KRG: Partnering with Baghdad to Enhance Economic Development and Attract Investment

 Baghdad - INA

Faris Issa, a representative of the Kurdistan Regional Government (KRG), stated on Tuesday that Iraq has emerged as an attractive destination for capital investment, bolstered by its political and security stability. He emphasized the importance of collaboration with the federal government in driving economic activity and attracting potential investors.

Speaking at the Global Investor Day conference in Baghdad—covered by the Iraqi News Agency (INA)—Issa noted, "In accordance with Investment Law No. 4 of 2006, the KRG has issued licenses and permits for various projects outlined in the investment law, while providing investment opportunities tailored to the region's specific needs. Furthermore, the KRG supports investors by facilitating the importation of essential equipment and raw materials, offering tax and customs duty exemptions, and providing land for project development."

He highlighted that these initiatives have fostered a favorable investment climate in the Kurdistan Region, enabling it to attract numerous foreign companies and investors who have launched various small and strategic projects across multiple sectors. "The KRG remains committed to well-planned and ambitious strategies aimed at attracting additional companies to meet the region’s requirements," he explained.

Issa pointed out that effective cooperation and coordination between the investment authorities of the federal government and the KRG are vital in formulating robust plans and programs that align with Iraq's economic realities. He stressed the importance of leveraging the experiences and expertise of developed nations in this area.

"Investment plays a crucial role in global economies, primarily aimed at increasing financial returns for nations, companies, and investors," he said. "It also strengthens the national economy by diversifying revenue streams and achieving sustainable development."

Moreover, he acknowledged that the success of investments is contingent upon various factors, including economic and political stability, positive growth projections, technological advancements, and innovations in emerging sectors. Effective government policies and programs that encourage investment, simplify tax processes, and create an investor-friendly environment are essential.

Issa concluded that "Iraq, owing to its current security and political stability, represents a promising environment for attracting capital and foreign enterprises. In this context, we are working closely with Baghdad to cultivate an environment conducive to investment, stimulate economic activity, and mitigate the rentier economy that heavily depends on oil revenues, which are often subject to global price fluctuations affecting our economy both positively and negatively."