Kurdistan Region of Iraq has experienced rapid economic growth of 7% annually due to its secure location amid conflict in the surrounding region. The Kurdistan Investment Law of 2006 established incentives like tax exemptions and land subsidies to attract over $41 billion in investments across sectors like housing, industry, and tourism. The Kurdistan Board of Investment facilitates this process as a one-stop shop and has licensed over 721 projects. However, the region still needs support establishing industrial zones and improving food safety regulations to further diversify its economy beyond oil and gas.

1. Business and
Investment Climate
Kurdistan Region - Iraq
16-17 February 2015
OECD - PARIS

2. THE KURDISTAN REGION
INVEST IN THE FUTURE
With one of the fastest growing economies in
the world, Kurdistan is fast becoming a
magnet for foreign investors as it begins a new
dawn.
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3. Kurdistan’s Location
A SECURE SPOT IN A WAR ZONE MAKES KURDISTAN BOOM
 Kurdistan Region is a
federal region of four
governorates (Erbil,
Slemani, Duhok and
Halabja) in northern Iraq .
 Total area: 40,643 km².
 Population: 5.2 m.
 Labor force: 1.2 m.
 GDP Growth: 7%
.
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Facts and Figures
Halabja governorate borders still doesn't fixed

4. INVESTMENT LAW NO. 4 OF 2006
 Open up ways to sustainably
support the development and
diversification of the Region’s
economy beyond oil and gas
 Create a conducive business climate
that promotes investment in the
Kurdistan Region
 Remove legal obstacles and open
the way for investment of national
and foreign investors
Incentives
 Provision of land plots for subsidized lease
 Provision of public infrastructure (e.g. water, electricity,
sewage, public roads) to the project fence.
 Exemption from corporate taxes (10 years)
 Exemption from customs duties for imported raw
materials (5 years); additional different customs duty
exemptions
Guarantees
 Full repatriation of profits generated by the project
and wages earned by foreign employees
 Transfer of investment to another foreign or national
investor
 Possibility to invest in Kurdistan with or without local
partners and to employ foreign labor ; however it is
mandatory to register the company
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WHY INVESTMENT LAW
ISSUED?!!

5. BOARD OF INVESTMENT
Board of Investment (BOI): Overview
 Established in 2006 by KRG’s Investment Law
No. 4.
 Facilitates investments in all sectors except oil
and gas to further develop the Region’s economy.
 Serves as an "one-stop-shop" for investors within
the Kurdistan Regional Government.
 Grants public benefits to attainable investment
projects by issuing investment licenses.
 721 projects from all sectors
licensed.
 More than USD 41 bn of
capital invested.
 More than 52,436 Dunams of
land allocated for investment
projects
 Investments by 77 % national
& 14 % foreign as well as 9%
JV’s facilitated
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6. The Kurdistan Board of Investment (BOI) central office and it’s three brunches in
Erbil. Slemani and Duhok
 The Central BOI is in charge of investment policies in
diferent sectors (tourism, agriculture , industry , health,
banking, power plants, housing, transportation,
education, etc…) and assumes the coordination of
investment promotion activities.
 Furthermore in charge of , initial validation of the
investment projects , including assessing the economic
impact capital invested, jobs created, taking into
consideration the annual plan of the relevant
ministries’ needs.
 Issue licenses
 The branch offices in each governorate take the
approval of related directorates and take care of land
allocation according to the Urban planning as well as
follow-up during construction and operation phases.
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7. Housing 32.53%
Industry 30.49%
Tourism 15.70%
Trade 12.19%
Health 2.45%
Banks 1.77%
Agriculture 1.68%
Education 1.72%
Communication 0.52%
Service 0.45%
Sports 0.22%
transportation 0.25%
Arts 0.03%
Total 100%
INVESTMENTS ACHIEVED IN KURDISTAN
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INVESTMENTS ACHIEVED IN KURDISTAN

8. GOVERNMENT POLICIES AND
INCENTIVES
- The KRG has made serious efforts to attract local
investment & FDI, the region’s investment law is
deemed to be friendly towards businesses and
investors that resulted in $41 BN Investments.
- The main focus before was on Real Estate and Energy,
but now it is getting diversified in to new target
Industries as first priority.
- Starting a business is some how bureaucratic but it is
simpler than other areas.
- In comparison to other parts of MENA region in
Kurdistan 100% foreign ownership is allowed.
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9. Tourism Sector based on International
Brand (5 Star Hotel)
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 Divan Erbil one of the art luxury to the heart of
the world’s longest inhabited city, Erbil.

10. INTERNATIONAL REGULATIONS
APPLIED
 Awamedica Pharmaceutical factory/ cGMP
 Partner of Sanofi, agreement was done in march 2014 for manufacturing
of Sanofi product in Iraq.
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11. EUROPEAN AND IRAQI STANDARDS APPLIED IN
CONSTRUCTION INDUSTRY
 Mass and Bazian Cement factories.
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12. EUROPEAN AND IRAQI STANDARDS APPLIED IN
CONSTRUCTION INDUSTRY
 Erbil Steel Factory
 Aso Brick Factory
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13. Investment &Industrial Growth
Assessment
Strength
 The presence of foreign industrial companies that possess good
experience in the region and availability of scientific youth capacity in
various fields, are leading to experiences exchange, strengthening &
enhancing the local expertise and gain new experiences.
 Availability of low cost local labor and many facilities to bring foreign
workers.
 Land allocating & Providing the infrastructure (Water, Electricity,
Roads) by the KRG for the investment projects.
 Availability of Varies Row Materials and on the other hand large
Agriculture Area are located in Kurdistan Region.
 The presence of the official border gates land and air.
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14. Industrial Growth Assessment
Weaknesses
 Poor Regulation specially in Food & Drinks Industry.
 Lack of Modern Industrial Cities & Zones which led to
complex procedure of land allocating.
 Competitive prices of imported goods, which led to
fears in the creation of industrial projects.
 The lack of financial incentives for Investment
projects.
 There is a common defect and deficiency with the
central government, which Iraq still does not have a
Bar Code of national industries.
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15. Support of International Organization is Needed in:-
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•Setting up construction projects based on (safety control) &
Environmental Impact Assessment (EIA) required for projects.
•Enhancing food safety through establishing large agricultural industries
& revise regulation for food safety.
•Developing Reporting and Documentation.
(Data collection, analyzing, base & Project Management software).
•Share country and regional experiences in attracting foreign
investment and enhancing outward investment.
•Facilitate access to technical assistance and promote training of IPAS.
•Legal & institutional improving investor protection in Joint Stock
company by dissemination of stocks investment culture (Common
procedures required to establish and operate business or Public Privet
Partnership (P P P)
•(How Make Simple) our investment low generous but in actuality
complex in application, how to make it easy.

16. WHAT TO ACHIEVE VIA INVESTMENT
Prosper life in a developing region base on strong
economic infrastructure competing with developed
countries.
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17. THANKS FOR YOUR KIND
ATTENTION
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