal
Senior Advisor – Regional Development Strategy
E-Mail: [email protected]
E-Mail: [email protected]
Tel: +964 (0) 7706700614
Serwan Mohamed M.
Head of Kurdistan Region Statistics Office
Tel: +964 (0) 7504451327
E-Mail: [email protected]
Information Technology
Delia Q. Kaikhasraw
Organisational Development Advisor
E-Mail: [email protected]
Tel: +964 (0) 7504235120
Ministry of Education
Yousif Othman Yousif Director General of Planning & Follow-Up
E-Mail: [email protected]
Tel: +964 (0) 7504450165
Health
Ministry of Health
Dr. Amer Omar Ali
Head of Minister’s Office
E-Mail: [email protected]
Tel: +964 (0) 7503133535
Natural Resources
Kar Group
Baz R. Karim, President
E-Mail: [email protected]
Tel: +964 (0) 32484456521
Advertising
G.E.G. Reklam
Mr. Amer Ahmed
General Manager
E-Mail: [email protected]
Tel: +964 7504451752
Mac DDB
Mr. Haytham Alyassin
Regional New Business Development
E-Mail: [email protected]
Tel: +974 (0) 4214111
Communications
Haval A. Barzinjy
Advocate
E-Mail: [email protected]
Tel: +964 (0) 7504499869
Environment
Gyong-Shik, Chon
Assistant Resident Rep.
E-Mail: [email protected]
Tel: +964 (0) 7504458672
Electricity
Ministry of Electricity
Farhad Othman Hassan
Distribution Plan Manager – Erbil
E-Mail: [email protected]
Tel: +964 (0) 7504461491
Tourism
Mr. Mawlawi
Director of Tourism – KRG
Tel: +964 (0) 7504453167
Rotana Erbil
Shareef Kharouba
Director of Sales & Marketing
E-Mail: [email protected]
Tel: +964 (0) 7503354176
Babel Tours
Mr Hubert Debbasch
Chairman
Email: [email protected]
Tel: +33 (0) 144906 11
Other Contacts
Ismail Maraqa
Country Senior Partner – Iraq
E-Mail: [email protected]
Tel: +964 (0) 7704653377
Omar Kalanzi
Manager – Assurance Services
E-Mail: [email protected]
Tel: +964 (0) 7704653377
MapCom
Ferhad Y. Berzinjy
General Manager
E-Mail: [email protected]
Tel: +964 (0) 7504521508
Lafarage - Iraq
Marcel Cobuz
Chief Executive Officer
E-Mail: [email protected]
Tel: +964 (0) 7704444885
Vecdi Etkin
Sales Manager
E-mail: [email protected]
Tel: +964 (0) 7710212219
Zagros Group
Delsoz Sherwani
CEO
E-Mail: [email protected]
Tel: +964 (0) 7504450645
Vevey R. Lascano
Executive Secretary to the CEO
E-Mail: [email protected]
Tel: +964 (0) 7507335259
HEWA Group
Kim Hyon-sul
Erbil Branch Manager
E-Mail: [email protected]
Tel: +964 (0) 7504380002
Kurdistan Inforamtion and Strategic Studies Centre – KISSC
Industrial Zones
AECOM
John K. Bachmann
Director of Urban Planning & Development
E-Mail: [email protected]
Tel: +1202 (0) 4923118