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The Kurdistan Region: Invest in the Future The Kurdistan Region: Invest in the Future An official publication of the Kurdistan Regional Government 2008 Contacts The Kurdistan Region: Invest in the Future Editor Brendan O’Leary Published by Newsdesk Media Inc. Assistant to the Editor Michelle Grajek One Metro Center Group Editorial Director Claire Manuel 700 12th Street Managing Editor Samantha Guerrini NW, Suite 700 Editorial Assistant Lauren Rose-Smith Washington, DC 20005 Copy-Editor Nick Gordon Tel: +1 (202) 904 2422/23 Fax: +1 (202) 904 2424 Group Art Director David Cooper www.newsdeskmedia.com Art Editor Nicky Macro Designer Zac Casey Newsdesk Media Group publishes a wide range of Group Production Director Tim Richards business and customer publications. For further information please contact Alan Spence, Chief Group Sales Director Andrew Howard Executive Officer or Maysoon Kaibni, Vice President Sales Manager Jim Sturrock Business Development. Sales Executives Martin Cousens Newsdesk Media Inc. is a member of the Sorin Dumitru Newsdesk Media Group of companies. Laurie Pilate On behalf of the Kurdistan Regional Government Client Relations Director Natalie Spencer Representation in the USA 1634 Eye St., NW, Suite 210 Vice President Business Development Maysoon Kaibni Washington, DC 20006 Tel: +1 (202) 637 2496 Deputy Chief Executive Hugh Robinson Fax: +1 (202) 637 2723 Publisher and Chief Executive Alan Spence www.krg.org Pictures: Alamy, Corbis, Getty, Photolibrary, Stafford Printed by Buxton Press, UK and Arjun Clarry. Other images supplied by the ISBN 1-905435-59-2 Kurdistan Regional Government. Repro: ITM Publishing Services, UK © 2007. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. The views and opinions expressed by independent authors and contributors in this publication are provided in the writers’ personal capacities and are their sole responsibility. Their publication does not imply that they represent the views or opinions of the Kurdistan Regional Government or Newsdesk Media Inc. and must neither be regarded as constituting advice on any matter whatsoever, nor be interpreted as such. The reproduction of advertisements in this publication does not in any way imply endorsement by the Kurdistan Regional Government or Newsdesk Media Inc. of products or services referred to therein. 5 Contents Contents FOREWORDS 45 The Kurdistan Success Story 14 The Kurdistan Region: Invest in the Future 46 A Vision for the Future His Excellency Prime Minister Nechirvan Barzani Professor Brendan O’Leary interviews Prime Minister Nechirvan Barzani 22 Kurdistan’s People: Key Builders of a New Federation 50 The Kurdistan Region’s Consensual Government General Jay Garner Adnan Mufti, Speaker of the Kurdistan National Assembly 26 A Triumph of Determination Ann Clwyd MP, UK Prime Minister’s Special 52 Doors Open for Investment Envoy on Human Rights in Iraq and the Chair of Qubad J. Talabani, KRG Representative the UK Parliament’s All-Party Iraq Group to the US, and Professor Brendan O’Leary interview Herish Muharam, the Head of the 29 The Kurdistan Region: New Beginnings Investment Board Lord Robertson of Port Ellen, KT GCMG PC 59 Sarkis Aghajan Mamendu PAST, PRESENT AND FUTURE Bayan Sami Abdul Rahman, KRG Representative to the UK, profiles Sarkis Aghajan Mamendu, 30 Overcoming A Terrible Past: the Minister of Finance Kurdistan and Its People Professor Brendan O’Leary SECTORAL DEVELOPMENT 36 The Kurdistan Regional Government 61 Sectoral Development Professor Brendan O’Leary amid Kurdistan’s Secure Environment 42 Looking to the Future 62 Sustainable Development in Kurdistan Professor Brendan O’Leary Dr. Anwar Abdullah 8 Contents 64 Agricultural Renaissance in the 98 Doing Business in the Kurdistan Kurdistan Region Region of Iraq–aTurkish Perspective Professor Gareth Stansfield Mehmet Sepil, CEO of Genil Enerji 70 Kurdistan Goes Cellular 100 Turkish Business and the Kurdistan Region Vian Rahman Professor Michael Gunter 78 Investment Opportunities and Planning 102 The Transformation of the Peshmerga: Strategy in the Kurdistan Region a Personal Account Osman Shwani, Minister of Planning Tom Hardie-Forsyth 81 Boomtowns in the Kurdistan Region 106 Safety and Security Bayan Sami Abdul Rahman, Karim Sinjari, Minister of State KRG Representative to the UK for the Interior 84 Kurdistan’s Treasures: A Window into the Past CHALLENGES AHEAD Shines a Light on the Future Kathryn Cameron Porter 109 The Road Ahead 87 Planes, Automobiles and Little Motorized Canoes 110 Future Challenges: Kirkuk Michael Howard Professor Brendan O’Leary 89 A Business Visitor’s View of Kurdistan 116 Federal-Regional Relations in Iraq Michael Thomas, Director General of the Jonathan Morrow Middle East Association 119 Economic Development in Kurdistan 92 Roaming Kurdistan: Mountain Adventures Dr. Zeki Fattah, Senior Economic Stafford Clarry Advisor to the Prime Minister 9 Contents RESOURCES 156 American Investment in Kurdistan Terry Dunmire, Director of Business 125 Kurdistan’s Natural and Development at DynCorp International Human Resources 160 In For the Long-Haul 128 The Kurdistan Region’s Oil and Gas Law Wayne Culbreth, Managing Partner of FDF Jonathan Morrow Capital Management 134 Profiles: Bayan Sami Abdul Rahman, KRG 162 Investing in Stability Representative to the UK and Qubad J. Talabani, David Bohigian, Assistant Secretary for KRG Representative to the US Market Access and Compliance, US Department of Commerce 138 Key Questions on Oil and Gas Dr. Khaled Salih interviews Dr. Ashti Hawrami, KURDISH SOCIETY Minister of Natural Resources in the KRG 165 Rapid Transformation 143 Profiles: KRG UK Representation and KRG US Representation 166 Universities of Kurdistan: Knowledge Powers Growth 146 Capitalizing on Kurdistan’s Water Resources Bayan Sami Abdul Rahman, KRG 170 Empowering the Young Representative to the UK Taha Barwary HOW TO INVEST 172 Building an Inclusive and Tolerant Kurdistan Qubad J. Talabani, KRG Representative to the US 150 Nine Maxims for Wise Investors Jonathan Morrow 175 Pinching Yourself in the Other Iraq Christopher Hitchens 152 Rich Rewards for Adventurous Investors Tanya Goudsouzian 178 Directory 11 Foreword The Kurdistan Region: Invest in the Future he Kurdistan Region of Iraq is experiencing His Excellency Prime an unprecedented period of development, which we were able to consolidate because Minister Nechirvan of the overthrow of Saddam Hussein’s regime in 2003. Having emerged from the Barzani introduces the darkness of dictatorship into the light of Kurdistan Region democracy, we are determined not to Tsquander this opportunity. 14 Foreword The Kurdistan Region can be an example to the rest of the country We believe that Iraq can be a free, democratic, Iraq, to benefit not only the people of our region, but federal, secular, and pluralistic country if sufficient also the rest of the country. This law ensures that our efforts are dedicated to this goal. With our clear and people will be served by the most reputable comprehensive vision for the future, the Kurdistan international oil and gas companies. Region can be an example to the rest of the country The National Assembly has also passed legislation in achieving peace, stability, democracy and to ensure that the rule of law is upheld at all times economic development. and that our law enforcement authorities have the To focus on development, we have created a unity necessary power to punish illegality and corruption if government in our region, in which all political parties it occurs. are included, and through which every person in the These pieces of legislation exhibit the close working region is represented. relationship between government and parliament and The Kurdistan Regional Government is determined to show the progressive and spirited mindset of both. We operate as the servant of the people in a transparent are determined to avoid the problems that have and accountable way, while upholding the principles of bedeviled the rest of the country. Rather than let human rights and civil liberties. The Kurdistan National sectarian hatred and political infighting cripple us, we Assembly (KNA), our regional parliament, makes the are taking positive steps to maintain and consolidate law, which the courts uphold, and our ministries stability and prosperity. manage most aspects of political decision-making. We are especially enthusiastic to reform our There is a great deal to do – our people have agricultural sector. We are blessed with highly fertile soil suffered from genocide, and our region endured and abundant fresh water reserves. We were once Iraq decades of neglect. After years of isolation, we are and the region’s breadbasket, but to destroy our social embracing foreign interaction and encouraging foreign fabric Saddam Hussein instituted a program of forced direct investment. urbanization, moving people from rural areas to collective To facilitate external engagement, the KNA passed towns. Now we currently import food-stuffs that we could our Investment Law in July 2006. This is a grow ourselves, at competitive costs of production. We comprehensive and investor-friendly law, offering aim to reverse this situation and become an exporter of generous incentives to outside investors, including the food to countries