How is the economy in Kurdistan?

The Kurdistan region's economy

The Kurdistan region’s economy is dominated by the oil industry, agriculture, and tourism. Due to relative security and peace in the region and more economically liberal and market-oriented policies, it has a far more developed economy in comparison to other parts of Iraq

In terms of the economic areas impacted by this investment, of the 594 total projects authorized, housing remains the largest sector with 166 total projects (27.9% of all investment). However, as a result of the large number of housing developments under construction, the BOI made the decision to suspend housing licensing in order to focus on more critical areas, such as agriculture, tourism, and industry. Consequently, industry (136 projects constituting 22.9% of all investment), tourism (101 projects constituting 17.0% of all investment), and trading (87 projects constituting 14.6% of all investment) have come to the forefront. Despite being identified as a key area for expansion, the agriculture sector remains limited in its development, with 23 projects forming just 3.9% of all investment (sixth on the list behind the health sector).

The Kurdistan Regional Government (KRG) established in June 2019 focuses its priority to shift the economy towards an open diversified economy to balance the actual dependence on oil and gas.

Doing Business in Kurdistan

The Economic Policy of KRG

As one of the frontline cabinets within the Regional Government of Kurdistan which is leading the drive to position KRG as a future hub and base and commercial network for economic activity in the Middle East.

The KRG core responsibility is the promotion and development of Industry and Agriculture activities, with an emphasis on generating sustainable development and economy growth in Kurdistan Region, by securing enhanced access to foreign market for local companies as well as more foreign capitals to be accessed to the Local Kurdistan market:

– Adopting the free Market-Policy to promote and support the role of private sector such as the Chambers of Commerce and Industries and other business associations and unions.

– Drafting new laws of Trade and related themes to be in harmonization with the plan of development and amending many other articles of previous laws.

– Providing new legislation administrations and procedures.

– Creating a healthy environment for business and investment.

– Cooperation with central government to take part in the committees of WTO and other organisations and collaborating in other different activities.

– Providing all facilities for the process of rehabilitating the infrastructure of economy of the Kurdistan Region.

– The legal system in the region is more developed than many other legal systems in the Middle East, which is relying on the following sources:

1- The constitution of Iraq and the Region.

2- Rights and Liberties.

3- The Federal Authorities.

4- Power of the Regions

  • Relying on Iraqi constitution, Kurdistan Regional Government has the constitutional right to deal and sign commercial agreements and MoU with regional governments; this will assist the promotion of economy in Iraq as general and the Region in particular, and will meet the demand of commitments of the new era.
  • Considering the political and economic stability as a factor, the KRG plans to make the region as a hub for the future economy in the Middle East, to draw attention of the capitals around the world to get in close relation with the local investors who could develop their financial capabilities depending on the modern methods of business