An eye on alluring leaders, emerging sectors, leading companies, and rising trends shaping the future of the Kurdistan Region of Iraq.

2014/3 THE REVIEW Issue 7 KURDISTAN REGION OF IRAQ Confidence in the Future

THE REVIEW: ENERGY FORGING AHEAD

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THE REVIEW: ECONOMY & FINANCE

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CONTENTS 2014/3

15-17 Diplomacy & Politics 18 Briefing Falah Mustafa Bakır Recent updates from the Kurdistan 22 The KRG's Foreign Policy Perspective Region Angus Mckee The UK: A Friend to the Kurdistan Region, Even in Difficult Times 25 Cengiz Candar Foreign Policy Guru 26 31 Gary Kent Notes from THE REVIEW: Westminster ECONOMY & FINANCE Navigating Regional Headwinds in the 28 Search for Continued Growth Prof. Dlawer 20 40 Ala'Aldeen Kurdistan's Leading KARIM SINJARI Research Center Secure & Stable Business 35 Samal Sardar Boosting Trade for 37 Growth Focus: 36 Erbil business & trade Center Martin Westley Invisible Protection & A Business Hub Energy Savings 41 THE REVIEW: 38 ENERGY Focus: Forging Ahead Lebanon’s Fransabank WE THINK OF INNOVATIVE SOLUTIONS AND TECHNOLOGIES. Puts Down WE CREATE BETTER WAYS TO SERVE ENERGY NEEDS. Roots in the WE MOVE FORWARD TO CREATE VALUE FOR GENERATIONS TO COME. Kurdistan Region DK>'ƌŽƵƉŝƐĂůĞĂĚŝŶŐŝŶƚĞƌŶĂƟŽŶĂůŽŝůĂŶĚŐĂƐĐŽŵƉĂŶLJĨƌŽŵƚŚĞŚĞĂƌƚŽĨƵƌŽƉĞǁŝƚŚƉƌĞƐĞŶĐĞŝŶŵŽƌĞ ƚŚĂŶϰϬĐŽƵŶƚƌŝĞƐ͘tĞŚĂǀĞŽǀĞƌϳϱLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞ͕Ϯϵ͕ϬϬϬĞŵƉůŽLJĞĞƐŽŶϯĐŽŶƟŶĞŶƚƐ͕ĞdžƉůŽƌĂƟŽŶĂƐƐĞƚƐ ŝŶϭϯĐŽƵŶƚƌŝĞƐĂŶĚϭ͕ϳϬϬƐĞƌǀŝĐĞƐƚĂƟŽŶƐŝŶƵƌŽƉĞ͘

THINK. CREATE. MOVE. Kurdistan Region of Iraq — 9

UpstreamDesert_200x270_Vredgrey2.indd 1 3/24/14 12:59 PM CONTENTS 2014/3 45 51 63 Shwan Zulal THE REVIEW: GHASSAN DALAL Analysis: Kurdistan TRANSPORT Hands-On Management Energy Update Planning to Expand at Rotana 46 COLIN GASKIN International Standards, Local Roots 48 ALAIN HANNOUCHE Registering an Oil 59 65 Services Company in THE REVIEW: DIVAN ERBIL HOTEL the Kurdistan Region TOURISM of Iraq Luxury Recreation & Bold Plans Amidst Regional Strife Fitness at Divan Erbil

Higher Education 56 Dr. Honar Issa Training Kurdistan's Amal Ouarid, Senior Customer Future Leaders Service Rep.

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Co-Publisher nvest in Group (IIG) is pleased to announce the release of the seventh issue of “The Review: Kurdistan,” which provides fresh business perspectives and features the dynamic leaders, Iinnovative companies, and tremendous opportunities now emerging in the Kurdistan Region. This issue provides updates relating to recent developments in a variety of sectors, including Diplomacy, Business, Energy, Higher Education, Transport, and Tourism. Notably, “The Review: Department of Foreign Kurdistan” also includes IIG’s exclusive interview and analysis Relations (DFR) pieces with leading players from various sectors, who discuss the business environment in Kurdistan, their success stories, and Kurdistan Regional key projects that are helping to promote further growth in the Government (KRG) Kurdistan Region. The KRG is committed to creating the best possible business environment for foreign companies operating in Kurdistan. The outstanding support of the international community for the KRG in its fight against terrorism reflects an investment in the future of Kurdistan. We truly believe the Kurdistan Region can serve as a beacon of economic and social progress. We would like to express our gratitude to Minister Falah Published in December 2014 Mustafa Bakir and the DFR team for their support of our project in Copyright © Invest in Group 2014 the Kurdistan Region of Iraq.

Goldcrest Executive, Cluster C, We hope you enjoy the issue. JLT, Dubai, UAE [email protected] Invest in Group www.investingroup.org Worldwide aircraft charters, sales, Affiliate Office management and acquisitions. Macair Flight Support Printed by +1.949.250.1359 +964.750.386.2363 Express Basımevi Deposite İş Merkezi, A6 Blok, K: 3 no: 309, İkitelli OSB, KomarAviation.com MacAirInc.com Başakşehir İstanbul, Turkey Orange County | Van Nuys | Long Beach | Carlsbad Erbil, Iraq No part of this publication may be reproduced, or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without prior written permission Managing Director: Can Yirik | Production Director: Daphne Rosenstein of Invest in Group. Whilst every effort has been Marketing Director: Rachael Walsh | Creative Director: Mustafa Gülsün made to ensure the accuracy of the information Contributors: Alain Hannouche, Gary Kent, Shwan Zulal, Sofia Barbarani contained in this publication, the authors and publisher accept no responsibility for any errors it Editors: Robert Sotolar, Matthew Thomson, Sabine Ofer may contain, for any loss, financial or otherwise, Public Relations Alexandra Meier | Design: Catherine Bergman sustained by any person using this publication. Photo Editor: Esra Köse

A MACAIR, Inc. company Kurdistan Region of Iraq — 13 Briefing The Quote Women are actively engaged in politics, legislation, various organizations, and professions. With their hard work and government support they hold 30 percent of the seats in Parliament. We hope this quota will also be replicated in future cabinets. Prime Minister Nechirvan Barzani

POLITICS WOMeN Number of Displaced Yezidis in Kurdistan Exceeds 300,000 Woman’s Award

According to Dr. Nouri Osman Sinjari, a KRG envoy to those displaced by the ISIS After receiving the “Woman’s Award” attack on Sinjar, over 300,000 residents of the town have fled and found refuge in at independent publishing house the Kurdistan Region. The Duhok governorate is host to 263,000 displaced Sinjar Andesha’s cultural festival this fall, Dr. residents, while the Erbil and Slemani governorates have each taken in 20,000 Choman Hardi, a professor of English former Sinjar inhabitants. These individuals form part of the nearly 1.4 million literature at the American University displaced people currently taking shelter in the Kurdistan Region. Dr. Nouri urged of Iraq, Sulaimani, took the occasion Western powers to increase military and humanitarian assistance to help the Region to dedicate her award to the women cope with this influx, asked for more engagement on refugee issues from Baghdad currently fighting ISIS forces in the authorities, and expressed the KRG’s conviction to gain international recognition of besieged Syrian city of Kobane. Hardi ISIS actions against the Yezidi minority as acts of genocide. received the award in acknowledgment of her accomplishments in creative WOMeN writing and her advocacy on women’s Shedding Light issues. In giving away her award, Hardi highlighted the role that female fighters The KRG’s Women’s Rights Monitoring Board, charged with developing and coor- in Kobane have played in empowering dinating KRG policy on women’s issues across ministries, has decided to establish women and challenging stereotypical an inter-agency government commission to gather accurate information on the views of women’s roles through their status of Yezidi Kurdish women and girls abducted by ISIS forces. The Board named bravery and leadership. Pakhshan Zangana, the Secretary General of the KRG’s High Council on Women’s Affairs, as the head of the committee.

Kurdistan Region of Iraq — 15 BRIEFING Did you know Did you know TAQA announced that the first oil production from its Atrush Block in A total of 2955 foreign companies are registered to operate in the Kurdistan Region, including 1329 the Kurdistan Region is on schedule for late 2015. Turkish, 335 Iranian, 157 Lebanese, 155 Emirati, 125 British, 117 American, and 81 German companies.

ENERGY ENERGY ENERGY Bina Bawi & Miran New Heights Breakthrough

Genel Energy reached a deal with the The Kurdistan Region continues to At the beginning of December, Erbil DIPLOMACY KRG to combine operations at its Bina reach new milestones in efforts to and Baghdad formalized an agree- Hungary to Open Consulate in Erbil Bawi and Miran fields under a single export its oil to international markets. ment to cooperate on oil exports and production sharing agreement. The According to KRG sources, the Region permanently reinstate Kurdistan’s A high-profile delegation from the Hungarian government agreement allows Genel to lower its has exported 34.5 million barrels of oil budget. Under the deal, Kurdistan will arrived in Erbil this November to mark the opening of the capital exposure and increase revenues. valued at $2.87 billion so far this year. supply 550,000 bpd of oil for sale by Consulate General of Hungary there, becoming the 31st coun- It also promises to be an important step Most of that oil, around 21.5 million Baghdad authorities. This will include try to have official diplomatic representation in the Kurdistan towards reaching the ambitious gas barrels, traveled to buyers around the 250,000 bpd of Kurdish crude, in addi- Region. Members of the Hungarian delegation lauded the export goals outlined in the recent- world via a newly completed pipe- tion to 300,000 bpd from oilfields in efforts of the Region’s Peshmerga forces in the fight against ly approved “KRG-Turkey Gas Sales line from oil fields in the Kurdistan the Kirkuk area, and revenues will be ISIS and praised the KRG’s efforts to house the large num- Agreement,” while helping to meet Region to the Turkish port of Ceyhan. split between the KRG and the federal ber of IDPs looking to escape ISIS brutality. The delegation domestic energy needs. Genel also Nearly $1.7 billion of the total revenues government. As part of the agreement, also signed a MoU to establish cooperation in the fields of reported oil production levels of around received from independent oil sales in Iraqi PM Haider al-Abadi has agreed to political dialogue, energy, higher education, IT, tourism, and 70,000 bpd and revenues in the area of 2014 flowed to the KRG itself, provid- resume budget payments to Kurdistan archeology. $500-600 million for the year. The Bina ing greatly needed budgetary relief and and dedicated funds to both pay and Bawi and Miran gas fields hold a com- allowing Kurdish authorities to begin arm Kurdish Peshmerga forces. bined 238 billion cubic meters of gas paying oil producers and contractors and will likely export 20 billion cubic their contractual entitlements. TRANSPORT meters of gas to Turkey per year over Cargo Village at Slemani International Airport the next two decades. In a ceremony that underlined the economic and cultural ENERGY ENERGY importance of Slemani’s growing airport for the Kurdistan Total Strikes Oil Oil and Gas Bills Region, KRG Deputy Prime Minister Qubad Talabani ded- icated the “Cargo Village” complex at Slemani International Total announced at the beginning of The KRG’s Council of Ministers submitted bills for the establishment of the Airport by symbolically laying the first stone of a new terminal. December that it had struck oil at its “Kurdistan Oil Exploration and Production Company” and the creation of a Talabani also urged authorities to simplify procedures gov- Jisik-1 well in the Harir Block. The well “Kurdistan Region of Iraq Oil and Gas Fund” to the Kurdistan Parliament. The erning the movement of goods and services for the economic had a preliminary flow rate of 6,100 production company would manage activities connected with exploration and pro- benefit of Kurdistan. bpd and represents Totals’ second oil duction contracting, development, exports, and marketing of Kurdistan’s oil and discovery in the Harir Block. Total gas resources. Citizens of the Kurdistan Region would also have the opportunity to owns a 35% stake in the Harir Block, become shareholders in the Company. The Oil and Gas Fund, meanwhile, would which it operates with Marathon Oil. act as the repository for all state revenues from oil and gas sales.

Carduchi provides intelligence and insight on the Kurdistan Region/Iraq. Our weekly reports contains local media content, politics, political risk, analysis and media round of the week & economic development relevant to industry and oil sector. The reports cover nuances of Kurdish politics which is otherwise not reported in English media.

Our consultancy services includes: Political Risks | Due Diligence | Stakeholder Planning | Market Entry Strategy | Investment | Procurement | Insight | Analysis

Carduchi Consulting london, erbil, slemani uk: +44 (0)7882933905 +44 (0)2082400824 16kurdistan: — The Review +964 2014 (0)7708680986 / 2 Kurdistan Region of Iraq — 17 www.carduchi.com D & P

The KRG's Foreign Policy Perspective

IIG: Considering recent regional devel- We are focused on encouraging more opments, what would you say the main countries to establish a diplomatic pres- pillars of the Kurdistan Region’s foreign ence in Kurdistan as well as expanding policy are? And what are your priorities the international presence of the KRG for 2015? through opening new representative FMB: Under current circumstances, offices abroad. our main objective is to effectively com- The KRG seeks to strengthen ties with municate the message of the Kurdistan the European Union. We are also inter- Region to the international community ested to build institutional ties with the in regards to the ongoing political, secu- Arab League. We are determined to build rity, and humanitarian challenges that more bridges with the international com- we are facing here in Kurdistan. Since munity in order to further enhance the the beginning of the Islamic State of Iraq economic and political achievements of and al-Sham (ISIS) onslaught on Iraq and the Kurdistan Region. Falah Mustafa Bakir ­— Kurdistan, we have been warning our Head of the Department of Foreign friends in the international community Relations that ISIS does not only pose a threat to the “Since the beginning Kurdistan Region, Iraq, and the Middle of the Islamic State Minister Falah Mustafa Bakir details East, but also it poses a direct threat to the Kurdistan Region’s foreign international peace and security. We of Iraq and al-Sham policy goals and priorities in 2015 believe that the United Nations Security (ISIS) onslaught on and the Region’s strengthening ties Council has a moral and legal respon- with the EU and the US. sibility, under chapter seven of the UN Iraq and Kurdistan, charter, to maintain international peace we have been respect for human rights and the rights IIG: How is the DFR working to expand IIG: As the diversification of Kurdistan’s and security through confronting ISIS. of religious minorities. We are proud to cooperation with the EU? economy gathers speed, what can the Our foreign policy priority for 2015 warning our friends have developed a culture of democracy, FMB: We have placed huge importance DFR do to help foster FDI and support is twofold. First, we will make concerted in the international peaceful coexistence, and religious and on expanding and improving relations the Region’s economic development? efforts to ensure further and continued ethnic tolerance here in Kurdistan. These with the EU. The KRG Mission to the EU FMB: While the rest of Iraq has seen a engagement by the international com- community that ISIS values are deeply rooted in our culture was established in Brussels in 2000. The high level of violence and terrorism in munity in the fight against ISIS in order does not only pose a and we are determined to preserve and Mission’s main objective is to maintain and the past few years, particularly since to restore peace and stability and disman- defend such values. strengthen the political, economic, and the beginning of the ISIS onslaught tle extremists in the region. This can be threat to the Kurdistan The support is a clear indication that cultural relations between the Kurdistan against Iraq, the Kurdistan Region has achieved through closer cooperation with Region, Iraq, and the members of the international community Region and European Union institu- remained peaceful and stable. Kurdish NATO and the international coalition need to cooperate with one another to tions. Our ties with the EU are steadily Peshmerga forces have been able to against ISIS. The KRG will work closely Middle East, but also it secure a safer and more stable world. It improving. Following the attacks of the repel ISIS attacks on the Kurdistan with UN agencies and the international poses a direct threat to shows that the Kurdistan Region is not Islamic State of Iraq and al-Sham (ISIS) in Region. The Kurdistan Region’s strong community to assist refugees and inter- abandoned and that we have reliable part- Iraq, the EU has been giving special atten- economic potential and stable security nally displaced persons who have taken international peace and ners in the international community. tion to the security and humanitarian situ- situation make it a safehaven for inter- shelter in the Kurdistan Region and to security.” The support has hugely boosted the ation of the Kurdistan Region. In June, the national investors. rebuild their areas. Another important international reputation of the Kurdistan EU DG for Humanitarian Aid (ECHO) The Department of Foreign Relations About task within the context of the fight against Region and its Peahmerga forces. Our opened an office in Erbil. In August, the continues to work hard to support inter- Falah Mustafa Bakir was born in Erbil ISIS is to gain international recognition IIG: The KRG received huge support Peshmerga forces are fighting an interna- EU Ministers of Foreign Affairs, within national businesses by assisting them in in 1964. He holds a B.A. degree in for the crimes committed by ISIS against from the U.S. and EU countries in its tional terrorist organization, with mem- the EU Council, decided to send human- communicating with the various insti- English Language and Literature from different ethnic and religious minorities fight against terrorism. What does this bers across the globe, on behalf of the free itarian aid to the Kurdistan Region and tutions of the Regional Government, the University of Mosul, and a M.A. degree in Development Studies at the as acts of genocide. mean from a foreign policy perspective? and civilized world. They have proven also decided that Member States were free directing them to resources related to University of Bath in the UK. He also Second, in line with the Iraqi consti- FMB: We welcome the US-led coalition to be a reliable partner on the ground to send arms to Kurdish Peshmerga forces. their endeavors, and promoting regional completed the Executive programme tution, we will continue with our open against ISIS and we are proud to be a lead- and to have the capability of fighting In the same meeting, EU Ministers asked and international conferences and events for senior managers in government at door foreign policy and will try to broad- ing force in the coalition. We are being and defeating ISIS. Kurdistan is now an the European External Action Service (EU designed to encourage business and Harvard University’s Kennedy School of en our ties with countries across the globe supported by the international communi- essential part of the international coali- Foreign Ministry) to strengthen the EU's investment in the Kurdistan Region. Government. through establishing bilateral relations. ty for the values that we stand for, for our tion against ISIS. presence in Erbil. A

18 — The Review 2014 / 2 Kurdistan Region of Iraq — 19 D & P DIPLOMACY & POLITICS

“We are determined to ensure that our citizens and all of our guests are able to live, work, and enjoy the blessings of peace and freedom in a safe environment. We are equally determined to ensure that Kurdistan remains a place where democracy, peace, diversity, and tolerance are Secure & Stable well understood and accepted.”

IIG: Can you give our readers some people regardless of their ethnicity, reli- safe environment. We are equally deter- have conducted in Iraq and Syria, as they IIG: How is Kurdistan working with insight into the current security situa- gion, or political affiliation. mined to ensure that Kurdistan remains have helped our Peshmerga forces who are its neighbors to fight against the ISIS tion in the Kurdistan Region? I would also like to commend the a place where democracy, peace, diver- at the forefront on the ground in this fight threat? How would you assess the role of KS: In general, the Kurdistan Region people of Kurdistan for the very pos- sity, and tolerance are well understood to achieve success in pushing ISIS back. Kurdistan as a contributor to regional has been secure despite continuous itive cooperation they share with our and accepted. In fact, our security cooperation with security and stability? attempts by the terrorists to harm and security forces. This cooperation is part the international community is very good. KS: Kurdistan has long adopted a pol- destabilize the Region. Kurdistan has of the foundation of our security across IIG: How would you characterize the We are receiving assistance in the human- icy to live in peace with our neighbors. always been targeted by terrorists, as they Kurdistan, as it is the people who see and Kurdistan Region’s security coopera- itarian sector, as well as the military sector. We strongly believe in non-interference, despise our peace, freedom, democracy, know things in many instances before the tion with the international community In the military area, we have close cooper- mutual respect, trust, and understanding. and autonomy. They have tried to take security forces. Because our people also against the ISIS threat? How important ation in the conduct of Coalition airstrikes Because of this, we have always sought to advantage of any perceived weakness to do not tolerate terrorism and efforts to is international cooperation in improv- as we share information to effectively maintain direct communications with all sneak into the Region. Occasionally, they destabilize our Region, they cooperate ing the skills of Kurdish security forces target ISIS. We also closely coordinate of our neighbors so that we can ensure have been able to infiltrate Kurdistan by very well with our security forces. against ISIS? regarding our equipment and training there is a good understanding of all things Karim Sinjari —­ taking advantage of our hospitality and In spite of these challenges, we have KS: It is important to recognize that needs. The Coalition has, in fact, played between us. This open communication Minister of Interior openness to welcome those who are done all that we can to guarantee the secu- ISIS is not just a threat to the Kurdistan a very positive role, and we thank all of has allowed us to have positive relations threatened. This is one of our challenges, rity of Kurdistan. This has not been an Region. It is, in fact, a threat to all of the the members for their assistance. with our neighbors that has led to benefits Minister Karim Sinjari provides as we are hosting more than 1.5 million easy task, as we have seen the Middle East international community. It is well known In spite of this assistance, there is in terms of stability, economic develop- IIG with exclusive analysis of the internally displaced and refugees who over the last decade become a sort of hub that thousands have come from around much more that is needed. ISIS has ment, and security integration. current security situation in the have fled from the violence and unrest in for a variety of international terrorists. We the world to fight on behalf of ISIS. They been fighting with advanced weapons Part of the reason for these positive Kurdistan Region, as well as the other parts of Iraq and Syria to find refuge can see the results of our efforts, though, have supporters and recruiters around the that were captured from the Syrian and results in security is because our neigh- KRG's security cooperation with the in Kurdistan. It is naturally quite difficult as witnessed by the many foreign compa- world who are spreading their message of Iraqi Armies. Some of these items were bors know that Kurdistan is a force for international community against to give so many people access while at the nies and people who find it safe and sta- hate and intolerance. They are effectively the latest arms that came originally from stability within the region. Kurdistan has the ISIS threat. same time trying to know who they are ble enough to work here and assist in the using social media to promote their evil Russia or the United States. On the other had good contributions toward regional and monitor their movements. But we development and progress of Kurdistan. actions. Because of this, all of the inter- hand, we have been fighting with obsolete stability and understanding. This mutu- have given this task our strongest efforts. So even with the evolution of the ISIS national community must work togeth- Soviet-era equipment that was captured al cooperation has been beneficial since Our security forces are deployed terrorist organization and their seizure of er to stamp out their desires for regional from Saddam’s regime over the last ten Kurdistan has been at the forefront in extensively throughout the Kurdistan Mosul and other large areas of Iraq, and domination through their self-described to thirty years. The Coalition’s efforts confronting ISIS, and our neighbors well About Region and are actively using all of their even with their having many supporters, caliphate. There is no other choice. We in keeping the ammunition flowing for know this fact. Because of this, we have Karim Sinjari was initially appointed as skills and resources to keep threats out of advanced weapons, and financial support, must cooperate, or accept their brutal these weapons and providing some newer established good military exchanges and Minister of the Interior in May 2006, the Region. This is another challenge, as our security forces have still been able to domination and killing. models have been appreciated. However, intelligence sharing to more effectively and was reappointed in October 2009 we are controlling a border of more than maintain the security of Kurdistan so that For these reasons, it is critical that if we are to more effectively take the fight combat ISIS. Although this cooperation and April 2012. From 2001 to 2006, he 1,000 km opposite the most evil terror- it is a safe haven for those in need as well the international community and all of to ISIS to ensure their destruction, we is a good step for regional security, it is served as the Interior Minister in the ist organization we have seen in recent as its citizens and guests. the regional countries take very serious must have more modern equipment, such only one step. This fight really does need KRG’s Erbil and Dohuk administration, and was elected to the central commit- history. In spite of these challenges, our Because we are aware of the threats measures toward destroying ISIS both at as tanks, armored vehicles, heavy artillery, an expanded regional and international tee of the KDP. Prior to that time, Sinjari security forces have been able to thwart that are out there, security does remain the places where it is recruiting, as well anti-tank missiles, and attack helicopters. effort in cooperation to develop a joint, worked as the Director General of the many attempts to damage the security our top priority. We are determined to as in Iraq and Syria on the battlefield. All of these things will better ensure our comprehensive strategy so that we may Kurdistan Region’s security service from of Kurdistan. We can proudly say that ensure that our citizens and all of our Toward this end, we are very supportive mutual success on the battlefield against eliminate this threat now in a final and 1993 until 2001. He is fluent in Swedish, Kurdistan is a secure area, as it has in guests are able to live, work, and enjoy and welcoming of the airstrikes that the this evil threat which must be destroyed conclusive manner. English, Arabic, and Persian. fact become a safe haven for a variety of the blessings of peace and freedom in a Americans and other Coalition partners now before they become too powerful. A

20 — The Review 2014 / 2 Kurdistan Region of Iraq — 21 D & P DIPLOMACY & POLITICS

The UK: A Friend to the Kurdistan Region, Even in Difficult Times

IIG: How would you describe the cur- We have also welcomed the formation rent state of relations between the UK of Haider al-Abadi's Government in and the Kurdistan Region? Which areas Baghdad, supporting its efforts to rebuild have you prioritized in terms of bilat- Iraqi political consensus– including a eral relations? new entente between Baghdad and the AM: Relations between the UK and the KRG. Our diplomatic engagement under- Kurdistan Region were already strong pins this – four UK Cabinet Ministers vis- and have been reinforced further during ited Erbil in little more than four months. the difficult months of mid-2014, as the Even in these months of crisis, how- Kurdistan Region and wider Iraq faced ever, we have not diminished our sup- multiple crises. The visit of the PM, port for the KRG's reform agenda and Nechirvan Barzani, to London in May we have encouraged British business- 2014 underlined the strong political, eco- es to remain focused on the long-term Angus Mckee —­ nomic, and commercial ties. opportunities that the Kurdistan Region British Consul General to the Over 100 British companies now oper- offers, even if businesses are obliged to Kurdistan Region ate in the Kurdistan Region. As well as the adapt to the current uncertainties. In Consulate – which includes a dedicated every ministry I visit, in every city I visit, British Consul General Angus UK Trade & Investment (UKTI) team – in every business sector, there are exam- McKee discusses the growing the British Council, the National School ples of the UK working in support of the commercial ties between the of Government International, and the Kurdistan Region's security, resilience, oil-rich country, a large market, and a Delegation in London, and others. If In the longer term, there needs to be Kurdistan Region and the Westminster Foundation for Democracy and prosperity. neighborhood promising long-term any British companies remain hesitant, I greater opportunity for the private sec- United Kingdom and shares his actively support the Kurdistan Region’s growth. The ambition of the Kurdistan encourage them to speak to local experts tor. We encourage reforms that strength- government’s support for the institutions and society. We now have a IIG: How have recent regional develop- Region's leaders is admirable. The new in the Erbil and Baghdad UKTI teams. en the Kurdistan Region's institutions KRG’s reform efforts. Visa Application Centre in Erbil. In the ments affected risk perceptions of the government in Baghdad provides the and laws, including pro-business legis- UK, business leaders, parliamentari- Kurdistan Region? opportunity to build a new nation- IIG: What are your medium-term lation. Certainly there is a lot of debate “Even in these months ans, and many others are champions for AM: The developments of summer 2014 al consensus. For UK companies, the expectations regarding the political here on the necessary next steps, includ- public and private sector engagement unnerved businesses and residents alike. Consulate's UKTI office and existing and economic progress of the Kurdistan ing opening up the financial sector. It of crisis, however, we here. As I have travelled the Kurdistan We encourage all UK citizens - employ- British businesses here are willing to make Region? is heartening that the KRG continues have not diminished our Region in my first months in the job, I ers, residents, and visitors - to consult introductions and share expertise. Our AM: What the KRG and the people have to invest in education, and we play a have been enthused by the strength of FCO Travel Advice for Iraq and follow Embassy in Baghdad, with its own UKTI achieved in the last decade is impressive. lead role through the British Council, support for the KRG's people-to-people links, not least the many its recommendations. But– provided they office, is equally active. Working together, I am confident there is more to come. UK private sector, and FCO Chevening reform agenda and graduates from British universities. This do that, operate here with their eyes open, we can help companies identify opportu- Certainly the UK - both Government Scholarships. Indeed, we intend in 2015 should all be celebrated. and make robust contingency plans– nities across Iraq. and private sector – is actively working that more Chevening Scholarships will we have encouraged Of course, the events of summer there is work to be done. For those with It is inevitable that the current uncer- toward that goal as part of our efforts be awarded to candidates from the British businesses to 2014 shook confidence. But the UK, the specialist needs, there are reputable pri- tainty has generated some hesitancy on in wider Iraq. As to what is required to Kurdistan Region than ever before. We Government of Iraq, and the KRG have vate security companies, including UK the part of international businesses, but achieve that, it is certainly in the KRG's are doing similar elsewhere in Iraq. The remain focused on the a shared interest in defeating the Islamic market leaders, which can provide addi- UK corporate leaders I speak to rec- best interests to be on good terms with coming months will be challenging, but long-term opportunities State of Iraq and the Levant (ISIL). In tional support. ognize the opportunities and potential Baghdad and cooperating closely in the our commitment is strong. It means that these last few months, the UK has been at here. Our trade delegations continue fight against terrorism. At the time of this the Consulate team has its work cut out, that the Kurdistan the forefront of international support for IIG: Considering recent regional devel- to visit – even when others haven’t – interview [November 2014], there are but recent events failed to diminish our Region offers, even if the KRG. We have provided the Kurdish opments, do you think the Kurdistan and are well received by the Kurdistan some encouraging signals in this regard. commitment, ambition, or energy – if authorities with significant military sup- Region remains attractive to the British Region’s government and business lead- UK diplomacy is actively working to anything they have been doubled. In this, businesses are obliged port, including weapons and training. The business community? ers. Companies back home continue to bring the two sides towards agreement we work with the Kurdistan Region’s deci- to adapt to the current UK is the third largest donor to Iraq in AM: Absolutely. The long-term prospects maintain an active interest in the Region, on the issues, whether the budget, secu- sion-makers and people not only as part- its humanitarian crisis, and we are active for the Kurdistan Region and, indeed, assisted by UKTI, British Expertise, rity coordination, or meeting the needs ners, but also as friends. uncertainties.” on the ground to improve the response. wider Iraq remain good - a prosperous the Middle East Association, the KRG of the many displaced Iraqis. A

22 — The Review 2014 / 2 Kurdistan Region of Iraq — 23 Divan Ad3-invistGroup Mgz-A2.pdf 1 12/6/14 5:59 PM

DIPLOMACY & POLITICS

Foreign Policy Guru

IIG: The KRG received huge support political factors in Turkey and Turkey’s from the U.S. and EU countries in its policy towards Syrian Kurds do have the fight against ISIS. What does this mean potential to affect its relations with the from a foreign policy perspective? KRG. However, regional dynamics are as CC: The fight against ISIS has become the strong and even more important in shap- priority of the international system, i.e. the ing national policies. Therefore, we can- Western world that is mainly the US and not deduce that domestic factors would the EU. The KRG is on the frontline of this have an adverse effect. They could render international effort. It has the longest bor- the complete opposite result. Taking the der with ISIS. It is simultaneously under progress achieved in Turkish-KRG rela- the threat of ISIS and also the “boots tions into consideration, we have to be on the ground” against the so-called optimistic and positive that a similar evo- “Caliphate,” the undoing of which has lution can take place in Turkey’s attitude Cengiz Çandar —­ been the predicament for the interna- towards its own Kurds and their kins- Senior Columnist tional system. To degrade and ultimate- men in Syria. Moreover, the KRG can also ly destroy and defeat ISIS is the primary influence Turkey’s attitude interactively. Cengiz Candar explains Kurdistan’s goal for the Coalition. Thus, the KRG has, growing strategic significance in by itself, transformed into a main pillar “Alternately, such a role C the fight against ISIS and outlines for such an international undertaking. M for the KRG and being the implications of strengthening This is a crucial role from a pure foreign Y economic, political, and military policy perspective. Alternately, such a role at the receiving end of

CM ties with regional and international for the KRG and being at the receiving partners for the future of the huge support from the MY end of huge support from the US and Kurdistan Region. EU countries reflect that the protection, US and EU countries CY survival, and wellbeing of the KRG are reflect that the CMY under solid and concrete international

K guarantees. This is a tremendous, historic protection, survival, and achievement for the Kurds, who had been wellbeing of the KRG the underdogs of the regional order in the post-Sykes-Picot era. are under solid and concrete international IIG: How would you assess the evo- lution of Turkey’s stance towards the guarantees.” KRG? Could domestic political factors in Turkey and Turkey’s policy towards IIG: How would you assess the political Syrian Kurds affect the progress made stability and rapid economic development in Turkish/KRG relations in the medi- in the Kurdistan Region in recent years? um or long term? CC: It deserves a very simple and brief CC: The evolution of Turkey’s stance response: it is an impressive success story, vis-à-vis the KRG is another remarkable particularly since the Kurdistan Region achievement on the part of the Kurds. has achieved this in an Iraq plagued by Turkey evolved from being the most hos- devastating and bloody civil wars. Under About tile player of the regional state system into such circumstances, the Kurdistan Region Cengiz Candar is a senior columnist being a close partner for the KRG eco- flourished as an oasis of stability, peace, for Radikal Daily. He is the author of several books, mainly on Middle nomically, commercially, and, as a mat- and economic progress. It goes without East issues, including the best-seller ter of fact, politically. The point that has saying that this is a fabulous achievement Mesopotamia Express: A Journey in been reached, while remembering the for the Kurds and serves as evidence that History. Candar was a special foreign past, should be regarded as unbelievable the Kurds in the 21st century are as enti- policy adviser to Turkish President despite its ups and downs. It is huge prog- tled to run their affairs as any other civi- Turgut Ozal from 1991 to 1993. ress for both parties. Of course, domestic lized nation. A Kurdistan Region of Iraq — 25 D & P

INSIGHT Notes from Westminster

grassroots initiative by Labour Party broken Iraq or some new form of confed- members, which I co-authored, is urg- eration or even Kurdish independence. ing the party to endorse British military Individual committee members have action in Syria as well as Iraq and to sup- voiced support in the Commons for key port the despatch of heavy weapons to Kurdish demands for heavy weapons, Erbil to help the Kurds confront what it pressure on Baghdad to end its block- calls the vilest fascism of the age. ade of Erbil and increased aid to tackle This could have implications for offi- the huge humanitarian crisis sparked by cial British foreign policy because the the influx of over a million refugees and opposition, and some Conservative MPs, internally displaced people into Kurdish effectively exercise a veto on the extent of sanctuary. British intervention. After the Commons The Defence Committee inquiry is Gary Kent — failed to support punitive action last year more broadly examining British secu- Director, All Party Parliamentary Group against Syrian President Assad's use of rity policy in Iraq and Syria but cannot on the Kurdistan Region of Iraq (APPG) chemical weapons, the government was avoid considering how Baghdad's former fearful of another major defeat on inter- PM Maliki helped create the firestorm in national security policy, and decided that Iraq by marginalising Sunnis and punish- it could only agree to the use of British ing Kurds. Such concerns underpinned war planes against Daish in Iraq and not moves by Western countries and Iran to he profile of the Iraqi Kurds in in Syria. force the removal of Maliki as PM and the the British parliament continues Furthermore, the fierce resistance to hope that his successor Haider al-Abadi to soar. What was once a trickle Daish in Kobani is inspiring people to can reset relations within Iraq. Tof interest was turning into a stream but support the Syrian Kurds whose female None of this increased attention has become a torrent thanks to a suddenly fighters are a powerful symbol of toler- comes without a critical focus on Kurdish wide recognition in Britain and the West ance in the fight against an organisation shortcomings. Since they adopted parlia- that the Kurds are central to defeating the which trades sex slaves in obscene mar- mentary democracy in 1992, the Kurds self-styled Islamic State, Daish. kets in Mosul. have put themselves on a pedestal which In recent weeks there have been two The select committee inquiries may has encouraged many to compare their high-level official visits to Erbil by the have a profound impact on the devel- aspirations with practice. British Defence Secretary and the Foreign opment of British policy. MPs from the It is easier, for instance, for human Secretary, Michael Fallon and Philip all-party parliamentary group on the rights organisations to move around Hammond. British aid and arms have Kurdistan Region called for a Foreign Kurdistan and this has enabled reports flowed to Erbil although not as much as Affairs inquiry after its visit a year ago that focus, for instance, on women's they could. when they heard of the emergence of rights. Likewise, the need for reforming There are two high-profile inquiries Daish in Mosul. It was still a distant speck Peshmerga on a professional and mer- exclusively or partly concerning the Kurds on the horizon, however. The inquiry was itocratic basis is now a major issue for by the Foreign and Defence select com- established at the beginning of this year Western friends. mittees, bipartisan parliamentary bodies and looked set to have a business-like Kurdish leaders should not fear such that independently scrutinise the work of focus on how the UK could make the attention. They always tell visiting MPs With uninterrupted presence in the Middle East for over 87 years, Deloitte, the largest professional services rm in the world, government and help form policy. most of its political, cultural and commer- that they expect their friends to be candid provides you with audit, tax, consulting, and nancial advisory services through 26 oces in 15 countries in the region. Every parliamentary debate on the cial links with Kurdistan. But the spectac- about the pros and cons of contemporary Our 'As One Borderless, Boundless' approach means we also collaborate closely with our globally connected Middle East includes contributions by ular rise of Daish and the growing crisis Kurdistan. The blossoming of parliamen- network of member rms, represented by 200,000 professionals in more than 150 countries. MPs who have visited Kurdistan over the in relations between Baghdad and Erbil tary and popular solidarity is, however, a years and who broadly support Kurdish altered that. major bonus for the Kurds and can rein- To open the door to a world of professional services, visit us at www.deloitte.com/middleeast demands for heavy weapons, aid and help The report of the committee, mem- force what many more people now see in solving disputes with Baghdad. bers of which visited Erbil, Slemani and as their exciting example of tolerance, Outside parliament, those who feel Baghdad last month, also cannot ignore pluralism and democracy in a country the Kurds need more support from the considering the big strategic questions that is at the heart of a deeply troubled West are becoming more organised. A about either refounding federalism in a Middle East. A 26 — The Review 2014 / 2 DIPLOMACY & POLITICS

Kurdistan's Leading Research Center

IIG: What will be the projects/areas of agricultural development, and the diver- focus of MERI in 2015? sification of the economy. DA: We have five main programs that encompass our research. These include: IIG: MERI held its inaugural Forum. (a) International Politics and National Can you tell us about its outcome? Security; DA: MERI Forum 2014 was an excit- (b) Democracy and Governance; ing event. The primary purpose was to (c) Economics, Energy, and create a platform for dialogue and con- Environment; structive debate for the Middle East. This (d) Science, Health, Education, and event brought together decision-makers, Public services; and academics, and members of the public Professor Dlawer Ala'Aldeen —­ (e) Community, Civil Society, and to debate current political events with President, Middle East Research Cultural Development. an impact on both Iraq and the wider Institute (MERI) region. Among the speakers were Fouad We have initiated projects under each Masum, President of Iraq, Salim al-Ju- Professor Dlawer Ala’Aldeen gives program that are highly focused on policy bouri, Speaker of the Iraqi Parliament, an overview of the areas of focus areas and designed to have lasting impact the current and former Prime Ministers that will guide MERI’s research in on the ground. These projects are des- of the Kurdistan Region, Nechirvan the coming year and the Institute’s tined to grow steadily during 2015 and Barzani and Barham Salih, and other role in supporting reform in the lead to quality publications in due course. national and international experts and Kurdistan Region. For example, we are studying the war dignitaries. Fostering a culture of debate on ISIS and its political, social, and securi- and dialogue is of utmost importance to ty implications on the entire Middle East. the Institute’s objectives. Events of this We explore the impact of refugees and nature are not common in the Middle Internally Displaced People (IDPs) on East. We encourage a culture of dia- the Region’s economy and security, and logue that can contribute to stability the impact of prolonged conflicts on the and growth in the region, now and in future of IDPs. We are currently exam- the future. ining the new socio-political dynamics within the disputed territories and the IIG: As MERI aspires to be a “global best ways forward. leader in strategic research,” what plans Within the KRG, we initiated an ambi- do you have to partner with your inter- tious program to reform the police and national peers in think tanks, academia, judicial system with the view of making or government? them more democratic, accountable, DA: From the outset, MERI established transparent, and amenable to perfor- strong links with many of the world’s top mance pressure. With human rights as think-tanks and centers of excellence About a core value, we began to train police within renowned universities, particu- Professor Dlawer Ala’Aldeen served as officers on performance management, larly in Europe, the USA, and neighbor- the KRG’s Minister of Higher Education accountability, and professional conduct. ing Turkey. We have joint programs for and Scientific Research from 2009-2012 We started with special units responsible accommodating fellows, training staff, and co-founded the Kurdish Scientific for combating and preventing violence and supervising master’s and PhD stu- and Medical Association, an advocacy against women. In parallel, we are look- dents. The aim is for MERI to act as a organization that seeks to safeguard ing at revising the current legislation for credible partner to international research Kurdish human rights and shape American and British policies towards greater protection of women and a more institutions and a good home for inter- Kurds. He completed his postgraduate equal status in society. We have a num- national researchers. Our objective is to studies in the UK, where he also ber of other projects at various states of jointly publish high quality reports that served as Professor of Medicine at the implementation relating to government have impact on a local, regional, and University Nottingham. strategies for managing health service, international level. A Kurdistan Region of Iraq — 29 BUSINESS THE REVIEW Economy & Finance

Navigating Regional Headwinds in the Search for Continued Growth

he last year has been a time of Striving to Grow In 2013, GDP growth decreased slightly both landmark achievements The KRG Ministry of Planning pre- but remained a robust 8%. Figures from and unprecedented challenges for dicts annual economic growth at a rate 2011, the most recent numbers available, Tthe economy of the Kurdistan Region. of 8% for the 2014-2016 period. This estimate the Region’s total GDP to be in Groundbreaking advances in the Region’s year’s growth figures may be negatively the area of $23.6 billion. energy sector and an expanding custom- impacted by recent ISIS-led violence in Another testament to the Region’s er base for its oil and gas exports have the region, however. The IMF predicts upward economic trajectory is the prog- marked the beginning of a new chapter that the Iraqi economy as a whole will ress that has been made in raising stan- in Kurdistan’s economic growth. While shrink by around 2.66% this year, a down- dards of living amongst the Kurdish these developments promise exciting new ward revision from original projections of populace. Annual per capita income opportunities for the Region’s economy, growth somewhere in the region of 5.9%. in the Kurdistan Region is now $7,000, ISIS-led violence and previous budget The extent to which this broader region- while in 2002 it stood at just $800. disputes with Iraq’s federal government al downturn will affect the Kurdistan Unfortunately, the KRG has been unable serve as reminders that Kurdistan must Region’s economy in the near term is to publish inflation figures for the current continue a trend of fortitude and pragma- unknown. Looking at past GDP data, year that would help paint a more accu- tism to maintain the economic progress though, gives a picture of the Region’s rate picture of the real improvement in that has so far distinguished it from its long-term growth potential. In 2012, the living standards brought about by this regional peers. Region’s GDP grew at a rate of 12%. impressive rise in income.

Kurdistan Region of Iraq — 31 B BUSINESS

Oil & Gas: The Engine of Economic Growth The oil and gas industry continues to form Baghdad has made efforts to thwart inde- the bedrock of Kurdistan’s economy, and pendent oil exports from the Kurdistan The KRG plans to capitalize on the past year has been one of great accom- Region, threatening legal retaliation a young population and build 50% plishments for the Region’s energy sector. against those who purchase oil export- of the population Independent exports of the Region’s oil ed outside its control. This has made it an economy characterized by resources commenced through a new- more difficult to find buyers for Kurdish innovation and equal opportunity is under the age ly completed pipeline to Turkey via the crude oil, which is being shipped from for men and women. border town of Fishkhabour. The pipeline the Turkish port of Ceyhan. Despite this, of 20 currently has the capacity to transport the Kurdistan Region seems to be finding 300,000 bpd to Turkey, with a potential a growing number of buyers around the 8% capacity of 500,000 bpd in the near future. world. One factor that may complicate Annual Economic The current year will also see new records matters is the recent slide in world oil Growth 2014-2016 (est.) set in oil production in the Kurdistan prices, which have dipped under $80 a Despite these improvements, unemploy- Region’s economy despite the obstacles it In the future, the KRG plans to capitalize Region. Aggregate production capacity barrel recently. Experts point to an over- ment figures indicate that more work currently faces stands out. on a young population (over 50% of the has risen to 280,000 bpd and is projected supply of oil stemming from sluggish is needed to close the skills gap in the Going forward, the KRG has set Kurdistan Region’s population is under to increase further to 400,000 bpd by the economic growth and lagging demand Kurdistan Region’s changing economy its sights on increasing private sector the age of 20) and build an economy char- end of the year. The KRG has set a pro- around the world, along with the glut of and reflect the strain that prolonged ten- employment, which stands at just 48.9% acterized by innovation and equal oppor- duction goal of 1 million bpd by the end new supplies coming online in places like sions with Baghdad have placed on the of the active labor market at the moment. tunity for men and women. To do so, the of 2015 and aims for levels of 2 million the United States, as sources of the recent regional business climate. By September The regional government also aims to government will focus on legal reforms, bpd in the coming years. slide in prices. 2014, the unemployment rate in the close the gender gap in the area’s labor skills-building programs, pension and Kurdistan Region stood at 10%, having market participation rates and unem- benefits reforms, the development of increased from 7% at the end of 2013. ployment levels. While 67% of men in an unemployment insurance system to Budgetary Pressures Laying the Foundations Specifically, a lack of available credit, Kurdistan are active in the local economy, make employment in the private sector In January, disputes over oil revenue and so Kurdistan’s actual share of the federal of Future Prosperity sanctions levied by Baghdad against the just 14% of women in the Region partic- seem more secure, and initiatives aimed control of natural resources between the budget has tended to settle more in the The KRG has outlined bold goals KRG, and a shortage of jobs that match ipate in its labor force.50 The disparity also at helping women participate and get +50P KRG and the federal government led area of 11-13%. This system of budget for the Region in its 2013-17 the skillset of new entrants into the work- extends to unemployment rates. In 2011, ahead in the Region’s labor market. Baghdad to suspend payment of the allocation has been characterized by fre- Regional Development Strategy. force have been identified as factors hin- for instance, women who were active in entirety of the Kurdistan Region’s share quent disagreement. In 2013, tensions The Strategy calls for diversification dering reductions in unemployment the labor market faced unemployment of Iraq’s national budget. This has been over revenues and resource rights that of the Region’s market, a stream- levels. When contrasted with Iraq’s overall levels that were over twice as high as their especially problematic since over 50% of would set off the current budget impasse lined investment process, and a unemployment rate of nearly 46%, how- male counterparts. the Region’s population is employed in in Iraq were already brewing. A federal drive towards exports in order to ever, the relative success of the Kurdistan the public sector, something which the budgetary allocation of $646 million to make the regional economy more KRG itself has identified as an unsustain- pay oil and gas companies operating in competitive and raise standards of Fertile Ground for Investment able overreliance on government jobs. the Kurdistan Region that year greatly living. Its targets include raising Kurdistan continues to set itself apart in in the Region had reached just $3 billion. valued at a total of $12.8 billion accord- Many workers in the public sector have undershot a KRG request of $3.5 billion, tourism expenditure in the Region Iraq and the Middle East as an investment Despite these setbacks, progress has ing to data from the KRG’s Ministry of not been paid in months, further strain- which Kurdish leaders claimed was need- to $1.5 billion by 2017 (from a level destination. In the past few years, annu- been made in diversifying the regional Planning. That number is approaching ing the overall economy of Kurdistan and ed to cover funds already owed to it by the of $320 million in 2009) and devel- al capital investment in licensed projects economy. While the housing sector had but still short of the $13.6 billion in cap- denting consumer confidence. A measure federal government. oping the Region’s mining sector. in the Kurdistan Region grew by nearly previously dominated projects licensed ital investments that have gone towards of relief for this situation has come from In December, leaders from the To boost competitiveness, the plan 400%, rising from $3.1 billion in 2011 by the Board of Investment (BOI), 2014 the housing sector in Kurdistan since revenues gained from Kurdistan’s grow- KRG and the Iraqi federal government aims to reduce construction costs to $12.4 billion over the course of 2013. saw a continuing trend towards proj- 2006. The Ministry’s figures reveal that ing number of successful oil sales. In the announced a long-term agreement to and shorten timelines for project There are currently around 80 planned or ects in the industrial sector, which has industry and housing together represent period through December, the KRG col- work collaboratively on oil exports and execution to levels that undercut ongoing licensed investment projects in emerged as the primary destination nearly two-thirds of capital investments lected $1.7 billion in revenue from inde- finally normalize the budgetary situa- neighboring countries by 2017. It the Kurdistan Region representing a value for investment. The BOI froze licenses and half of all capital investment licenses pendent oil sales. tion of the Kurdistan Region. The KRG also envisions increasing invest- of over $39 billion. To put that amount in for projects in the housing sector after in the Kurdistan Region to date. In 2013, the KRG’s regional bud- has promised to supply 550,000 bpd of ment rates to 20% of GDP and context, the total value of licensed invest- around 160 projects had been approved. Over the same period, the tourism get stood at $13.1 billion. Even before oil for sale by Baghdad authorities, with expanding GDP growth by 10% ments in Kurdistan over the 2006-2014 This was done to focus more on sectors sector has seen $6.6 billion (15.7% of Baghdad cut off federal funds at the revenues to be divided between both each year through 2017, in addition period was $41.9 billion. Despite growing such as industry, tourism, and agricul- total investment) invested in a total of 128 beginning of this year, budgetary dis- sides. In return, Iraqi PM Haider al-Aba- to raising the number of licensed investor interest and an expanding port- ture. Over the course of the last year, projects, while $5.1 billion (12.1% of total putes marred relations between Erbil and di's government has pledged to perma- businesses across all sectors of the folio of projects, recent regional turmoil that shift in emphasis has borne fruit. investment) has flowed towards 114 proj- Baghdad. The KRG is entitled to a 17% nently restore budget payments to the economy by 15% per annum over has touched the Kurdistan Region and Industrial investment licenses have final- ects in the trading sector. Agriculture and share of Iraq’s overall budget. That money Kurdistan Region that will, for the first the same period. shaken investor sentiment. Over the first ly surpassed those in the housing sec- other sectors lag behind, attracting less is first distributed across federal agencies time, include funds to pay and outfit the 8 months of 2014, for instance, investment tor and represent around 184 projects than $4 billion in combined investment. in Iraq before it is dispersed to the KRG, Region's Peshmerga forces.

32 — The Review 2014 / 2 Kurdistan Region of Iraq — 33 B BUSINESS

Calls for Reform The task of creating a truly modern bank- ing sector will require substantial reform in Baghdad. While the KRG has used its political autonomy to fashion a largely business and investment-friendly envi- Finance: ronment, the banking sector falls entirely under the purview of the Central Bank of Iraq in Baghdad, which has the sole Building authority to regulate the banking sector and issue licenses for banks to operate Boosting Trade for Growth in Iraq. Many analysts point to regulations IIG: How would you characterize the production. Despite the recent regional that seem to be biased in favor of large, environment for trade and industry in turmoil on our borders, we expect FDI state-run Iraqi banks as key impediments Kurdistan? What are your key projects to continue over the coming years since to a modern, competitive banking sector in 2015? Kurdistan presents many advantages as a in Kurdistan. State-controlled Rafidain SS: While negative effects on regional destination for foreign investment. Bank and Rasheed Bank, for instance, trade because of recent regional develop- control nearly 90% of banking business in ments have been perceived in many econ- IIG: What are the Ministry’s plans to Kurdish leaders continue to strive for a modern, dynamic banking sector Iraq. Aside from assured business stem- omies, we believe that Kurdistan has been further increase the economy’s attrac- to complement the Region’s growing economy. Despite this, the Kurdistan ming from federal regulations prohibit- able to successfully manage these fluc- tiveness for FDI? Region continues to struggle under cumbersome red tape from banking ing government agencies, government tuations. Also, problems between Erbil SS: Over the last few years, Kurdistan authorities in the federal government, a lack of integration into international employees, and state-run corporations and Bagdad because of disagreements has undertaken institutional reforms to financial networks, and a legacy of distrust among Kurdish citizens. from dealing with private sector banks, over the budget affected our economy. improve the environment for doing busi- Iraq’s state banks gain an advantage in We are happy, however, to be solving the ness. We have simplified procedures to Opportunities & Obstacles the minds of customers from the implied budgetary and oil export issues with the reduce the time needed to obtain licens- The Kurdistan Region’s economy remains The Kurdistan Region is also home to guarantee that state funds will back up Samal Sardar ­— central government. es and revised the forms related to the largely cash based and its banking sector a burgeoning Islamic banking indus- deposits. Minister of Trade and Industry In 2015, we have four priorities: reg- payment of taxes and fees. Our focus is is relatively underdeveloped compared try. There are currently six local Islamic Kurdistan also lacks the regulatory ulating the market, amending laws and to amend laws and regulations to invite to other countries in the region. While banks in operation, along with foreign and physical infrastructure for industries Samal Sardar explains why he regulations, setting up four industrial more companies. the standard international ratio of bank firms such as Abu Dhabi Islamic Bank that could support a healthy banking sec- believes the Kurdistan Region zones, and boosting our trade ties with We have prioritized three sectors– branches to customers is around 1: 10,000, and Al Baraka. Among the most suc- tor. The Region’s insurance sector remains remains an attractive destination for our neighbors. Our main objective, how- industry, agriculture, and tourism– which in Iraq that ratio stands at 1:30,000. In cessful local Islamic banks is Kurdistan very limited, mortgages are virtually foreign investment and discusses ever, is to set up four industrial zones in are playing a critical role in our FDI pol- addition to 3 large state-owned banks, International Bank, which is the only non-existent, and a web of confusing the Ministry of Trade and Industry’s the Kurdistan Region in 2015. We strong- icy. We will continue to invite foreign there are around 20 homegrown private Islamic financial institution among Iraq’s regulations and out-of-date technology plans for economic reform and ly believe that building those industri- companies to invest in those sectors. We banks and over 10 foreign private banks 5 largest banks. The industry is awaiting contribute to inefficiency. growth in 2015. al zones is critically important for the are planning to organize visits abroad in operating in the Kurdistan Region. The a regulatory structure from Baghdad Iraqi authorities have acknowledged Region’s economic development. order to promote investment opportu- majority of private international banks authorities that is specifically designed the need for reform, yet little in the way of nities in Kurdistan, especially in those working in the Region are from Lebanon for Islamic banking. reform legislation has actually been passed. IIG: How would you characterize the crucial sectors. and Turkey. During the reign of Saddam Hussein, Political turmoil surrounding the rise of FDI environment in Kurdistan? International banks have an increasing banks in Iraqi Kurdistan were frequent- ISIS has only contributed to doubts about SS: First of all, Kurdistan has a favor- IIG: What would you say to those in the presence in the Region, but they tend to ly looted and depositors often found the Iraqi government’s ability to imple- able legal framework for foreign invest- foreign business community who are cater to businesses from their home coun- that their savings had simply vanished, ment changes in the near-term that will ment. We have one of the most friendly concerned about recent regional events? tries and are prevented from competing creating what North Bank’s chairman foster a more competitive, modern, and “In 2015, we have four investment laws in the region. Secondly, SS: Kurdistan is a safe, stable region with in the same market segments as domestic Nawzad Jaff describes as a “deep-seat- capable banking sector. For its part, the Kurdistan enjoys political and social sta- functioning democratic institutions. We banks. The past year has seen important ed mistrust in banks.” For residents of KRG has repeatedly expressed its desire priorities: regulating the bility. Thirdly, the KRG strongly supports believe that the current situation will be steps forward, though. The UK’s Standard the Kurdistan Region today, trust in the for reform in the banking and finance market, amending laws FDI to increase the economic growth of short-lived. It is important to remember Chartered Bank opened a new branch in regional banking infrastructure con- sectors. The PM Nechirvan Barzani Kurdistan. Fourthly, the Region has enor- that we have managed to establish a free Erbil, becoming the first major interna- tinues to be undermined by recurring recently added his voice to the chorus of and regulations, setting mous natural resources. With all those market economy and democratic insti- tional bank with comprehensive opera- liquidity crises. Lingering doubts about Kurdish leaders calling for change, say- up four industrial factors on the ground, the Kurdistan tutions. We understand the concerns tions in the Region. In another landmark the safety of their money with local banks ing: “I believe the time has come for us Region has attracted over $39 billion of that come from recent events. We want development for the finance sector, the have led residents of Iraqi Kurdistan to to seriously examine international finan- zones, and boosting investment over the last decade. peace and stability, which are the only Erbil Stock Exchange prepared to launch turn to practices such as hiding savings cial practices and carefully consider how our trade ties with our We believe that FDI will pro- ways to guarantee that we can achieve at the end of 2014 with the help of 4 local in their homes or investing in gold as a modern banking can help families and vide new employment opportunities, our aspirations for social and economic firms that will be going public. store of value. businesses to manage their wealth.” neighbors.” bring us know-how, and improve local development. A 34 — The Review 2014 / 2 Kurdistan Region of Iraq — 35 B BUSINESS The Erbil Business and Trade Center will contain 1,100 offices ranging in size from 55 m2 to 4800 m2 that cater to local contractors and businesses as well as international corporations. Invisible Protection & Energy Savings

IIG: Can you give us some details about for not a lot of money, you are creating a AGT? work environment that is healthier for the MW: AGT was established in 2009, but people working there. For us, it is about I have been in the window film industry creating a safe and comfortable environ- for over 21 years. We have installed proj- ment for people to work in. ects in Jordan, Nigeria, Mauritania, and Kenya. Our most popular products are IIG: When does AGT enter a project? anti-blast window films and anchoring MW: We normally come in right at the systems. We take the existing glass and end when everything is finished, because apply a special film on the inside. It is everything we do is retrofit. We can do perfectly clear and will hold the glass in it on any building that is already here. place should there be a blast or a natural Because of what we do, it has to be as disaster. It will stop people inside from dust-free as possible– going into a build- getting lacerated, greatly reducing injury ing site is no good for us. Martin Westney — and the risk of death. Approximately 75% Focus: Erbil Business & Trade Center Managing Director, Advanced Glass of injuries from a blast are from flying IIG:Where do you place Kurdistan in Technology (AGT) glass! It is all about mitigating as best as terms of risk? cross from the green expanse of Erbil’s Sami Abdul security, safety, cleaning, and maintenance for the EBTC’s offices. you can, and it is not overly expensive MW: I think it is a perceived risk. Rahman Park, a giant new building is quickly rising into The complex will also boast a 360-room five-star luxury Martin Westney explains the compared to the benefits it can offer. We Everywhere is dangerous to a degree. the city’s skyline. The first phase of the 200,000 m2 Erbil hotel tailored to business travelers. Here as well, those behind security and energy-saving have a range of solar films as well for Kurdistan is as safe as anywhere I have ABusiness and Trade Center’s (EBTC) Justice Tower, a 37-floor the EBTC aim to set their development apart. Radisson Blu will benefits of AGT glass products, reducing heat, reducing glare, and cut- been. You feel less threatened. The people mixed-use development comprising a luxury hotel, a group- operate the site’s centerpiece hotel. The hotel will contain 20 his growing portfolio of clients, ting out ultraviolet light. are incredibly friendly, and everyone is ing of international restaurants called Café Village, and luxury event spaces that range in size from smaller 20-person meeting and the opportunities available to very welcoming. offices, is set to finish construction and façade work in the sec- rooms to an 1,800-person capacity ballroom capable of hosting foreign firms in Kurdistan. IIG: What are the benefits of your ond quarter of 2015. The project’s developer, IZ Development, large conferences. products? IIG: What are the company’s priorities predicts it will reach completion in the fourth quarter of 2015 The third and final component of the EBTC is Café Village, MW: With the blast mitigation film, it is in 2015 and beyond? at a total cost of $200 million, obtained primarily from the a collection of 16 cafés and restaurants that will occupy the tested to international standards. There MW: We would like to cement our foun- Nasri Group of Companies in conjunction with local investors. ground floor of the tower currently under construction. Café is a certain GSA (General Services dations in the Kurdistan Region and Ihsan Zangana, the CEO of IZ Development, sees it as a new Village will showcase a variety of international food brands that Administration) and BS EN (British and expand into other cities. Our aim is to landmark not just for Erbil, but also for the whole of the Kurdistan are making their first foray into the market in Kurdistan. These European) standard that is a blast of 100 be here long-term and offer the right ser- Region and greater Iraq. Once finished, he predicts it will be the include France’s La Tartine and Canadian coffee shop Second kilos equivalent from 33 meters. There are vice and products for the right price. We largest hotel in Iraq as well as the largest tower in the country. Cup, both of which have signed on to open outlets in the devel- anchoring systems that we can use as well have been working with Total, DNO, and “The building’s specifications match the ambitious scale of our opment, as well as a restaurant specializing in Persian food. that will anchor the film into the frames, Marathon. We have done a lot for Falcon vision. The EBTC will contain 1,100 offices ranging in size from The team led by the NGC that is building the EBTC has left offering even greater levels of protection. Construction. Currently, most of our 55 m2 to 4800 m2 that cater to local contractors and businesses its mark elsewhere in Erbil and across Kurdistan. It is currently The film strengthens the glass and, due to projects are for the oil companies– as they as well as international corporations. Offices will be available to working on the Bazaar Nishtiman project, a collection of 2,000 the super strong adhesive, helps to absorb move into new offices they have certain buy or to rent,” Zangana says. Although construction will not be shops and offices of varying sizes under construction at the the blast pressure. So you have already, safety regulations to follow and the anti finished before late 2015, Zangana predicts that around 200 offices heart of Erbil near the landmark Citadel. On the outskirts of instantly reduced the amount of serious blast window film is one of them. Erbil is will be completed and available on the lower floors of the building the city near EIA, the NGC has already completed the Dream About injuries and fatalities. And it is not very currently our base, but we are starting to by the time the first phase of construction work is finished in the City project, a gated compound containing around 600 villas, Martin Westney started AGT in 2009. AGT has carried out projects across expensive. It is probably one of the cheap- look at projects in Slemani. We can trans- middle of the year. According to IZ Development, which has been some of which have been reserved for personnel from the oil the globe, including Nigeria, Mauritania, est things you can do to reduce the risk fer our skills and staff and start working brought in by the Nasri Group of Companies (NGC) to handle and gas industry, as well as an international school and restau- Kosovo, the USA, Iraq, Jordan, and to life. Because our films are invisible, no there, along with Erbil, then we will look sales, marketing, strategic planning, and business development rants. Beyond the confines of Erbil, the group plans to replicate Kenya. AGT provides anti-blast and one knows they are there. We can com- at Duhok as well. We would also like to do for the project, foreign investors from the Middle East and farther its Dream City concept in the northwest city of Zakho, where ballistic protection products for bine solar film with the safety film, or more projects for government agencies afield have already expressed interest in office space at the site that it has revealed designs for a compound of residential villas, governments and large corporations. you can just have solar protection. Again, and NGOs here. A is currently for sale. Once completed, the company will handle schools, restaurants, malls, and clinics. A 36 — The Review 2014 / 2 Kurdistan Region of Iraq — 37 B

Lebanon’s Fransabank Puts Down Roots in the Kurdistan Region t the beginning of April this of integration across the banking sector year, Fransabank opened its often mean that something as common first branch in Erbil. The bank, as a credit card will not work at all points ALebanon’s oldest with a history stretching of sale or even at all banks. Though this back nearly 100 years, currently operates continues to be a major impediment for in 10 countries across three continents, both consumers and banks, Fransabank including France, the UAE, Cyprus, has been engaged in consultations with Algeria, Libya, Syria, Sudan, and Belarus. Iraq’s federal government as Baghdad Globally, Fransabank held $17 billion in draws up tentative plans to create a assets, $14.1 billion in deposits, $5.3 bil- national credit card network and a sys- lion in loans, and had $160 million in net tem to track credit history. profits in 2013. In the Kurdistan Region and Iraq in In addition to its Erbil branch, general, it can also be difficult for expats “We are really new Fransabank has operations in Baghdad working for foreign firms to withdraw here. We are going and plans to expand further to Basra in money from local ATMs. Fransabank’s the near future. Lebanese banks have a global banking network and its long his- to reach the personal very strong presence in Iraqi Kurdistan, tory of partnerships with foreign banks market. It is our mission and Fransabank’s nascent business there mean that its ATMs in the Kurdistan is reflective of a more general trend of Region have largely been able to avoid to educate people and Lebanese banks making some of their first these issues. have them put their forays into the Iraqi market in the securi- One challenge beyond the control of ty and stability of the Kurdistan Region. the group is geopolitics. Nevertheless, trust in banks.” Fransabank’s operations in the the uncertainty and costs associat- Kurdistan Region focus primarily on the ed with Iraq’s current political turmoil Khalil Zeidan corporate banking sector. Nevertheless, weigh heavily on the strategic outlook of Country Manager - Iraq, Fransabank officials from the bank hope their pres- Fransabank or any local banking insti- ence in the Region can contribute to a tution. Local Fransabank management broader revitalization of the banking also pointed to liquidity crises caused by industry in Kurdistan by re-establish- Baghdad’s suspension of the Kurdistan ing trust among local customers. Khalil Region’s budget in the wake of political Zeidan, Country Manager for Fransabank disputes as an impediment to the growth in Iraq, referenced the group’s efforts to of the banking sector in Kurdistan. restore public confidence in Kurdistan’s Despite these hurdles, an interim banking sector, explaining, “We are really agreement between the Iraqi government new here. We are going to reach the per- and the KRG in November that restored sonal market. It is our mission to educate $500 million in budget payments to the people and have them put their trust in Kurdistan Region while establishing a banks.” more cooperative system for oil exports To build that trust, however, has sparked hopes that 2015 will bring Fransabank will have to overcome a renewed economic growth and further number of unique challenges in the local development of Kurdistan’s banking market. Outdated technology and a lack sector. A 38 — The Review 2014 / 2 ENERGY THE REVIEW Energy Forging Ahead n spite of the recent political upheav- al in Iraq, 2014 has been a year of growth for oil and gas production Iin Kurdistan. Kurdistan is home to an estimated 12 billion barrels of proven oil reserves as well as 45 bil- lion barrels in unprov- en oil resources, and oil production in the Region is expected to rise to a record high of 400,000 bpd by the end of 2014 from a level of around 250,000 bpd PROPERTY at the beginning of the year. MANAGEMENT

FACILITY MANAGEMENT

OPERATIONS MANAGEMENT

TRAINING

Growing Exports Production Rebounds the surge of ISIS forces in August, and The KRG’s Ministry of Natural Resources An ISIS charge towards the borders of the firm maintained combined produc- 36N specialises in the management and recently announced that the Region has the Kurdistan Region at the beginning tion levels of nearly 250,000 bpd as of delivery of integrated facility services to exported 34.5 million barrels of oil since of August prompted the evacuation of November. DNO has achieved produc- clients throughout Iraq. January. In total, $2.87 billion-worth of staff by major international energy firms tion levels of 130,000 bpd at its Tawke oil has been sold to customers around in the area, yet production levels have operations and aims to increase pro- the world. In addition to a recently com- remained largely unaffected. Oil produc- duction there to 200,000 bpd by the end We manage assets and service contracts pleted pipeline that allows the Kurdistan tion during the height of the crisis at the of the year. Oryx’s operations at Demir Region to export oil independently beginning of August averaged around Dagh currently have a capacity of 5,000 for the public and private sectors, across through Turkey, the KRG plans to build 360,000 bpd, down just 5,000 bpd from bpd, with the company projecting capac- a diverse range of portfolios. a second, 1 million-bdp-capacity oil levels before the ISIS offensive against ity to rise to 20,000 bpd by the end of pipeline to transport heavy crude from Kurdish forces. Genel Energy exceed- 2014 and reach 40,000 bpd in 2015. Kurdistan’s northern oil fields to interna- ed its 2014 production target of 200,000 Operations continued at Gulf Keystone’s tional markets and raise oil exports from bpd. The company has interests in the Shaikan field, although the company the Region to 2 million bpd. In the mean- Region’s two largest oilfields at Taq Taq evacuated its staff and increased security For inquiries Erbil Basra time, the KRG is targeting overall oil sales and Tawke, with estimated gross proven at the site. Gulf Keystone aims to increase of 1 million bpd by the end of 2015. and probable reserves of 1.3 billion bar- oil production at its Shaikan operations [email protected] Naz City Road off 100 Meter Str. Office 3, Al Zahra Building rels. Both fields operated as usual despite to 40,000 bpd and eventually reach Tel: +964 662 618 855 (next to Maxi Mall), Olympia Str. Tel: +964 662 618 855 Kurdistan Region of Iraq — 41 E ENERGY

Did you know Refineries Total announced at the beginning of December that it had struck oil at its Jisik-1 well in the In March, Qaiwan Group began a bidding process for the third Harir Block. The well had a preliminary flow rate of 6,100 bpd and represents Totals’ second oil phase of expansion at its Bazian refining facilities near Slemani. The company’s facilities there make gasoline, diesel, and kero- discovery in the Harir Block. sene for sale to domestic consumers, as well as naphtha and fuel oil for industrial uses. Qaiwan expects to finish construction by the end of 2017 and will increase refining capacity from the current 34,000 bpd to 84,000 bpd, adding facilities for crude distillation and naphtha hydrotreating. The company is also designing a 110-km pipeline to link its expanded refining oper- production levels of 100,000 bpd once a the Kurdamir field holds around 1 bil- Under a new budget ations to nearby oilfields. field development plan has been agreed lion barrels of contingent oil resources The Kurdistan Region is also home to the Kar Group’s Kalak for the site with the KRG. Currently, and nearly 1.6 billion barrels of prospec- deal, the KRG will refinery near Erbil, which has a refining capacity of 100,000 production at Gulf Keystone’s Shaikan tive oil resources. WesternZagros also supply 550,000 bpd of bpd. Kar Group plans to expand capacity to 200,000 bpd in operations is averaging around 23,000 operates in the Garmian block, where the years ahead with the assistance of American engineering bpd. Taqa, the state-owned oil explora- its Sarqala well is expected to produce oil for sale by Baghdad firm Ventech. tion company from Abu Dhabi, saw its up to 10,000 bpd of oil through the sec- authorities. This will exploration operations at the Atrush site ond half of 2014. Pending KRG approv- disrupted by ISIS activities, but the group al of its field development plan for the include 250,000 bpd maintains that the interruption of work Garmian block, WesternZagros aims to of Kurdish crude, in will not affect its plans to begin oil pro- raise oil production at the site to 35,000 duction at the site in the area of 30,000 bpd. Russia’s Gazprom Neft has begun addition to 300,000 bpd at the beginning of 2015. Over the exploratory drilling at the Shakal block bpd from oilfields in summer, Canada’s WesternZagros for- and commenced geological surveys at mally declared a commercial discovery the Halabja block. The company is also the Kirkuk area, and with KRG authorities for the Kurdamir set to become the main operator of a revenues will be split Electricity block it operates jointly with Talisman project in the Garmian block in 2015. Demand for electricity in the Kurdistan sector in power production in a bid to Energy. WesternZagros estimates that between the KRG and Region has increased from 925 megawatts overcome the chronic energy shortages The KRG plans to fully the federal government. in 2004 to nearly 3,500 megawatts in 2013. that had previously plagued the Region. meet the demand for Natural Gas The KRG Ministry of Electricity predicts The KRG earmarked $440 million in The Kurdistan Region possesses 36% stake in the Bina Bawi gas field at a with DNO to enter into a groundbreak- demand for electricity to grow fifteen per- its 2013 budget for 112 projects with a electricity in Kurdistan approximately 708 billion cubic meters cost of $150 million. This agreement gives ing Gas Sales and Purchase Agreement cent annually over the next three years, combined value of nearly $1.5 billion by 2016 through the of proven gas reserves, and an estimated Genel sole ownership of the Bina Bawi with the KRG. Under the agreement, noting that it has grown by this amount for in support of its plans to expand the 2.8-5.6 trillion cubic meters of unprov- field, in addition to the Miran gas field it Genel and DNO have been supplying the previous three-year period. The KRG Region’s electricity generating capacity expansion of electricity en gas resources. At the end of 2013 the also controls. Genel further announced an average of 1.7 million cubic meters of plans to fully meet the demand for elec- by another 3,000 megawatts. This type generating capacity to Turkish government and the KRG signed the conclusion of a combined production natural gas per day to the Duhok pow- tricity in Kurdistan by 2016 through the of investment appears to be paying off– the KRG-Turkey Gas Sales Agreement, sharing agreement with the KRG for the er station from the Summail field they expansion of electricity generating capaci- the Region, which experienced fifteen 6,000 megawatts, and which included plans for the construc- Bina Bawi and Miran fields that promis- operate jointly nearby. Joint production ty to 6,000 megawatts, and officials look to blackouts in just one month in 2009, officials look to begin tion of a pipeline to export natural gas es to bolster revenues and decrease risks for the companies’ Summail operations begin exporting electricity to other areas of has not experienced a power cut since from the Kurdistan Region to Turkey. The associated with operations. The large gas in the Duhok license area averaged 2.35 Iraq and other countries once local needs March 2010. exporting electricity to Agreement foresees an initial export of reserves at the two fields will likely be cru- million cubic meters per day through the are fulfilled. The Kurdistan Region already The Kurdistan Region’s power gen- other areas of Iraq and 4 billion cubic meters in 2017 and envi- cial to the KRG's efforts to meet export summer of 2014. exports electricity to the neighboring Iraqi eration capacity is primarily managed sions gas exports eventually climbing to goals under the KRG-Turkey Gas Sales Pearl Petroleum, a consortium formed provinces of Diala, Kirkuk, and Mosul. by the private sector, which provides other countries once 10 billion cubic meters per year by 2020. Agreement. The Bina Bawi and Miran by Dana Gas and Crescent Petroleum of Electricity generating capacity in the the bulk of Kurdistan’s electricity gener- local needs are fulfilled. Turkey, which used nearly 40 billion cubic fields hold an estimated 238 billion cubic the UAE, has seen combined production Kurdistan Region has grown by leaps ating infrastructure. The electric power meters of gas in 2013, is set to become one meters of combined natural gas reserves levels at its Khor Mor and Chamchamal and bounds in recent years. While res- industry relies largely on gas-fired power of Europe’s top three consumers of energy and have the potential to export up to 20 fields attain an average of 9.5 million idents of the Kurdistan Region could stations that are supplied from fields at in the next decade, and the Agreement billion cubic meters of gas to Turkey per cubic meters per day and continues to only make use of 2 hours of electricity Khor Mor and Khurmala, among others. holds out the option of increasing export year over the next two decades. deliver gas via pipeline to power stations per day in 2007, power supply has now This network of local gas power stations capacity to 20 billion cubic meters per Genel is also in discussions with the in the Slemani area, supplying nearly 4 reached an average of 23 hours per day. includes sites at Baadre, Chamchamal, year in the future. KRG to arrive at a Gas Sales Offtake million residents of the Kurdistan Region Generating capacity has been expanded Duhok, and Erbil. The KRG has indicat- Genel Energy announced in Agreement for its Miran field and has been with electricity. from 482 megawatts in 2007 to around ed its preference for gas-fired plants due November that it had purchased the exploring supplying gas to the Kurdish 3,000 megawatts today, made possible by to their efficiency, ease of construction, entirety of Austrian energy firm OMV's market. The company recently joined the KRG’s decision to involve the private and scalability.

42 — The Review 2014 / 2 Kurdistan Region of Iraq — 43 E ENERGY

Distribution Since 2003, the private sector has invested The revamped plant will meet nearly 25% While the private sector handles electricity around $5 billion in electricity generation of the Kurdistan Region’s energy needs. generation in the Kurdistan Region, the in Kurdistan. One major private player, Similar conversions began at the Slemani KRG controls electricity distribution and Mass Group, operates 1,000-megawatt and Dohuk Gas Power Stations in 2013 monitors energy consumption among the gas power stations in Erbil, Slemani, and and will soon increase capacity at each regional populace. The KRG’s Ministry of Dohuk. Mass Group has enlisted Turkish plant to 1,500 megawatts as well. Electricity provides technical and logisti- construction firm Enka to increase capac- In 2012, the KRG signed an agree- cal support to companies that generate the ity at its Erbil power plant, Kurdistan’s ment with Korean engineering firm Posco Region’s electricity, and producers under- ANALYSIS largest, to 1,500 megawatts by early for the construction of a 300-megawatt line the importance of the KRG’s efforts 2015. To do so, it will convert the Erbil steam-powered electricity generating facil- to provide security both generally and for Kurdistan Energy Update Gas Power Station from simple-cycle to ity near Erbil, the first government-con- specific projects. The KRG has already combined-cycle gas turbine technology. trolled plant in the Kurdistan Region. spent $1 billion on electricity transmis- promise to increase further in the com- Although the Kurdistan Region still lacks sion projects and will actively seek out ing year. When Baghdad cut the budget, true economic independence, its ability to private investors in the future if public there was little more the central gov- sell crude oil to international customers funds cannot meet regional needs for elec- ernment could do to force Erbil into an made the liquidity crisis resulting from tricity distribution. At present, all of the unfavorable deal on oil rights. Freezing Baghdad’s punitive budgetary measures Kurdistan Region’s cities and districts, as the KRG’s budget was considered a red less severe, despite the negative impact well as most villages, are connected to a line. Baghdad crossed this line hoping that low world oil prices have had on national power supply network. to coerce Kurdistan into a settlement. oil revenues. The KRG was able to pay Perhaps the most visible piece of Nearly a year on, however, it has become the salaries of civil servants, although energy transport infrastructure in the clear that Maliki’s strategy backfired and not on time. Public sector jobs dried up Kurdistan Region this year has been the only emboldened the Kurdistan Region and many government-backed projects newly operational oil export pipeline to become more self-reliant. Although were put on hold. The KRG was even- to Fishkhabour on the Turkish border. many Kurds had been skeptical about tually forced to consider borrowing $5 50MW The pipeline’s capacity has now reached the KRG’s approach, Baghdad’s efforts billion-$25 billion to fund infrastructure Solar Projects 300,000 bpd and will likely rise to 700,000 Shwan Zulal — to deprive civil servants of their salaries projects. bpd in the near future. Director, Carduchi Consulting and its lack of support in the war against The tide turned, however, and the Scale ISIL caused the majority of Kurdish pub- KRG began shipping more oil than ever Renewables lic opinion to shift in support of the KRG’s before. Now, with a long-term oil export Installed capacity for renewable energy stance on budgetary issues and control deal between the KRG and Baghdad in sources in the Kurdistan Region remains over oil exports. place, sales of crude to the Far East are quite limited. KRG officials confirm that rbil and Baghdad were at odds with Baghdad’s threats of legal action did accelerating, and the KRG is hoping to 15+85renewable energy plays+P a minor role in each other over revenue sharing not make Kurdistan’s journey as an oil get a foothold in the US market. The lev- meeting the Kurdistan Region’s power and control of natural resources for exporter easy. The sale of Kurdish oil on el of growth that the Kurdistan Region needs at the moment, but they point to Emuch of the last year. When former Iraqi international markets became challeng- enjoyed over the past decade may not the important role alternative sources of PM Nouri Al-Maliki cut the Kurdistan ing as buyers shied away in the face of return for some time, but the oil and gas 1,700 MW by 2016 energy play in their strategic energy out- Region’s budget earlier in the year, the Baghdad’s promises of legal retaliation. sectors have remained largely unaffect- Power generation look. The Region’s two hydroelectric pow- intention was to force the KRG to give One of the first tankers to export Kurdish ed. Over the past two years, some oil by the private sector er plants at Darbandikhan and Dukan up its ambitions to export crude. It is over oil, for example, was denied access to a companies in Kurdistan were reluctant provide 300 megawatts of electricity at eleven months later now, and the KRG Moroccan port and remained offshore to invest in the development of their oil- peak capacity, and the KRG is currently has managed to weather the worst of for months. The United Kalavryta, anoth- fields because there was little prospect of carrying out a feasibility study for wind the liquidity crisis and financial squeeze er tanker carrying Kurdish crude oil, export as disputes with Baghdad rumbled $1 billion power. Private sector solar projects have to reach what appears to be a definitive anchored off the US coast near Galveston, on. The rate of oil exports through Turkey Budget for ongoing projects so far been limited to a relatively small settlement on oil exports and budgetary Texas for months awaiting a legal ruling is now steadily increasing, though, and relating to the transmission sector scale of around 50 megawatts. While the matters with Baghdad. by a US court that could stave off future the KRG has made an initial payment of KRG does not believe that renewables are Cutting the Kurdistan Region’s bud- legal actions from Baghdad. $75 million to fulfill its contractual obli- practical for meeting the entirety of the get was Baghdad’s trump card and con- Managing government finances gations to companies in the oil and gas Power generation investment Region’s energy needs, Kurdish leader- sidered the “nuclear option.” Since then, became a challenge when the budget sector. International oil companies are $7 billion ship does emphasize a growing role for however, Kurdistan’s grip over the local was cut, and– on top of that– the influx now making new plans to develop their by 2016 renewable energy in a holistic strategy oil industry and oil exports has only of refugees, fighting a war on ISIL, fields, and, according to the Ministry of to meet their ambitious electricity gen- grown stronger. Now, Kurdistan boasts and sending troops to Syria to defend Natural Resources, Kurdistan could be eration goals. A oil exports of nearly 300,000 bpd, which Kobane stretched the budget even further. exporting 1 million bpd by early 2016. A 44 — The Review 2014 / 2 Kurdistan Region of Iraq — 45 E ENERGY

International Standards, Local Roots

IIG: What are the main benefits for area– oil and gas, property, residential, companies working with 36N? What and industrial. We are looking to target services does 36N offer that set it apart everything and give people the choice of from other companies in Kurdistan our quality services. “In property IIG: Can you tell us a little about the grow, and we will grow with it. For that and/or Iraq? training side of things? to happen, we do have designs on satellite CG: We are looking to attract companies IIG: Why should companies in the oil and management, we are CG: While we operate according to offices other than Basra and our main that require facilities, property, and oper- gas or real estate sectors that are doing currently providing international standards, one of the headquarters here. Slemani, Duhok, and, ations management as well as training. facilities and property management or good things about our company is the of course, Baghdad are all areas of inter- We have training to IOSH (Institution training in-house work with 36N? facilities support and fact that we are a local company. That est to us. of Occupational Safety and Health) and CG: We have been looking at the markets management for means we can rely on good sourcing of NEBOSH (National Examination Board and researching what companies are cur- subcontractors and partners for ven- IIG: Do you work with locals or do you in Occupational Safety and Health) stan- rently doing with training and in-house several international tures. We can also rely on the training bring in foreign staff? dards. We have our own training depart- systems. We believe that we can add value oil companies. We that we give to bring those companies CG: We are primarily a Kurdish-Iraqi Colin Gaskin —­ ment that is locally based, and we will be to their companies by saving them money in line with our standards to achieve company. We are very proud of that Executive Director, 36N able to provide companies with quali- and improving their systems. We have assist them with their the overall service that we want to pro- connection. Although I am a British cit- ty-assured courses that are particular to already had instances of companies hav- building management, vide to clients. We have technical train- izen, the partners and I have over fifty Colin Gaskin speaks with IIG about their needs and the markets in which ing to send their personnel out of the ing and health and safety training. We years of experience living and working 36N’s efforts to bring international they work. In property management, we country to do health and safety courses supported by our are accredited and licensed to provide in Kurdistan, Iraq, and the wider region. standards to the facilities and are currently providing facilities support when there is no need. We are a perfectly 24-hour call service training by the Institute of Occupational We want to maintain that strong link. property management sectors in and management for several international reputable company with a brand-new, Safety and Health (IOSH). We are also We want to employ a high percentage of Kurdistan and explains why the oil companies. We assist them with their state-of-the-art training facility here in center.” accredited by the British Institute of Kurdish-Iraqi people. Yes, there are times company is committed to the building management, supported by our Erbil. We have the trained and qualified Facilities Management. These accredi- where we need to look outside the Region regional economy in the face of 24-hour call service center. instructors to achieve their goals. We are tations are not easy to obtain, but they to employ people for certain specialized recent geopolitical turmoil. We are looking to provide the com- going to hopefully provide the same ser- are well worth the investment on our tasks in line with client requirements, but panies with reassurance. The services vices to these companies but save them part to show everybody that we mean we will always look to the local commu- we provide are achievable, qualified, and having to do it outside of the country. It to do business to correct and achievable nity first. accredited according to internation- saves them time, it means that they can standards in Erbil and Iraq. al standards. We are a company that is recruit people locally instead of having to IIG: As someone who also works in based in the Kurdistan Region, but we rely on personnel that may be qualified IIG: What are the 36N’s plans for the the southern part of the country, how want people to know that we have the overseas, and it provides more employ- Region? would you define the opportunities in international standards of service they ment for the local community. CG: We are most definitely looking to the market here? are looking for at an affordable and com- expand our operations. The current geo- CG: Business develops in a free-flowing petitive price. IIG: How does 36N maintain its inter- political situation external to Erbil is very manner here for all that are registered national standards in terms of the ser- difficult for everybody at the moment, but and apply the rules of the KRG. Erbil and About IIG: Which companies have you target- vices that it provides? we are looking at it as positively as we can. Basra are obviously very different in their Colin Gaskin served fifteen years as ed in the Kurdistan Region? CG: Thankfully one of my fortes is com- This gives me in particular the opportu- geopolitical makeup, but we have the abil- a Royal Electrical and Mechanical CG: 36N has been operating for two pliance management. I have worked with nity to enhance our profile in the leaner, ity to operate in both parts of the country. Engineer in the British Army before years. It already has substantial contracts various companies over the years in the more difficult times, which we do not see We have an office in Basra and we have an gravitating towards health, safety, and with IOCs, and we are looking to develop oilfields and the maritime industry that as being forever. We are here, we are open, office here that is our main headquarters, compliance work for the oil industry across Iraq and East Africa. Colin that. The mainstay is oil and gas in this have very high compliance standards. and our clients are here. We have main- but we are looking to open up satellite joined 36N as the Executive Director in area, but there are a lot of companies that This is an area that I like to maintain in tained services for our clients throughout offices throughout the KRG. This is a clear August 2014 and aims to apply years want to emerge in Erbil with commercial our company so there is a compliance the situation, and we will continue to do indication of how we see the opportu- of experience in business development, businesses, residential properties, and the manager in charge of all their needs, so. We are seeing distinct improvements nities developing here to give first-class compliance, and customer service in the like. We are looking to provide a pleth- giving the customer that reassurance of in business as more people are coming integrated facilities management services firm’s work with clients. ora of services for all four groups in the quality services. back to the Region. We continue to see it to the wider region. A 46 — The Review 2014 / 2 Kurdistan Region of Iraq — 47 E ENERGY

ANALYSIS Registering an Oil Services Company in the Kurdistan Region of Iraq Incorporating a Local Alain Hannouche —­ of constitutionally designated authority. the time being the Ministry is not issu- Oil Services Company: Head of Erbil Office, The laws pertinent to the registration of ing registration certificates, so a number The most common legal entity in Iraq is company in order to get the mandatory An oil services Hannouche Associates oil services companies are the “Iraqi Civil issued by the MNR is a company’s only the Limited Liability Company (LLC). preapproval of the Ministry of Natural Law No. (40) of 1951,” “Companies Law reference and proof of registration in the Joint Stock Companies in particular Resources for the completion of their reg- company’s decision oreign oil services companies No. (21) of 1997,” and “Foreign Branches Kurdistan Region. need special approval from the Council istration process. to open a branch looking to establish a presence and Representative Offices Regulation At the same time the registration of Ministers in order to be established and After a company is incorporated, it in the Kurdistan Region of Iraq No. (5) of 1989,” all of which have been process is initiated or shortly thereafter, are generally chosen only when required can begin the process of obtaining a regis- in the Kurdistan Fare subject to the special directives and enacted by the Iraqi Parliament and rat- firms must file an application accompa- by law, when other common legal forms tration on the vendors’ list at the Ministry Region, rather than requirements of the Ministry of Natural ified without amendment by the Kurdish nied by all required supporting docu- of entities are still not available. of Natural Resources. The Ministry has Resources (MNR) in Erbil, most of which Parliament. In addition, the Ministry of ments from their parent company with Much like the branch opening pro- made vendors’ list registration a strict pre- incorporating a new involve mandatory prerequisite approvals Natural Resources in Erbil regulates the the Companies’ Registrar at the Ministry cess, a registration application must be requisite for all oil companies and their local company, offers for the completion of the registration pro- registration process through the direc- of Trade and Industry in order to open filed with the Companies’ Registrar at the suppliers in the Kurdistan Region, and cess for operations in Kurdistan. tives it issues. This array of laws and the a branch. The Companies’ Registrar will Ministry of Trade and Industry. It should it forbids companies currently operat- the advantage of a The details of these conditions and powers reserved for Kurdish authorities transfer the application to the Ministry of be noted that a local LLC can be whol- ing in the oil and gas sector from dealing quick, straightforward the practical constraints posed by their mean that the legal framework discussed Natural Resources for preapproval of the ly-owned by a foreign parent company with any supplier whatsoever that is not application need to be fully understood in this guide will apply primarily in the branch opening, which will be suspend- or by foreign individuals. included on the list. process for and taken into account when planning Kurdistan Region and differ greatly from ed until the vendors’ list registration is After the application’s submission and Companies that opt for a local LLC establishing a legal the legal structure of any company’s the conditions and requirements imposed completed. After preapproval is granted, its transfer to the Ministry of Natural frequently do so because of the legal and presence in the Kurdistan Region. This in the rest of Iraq, even though processes a company’s application to open a branch Resources, proceedings start to differ con- financial protection this route provides presence in the is especially true with respect to the dif- in both areas are based upon the same is transferred back to the Companies’ siderably from those under the branch for the parent company, but often have to country. ferences between requirements to register laws and regulations. Registrar, where the parent company’s opening process. Unlike branches of for- look for practical ways to overcome the a branch of a foreign oil services company application documents are examined in eign companies, local LLCs are required obstacles associated with incorporation and the incorporation of a local entity. Registering a Branch of order to move forward with the standard to insure a contract or a subcontract requirements and prerequisites. a Foreign Oil Services branch opening process and complete the with a registered, currently operating oil A Applicable Laws: Company: registration. The Republic of Iraq is divided into Nearly all foreign entities have the ability An oil services company’s decision to two legal jurisdictions– that of the Iraqi to open a branch in the Kurdistan Region, open a branch in the Kurdistan Region, The Comment federal government and the separate though legal procedures differ based on rather than incorporating a new local The great promise of Kurdistan’s oil sector has placed it on the radar of most oil jurisdiction of the Kurdistan Region their field of activity. As a prerequisite, company, offers the advantage of a quick, and gas companies operating in the Middle East, but planning that ignores the of Iraq. This means that each compa- oil services companies need to be regis- straightforward process for establishing a Region’s unique legal structure can quickly lead to detrimental consequences. ny needs to be registered separately in tered on the vendors’ list at the Ministry legal presence in the country. In many cas- It is therefore beneficial for any company looking to enter the Iraqi oil services each of the two regions. Furthermore, of Natural Resources in Erbil. This regis- es, this proves to be the decisive factor for market to fully understand the practical implications of the conditions imposed the Kurdish Parliament holds the power tration can be initiated electronically and companies that opt for the branch solu- by Iraqi law and the Ministry of Natural Resources described above. to ratify, amend, or reject laws enacted followed through with the Ministry in tion, despite the financial and legal risks by the Iraqi Parliament in certain areas order to obtain a registration number. For such a setup poses for the parent company.

48 — The Review 2014 / 2 Kurdistan Region of Iraq — 49 TRANSPORT THE REVIEW Transport

Planning to Expand

ince the Kurdistan Region is land- to further enhance Kurdistan’s already tunnels. The ongoing construction along locked with no extant rail services, sterling reputation as both a viable and the route connecting Erbil and the Haji its road and air transportation net- vital hub for international transportation. Omaran border crossing serves as a good Sworks are fundamentally important in Moreover, with the proposed develop- example of this emphasis. This work will efforts to facilitate economic develop- ment of international rail systems, local- expand the critical road into a dual car- ment. Moreover, with trade between the ized tram networks, and modern public riageway, and will utilize both tunnels Kurdistan Region and Turkey, Iran, and transport, the sector remains a potential and bridges to dramatically reduce driv- the rest of Iraq rising exponentially year- bright spot in the burgeoning market- ing time between the capital city and a on-year, the local transportation network place of the Kurdistan Region. critical cross-border point. Similarly, the will continue to play a critical role in sus- At present, there are a total of 14,841 MOP has prioritized the construction taining growth. kilometers of roads in operation in the of three highways to connect the cities As such, a primary task facing the Kurdistan Region. The KRG Ministry of Duhok, Erbil, and Slemani with each KRG is the modernization, refurbish- of Planning (MOP) has evidently rec- other, and with the neighboring countries ment, and expansion of the current road ognized the economic importance of an of the Region. The completion of these system to ensure the timely delivery of efficient and modern road network, and projects in a timely and efficient manner goods and services. The expanded pas- has targeted an increase in total avail- will require an outlay of approximately senger and freight services on offer from able roads to 45,000 kilometers, as well $1.1 billion. the Region’s two airports have also helped as the construction of new bridges and

Kurdistan Region of Iraq — 51 T TRANSPORT

KRG Deputy Prime Minister Qubad Talabani inaugurated the Cargo Village at Slemani International Airport

The road system in the Kurdistan Region Slemani Erbil Duhok 5,673 km 5,391 km 3,777 km

Private Transportation Border Crossings Strategic Significance of Air Travel The rapid development of the economy Kurdistan borders Syria to the west, and such, wait times at Ibrahim Khalil can The role that the airports of Kurdistan While EIA itself has done much to Cargo Village was also inaugurated at has helped facilitate a booming person- has historically had one available border range from 2-3 days for trucks enter- have played and will continue to play in achieve its strong reputation, the indi- SIA in November 2014. At the moment, al transportation market. There were crossing station located at the tri-bor- ing the Kurdistan Region and 6-7 days the economic development of the Region vidual services offered at the facility have AzmarAir is building Iraq’s first special- 200-500 vehicles utilizing major roads in der area between Turkey, Syria, and for those exiting into Turkey. There are cannot be overstated. The geographic also helped develop transportation in the ized cargo airport at SIA. The airport 2003; today, the number for those same the Kurdistan Region. This location, four official border-crossing locations location of the Kurdistan Region makes it Kurdistan Region as a whole. Dnata, one is planned to be the biggest one in Iraq roads now exceeds 8,000. It is expected also known as the Fishkhabour Border between the Kurdistan Region and Iran: an ideal transportation hub and a gateway of the world’s largest air services provid- and will take a minimum of four years that figures will increase in the coming Crossing, has been dramatically impacted Haji Omaran connects to Piranshahr in into both greater Iraq and the Middle East ers, has been active on the ground at the to finish. years. Indeed, global brands such as Ford, by the instability in Syria and operates Iran, Penjwin connects to Bashmakh, in general. As such, Erbil International airport since March 2010 and has helped Construction at Duhok International Toyota, and Hyundai have all established only infrequently, if at all. By contrast, the Parviz-Khan connects to Qasr-e Shirin, Airport (EIA) and Slemani International develop a wide range of services and Airport (DIA) is ongoing, with a target- significant footprints in the Region, Ibrahim Khalil station (which connects and Qaladiza connects to Sardasht. All Airport (SIA) continue to see both pas- operations that includes customer, bag- ed completion date in 2017. Located as have luxury names like Land Rover, Turkey and the Kurdistan Region) is per- four checkpoints operate regularly, and senger numbers and cargo volume rates gage, and ramp services, cargo handling, 25 kilometers to the west of the city of Mercedes, Jaguar, and BMW. Luxury vehi- haps the most highly trafficked point in allow for the sustained movement of increase at a consistent pace. and ground support equipment main- Duhok, the facility will be composed of cle sales figures are reported to have grown the entire region. The location serves as goods and people between the Kurdistan In 2013, approximately 1.2 million tenance. Another firm, Macair Flight one, 3,850-meter-long runway, in addi- by over 250%, indicating the demand for the only official crossing point between Region and Iran. total passengers utilized EIA (a 26% Support, functions as the exclusive pri- tion to multiple taxiways. Airport officials quality and reliability remains consistent. the Region and its northern neighbor. As increase from 2012), and 38,572 tons of vate flight support provider at EIA. The have set highly ambitious targets for DIA’s total cargo passed through the facility (a company specializes in aviation services inaugural year, including 328,000 pas- Public Transportation 40.4% increase from 2012). The airport and handling, and it was the first fixed- sengers, 8,700 tons of cargo, and 3,540 The availability of public transportation people in the Kurdistan Region, a figure far network was completed in 2012, and currently connects the Region with 30 base operation of its kind in the Kurdistan aircraft movements. Those numbers are within the Kurdistan Region is inad- higher than the US (11.0) or the UK (3.8). designs for the Slemani and Duhok sys- different cities in 18 countries. Not sur- Region. Macair provides a wide range of expected to rise dramatically over an ini- equate. Therefore, taxis and privately In an effort to alleviate some of tems were finalized at the end of 2013. prisingly, 90.3% of all arrivals and depar- services, including handling operations, tial 20-year evaluation period, with goals owned/operated mini-buses are the most this strain, the KRG Ministry of In addition, all necessary feasibility stud- tures at EIA were international. The most cleaning, detailing, security, and fuel- of over 1 million passengers, 43,000 tons common forms of public transportation Transportation has begun the planning ies have been completed, meaning the frequent destinations for flights from EIA ing for aircraft, as well as baggage han- of cargo, and 9,840 aircraft movements within Kurdistan. process for the implementation of a mod- projects can now advance to the budget were Turkey (27.5% of all flights), the UAE dling, catering, hanger space, and aircraft annually by 2035. The combination of increased traffic, ern bus system, which will utilize high- allocation and formal bidding stages. The (16.8%), and Jordan (8.5%). In recogni- management. The international airport in Duhok, limited route options, and a lack of safe- speed metro buses to expedite frequently details of the individual plans indicate tion of its rising passenger numbers and SIA has grown at similar pace, albe- an updated cargo facility at SIA, and ty regulations have led to a dramatic rise blocked traffic flows. that the three networks will have a com- high standards of customer service, the it on a smaller scale. Over the course of the already strong shipping business in the number of traffic accidents. Most To further combat the lack of pub- bined length of more than 150 kilome- Emerging Markets Airport Show in Abu 2013, the airport welcomed over 300,000 at EIA hold the possibility of mak- notably, a report by the Association for lic transportation options, the Ministry ters and will require at least $4 billion in Dhabi has voted EIA the best emerging total passengers for the first time in its his- ing the Kurdistan Region a cargo hub Safe International Road Travel (ASIRT) began the process for constructing tram- financing. market airport with less than five mil- tory. The airport connects the Kurdistan for the Middle East and perhaps the indicated that there were approximately way systems in the Region’s largest cities lion passengers per annum in Africa, the Region to 15 airports in 12 countries and broader international market in the 19.66 traffic-related fatalities per 100,000 in early 2011. The design for the Erbil Middle East, or Asia for two years in a row. is served by 11 different airlines. Slemani long term. A 52 — The Review 2014 / 2 Kurdistan Region of Iraq — 53 Help has no boundaries for Rwanga Foundation

But as winter approaches and the tem- peratures plummet, Rwanga Foundation is looking for more partners to coordinate with and maximize help. Winterization items like blankets and heaters are a top priority in a bitter winter that often sees snow, rain, and freezing temperatures. Donations are a key part of the collective efforts to provide much-needed items that will see the displaced families through the winter. Donations can be made through their website or by contacting Rwanga directly. Rwanga Foundation is also in the pro- cess of building a camp with 3,000 pre- fabricated units in Duhok Governorate occupied by displaced people, meaning Duhok Governorate. The initiative stems that will house 24,000 individuals affected many students are out of school. Rwanga from Rwanga’s firm belief in the need for by the ongoing conflict. Many displaced is dedicated to helping to “build a stron- education, particularly in conflict zones. people are still without shelter and more ger and better youth” by renovating 167 Shelter and access to education is cru- camps are needed in the region. schools and aiming to build new ones cial to relieve the humanitarian crises that While the immediate focus has turned from scratch. The lack of schools for both Kurdistan is facing. Rwanga Foundation to helping internally displaced people local and displaced children has been a is tirelessly and passionately doing their through the cold winter months, Rwanga’s huge source of concern for aid organi- part to help. More can be done with other area of interest is education, with zations and the Kurdistan Government. the help of donations and partnerships, Sofia Barbarani — degree sun.” Taban witnessed the extent internally displaced people have now a strong belief in the need to integrate The importance of education is through providing funds, services, or n international charity founda- of the humanitarian catastrophe that was reached an estimated 1.8 million, with young men and women into their com- engrained in all Rwanga members. In a sharing knowledge. This is your unique tion in Kurdistan made headlines taking place and described the moment 1.6 residing in Kurdistan. munities and provide opportunities to bid to fully engage with the issues sup- opportunity to make a difference- contact around the world in August for when people scrambled on the helicopter Born out of the wish to assist the most ensure all have access to education. ported by the foundation, Taban is rais- Rwanga Foundation and find out how Abeing the first organization to deliver as “heart breaking.” vulnerable nationally and international- Many schools in Kurdistan are ing funds to build schools in Kurdistan’s you can help. humanitarian aid to tens of thousands of Rwanga “aims to protect vulnerable ly, the members of Rwanga have made it A Yezidis trapped on Mount Sinjar. Rwanga people and provide opportunities to their aim to “confer a better life and a better Foundation delivered non-perishable those that need it most, and those peo- future to those who are in extreme need.” foods, water, and non-food items to the ple trapped on Mount Sinjar needed our This year alone, Rwanga Foundation has desperate families. help,” explains Shoresh, a British Kurd helped over 350,000 people. Taban Shoresh, Director of Public who recently relocated to Kurdistan. Rwanga Foundation is the trusted Relations and Media, is a genocide sur- Following this crucial delivery, they partner for many international organi- vivor who was on the dangerous helicop- have continued to provide aid to dis- zations and countries looking to help in ter ride to deliver aid. She described the placed people and are tackling head-on the region. Recently, Germany and the mountain conditions as dire, adding, "the the huge humanitarian crisis that has tak- Netherlands donated 50 tons of food to large dry terrain was exposed to the fifty en the Kurdistan Region by storm. The be delivered to displaced people.

54 — The Review 2014 / 2 H E HIGHER EDUCATION

AUDK held opening ceremonies on December 01, 2014 to announce the Training Kurdistan’s Future Leaders first day of student registration for the 2014-2015 academic year. IIG: What is the core mission of AUDK? manage and tackle crises. What distin- HI: AUDK pursues a long-term strate- guishes AUDK from its counterparts is gy to fulfill its mission through engag- that it offers state-of-the-art majors that ing competent faculty members as well are not delivered at any other institution as bright scholars to enhance the quality of higher education in the Region. Every of education in the Region. AUDK aims program is organized around develop- to create a peaceful environment where ment, with a clear focus on the process students and the academic communi- of implementation. ty enjoy a sense of freedom in gaining knowledge for the betterment of society. IIG: How do you see the university By establishing research centers, AUDK expanding in the medium term? endeavors to have a role in every aspect of HI: AUDK aims to become a leading people’s lives and help build a healthy and institution in the Region that, as a cen- Dr. Honar Issa — dynamic community. AUDK provides ter of excellence, will conduct research Member of the Board of Trustees students with a profoundly transforma- in various disciplines. It endeavors to American University Duhok Kurdistan tive experience– intellectually, socially, introduce research into the community (AUDK) and personally– that will prepare them for a life of service and leadership. Dr. Honar Issa provides IIG with “AUDK offers exclusive insight into AUDK’s IIG: What educational programs will undergraduate courses mission, the university’s expanding AUDK offer? education strategy, and its HI: AUDK offers undergraduate cours- and programs in the contribution to the creation of the es and programs in the areas of Politics areas of Politics and next generation of leadership in the and Public Policy, Design and Media also plan to establish departments and universities around the globe. All those institutions in the Kurdistan Region Kurdistan Region. Studies, Management and Finance, and Public Policy, Design schools encompassing diverse disciplines recruited at AUDK are either Americans lack comprehensive programs to create Computer Science. The master programs and Media Studies, that will respond to the demands of the or other expats who have rich experiences leadership skills. They put more empha- will follow as soon as the required tools market. Career-oriented programs will in academia. Duhok has an interesting and sis on rote memorization. The programs are ready. On top of those programs, we Management and include the College of Engineering, the resilient environment, which will make that AUDK offers will place a conscious have established the English Language Finance, and Computer College of Medicine, and numerous other it possible for academics to interact with and purposeful focus on selecting and About Institute (AUDK-ELI) and the Center centers. AUDK will also pursue accred- a multi-cultural society. AUDK will be a producing the next generation of leaders. Dr. Honar Issa is a member of the for Displacement and Migration Science.” itation for its programs. gateway into a new environment that is We will provide an environment for the Board of Trustees at AUDK and (AUDK-CDM), which are currently conducive to state-of-the-art research. kind of experiences that enable students has been a scholar in the academic performing in an extraordinary man- IIG: Will it be a challenge to attract to learn what it means to be a leader. environment for more than thirteen ner. Having American English teachers, we live in and get people accustomed to international academic talent to IIG: How would you assess the contri- AUDK will provide students with a clear years. He has taught various subjects AUDK-ELI offers top-level curricula for the idea that research should not only Kurdistan? bution that AUDK is making towards vision – a set of original ideas – required at Nottingham Trent University in teaching English at various levels and be conducted for the sake of research, HI: Despite the current situation on the creation of the next generation of to become a leader. We believe that, in the UK and acted as Interim Dean of the Faculty of Engineering at Soran is open to anyone who desires to learn but to promote and develop the quality the ground, being a member of faculty leadership in the Kurdistan Region? the absence of a creative vision, someone University in the Kurdistan Region, in English, no matter if she/he is a student of life of a society. We plan to establish at AUDK is appealing. The number of HI: The purpose of education at AUDK can be a manager but not a true leader. addition to publishing a number of or an employee. AUDK-CDM is very various centers that will offer activities international applicants for administra- is not merely to transmit knowledge. At AUDK, we have a vision to fully inte- articles in international journals. Dr. Issa active in helping internally displaced required to enhance the quality of educa- tive, faculty, and staff positions is rap- Rather, it is to teach the students how grate with society and to be sensitive to is an associate professor in structural persons (IDPs) and refugees as well as tion and, in return, the quality of life and idly increasing. Most candidates have to use their knowledge as leaders of soci- its problems, rather than being an iso- engineering. the government to set up roadmaps to wellbeing of the people in the Region. We excellent academic records in reputable ety. Unfortunately, many educational lated ivory tower. A 56 — The Review 2014 / 2 Kurdistan Region of Iraq — 57 TOURISM THE REVIEW Tourism

Bold Plans Amidst Regional Strife

he Kurdistan Region, with a destination for international travelers, Regional authorities have channeled these diversity of both landscapes and racking up nearly three times as many investments into at least 128 officially cultures, looks to raise its profile visits as either Slemani or Duhok in 2012. licensed projects in the tourism sector. Tas a tourist destination in spite of the Tourism is slowly beginning to play Erbil has dominated tourism investments obstacles posed by regional turmoil. In a larger role in the Kurdish economy. with 71 projects licensed since 2006 and 2013, nearly 3 million visitors came to Overall, the industry supports more than a total investment of around $4.47 billion. Iraqi Kurdistan, a 30% increase from the 6,000 jobs. It was the source of $1 billion The Duhok governorate was home to 41 previous year. In 2007, by comparison, in revenues for the Kurdistan Region in licensed tourism investment projects val- Kurdistan’s General Board of Tourism 2013, a 53% increase over total tourist ued at nearly $723 million over the same (GBOT) recorded just 377, 397 visitors to revenues in 2012 ($650 million). Since period. Although the Slemani governor- the Region. The vast majority of travelers 2006, local and international inves- ate saw just 16 licensed tourism invest- in the Kurdistan Region in recent years, tors have poured $6.58 billion into the ment projects in that time, the total value around 66%, have come from elsewhere Region’s tourism industry. Around 40% of of investment in the tourism sector there in Iraq, while locals engaging in internal that total has come from foreign investors, actually surpassed that of Duhok at $1.39 tourism accounted for nearly 14%, and mainly those in the UAE and Turkey. In billion. One of the most visible tourism international visitors made up another recent years, the pace of foreign invest- projects in Kurdistan this year was the 20% of travelers. Most of the foreigners ment appears to have increased. In 2013, newly opened Korek Mountain Resort that visit the region, in turn, do so for Kurdistan’s tourism sector drew $3.2 bil- and Spa, a $95 million venture that aims business reasons. Erbil dominates as a lion in foreign investment. to draw winter sports enthusiasts from

Kurdistan Region of Iraq — 59 T TOURISM

Iraq and across the Middle East to the Growing Recognition for Erbil National Geographic Kurdistan Region. Another highly visi- Erbil serves as the face of the Kurdistan Magazine named ble tourism development is the $2 billion Region for most international travelers. Dukan Tourist City project, spearheaded The city has grown at a breakneck pace Erbil as one of its by Emaar Properties of the UAE, which over the last decade and its combination “Best Trips” of 2014. seeks to build a resort complex made up of of history, security, and economic growth hotels, restaurants, casinos, and residences have been attracting attention across In addition, the Arab on the shores of Lake Dukan near Slemani. the Middle East. National Geographic Council of Tourism UNESCO’s World Heritage Committee The regional government has also Magazine named Erbil as one of its “Best has named the Erbil Citadel to its list tried to spur development of Kurdistan’s Trips” of 2014. In addition, the Arab chose Erbil as its “2014 of World Heritage Sites after 18 of the tourism infrastructure through a pro- Council of Tourism chose Erbil as its Arab Tourism Capital,” Committee’s 21 members voted to gram of small and medium-sized loans “2014 Arab Tourism Capital,” and the approve its application. The Citadel for 400 projects running through the year city has held numerous public events and the city has held is one of the oldest inhabited cities in 2025. So far, the program has allocated throughout the year to mark the occa- numerous public events the world, with a history that stretches around $86 million. sion. The first annual Erbil Film Festival 6,000 years into the past. The KRG was hoping to build upon took place this spring, showcasing over 70 throughout the year to Kurdistan’s increasing prominence as films from around the world. The event mark the occasion. Hospitality Industry a tourist destination over the course of attracted leading regional directors, actors, Kurdistan is now home to over 400 hotels, to address a local skills gap and the 2014, but continued instability in the and $1 billion in private investment has development of English language skills areas surrounding the Kurdistan Region been committed to further develop the in order for the Region to truly compete have proven to be a formidable obstacle to regional hospitality sector. Erbil boasts with the world’s top business and travel this goal. Despite a promising start to the Kurdistan’s two internationally certified destinations. year, government officials have confirmed five-star hotels, the Erbil Rotana and the The hospitality industry has been that tourist visits have decreased substan- Divan Hotel. International brands such negatively impacted alongside the tially. The majority of Kurdistan’s tourists as Radisson Blu, Sheraton, Kempinski, overall tourism sector in the Kurdistan in recent years have come from elsewhere and Hilton have also set their sights on Region in the wake of regional turmoil. in Iraq, and the instability surrounding the Region. Following ISIS-led violence outside the Leaders in the Region’s ISIS-led advances in areas bordering Iraqi Overall, however, the hospitality Kurdistan Region, occupancy rates at the hospitality industry Kurdistan have made the journey by land market in Kurdistan is dominated by Region’s leading hotels have significantly to the Region dangerous. Likewise, inter- three-star hotels. Much of the industry decreased. Historically, occupancy rates have emphasized national travelers conscious of regional continues to function without an eye to have averaged around 50%, increasing to the importance of political upheavals and security concerns international standards, and innovators 90% during times of peak demand. seem to have shied away from visiting in the sector are working to erase a stig- Despite the array of challenges that training to address a Kurdistan. The overall impact of regional musicians, and writers as guests and judg- June meeting of the organization’s World ma of sorts that has developed around recent regional upheaval and the cor- local skills gap and the strife on the tourism industry in 2014 and es for the festival’s awards. Other events Heritage Committee in Doha. Members the idea of working in hospitality. In the responding economic slowdown have going forward remains to be seen. marking Erbil’s turn as Tourism Capital voting in favor of World Heritage status words of Erbil Rotana GM Ghassan Dalal, posed for Kurdistan’s hospitality sec- development of English included painting and photography exhi- for the structure cited its nearly 6,000 year "The Kurdish community is not yet well tor, many in the industry are optimistic language skills in order New Frontiers bitions, concerts, and the ten-day-long history and its significance as one of the exposed to the hospitality industry. There about the Region's medium-term poten- The KRG has ambitious plans to trans- Hawler Festival marking the Kurdish new world’s oldest continually inhabited set- have been small hotels in the Region for tial. Ghassan Dalal is among those with for the Region to truly form the Kurdistan Region into a top trav- year, Newroz. tlements. The Citadel joins three other quite a long time– unfortunately the rep- a bullish attitude about the hospitality compete with the el destination. The regional government Passenger numbers at Erbil Iraqi sites on the World Heritage List. utation was not so good, so voices saying industry’s future, saying, “I believe that hopes to attract 5 million tourists in 2015 International Airport (EIA) highlight a In an effort to preserve the Citadel, it was not such a great career grew within within the next year and for many years world’s top business and increase that number to 7 million by steadily increasing amount of interna- the High Commission for Erbil Citadel the Kurdish community." to come the growth of demand for hotels and travel destinations. 2025. Officials seek to raise foreign invest- tional travel to the regional capital. Over Revitalization (HCECR) has been formed This legacy is slowly being overcome is going to be much higher. I believe the ment in the sector to $4 billion in the near the course of 2013, a record 1,193, 783 to oversee a 15-year plan to refurbish and as high-profile international hotels like industry itself is going to at least double term to bolster Kurdistan’s international passengers passed through EIA, over 90% restore the Citadel itself, as well as the Rotana and Divan strengthen programs the amount of rooms currently in Erbil.” profile as a tourist destination and have of whom were traveling internationally. residential structures built atop it over to hire and train local talent for key At the end of a turbulent year for the laid out plans to improve Kurdistan’s road Over the 2006-2013 period, passenger time. According to HCECR officials, the roles in their business. Divan Erbil, for Kurdistan Region, the underlying poten- infrastructure to facilitate travel across traffic into EIA increased at an average Kurdistan Regional Government has instance, has implemented a formal train- tial of the Region’s economy and the appeal the Region. Entrepreneurs aim to tap rate of 28.2% per annum. spent $35 million on restoration and pres- ing program to prepare local employees of its relative success against the odds of into a growing movement for “adven- The last year also saw the Region gain ervation efforts over the last three years. for positions in hotel management as well an unsettled neighborhood continue to ture tourism,” while KRG planners try important international recognition and Regional officials are also evaluating the as service-oriented positions in reception, encourage cautious optimism for the long- to square the Region’s desire to attract support for its cultural patrimony. Erbil’s potential for public-private partnerships housekeeping, and restaurants. Leaders term potential of Kurdistan’s nascent tour- more tourists with the protection of its landmark Citadel was officially added to to finance ongoing and future preserva- in the Region’s hospitality industry have ism and hospitality industries. natural resources. UNESCO’s World Heritage List during a tion efforts. emphasized the importance of training A

60 — The Review 2014 / 2 Kurdistan Region of Iraq — 61 T TOURISM Hands-On Management at Rotana

IIG: What are your first impressions It does not matter what position you are regarding Erbil and the hospitality in, refresher training is continuously industry in Kurdistan? required. You have to do training for the GD: Even though I have only been here staff from the lowest position to the high- a couple of months, I have realized that est position. All of them require training the Kurdish people are extremely hos- for hospitality, guest contact, and even pitable, despite the latest unfortunate English language skills to be able to cope situation. They simply make you feel at with today’s demand. Training our staff is home and leave you with a clearly posi- a must, and it will have a positive impact tive impression. I believe that within the on our guests. That is what makes the next year and for many years to come, difference. the growth of demand for hotels is going to be much higher. The industry itself is IIG: Do you have any strategy for local going to at least double the amount of human capacity development? Ghassan Dalal — rooms currently in Erbil. There are huge GD: A core value for Rotana is developing GM, Erbil Rotana prospects for the hospitality industry in from within, from the local community. the Kurdistan Region. We are witnessing Our main focus is seeing the Kurdish peo- Rotana announced the many hotel projects all over the Region, ple being developed and involved more appointment of Ghassan Dalal including Duhok and Slemani, which are within the industry. We constantly hire as the new GM of Erbil Rotana in being planned at the moment and will be local talent, and we are intensifying our August 2014. Kurdistan Review completed by 2016 or 2017. By the time training and development to see them talks to Dalal about his priorities, the projects are completed, the market progress forward. The Rotana careers the new Arjaan development will have grown significantly, keeping website (www.rotanacareers.com) has for long-term stays, and why he everyone busy and on their toes. successfully generated a solid database believes the Kurdistan Region will of potential candidates for us, which has apartments. This idea is still fresh and one "Friday Family Lunch" event with chil- IIG: How have recent events in the thrive in 2015. IIG: How would you define your man- helped us in the process. Our HR net- of a kind, whereas the need for it is immi- dren’s activities has also been a successful Region affected your business and what agement style? working and research, in addition to the nent. Arjaan is new in the market and addition. "Maki Night" in Bond, as well as is your short-term forecast for the hos- GD: I have an open door policy, with Learning & Development Department, contains studios, as well as one-bedroom pitality industry in Kurdistan? a hands-on management perspective. have also played a role in employee and two-bedroom apartments. It will GD: Of course there was an impact on There is a saying that I believe in: “You morale and career development, as well cater to long-stay guests coming for over “I have a very our business from the latest incidents. never have a second chance to make as sustainability. Our company’s values a month who need hotel services, but in important motto: When the situation became negative in a first impression.” For me, there is no ensure that our brand is delivered with an apartment setup. The Arjaan concept July 2014, Ramadan was already here nose up in the sky. I would simply take consistency and integrity. We call it will be an added value to the Region. It is “personalization in and business by then was slow, as it off my suit, roll up my sleeves, get myself Rotana L.I.F.E, where L stands for long- already under construction and expected service.” is every year during the holy period. in action, and wash dishes if I had to. We term, I for innovation, F for friendly, and to open within a year. Arjaan is owned by Investors and tourists were afraid to are working for one target, which is ulti- E for ethical. The local market responded the same company as the Erbil Rotana, We personalize every come to the Region without knowing mate guest satisfaction. Therefore, my positively to our job openings. It is true "Malia Group," which is also extremely service we give to every how secure it was. Soon after, people style is friendliness, efficiency, fairness, that our staff lack experience in this field, active with plenty of projects in Slemani. witnessed the Kurdish government's sol- and, above all, exceeding guest expecta- but they have exhibited strong capabili- Malia Group has been helping the Region guest at all times, and id hold on the Region and the strength tions. I also believe in teamwork, and my ties and a willingness to learn and adapt flourish for many years and continues to this is our success. This of its security. The Region was under target is to always know what the guest to the 5-star environment. I think we are strive for excellence. control, and it showed the world that it About really needs and do it before they even among the few companies with foreign is why we will remain is safe despite what is happening within Rotana, the leading hotel management ask by involving the contributions of all investments that have managed to recruit IIG: Are you planning anything new number one.” Iraq. Almost all the companies’ foreign company in the Middle East and Africa, the team. and maintain a large number of locals. regarding events? staff has returned, and investors have has announced the appointment of GD: Most definitely! We will be holding started visiting again. You can observe Ghassan Dalal as General Manager of IIG: Does training play an important IIG: Rotana is looking to manage a sec- a festive, seasonal extravaganza starting "Wine Wars" events, will be added shortly how business has started to pick up Erbil Rotana. Dalal is a Lebanese veteran of the international hospitality industry role? ond property here in Erbil. Can you tell on Christmas and ending New Year’s Day. and will have a great, positive effect. Most again slowly and steadily each and every with over twenty years of experience, GD: The highly competitive environ- us about this hotel? Furthermore, we have started planning of these additions are accompanied by month. I believe that Erbil will boom including work in Canada, Egypt, ment in which hospitality businesses GD: We have a strong belief that the to add plenty more events in different the fabulous Colombia singers, who add again in 2015, but it will be better than Lebanon, Nigeria, and Sudan. Dalal will operate today requires a skillful work- Region will flourish within the next few areas, such as our spectacular theme- flavor to the experience. More surprises any previous year, with more conven- bring a unique depth of experience to force in every organization in order to years, and that there is going to be high nights in the "Flavours" restaurant, with are in the pipeline for 2015, which will be tions and seminars. his new position. remain a successful player in the industry. demand for both hotels and furnished BBQ, Mexican, and Seafood nights. The an exciting year full of innovation. A

62 — The Review 2014 / 2 Kurdistan Region of Iraq — 63 TOURISM Luxury Recreation & Fitness at Divan Erbil

The Divan Erbil, with more than 250 lushly appointed guest rooms and 15 meeting rooms ranging in size from 33 m2 boardrooms to a 700 m2 banquet hall, seeks to bolster Divan's reputation for high-quality business accommodations. The hotel’s ambitions go further, however, as the Divan Erbil aims to become a destination unto itself for both locals and business travelers in Kurdistan's capital. To this end, the Divan Erbil has added an expansive spa to its portfolio of luxury amenities. Hotel guests and Erbil residents alike can take advantage of the spa’s state-of- the-art fitness facilities. The spa also features a 20-m semi-Olympic indoor pool, sauna, and steam room, as well as message suites and a Turkish bath. Three-month, six-month, or one-year memberships are available.

Shoresh Street, Lbc Center, Erbil, Iraq Tel: 0750233 4444 [email protected]

Kurdistan Region of Iraq — 65 *Health Warning: Smoking is a main cause of lung cancer, lung diseases and of heart and arteries diseases. Christmas & New Year dining, entertainment and festive activities at Erbil Rotana!

At Erbil Rotana, we believe that being jolly this season does not only mean bursting with happiness but Flavours all-day dining Our hotel’s all-day dining restaurant also united with great food and gears up for this holiday season by offering international festive buffet entertainment. Throughout the dinners on 24th of December and on New Year’s Eve from 19:30 holiday season, each of our until 00:00. Cozy ambience and restaurants will be offering its earth-tone interiors complement the amazing performances of the unique festive program to suit resident Colombian band. Flavours all-day dining is an ideal place every taste. to share the holiday cheer in a welcoming atmosphere. Al Bustan Lebanese Restaurant & Garden Celebrate New Year’s eve in an Oriental style at the renowned Al On Christmas day, Flavours all- Bustan Lebanese restaurant and relish a set menu especially selected Iraq’s Leading Hotel by our Chef while enjoying an array of entertainment including our day dining will be featuring an midnight Oriental dancer! Spend this special night like no other in a international buffet lunch from 12:30 Erbil Rotana was bestowed with the prestigious honour of being IraqÕs Leading Hotel vibrant atmosphere and take away with you, lifetime memories! till 16:00. Kids will be welcomed with in 2011, 2012, 2013 & 2014, consecutively by the World Travel Awards. This five star cotton candy, popcorn, a balloon hotel offers 201 well-appointed rooms and suites, 7 fully equipped meeting & events Basilico the Italian Restaurant venues, 5 restaurants that suit all tastes, a fitness club, spa and pool bar & terrace. Come over to Basilico from 19:30 onwards to enjoy the true Italian fiesta binder complemented by Santa with our specially created set menu. Our modern and lively setting is Claus’ visit and plenty of fun. sure to add that special touch to your Christmas Eve with Christmas carols. On New Year, Basilico will be featuring authentic Italian dishes To book your stay at the best available rates, visit rotana.com or prepared by our new Italian Chef, from 8:00 pm onwards. Reservations are limited during call us +964(0)662105555. this busy period, so don't miss Bond Lobby Cafe & Lounge Celebrate New Year's Eve with us and relish our sumptuous culinary the chance to book your table, delights and beverages. Welcome 2015 and dance to the tunes of our call now on 0662105555. Gulan Street, Erbil, Kurdistan, Iraq. T: +964 (0)66 210 55 55, F: +964 (0)66 210 55 56, [email protected] Colombian Band, which will keep you entertained till dawn.