September 2013 KURDISTAN REGION of IRAQ

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

THE REVIEW September 2013 KURDISTAN REGION OF IRAQ

Exclusive Nechirvan Barzani Prime Minister Nechirvan Barzani on political stability, major structural reforms, and economic growth

exclusive analysis Minister Yasin Sheikh by Dr. Fuad Hussein Abu Bakir Mawati

INVEST IN GROUP AN EYE ON THE EMERGING WORLD

Home to several major real estate and development projects, Empire World spans a land area of 750,000 m2. Empire’s multi-faceted and mixed-use approach to land utilization affords the Project the distinguishing characteristic of a city within a city. CONTENTS SEPTEMBER 2013 Diplomacy & Politics

22 Shaping the Future of the Kurdistan Region — PM Nechirvan Barzani 26 Diplomacy in Action — Dr. Fuad Hussein 28 Planned Expansion — Nawzad Hadi 30 Reaffirming the UK’s long-term commitment — Hugh Evans 33 Importing Experience — Jeroen Kelderhuis

“The Kurdistan Region is a suc- “I believe that in 3-5 years, cess story, not only in comparison Erbil will continue to to the rest of the country but to the expand, with significant rest of the region as well.” growth in all sectors.” Page 26 Page 28

Economy “We want to demonstrate that the private 36 Strong, Inspiring, Visionary — Hawre Daro Noori 40 Invest in Slemani — Farman Gharib Sa’eed sector is capable of 42 Changing the Mindset — Jamal Asfour raising the standard 44 Huge Opportunities — Serwan M. Mahmood of an industry and 46 Staffing Kurdistan— Haller Dleir Miran provide a model for 48 An eye on Integrity, Political & Security Risks — Harry Bucknall others to follow.” Page 36 Energy

52 Preparing to Export — Yasin Sheikh Abu Bakir Muhammad Mawati 54 Electricity Factsheet 56 Commitment to Clean Energy — Shakir Wajid Shakir 58 Developing to be a Major — Umur Eminkahyagil 60 High-Level of Expertise — Dr. Adel Chaouch 63 100% Success — Bill Jack 66 Sustainable Model — Leo Koot

Empire Business Towers Empire Business Complex Empire Speed Center Service Facilities (Medical Clinic, Fire Station, Kindergarten, Mosque) “We have a plan to export power to the Empire Royal Villas surrounding regions by 2015. ” Electricty Factsheet PAGE 54 Empire Royal Apartments Page 52 Empire Residential Wings +964 (0) 66 257 6006 Empire Residential Diamond Towers Empire Residential Pearl Towers +964 (0) 66 257 6007 Marriott Hotel & Executive Apartments www.empireiraq.com | [email protected] Kurdistan Region of Iraq 7 CONTENTS SEPTEMBER 2013

Transport

69 Best Emerging Market Airport — Talar Faiq Salih 72 Becoming a Hub for Regional Cargo Exchange — Tahir A. Qadir 74 Red Carpet Arrival — Dori F. Abouzeid

Erbil International Airport Slemani International Airport PAGE 69 PAGE 72

Education

77 Bright Future — Dr. Asmat Muhamad Khalid 80 Creating Future Leaders — Dr. Athanasios Moulakis Health

83 Changing the face of Iraqi pharmaceuticals — Dr. Bahram Resul Doing Business

86 Deloitte drives progress in the Kurdistan Region Tourism Erbil Style PAGE 92-94 88 Planning For The Future — Mawlawi Jabar Wahab Life & Culture

90 Landmark of Slemani — Safwan Khayat 92 Sushi in Erbil - Divan 93 Noura Jewellery & Watches 94 Fitness Made Easy - Tangram 94 Zen the Spa - Rotana 94 Poolside Living - Rotana

8 The Review Managing Director Can Yirik The Review

Senior Editor David Stevenson Kurdistan Region of Iraq Editor Onur Bayramoglu An update on alluring leaders, emerging sectors, leading companies and rising trends shaping the future of the Kurdistan Region of Iraq. Project Director Margaret Cotter hile there is significant turmoil in the Middle East, the Project Editor Kurdistan Region has distinguished itself via its ded- Taylor Rockwell ication to political stability, democratic governance, Weconomic development, and national cohesion. The KRG has fully committed to implementing ambitious Marketing Director Rachael Walsh reforms with an eye towards further establishing the Region as a major destination for both the regional and global business communities. The favorable Investment Law and stable business Creative Director environment have enabled the Region to advance its economy Mustafa Gülsün across a wide variety of sectors. This development has, in turn, contributed to the Kurdistan Region’s rapidly growing reputation Design as a premier global business and investment destination. Catherine Bergman The sustainable growth that is readily apparent throughout key economic sectors can be directly traced to the good gover- Associate Editor nance policies of the KRG, as well as to measurable long-term Robert Sotolar strategic planning and a strong commitment to the overall development of the Kurdistan Region. Sub-Editors IIG met with the Prime Minister Nechirvan Barzani to Tom J. Phalen explore the primary forces driving the rapid development of the Region and to assess how the Region has managed to develop into Daniel Jenkins a center of attraction in a relatively short period of time. Amongst other topics, PM Barzani also provided insight into the main Researcher pillars of the development policy of the KRG, the importance of Sabine Ofer the Human Capacity Development Program, the major structural reforms that the government has instituted in recent years, and Photo Editor the strategic projects that will serve to diversify investment within Esra Köse the three governorates of the Kurdistan Region. In this issue, we keep an eye on the recent developments and PR Manager achievements relating to investment and business opportunities Falcon Group is a wholly owned and Alexandra Meier in the energy, transport, insurance, tourism, health, and education sectors. The Review also highlights the projects, policies, and operated Iraqi corporation focused on the success stories of the leading economic entities within the Region. Production reconstruction of the Kurdistan Region and Invest in Group Invest in Group 1425 K Street NW, Suite 350 maintenance of critical infrastructures. Falcon Washington D.C., 20005, United States Group is comprised of several [email protected] companies, including: www.investingroup.org Copyright © In partnership with • Falcon Security • Falcon German Trading Invest in Group Department of Foreign Relations (DFR) • Falcon Construction • Falcon Transportation All rights reserved. Kurdistan Regional Government (KRG)

• Falcon Agriculture • Falcon Logistics No part of this publication may be • Falcon Oil & Gas • Full Service reproduced, or transmitted in any form or Special thanks to • Falcon Batch Plant • Brayati Construction by any means, electronic or mechanical, Aziz Ahmad, DFR including photocopy, recording, or any Kurdistan Board of Investment (BOI) • Falcon Demining • Quesco Turbo Machinery Services information storage and retrieval system, without prior written permission of Invest We would like to express our gratitude to Minister Falah Mustafa Bakir in Group. and Minister Herish Muharam for their support of our project in the Whilst every effort has been made to Kurdistan Region of Iraq. ensure the accuracy of the information [email protected] www.falconiraq.com contained in this publication, the authors and publisher accept no responsibility +964 (0) 258 6008 +964 (0) 258 6009 for any errors it may contain, for any loss, financial or otherwise, sustained by any Kurdistan Region of Iraq 11 person using this publication. BRIEFING DIPLOMACY & POLITICS President Barzani Meets with French President Kurdistan International Bank Hollande President Masoud Barzani recently met with French President François Hollande as part of for Investment & Development an official visit to the French capital. During President Barzani’s time in Paris, the two discussed growing economic and cultural ties between France and the Kurdistan Region, as well as the effect the civil war raging in Syria is Continuous Progress, Transparency, Trust, having on regional relations and the Kurdish community within Syria. President Barzani Security, Reputation, and Creativity also signaled that, in the wake of recent disputes, a process of rapprochement between Erbil and Baghdad was underway following KIB follows a clear vision to meet the requirements of important economic sectors and Iraq Prime Minister Nouri al-Maliki’s recent keeps abreast with the technological developments in the banking industry. This vision visit to the Kurdistan Region. allows KIB to make contributions towards the reconstruction and development process in the Kurdistan Region in particular and Iraq as a whole.

DIPLOMACY & POLITICS President Barzani Meets Russian FM Lavrov President Masoud Barzani met with Russia’s Foreign Minister Sergey Lavrov during an international economic forum in St. Petersburg. The two discussed Russia’s expanding involvement in the energy sector in the Kurdistan Region and expressed hope that reconciliation between Erbil and Baghdad would settle ongoing disputes over resources. President Barzani also met with top executives from the Russian energy giant Gazprom, which has invested heavily in the Kurdistan Region of late. Gazprom officials expressed their continued interest in the development of the Kurdistan Region’s oil and gas sectors. On the heels of a meeting between the President Masoud Barzani and Gazprom Chairman Alexei Miller, the company stated its desire to continue work in exploration and operation of oil and gas fields. Gazprom has existing operations in The KRG delegation headed by President Masoud Barzani in a Headquarters Garmian and Shakal blocks in the southern meeting with the Russian Foreign Minister Sergey Lavrov and Erbil - Gulan Street reaches of the Kurdistan Region. senior officials in St. Petersburg. International Phone +44 20 36273428 - +44 20 36273429 Local Phone 2238149 – 2238150 – 2238152 – 2238154 – 2238156 www.kibid.com

Kurdistan Region of Iraq 13 BRIEFING DIPLOMACY & POLITICS ENERGY New Turkish Consul Erbil Power Plant

General for the Following a push by the Kurdistan Regional government to increase the Kurdistan Region efficiency and capacity of its energy infrastructure, Mass Global Investment Company has contracted GE to supply two steam turbines that will augment The Turkish Republic has named Mr. Mehmet output at the Erbil Power Plant by 500 MW. The project will also increase ther- Akif Inam, former counselor to the Turkish mal efficiency to over 48%. This should supply enough additional electricity to Embassy in Washington, DC, as its latest power 100,000 Iraqi residences and will make Erbil one of the most efficient Consul General in Erbil. Kurdistan Regional power plants in all of Iraq. Turkey’s ENKA Construction & Industry Company Government officials welcomed Mr. Inam’s will build the new combined-cycle plant, scheduled to begin commercial service appointment, underlining their commit- in the latter half of 2014. “Today’s agreement reflects ment to the “strategic relationship” between GE’s continuing commitment Kurdistan and Turkey and their desire to to support energy infrastruc- increase cooperation on political, social, and ture growth in Iraqi Kurdistan economic issues. Mr. Inam, for his part, reaf- and throughout the country. firmed Turkey’s commitment to increase assis- It builds on our growing tance in the visa process and brought attention Yıldız at the international economic forum in relationship with Mass Global, to the great contribution Turkish companies St. Petersburg. President Barzani and Minister Turkish companies operating are making to the Region’s economic growth. Yıldız signaled their approval for strength- in the Region supporting its efforts to Recently, President Barzani met with Turkish ening economic ties between Turkey and the 1148 (2012) enable a reliable and efficient Energy and Natural Resources Minister Taner Kurdistan Region. supply of electricity needed to Turkey-Kurdistan Region fuel the growth and develop- trade volume ment of the Kurdistan Region. $8 billion (2012) This agreement also reflects GE’s ongoing commitment to DIPLOMACY & POLITICS ENERGY support Iraq in boosting its DIPLOMACY & POLITICS Canada Set to Oil Export Pipeline power generation and infra- PM Barzani visits Turkey structure growth.“ Open Diplomatic to Turkey Nearing In late July, KRG Prime Minister Nechirvan Barzani met with Turkish Prime Representation in Erbil Completion Minister Tayyip Erdogan to discuss recent developments in the Middle East, Joseph Anis, GE Energy’s President & bilateral relations, the situation in Syria, developments in Iraq, and the prepa- CEO for the Middle East Departing Canadian Ambassador Mark Minister of Natural Resources, Dr. Ashti rations for the Kurdish national congress. Both sides emphasized the impor- Gwozdecky announced plans to establish a Hawrami, predicts that the Region will begin tance of strengthening both economic and trade relations, as well as increasing Canadian diplomatic representation in the exporting crude oil in the near future coordination in the energy sector. The current political and security situation in “Converting our Erbil facility Kurdistan Region, joining 27 other coun- upon the completion of a pipeline to the Iraq was also discussed, with PM Erdogan reiterating his support for improved to combined-cycle service tries that have already done so. Ambassador Turkish border by the end of September. relations between Erbil and Baghdad, as well as for continued mutual visits to supports the Kurdistan Re- Gwozdecky expressed Canada’s continuing While it is unknown whether the KRG find negotiated solutions. gional Government’s policy support for the Kurdistan Region and pledged will make use of already existing Iraqi to increase the thermal effi- to share experiences from its federal system government export facilities or build ciency of its power generation in hopes of contributing to the democrat- its own at the Turkish border, facilities. This new agree- ic development of Iraq. Kurdistan Regional officials from the regional gov- Government leaders, for their part, called for ernment state that the pipeline ment builds on our growing Canada’s assistance in the process of building will reach a capacity of one relationship with GE Energy democratic institutions and strengthening rule million bpd by 2015. Oil exports from the whose proven and reliable of law in the Kurdistan Region. Region have been curtailed of late as a result advanced energy technology pipeline closures stemming from disputes has been employed in our gas over oil revenues between Erbil and Baghdad. power facilities since 2006.“ Ahmad Ismail Saleh, Chairman of Mass Group Holding

14 The Review Kurdistan Region of Iraq 15 BRIEFING ENERGY ENERGY Orxy in the Region KRG Gives Blessing to Gulf Following approval by the KRG, Gulf Shaikan Oryx Petroleum to Keystone has begun developmental drilling Hawler Keystone Development at the Shaikan oilfield, with production to Discovered by GKP in Expand Operations Interest [65%] Plan for Shaikan Field commence shortly. The company’s first devel- 2009, the field represents Canadian oil exploration company Oryx Field: Demir Dagh opment well, Shaikan-10, will be tied to the the largest on-shore oil Petroleum is set to begin drilling operations at Reserve: 164 MMbbl Gulf Keystone Petroleum, a pioneer in the second of two newly built production facilities discoveries in the world not its site in the Banan Oil field in the Kurdistan proved, 200 MMbbl Kurdistan Region’s burgeoning energy sec- on the site that should allow it to achieve a currently being operated Region. The site holds great potential, as it contingent tor, has announced the Kurdistan Regional short-term production target of 40,000 bpd. by one of the global super may form part of the same structure as the Risked: 107 MMbbl Government’s approval of its development Over the next nine months, Gulf Keystone majors. company’s discovery at Demir Dagh, which Production: plan for the Shaikan oil field. This will plans to probe untested depths of its major possesses 164 million barrels of proved and 30,000 bpd 2014 allow Gulf Keystone to begin production, discovery at the Shaikan oil field. The com- Operators: Gulf Keystone probable reserves, and 200 million of contin- Target: 100,000 bpd 2016 “The fact that it looks like it could be commencing at around 20,000 bpd, rising pany hopes to find major reservoirs below [75%], MOL [20%] gent resources. The company expects to pro- Wells: 2. Planned to spud a joined-up structure is that much to 40,000 bpd shortly thereafter. In three the furthest reaches of the Shaikan field that Reserves: 14 billion barrels duce 30,000 barrels of oil per day in 2014 and additional 3 exploration more exciting and could mean we years, the company plans to be producing have been drilled to date. This entails drilling of oilProduction capacity: aims to reach a production level of 100,000 wells and 2 appraisal well have one of the most significant 150,000 bpd, rising to 250,000 bpd by 2018. a vertical well to depths below 4500m over a 40,000 bpd (2013) barrels per day in 2016. to be drilled in 2013/2014 structures in the Kurdistan Region… Production at this large field is a key compo- period of nine months. Any potential discov- Target: 150,000 bpd in We go after a large accumulation of 2016, 250,000 bpd in 2018 Sindi Amedi nent in the Region’s plan to achieve export lev- ery would bolster what is already known to be reserves in one location. That is what els of one million bpd by 2015 and two million one of the world’s largest conventional onshore Producing wells: 12 ENERGY Interest [45%] bpd by the end of the decade. oil and gas fields. Reserve: 110 MMbbl does attract big players who can pay Genel Confident on Risked: 8 MMbbl big checks.” Well: Planned spud Q4 Region’s Energy Outlook Michael Ebsary, CEO of Oryx Petroleum 2013, Q1 2014 Genel Energy expressed confidence in the ENERGY DIPLOMACY & POLITICS future of the Kurdistan Region’s oil and gas Chevron Strikes Oil Italy Expands its Diplomatic Presence sector. Especially significant is the Region’s development of an independent export infra- Exploration Deal with KRG in the Kurdistan Region structure for its oil, which should be in place Chevron has reached an agreement with the soon with the completion of Region’s own oil Kurdistan Regional Government to acquire export pipeline by the end of the year. Genel an oil license that will give the company an CEO Tony Hayward predicted the company’s interest in the Qara Dagh field, as well as oper- production levels would remain at 45,000- ationship of the site. This agreement follows 55,000 bpd, with revenues of $300-400 million Chevron’s purchase last year of two existing for the year. oil licenses that had been operated by India’s Reliance Industries. TELECOM DIPLOMACY & POLITICS Korek Telecom to Upgrade New US Consul General Corporate Social Responsibility Network in Southern Iraq Arrives in Kurdistan Region Genel Energy Makes Korek Telecom, the largest telecom operator in Joseph Pennington, newly appointed Large Donation to AUIS the Kurdistan Region, will soon extend high- American Consul General in Erbil, arrived Anglo-Turkish firm Genel Energy recently speed mobile broadband, improved voice ser- recently for talks with top officials in the announced a $20 million USD donation vices, and better coverage to its customers in Kurdistan Regional Government. Minister New US Consul General to the American University of Iraq, southern Iraq with the help of Nokia Siemens Falah Mustafa welcomed Mr. Pennington’s Mr. Pennington, a career Sulaymaniah (AUIS) for the purpose of Italy will soon upgrade its diplomatic Minister Falah Mustafa welcomed the Networks. Nokia Siemens will provide Korek arrival and the two discussed ways of further member of the senior furthering the university’s mission of presence in Erbil, reflecting growing move while hosting an Italian delega- with systems that make network planning expandwing political, social, and economic Foreign Service, previously high-quality, student-focused education ties with the Kurdistan Region. It will tion to collaborate on the establish- easier, lower costs, ensure more reliable access, ties. The Consulate General in Erbil recently served in Moscow, Turkey, based on the American model. The convert its already existing Consular ment of a national park in Rawanduz. and reduces data transmission delays. As part started issuing visas for business, travel, work, Czech Republic, Bosnia, donation, to be used in meeting the Office in Erbil to a Consulate by the Both Italian and KRG officials of the deal, Nokia Siemens will supply full and study abroad in a move that promises to and Armenia. He earned university’s operating costs, also serves end of the year; the facility will be acknowledged the great possibilities turnkey and other professional services to strengthen links between the United States an M.A. from Columbia Genel’s aim of enhancing infrastructure in headed by recently arrived Consul for cooperation in areas of tourism, ensure a well-coordinated rollout. and the Kurdistan Region. University. the Kurdistan Region. General Dr. Carmelo Ficarra. resource management, and environmental preservation.

16 The Review Kurdistan Region of Iraq 17 BRIEFING DIPLOMACY & POLITICS ENERGY DIPLOMACY & POLITICS ENERGY

Hungary to Establish DNO Thrilled with Tawke Dutch Delegation’s Visit Miran and Bina Bawi Diplomatic Mission in Results from Oilfield Discovered by DNO Reflects Strengthening Ties hold a combined 8-18 TCF Kurdistan Region in Kurdistan Region in 2006 between Kurdistan Region Genel Energy is likely to significantly raise its estimate of the amount of gas it has discovered in the Kurdistan Region. The company now Norway’s DNO, an early entrant into the Operators: DNO (55%) and Netherlands believes that its gasfields at Miran and Bina Bawi hold a combined 8-18 Kurdistan Region’s energy sector, has heralded Genel Energy (25%) trillion cubic feet of gas, a figure that represents more than twice its production levels at its newest well, a hori- Reserves: 771 Mmbbls previous estimate of gas resources. These developments come amidst zontal installation that is soon to be followed Target: 200,000 bpd important progress on a comprehensive energy-export agreement by two others of the same variety. The firm’s by 2014 between the KRG and Turkey that would see 20-25 percent of Turkey’s horizontal well at the Tawke field is produc- Producing wells: 17 annual gas consumption [10bn cubic meters] supplied by pipelines from ing 100,000 bpd, more than doubling totals at the Kurdistan Region. its next most productive well. DNO’s success underlines the potential of the Kurdistan EXHIBITION Region as a whole, which sits atop over 45 During a recent visit to Erbil, Hungary’s new billion barrels of oil. Erbil Oil and Gas Exhibition ambassador to Iraq, Mr. Tibor Tamari, stated to Take Place in September his country’s interest in establishing a consulate in the city. Ambassador Tamari praised the The 3rd annual Erbil International Oil and Gas Exhibition, one of the remarkable progress the Region had made in DIPLOMACY & POLITICS Fed Teeven, Dutch Minister for Migration and most important events in the energy sector in Iraq, will take place the political and economic fields over such a State Secretary of Security and Justice, recently September 2-5, 2013 at the Erbil International Fairground. The exhibi- short period of time. The Ambassador also People’s Republic of China met with top officials from the Kurdistan tion will underline the opportunities awaiting investors in the Kurdistan discussed possible cooperation in the agricul- to open consulate in Erbil Regional Government to discuss contributions Region’s oil sector thanks to great potential reserves and progressive eco- ture, health, education, and tourism sectors. the Netherlands can make in efforts to bolster nomic and investment policies on the part of the regional government. rule of law, human rights, and transparency This year’s exhibition seeks to build upon the success of last year’s event, ENERGY in the Kurdistan Region. In the wake of talks, which attracted 51 exhibitors and nearly 5000 visitors. Minister Falah Mustafa called for the creation ABB Wins $30m Order of an official European Union diplomatic DIPLOMACY & POLITICS to Upgrade Kurdistan representation in Erbil to ensure the Region’s priorities are communicated to EU officials. Catherine Ashton Visits Kurdistan Region Region’s Power Grid Catherine Ashton, EU High Representative for Foreign Affairs, made Zagros Energy recently awarded ABB with the EXHIBITION her first visit to the Kurdistan Region for talks with President Masoud responsibility of expanding and reinforcing Barzani and Prime Minister Nechirvan Barzani over the instability the Kurdistan Region’s power grid. Rapidly British Trade Groups gripping Southern Iraq and the Kurdistan Region’s ongoing dialogue increasingly demand has led to the threat of Show Great Interest in with Iraq’s central government in Baghdad. During their meeting, the blackouts, and, in the short term, the KRG pair assured Representative Ashton that the KRG’s energy policies hopes to expand capacity to 4,000 MW to Kurdistan Region follow Iraq’s Constitution and highlighted the insufficient international counter this. The government also established The UK’s Middle East Association [MEA] response to the refugee crisis affecting the Kurdistan Region as Syria’s a long term goal of reaching a capacity 10,000 has partnered with UK Trade & Investment civil war continues to rage. MW. Regional leaders hope to eventually pro- [UKTI] and the KRG to organize a trade dele- duce enough energy to begin exporting power The People’s Republic of China is expected to open its first diplomatic mission gation to the Kurdistan Region this September TOURISM to neighboring countries. in the Kurdistan Region by the end of this year. During a meeting with Minister during the 9th Erbil International Trade Fair. Falah Mustafa Bakir, China’s Ambassador to Iraq, Mr Ni Jian, announced the MEA has orchestrated fourteen visits to the Wyndam Hotels in Slemani decision to open a consulate-general. According to a statement issued by the Region, and 107 British companies are already Wyndam Hotel Group, the world’s largest hotel chain, has entered the KRG, “The Chinese ambassador reaffirmed his country’s interest in establish- registered there. The Erbil Trade Fair is the Iraqi market with the recently opened Ramada in Slemani. The Ramada ing a strong diplomatic presence in the Kurdistan Region to promote political, largest of its kind in Iraq and recent years have Sulaymaniyah Salim Street boasts 71 rooms, including 13 suites, as well economic, and cultural ties.” Ambassador Jian also noted, “The number of visas racked up record numbers of visitors and as a theatre-style ballroom with space for up to 700 people and a range we have issued in Baghdad shows more and more people from Iraq and the exhibitors, reflecting the impressive economic of high quality dining options. Guests are also treated to a full-range spa Kurdistan Region want to visit China to promote business ties.” performance and open investment environ- with amenities including an indoor pool and a Turkish bath. ment of the Kurdistan Region.

18 The Review Kurdistan Region of Iraq 19 ENERGY DIPLOMACY & POLITICS New Petrol Distribution Germany Pledges to Support Syrian Regulations Refugees in the Kurdistan Region The KRG’s MNR and Erbil Governorate authorities recently introduced new rules designed to better regulate the sale of petrol from private fuel stations. Effective on August 25, privately-owned petrol stations in the Erbil Governorate will be authorized to only sell the same standard petrol at a uniform price. Standard fuel is known as “Beiji”, and is named after the refin- ery to the north of Baghdad that initially produced it. According to the statement issued by the MNR, “After a comprehensive investigation, the Ministry found that other types of petrol, such as that market- ed as ‘Super’, were usually sold at higher During a meeting with Minister Falah Mustafa Bakir, the head of the KRG’s prices than Beiji fuel but were of the same Department of Foreign Relations, Germany’s Ambassador to Iraq, Ms. Brita Wagener, or often worse quality, and contained noted that the German government has pledged an additional 15 million Euros for unnecessary and even harmful additives.” Syrian refugees, via UNICEF and the World Food Programme, with a significant The decision is expected to have added amount earmarked for the refugees based in the Kurdistan Region. This decision by benefits for consumers, as fuel can now be the German government comes on the heels of a visit to the Kurdistan Region by purchased from both public and private Germany’s Federal Minister for Economic Cooperation and Development, Mr. Dirk petrol stations at a uniform price of 500 Niebel. During his visit, Minister Niebel met with senior KRG officials and visited IQD per liter; previously, Beiji fuel was the refugee camps to gain a better understanding of the situation. The KRG itself has sold at some private stations for as much already pledged $20 million dollars to provide humanitarian assistance and basic as 950 IQD per liter. The move means that services. Until Germany’s pledge to increase its support, the Region had received little the KRG will be the sole supplier of petrol aid from the international community and no assistance from the Iraqi federal gov- to the Erbil Governorate. It is expected ernment. More than 160,000 refugees now live inside the Kurdistan Region as a result that similar regulations will be passed for of the ongoing chaos in Syria. With no end to that conflict in site, those numbers are Duhok and Slemani in the future. expected to continue to rise.

EDUCATION AUIS to Partner with American Universities The American University of Iraq, Sulaymaniyah (AUIS) has announced the formation of institutional partnerships with the State University of New York at Albany (SUNY-Albany) and Miami University of Ohio. The partnerships will foster exchange opportunities of AUIS students and allow for new curriculum options, with particular attention paid to developing human capital in the public health, public administration, and water resource management sectors.

The AUIS awarded baccalaureate degrees in Business Administration, Information Technology, and International Studies to 54 students; an additional 29 students received Masters Degrees in Business Administration in 2013. The graduation ceremony was presided over by Chairman of the Board of Trustees Dr. Barham Salih and then-AUIS President Dr. Athanasios Moulakis. Featured speakers at the commencement included Prime Minister Nechirvan Barzani, Mr. Douglas Silliman (Chargé d’Affaires of the United States Embassy in Baghdad), and KRG Minister of Higher Education Dr. Ali Saeed.

20 The Review DIPLOMACY & POLITICS About 1966 — Born in Barzan 1989 — Elected to the leadership of the Kurdistan Democratic Party (KDP) 1996 — Appointed as the Deputy PM of the KRG 1999-2009 — Served as the PM in two Shaping the Future of the successive cabinets 2010 — Elected as Vice President of the KDP 2012 — Formed the 7th cabinet of the KRG Speaks Kurdish, Persian, English, and Arabic Kurdistan Region Prime Minister Nechirvan Barzani provides IIG with exclusive insight into the main pillars of the KRG’s policy regarding development in the Kurdistan Region, the importance of the Human Capacity Development Program, the major structural reforms that the government has achieved, and the key projects allowing for diversified investment.

IIG: Kurdistan Region has achieved to carry this region forward. Developing remarkable political and economic prog- human capacity is key to achieving that ress in a very short period of time. What goal. This programme is an investment in are the main pillars of the KRG’s policy our people, designed to equip our bright that will allow the region to continue the students and civil servants with the expe- We have invested in momentum that it has gained in recent rience and education they need to build “ years? Region’s success. training civil servants, NB:There are three key elements to our We have so far awarded over 4,300 success. First, we have provided a stable scholarships and we have postgraduate published the and secure environment for our people students across the world studying various KRG’s oil contracts, and for our businesses to develop. Without subjects, building networks and friend- this, and without the support and coopera- ships and making international universities participated in tion of our people with our security forces, aware of the Kurdistan Region. what you see today in the Kurdistan Region Having a well-educated society is internationally- would not have been possible. important to every nation, but perhaps recognised Second, we are trying to use our limited more so in this Region since many of resources to develop the infrastructure – our people had their education disrupt- transparency both physical and human – to allow our ed through conflict and displacement economy to grow and our people to enjoy and most couldn’t travel abroad. We can’t initiatives and created the benefits of this growth. change the past but we can do something a specific department Finally, we have taken bold and cre- about the future and that’s what this pro- ative steps in the area of energy develop- gramme and our other education and within the Council of ment and foreign investment to ensure training policies are aimed at. Ministers to promote that international companies, including blue-chips, establish a presence here and IIG: Major administrative reforms and implement help us to develop our energy resources. have played a vital role in eliminating bureaucratic obstacles and attracting the meaningful measures IIG:The KRG has attached particular attention of the international business to fight corruption importance to the Human Capacity community. What structural improve- Development Program. Can you tell us ments has the KRG achieved in terms and promote about the overall goals for this scholarship of reforming the administrative system? programme and how it will impact the NB: Our administrative system has transparency. development of the Kurdistan Region? evolved a great deal since the early 1990s NB: The future that we aspire to requires when we began from scratch, but we still us to have the knowledge and know-how have far to go. 22 The Review ” Kurdistan Region of Iraq 23 It is important to note that in 1991, after international community. will the KRG pursue in order to strength- the establishment of the safe haven and We have made substantial progress en the financial sector in particular so as no-fly zone, Saddam Hussein withdrew not and the public has high expectations of to support this progress? only his troops but the entire administra- its government, so we will continue to try NB: We lack a modern and productive tion and public services in the Kurdistan to minimise bureaucracy and promote financial system. Access to credit, to trade Region. Overnight, we had to step in and transparency. financing, and the development of a con- take over schools, hospitals and the run- sumer and corporate credit market are ning of a region that had been devastated IIG: The KRG has laid the cornerstones essential to further the Region’s economic by genocide, chemical bombardment and for several projects in Duhok and the development. This is a problem that affects the destruction of thousands of villages. surrounding districts. However, Erbil all of Iraq. We have seen some small steps, I’m proud that our people stepped up to and Slemani have been the focus of but there is much work to be done. this challenge and we were able to cope, the majority of the development in the We are planning legislation to promote despite the shortcomings and sacrifices Kurdistan Region. How important is it the financial sector, such as insurance, and people had to make, for example, there for your government to diversify this we plan to create institutions such as the were times when there weren’t sufficient investment to facilitate growth across Erbil Stock Exchange to give a platform for funds to pay teachers’ salaries but they con- all geographical areas? local companies to raise funds. NB: It’s important to underline Several international banks have a that the level of investment in presence here but we need more of them “The KRG supports investors Duhok and Slemani has grown and we need them to offer more services, by offering incentives for consistently year on year since particularly to businesses. We also need a the creation of the KRG Board banking system that offers mortgages so strategic projects, especially of Investment in 2006, but it is that housing can become more affordable those in line with the needs of true that Erbil, as the capital, for those on lower incomes. has attracted more businesses. We have seen several small steps from our people and government.” We have, however, encouraged international banks here, and we anticipate more businesses and inves- more in the future. tinued to work because they didn’t want tors alike to strongly consider Duhok and the next generation’s education to suffer Slemani over the past several years. This IIG: What is your key message to the as theirs had. is an ongoing policy and something that globally engaged business and invest- In the two decades since then, we have my government is committed to and is ment community? been able to improve in many areas. We promoting through legislation and other NB: My message is that Kurdistan Region took a significant step forward in 2006 incentives. The KRG Board of Investment is open for business and there are many when the Erbil and Slemani administra- now has directorates in each province with opportunities here for those who wish to tions were unified. We have adopted laws the authority to award investment licens- be part of this Region’s historic turnaround that promote accountability and transpar- es to companies, independently from the from being an oppressed, neglected part ency. We have invested in training civil board’s headquarters in Erbil. This is a of the world to being a democratic society servants, published the KRG’s oil contracts, good step towards encouraging foreign with a dynamic, investor-friendly economy. participated in internationally-recognised transparency initiatives and created a “Our rich and vibrant region can be used as a specific department within the Council of Ministers to promote and implement platform for doing business in all of Iraq. meaningful measures to fight corruption Divan Hospitality Rising in Erbil and promote transparency. This Region is not just a market for 5 million The KRG is works closely with the UK people, but has access to a market for Enjoy our exclusive accommodation approach for more than half a century, National School of Government to build while you discover the unique business opportunities Erbil offers. and improve human capacity and fur- 30 million people.” ther develop our public services. We have also signed a long-term agreement with direct investment into both Duhok and The KRG supports investors by offering PricewaterhouseCoopers (PwC) to devel- Slemani, and is part of our policy of devolv- incentives for strategic projects, especially op and implement our good-governance ing power to the governorates. those in line with the needs of our people and transparency strategy. These import- and government. ant initiatives are also strongly supported IIG: Considering its political stability, Our rich and vibrant region can be used and promoted by the KRG Department major structural reforms, and rapid as a platform for doing business in all of of Foreign Relations and KRG Board of economic growth, Kurdistan Region is Iraq. This Region is not just a market for 5 Investment as both work closely in con- emerging as a new regional centre of million people, but has access to a market veying our messages and needs to the attraction for businesses. What policies for 30 million people. Gulan Street, Erbil, Irak T: +964 66 210 50 00 F: +964 66 210 50 01 24 The Review [email protected] www.divan.com DIPLOMACY & POLITICS IIG: With all of that in mind, do you in terms of defining the Region’s standing “The Kurdistan Diplomacy in Action think it’s fair to categorize the Kurdistan and prestige on an international level? Region as a success story in terms of pro- FH: I do believe that this recognition owes Region is a success to our people, their struggle, their quest for freedom, and the fact story, not only in that they successfully built our country from nothing. However, comparison to the when we meet with different groups, we can see that people rest of the country interact with the President as but to the rest of though they are interacting with a head of state. I think this indi- the region as well. cates two different things. Firstly, it shows that people are recog- Certainly, it is a nizing the Kurdistan Region as success story in an important economic power in the region and as an economic terms of security, power for the future. Secondly, and perhaps more obviously, it but also economic means that people are therefore development, social recognizing the leadership of the Kurdistan Region as being inte- openness, religious gral in that success. So, they invite the Kurdistan Region to these tolerance, and the meetings and engage in meaningful dialogue with our leaders implementation of a because they recognize it as a democratic system.” state. Of course, we are political- ly, geographically, and economi- Dr. Fuad Hussein IIG: How do you think the Kurdistan those forces became a part of the political viding security both for its own people cally a part of Iraq. We are committed to Chief of Staff to the President of the Region has been able to establish such parties. So, we had our own Peshmerga and for the foreign individuals or com- the federal constitution, and we are of the Kurdistan Region prolonged political stability, especially forces, our own security services, our own panies living here? opinion that the establishment of a strong visit, it is impossible to solve all of the given recent events in the surrounding political groups, our own government, and FH: The Kurdistan Region is a success sto- democratic, federal system in Iraq would problems that currently exist. As a result, Dr. Fuad Hussein provides IIG with region? our own leaders. This created a feeling of ry, not only in comparison to the rest of the benefit all parties involved. Nevertheless, I we formed a high committee comprised exclusive analysis of the recent FH: I think there are two reasons that the strong unity, which then facilitated stability. country but to the rest of the region as well. feel that people do approach us in a man- of members from both sides. The com- political developments in Erbil, the Region has had such stability. Firstly, there Certainly, it is a success story in terms of ner that reflects their view that we are an mittee from the Iraqi side will be headed perceptions of Kurdistan abroad, and was never any gap in terms of leadership. IIG: Political stability aside, the forces security, but also economic development, independent state in a period of economic by Prime Minister al-Maliki and two of the future of the Region’s relations When the previous regime collapsed, the you mentioned have also excelled in pro- social openness, religious tolerance, and boom. his assistants. On our side, the committee with Baghdad. Kurds already had their own government, moting the overall security [and there- the implementation of a democratic sys- will be headed by Prime Minister Barzani, Parliament, political leadership, and polit- fore stability] of the Region. tem. I also think that our leadership has IIG: You mentioned that the Kurdistan his deputy, and myself. So, the High ical parties. Moreover, our political parties FH: I think the entire population of the played an important role. Our population Region remains committed to the federal Committee had its inaugural meeting, and have their roots in the people. The Kurds Region is particularly sensitive when it has known our leaders for a very long government in Baghdad. Recently, Prime then President Barzani met Prime Minister have been in resistance for many years, so comes to the security of the Kurds and time, so with that familiarity comes loyalty. Minister Nouri al-Maliki visited Erbil al-Maliki separately. The High Committee they also have concrete ideas about how the Kurdistan Region. So, they cooperate These leaders struggled for the freedom of and held several high level meetings. met to discuss how best to resolve multiple best to secure their own futures. Secondly, with the security services, the police, and the people, and today we can see the fruits How do you feel those meetings went outstanding problems, specifically issues as part of that resistance, we had military the government on a consistent basis. If of that labor. For these and many other and do you think the Prime Minister’s relating to the Constitution, security and forces [the peshmerga] in place. As a result, they see something suspicious or that they reasons, when compared to the rest of the visit could help resolve the differences military forces, budget allocations, and the feel could be dangerous, they country as well as the rest of the region, the that presently exist? hydrocarbon law. We formed subcommit- “We are committed to the federal con- inform the relevant organiza- Kurdistan Region is clearly a success story. FH: Prime Minister al-Maliki came to tees for all of these issues; these groups tion. In the past, terrorists were Erbil after almost three years of no con- will then meet in order to reach agree- stitution, and we are of the opinion that able to penetrate these defens- IIG: Regarding the leadership of the tact and no discussions between himself ments on each individual item. Once an es. Thankfully, that was a long Kurdistan Region, when President and my President. The relationship during agreement is reached, it was agreed that the establishment of a strong democratic, time ago, and we have been able Barzani attended the World Economic this period was very tense. However, I con- the High Committee would then imple- federal system in Iraq would benefit all to guarantee the security of our Forum in Davos, he did so for the first sidered the visit a positive step towards ment it. So, I firmly believe that the visit of people, as well as anyone else time while functioning as a head of state. normalization of the relationship between Prime Minister al-Maliki was a significant parties involved.” living within our boundaries. What do you think this distinction meant Erbil and Baghdad. Still, with only one positive step.

26 The Review Kurdistan Region of Iraq 27 DIPLOMACY & POLITICS as tourism, industry, housing, and trade. sector investment has played a significant grow. In Syria and the rest of Iraq, the situ- We are still following the ESMP, and you part in the growth of the city. ations aren’t allowing for the private sector Planned Expansion can see the effect it has had on the city. to develop. Here, it can. As a result, a sig- The airport is now modern and appropri- IIG: Are there areas in which you per- nificant amount of the investment capital ate in size. Numerous facilities for higher sonally would like to additional foreign has been implemented here. So, because of education [universities, institutions, and direct investment? that investment, I believe that in 3-5 years, colleges of art] are located along Kirkuk NH: Right now, the investment policy of Erbil will continue to expand, with signifi- Road. The road system itself has expanded, the KRG focuses on industry, agriculture, cant growth in all sectors. particularly toward Salahaddin Road. So, and tourism. Since the Kurdistan Region it is clear that the city is expanding, but on has become such an important area for all a scheduled, fixed plan. of Iraq, the policy also focuses on hospitals and medical issues. Patients from all IIG: Speaking of the roads in Erbil, the provinces of Iraq are coming to Erbil for those who are unfamiliar, can you because it is safer and more reliable. This explain how the road network is laid out? is good for us, but also good for the Iraqi What are the plans for future expansion people. In addition to the health sector, in this area? we are focusing on housing. To date, we NH: The Citadel, which is estimated to have 90,000 units under construction. In be 8,000 years old, was the original settle- the future, I think the focus will specif- ment in Erbil. The Citadel itself is circu- ically turn to agriculture and water. We lar in shape. When the city expanded, it have plentiful water resources here in the did so by branching out from the center, Kurdistan Region. However, we haven’t which would be the Citadel. So, the major always implemented good management roads around the city [40 Meter Street, 60 practices for those resources. So, I expect Meter Street, and 100 Meter Street] are now the KRG to focus on infrastructural circular as well. The 120 and 150 Meter improvements, such as dams and irriga- Streets are currently under construction, tion systems, to alleviate some of the prob- and will obviously expand the city limits lems we are now facing. As I said, we have even further. excellent water resources in the Region, but we need to implement better organization IIG: How far along is the work on the and planning to utilize those assets fully. 150 Meter Street project? When do you Nawzad Hadi IIG: Can you give us some background “From 2004 to 2012, expect it to be completed? IIG: What is your view of the future of Governor of the Erbil Province regarding the Erbil Strategic Master Plan NH: Construction on 150 Meter Street is Erbil? What do you expect in terms of (ESMP) and what you expect it to provide we spent $7 billion on currently underway. Half of this project growth and opportunities within the city Nawzad Hadi explains the expansion for the city? infrastructure improve- [approximately 40 kilometers] is being and the governorate? of the capital city according to the NH: In 2004, we started with a new mas- handled by a Turkish company and the NH: I think the future of the city is bright. Erbil Strategic Master Plan and the ter plan for the city. Before that time, ments in the Kurdistan other half is being done by a local compa- We have excellent oil and gas resources, upcoming projects that will alleviate things were very different. Officially, the Region. In that same and many companies are now active here infrastructure deficiencies. Iraqi Constitution did not recognize our To date, we have as a result. I fully expect oil revenues to region. As a result, we did not have our period of time, we increase in the near future, thanks in large 90,000 units under own percentage of the budget, so the peo- had over $16 billion of part to the entry of major companies like ple of the Region had limited income and construction. Exxon, Total, Chevron, and Gazprom the government wasn’t able to allocate private sector invest- Neft. With such important players on the funds to develop and implement proper ment. So, obviously, ny. As of now, we have only been able to ground, exports will increase; this will then plans. This all changed with the liberation open 100 Meter Street with certain expan- mean a greater budget for both Iraq as a in 2003. After that time, the Kurdistan private sector invest- sions. Our goal, of course, is to make 150 whole and Erbil itself. I do think there are “I believe that in Region was officially recognized in the ment has played a Meter Street accessible as soon as possible. still major issues to confront. As I said, Iraqi Constitution. So, with that recogni- However, we have been working on a lim- our water management must improve. In 3-5 years, Erbil will tion in place, we began to work on plans significant part in the ited budget; essentially, our capability to addition, we are importing a significant continue to expand, to develop the city of Erbil as the capital growth of the city.” implement a project always exceeds our number of products from Turkey, Iran, of the Region. We utilized highly skilled budget. From 2004 to 2012, we spent $7 and Syria. This is not sustainable, in my with significant individuals from both within Iraq and well as increase power generation in the billion on infrastructure improvements in opinion. So, we will need to create more abroad in order to make this become a energy sector. We also devised a system for the Kurdistan Region. In that same period green areas and industrial sectors to bal- growth in all possibility. The initial plans detailed how dividing responsibilities, and we appointed of time, we had over $16 billion of private ance our production. Most importantly, we to expand the airport and the oil sector, as directors to handle individual areas such sector investment. So, obviously, private have the freedom and the opportunity to sectors.”

28 The Review Kurdistan Region of Iraq 29 DIPLOMACY & POLITICS IIG: What are Britain’s priorities in the extremely important to have a broad-based in London has also played a major role in Kurdistan Region? Which areas have you relationship wherever possible. Therefore, fostering these relationships. Another pos- Reaffirming the UK’s long-term commitment prioritized in terms of bilateral relations? we expect cultural relations to continue itive factor is our current travel advisory HE: Our overarching objective in the to be incredibly important in our overall for the Kurdistan Region. Around three About Kurdistan Region is for the UK to become efforts. years ago, we essentially lifted the warn- Hugh Evans has been working in a partner of choice for the KRG. So, we ings against traveling here except for cer- the Foreign Service in 28 years. He support activities across the whole spec- IIG: What makes the Kurdistan Region tain limited border areas. We make a clear previously served in Washington, trum of bilateral relations. As I indicated so attractive to the British business distinction between British visitors travel- Kenya, Khartoum and Moscow. He was earlier, our commercial connections rep- community? ing to the Region and the policy we have appointed his current post in 2012. resent key components of this support. We HE: It is quite obvious that the econo- regarding travel elsewhere in the country. are very keen to develop and expand these my in the Kurdistan Region is growing relations in whatever ways possible. The very rapidly. I believe the growth rates in IIG: How important do you think it is for warm political relations we currently enjoy recent years vary between 9-11 percent. British companies to establish commer- with the KRG and Iraq as a whole also pos- So, there are huge opportunities here. The cial relationships with local or regional itively impact the work being done here. oil and gas sector is at the center of this companies? Lastly, cultural connections have become economic expansion and dramatic growth. HE: I believe that British companies are increasingly important. As a result of the So, the readily available economic oppor- increasingly pursuing such opportunities; large number of Kurdish students attend- tunities are one aspect of the attractive- collaborating with regional companies to ness. Secondly, there is a growing enter the Kurdistan Region market via a awareness that the security sit- joint venture is a logical way for our com- “Our overarching uation in the Kurdistan Region panies to facilitate the development of the is much better than in the other Region. For example, in the last 2 years, objective in the Kurdistan parts of Iraq. Given its oil and there have been a number of meetings that Region is for the UK to gas reserves, Iraq has enormous brought together British and Turkish com- potential. If a company wishes panies in Istanbul. We may pursue similar become a partner of to gain a foothold in the Iraqi opportunities with UAE companies, and market, the Kurdistan Region we plan to have significant representation choice for the KRG. So, we is an obvious gateway. I believe at the Erbil International Fair in September. support activities across this “gateway role” is becoming We also hope to bring a large trade mission increasingly important since to Kurdistan Region later in the year. We the whole spectrum of companies have begun to recog- feel that the experience and regional famil- nize this potential. In time, the iarity of British companies makes them bilateral relations.” Kurdistan Region could become attractive partners for international com- an engine for driving econom- panies examining the Kurdistan Region Hugh Evans IIG: How do you assess the current bilat- presence. From a political standpoint, we ic development for all Iraq. For market. We feel that all of these factors give British Consul General, Kurdistan Region eral relations between the UK and the have developed very warm relations with ing British universities, we have established example, British companies such as Land us even more leverage to be able to identify Kurdistan Region? the KRG; we aim to provide assistance to the thriving educational relations. In fact, an Rover have identified the Kurdistan Region the commercial opportunities available. Hugh Evans talks to IIG regarding HE: We opened our office here in 2007. Region as it develops its democratic identity. increased number of British universities as a good base for regional operations. the current bilateral relations The rapid development and political sta- A number of public sector companies have have formed partnerships with their coun- IIG: Is there any misconception among between the UK and the Kurdistan bility of the Region dictate that if a foreign helped with the Region’s internal adminis- terparts here in the Kurdistan Region. The IIG: What role do you think the prom- the British business community regard- Region, the UK’s priorities in the government wants to operate effectively trative capacity building programs, and our British Council has played a significant role inent Kurdish population in Britain ing the security situation in the Kurdistan Region, the major accomplishments here, it needs to have a presence on the office is providing everything it can to assist in expanding educational opportunities has played in facilitating some of these Region? in recent years in terms of bilateral ground. This was the case for us. Last year, the government’s development agenda. The by providing English language examina- connections? HE: Unfortunately, there is. The popular relations, and why the Kurdistan our Foreign Secretary declared that we are KRG has prioritized tourism, light industry, tion (IELTS) training for local students. HE: I believe the Kurdish community image of Iraq is not very positive and the Region so attractive for the British going to maintain a long-term diplomatic and agriculture, and we are keen to develop Then, of course, there is the British Film in Britain plays a crucial role in improv- security situation outside of the Kurdistan business community. presence in the Region. So, we are building a and support these three sectors. To that end, Festival, which has become very popular. ing UK-Kurdistan Region business ties. Region also affects perception about this new consulate facility here, which will be in there are over 100 British companies active This annual event is only possible due to Moreover, the Kurdish diaspora living in Region. However, as already mentioned, operating in 2015. I believe this fact serves here in the Region and we are eager to have the support of a wide range of sponsors, the UK gives us further insight and deeper our travel advice regarding the Kurdistan as an indicator of our long-term commit- further commercial involvement. So, our including the British Council, who are knowledge of the market. In fact, quite a Region is very clear; we consistently ment to the Region. I am also quite pleased main advice to British companies is that working to develop the event for next year. significant portion of the business activi- encourage people to come to the Region, with and proud of the growth of our com- they should see their involvement here as They have appointed a new director spe- ties I mentioned earlier have been driven regardless of whether they’re coming for mercial branch. We have placed empha- a long-term relationship. If they commit to cifically for the Kurdistan Region, which by people who are dual nationals or have business or tourism. In our experience, sis on building our relationships with the working here, they will be successful. I feel will mark the first time the organization strong links to Britain. So, I think it’s fair every company that comes here to see the wider British community. British business that, during my time here, more and more will have a Senior Manager based in the to say that the diaspora dimension has also situation inevitably comes back once they involvement here is huge, and we are very British companies have become willing to Region. Political and economic relations been a very important factor in promoting see firsthand the stability and strength of proud to be playing a role in its continued take the chance. are central to our work here, but we feel it is commercial engagement. The KRG office the Kurdistan Region.

30 The Review Kurdistan Region of Iraq 31 DIPLOMACY & POLITICS Importing Experience

Jeroen Kelderhuis IIG: There’s a fairly large population of About Head of the Dutch Embassy Kurds in the Netherlands. How would Jeroen Kelderhuis has served in the Liaison Office you define their role in your relations Dutch Foreign Ministry since 2000, and with the Kurdistan Region? has worked in locations including Serbia Jeroen Kelderhuis discusses the JK: We have between 30,000 and 40,000 and Montenegro, Iran, Burundi, and was establishment of the Dutch Embassy seconded to the African Development people from the Region currently living Bank in Tunis and the Dutch Ministry Liaison Office in Erbil, the history in the Netherlands. They came as refugees of Economic Affairs. Prior to working of relations between the Kurdistan during the 1970s, 80s, and 90s. They adapt- for the Foreign Ministry, Mr. Kelderhuis Region and the Netherlands, and ed quite well. Then, of course, you also see worked at the Dutch Parliament. the potential economic sectors people returning to the Region after living that could most benefit from Dutch for many years in the Netherlands. They experience. have identified opportunities here. This makes the relationship that much more here. Can you give us some background special, and significantly furthers our regarding the establishment of the office? relations in terms of culture, economics, JK: I am a new-style diplomat in the and politics. There are Kurds from the Netherlands; they call me a laptop diplo- Netherlands active in politics here, and mat. The idea is to send a diplomat for a there are Kurds also active in Dutch poli- few years to see what’s going on and iden- tics locally, provincially, or even nationally. tify if there’s enough interest for us to be there. Basically, different places where we IIG: The Dutch Liaison Office in Erbil think we are not yet ready to set up a whole is still relatively new in comparison to structure, but are instead making a step- some other diplomatic representations by-step analysis of what’s going on. Here,

Kurdistan Region of Iraq 33 the embassy in Baghdad received a lot of they have become increasingly demand- a great place for investment. Secondly, you questions and many activities regarding ing and are more willing to pay a little bit have to allow people from different back- Iraq were focused on this Region. Part of more for better quality. I think that the ground to meet each other. So, we have that interest was due to the Kurdish com- Netherlands has that type of quality across trade missions and people participating munity in the Netherlands, but also just all sectors. However, in terms of specific in fairs. I have tried to convince people because of general business interests. It is sectors in which we think there are good in the Netherlands by being present in much easier to be here on location than to potential matches, there is, of course, the the media. We are now making a mov- do it from Baghdad, as we used to do. So, energy sector. I don’t necessarily mean oil ie about economic opportunities in the although we are having major budget cuts exploration, but rather the services sur- Kurdistan Region. This will be distributed in our ministry, they made an exception for rounding it [the technical equipment, the to Dutch companies contemplating getting the Kurdistan Region and created a new services, and consulting opportunities]. involved here. So, the sharing of informa- position here that is part of the Embassy Secondly, there are numerous oppor- tion is key. Thirdly, it is not just helpful to in Baghdad. tunities in the agricultural sector. The bring people here, but to bring people from Netherlands is the second largest export- the Kurdistan Region to the Netherlands. IIG: Are there specific sectors that you er of agricultural products worldwide, and We want people from the government to think Dutch companies could most ben- we are number one in horticulture. So, we come to the Netherlands and give presenta- efit by being involved in the Kurdistan have a lot to offer in these areas, and we are tions there regarding the opportunities that Region? already active, to some extent. exist here. We have invited the Minister JK: I believe there are opportunities in all Water is another critical sector, which is of Agriculture and Water Resources to sectors. There is a need for everything here, of course related to agriculture. However, come to the Netherlands to give a presen- and there’s a market for everything as well. as it relates to the establishment of a mod- tation to the Dutch business community There is, of course, a lot of competition. In ern sewage system and sustainable treat- and other interested parties, so that he can all honesty, I don’t think Dutch compa- ment facilities, water is also critical. share his Ministry’s plans and see wheth- nies can be as competitive across all sectors Lastly, we feel that the developing er those groups can participate. We have because of their prices. Moreover, some infrastructure of the Kurdistan Region, some companies that are already active people have stated that we are too late in specifically road creation and sustainable here, particular in the construction sec- construction, could significant- tor. These are companies that will be able ly benefit from Dutch expertise. to build major projects and then demon- It might cost a bit more than the strate what we have on offer to the Kurdish “We have seen buildings or structures that are community. I believe this will then attract currently in place here, but I think further attention from Dutch companies, Kurdish consumers that the people here are starting and entice them to come here to inves- to see why it is worthwhile to tigate opportunities. It certainly helps to become increasingly invest in sustainable materials. have concrete projects that will solidify It increases the likelihood that the brand. aware of quality and of the buildings will last longer and allow people to be more satisfied IIG: How have you seen the Kurdistan what they are actually living or working there. Region grow and evolve since you first arrived a year ago? paying for. As a result, IIG: What’s the best way for JK: The amount of economic progress in they have become in- Dutch companies to demon- the last few years is impressive. If they turn strate that superior quality? As their oil and gas resources into dollars, then creasingly demanding you noted, some think you are they will be a very prosperous Region. There too late and that other construc- are numerous opportunities here. Every and are more willing tion companies have already day, you have new hotels, new buildings, established themselves. So, how and new projects. Sometimes people for- to pay a little bit more can Dutch companies get a nec- get that this is a post-conflict country. I’ve essary foothold? worked in other post-conflict countries and for better quality.” JK: I think in Holland, there’s I can say that the Kurdistan Region is quite very little knowledge about Iraq impressive. This is partly because of the oil in general and the Kurdistan revenues, but also because there is good gov- our involvement. However, I don’t believe Region in particular. I think people don’t ernance. This is partly because of the oil that this is the case. I would argue that we know this market, and instead have an revenues, but also because there are people have seen Kurdish consumers become image of insecurity. So, firstly, we have to in place both in the public and private sector increasingly aware of quality and of what convince people which it’s safe here, which that have vision and know the direction that they are actually paying for. As a result, there are many opportunities, and that it’s the Region needs to head.

34 The Review ECONOMY However, the many years of war, sanctions, we believe that we can be successful across IIG: What can be done to better utilize and tyranny took their toll and, gradually, any number of sectors. We believe that the the small-scaled economic areas? Strong, Inspiring, Visionary everything disappeared. Now, I think there success we had with our cement plants can HDN: Everything depends on governmen- are opportunities for these industries tal support, regulation, and stable deci- to reemerge. The petrochemical sion-making. Prime Minister Barzani is “We want to industry is obviously quite important, We created what is now a visionary leader who understands how but I think there are opportunities for the largest private hospital the country needs to progress, and he has demonstrate that investment across the entire oil and surrounded himself with capable, for- the private sector is gas sector. I believe that this is where in Iraq: the Faruk Medical ward-thinking individuals. However, we most of the investment [particularly City. It is a 180-bed, state- have a huge government sector, which I capable of raising foreign investment] will go. Another believe is not as productive or efficient as it area that I think will become increas- of-the-art hospital with should be. In contrast, we have a very small the standard of ingly significant is the mining sector. connections to world-class private sector, which is very productive. Iraq is very rich in natural resources. The government provides its employ- an industry and So, I think there is significant poten- consultants and hospitals ees with salaries, benefits, and very short provide a model for tial in the mining sector, if the right around the world. working hours, we still cannot attract lots companies were to become involved. of people from the public sector. However, others to follow.” I believe that this situation is gradual- IIG: Can you tell us about the goal that be replicated across any area in which we ly changing. The top people in the gov- the company has established, and how apply ourselves. With that in mind, it is ernment understand that things need to you’re going about establishing it? our full expectation that, in the next 5 change in order to attract further invest- HDN: I think every company feels com- years, FGH will be much more invested ment, be it local or foreign direct invest- fortable working in an environment that in the large-scale industrial sectors of the ment. So, I am very optimistic regarding it’s been working in for a very long time. Kurdistan Region’s economy. the direction in which we’re headed. We’ve been able to prosper in and help build up the economy of Slemani, and the IIG: What other areas of the economy city has been very good to us as well. In has FGH attempted to provide definitive terms of our overall operations, Slemani solutions? has become a stepping-stone for the rest HDN: We have seen this deficiency in of Iraq. That is, as a result of the stability the health sector as well. We have many and opportunities present here, we have Iraqis traveling abroad to Turkey, Jordan, been able to establish a presence and then the UAE, Iran, and India because the expand that presence throughout the rest healthcare industry here is so limited. of Iraq. So, FGH decided to invest in a very large, Hawre Daro Noori IIG: Faruk Group Holding (FGH) has About Moreover, it’s much easier to hire an ultra-modern hospital. We felt it was our CEO, Faruk Group Holding expanded quite dramatically in the last Hawre Daro Noori has served as CEO international employee to work in Slemani obligation to give back to the community few years. How does the company iden- of FGH since March 2009. Prior to that than it is to work in other parts of Iraq. and allow the people of this country to Hawre Daro Noori discusses the tify potential business opportunities? time, he worked as CEO of Xendan, the So, despite having our headquarters here, get the right services within their own rapid growth of Faruk Group HDN: The way we do business at FGH most visited news website in Iraq. Mr. we have been able to reach every corner borders. So we created what is now the Holding, the development of the Noori graduated with a degree in Finance “As a result of is basically to analyze and understand and Entrepreneurial Studies from Hawaii of Iraq. The market is large in the mid- largest private hospital in Iraq: the Faruk private and public sectors in the the market completely before we pursue Pacific University and earned his MBA dle and southern portions of Iraq. Hence, Medical City. It is a 180-bed, state-of-the- the stability and Kurdistan Region, and the economic opportunities. We know that there are in Management from the American across a wide variety of economic sectors, art hospital with connections to world- areas in the Region that have been deficiencies, and therefore opportunities, University in Iraq – Slemani in 2009. these are the areas that we target, be it tele- class consultants and hospitals around the opportunities prioritized for future involvement. in every sector. So, the question becomes com, cement, or any other industry, we world. We are now able to provide them which do we target first? The telecom sec- use Slemani as a hub to reach other, more with something that has never before been present in Slemani, tor is of critical importance for the country. elements I mentioned represent the typical widespread markets. available in this country. In the past, there was limited infrastructure type of project that we choose to pursue. We are from Slemani and, if you look Of course, our goal is not to privatize we have been that was needed for the sector to devel- at our operations as a whole, I think it’s the entire healthcare system, as we do not op. This was even the case for landlines. IIG: Are there specific industries here clear that we love the city very much. We feel this would be a positive development able to establish Another element, which may seem fair- in the Kurdistan Region that you want to further facilitate its development. for the country. Likewise, we don’t want the ly basic but was actually quite important, feel require further development or I think you can see this desire manifested Kurdistan Region to feature only private a presence and was cement. The whole country was ready investment? in a variety of ways, perhaps most notably hospitals. However, we want to demon- then expand that to build. However, you can’t start build- HDN: From an industrial standpoint, few in the fact that, aside from the government, strate that the private sector is capable of ing without the necessary materials. Of currently exist on a large scale. In com- we are the largest employer in the gover- raising the standard of an industry and presence throughout course, there are other raw materials that parison to the rest of the countries in the norate at the moment. provide a model for others to follow. are also in need of importance, but the two region, Iraq used to be very industrialized. We see numerous opportunities here, as the rest of Iraq.”

36 The Review Kurdistan Region of Iraq 37 Zarya Grand Millennium Sulaimani Goran Net Zarya Situated in the heart of Slemani, the Grand Millennium enjoys Goran Faruk Group Holding — Construction a breathtaking view of the city. The 39-story, five-star hotel Net ISP Company is consists of 191 guest rooms, 55 luxury suites, 7 executive suites, Internet and FGH is comprised of 27 oper- a full-service a presidential suite, and an executive lounge. Additionally, the Broadcast ating companies in 12 sectors: general con- hotel features three restaurants to accommodate all dining Services Telecom and IT, the Cement struction firm, and is one of the needs, including Lebanese, an all-day international dining was the first company to Industry, the Light Industry, industry’s most reputable com- lounge, and a luxurious revolving restaurant at the top of the launch a DSL service in the Insurance, Medical Services, panies. It specializes in con- tower. Located next to the tower is a 350-seat auditorium, a Slemani region, and is one Construction, Hospitality, struction, management, design, ballroom with seating for up to 1,200 people, eight additional of the major Internet service Trade & Commercial and building services, as well as meeting rooms of varied sizes, and a parking space for 400 providers. Since its inception Agencies, Energy, Agriculture, Faruk Medical City transportation, general trading hotel guests and visitors. The Grand Millennium also includes a in 2004, Goran Net has Real Estate, and Project Faruk Medical City is located in Slemani and will (import and export), commu- state-of-the-art health club, complete with on-hand personal striven to be a leader in its Management. FGH is incorpo- provide a wide range of diagnostic and therapeutic nication infrastructure services, trainers and luxury spa services. Recreation facilities include field, which can be seen in rated as a holding company, procedures ranging in size and complexity. Faruk and project modification. indoor and outdoor Olympic-sized swimming pool, tennis the fact that the company with the controlling shares and Medical City (FMC) is committed to improving the Zarya also provides all cement courts, squash courts, and a 1,200m jogging trail. has the majority market share branch companies owned by healthcare options of the Kurdistan Region, and services such as quarrying, for fixed-line Internet users. the Chairman of the Board, Mr. is outfitted with the latest technology. The facility blasting, engineering, solutions Goran Net seeks to provide Faruk Mustafa Rasool. FGH has is staffed by the highest caliber of experienced (including design and instilla- its users with the highest always been at the forefront medical personnel. FMC has taken considerable tion), re-factory maintenance Internet speed available of Iraq’s development and has steps to gain accreditation at both the national and services, and supply of all in the country, and the constantly aligned business international level, and aims to cover every possible cement materials and heavy company believes in utilizing opportunities with the objec- need of the Iraqi community. Faruk Mustafa Rasool equipment. and developing local staff tive of helping the companies hopes that FMC will help end the need of the and knowledge in order to of greater Iraq. This approach people of the Kurdistan Region to travel abroad for ensure that the country has remains engraved in the com- healthcare and basic procedures. first-class individuals capable pany’s culture to this day, and of undertaking the most it is Iraq’s largest and most complex of communication respected private company, projects. employing over 12,000 people. Azady Industries Azady Industries’ primary business areas are Galvanization and Steel Structure. Azady is quality driven and client Asia Insurance oriented company located in Slemani. The company is Asia Insurance Company is the managed by highly experienced and dedicated professionals Niva Insurance Arm of FGH. Asia who are fully committed to achieving ultimate customer Asiacell Established in 2007, NIVA is insurance Company is working to restore and modernize the satisfaction. All of Azady’s plants are ISO 9001-2008 certified, Asiacell is a leading provider the exclusive dealer/distributor Iraqi Insurance market with the hopes of it becoming one of and emphasize continual improvement. Azady possesses the of quality mobile telecommu- Rasan Pharmaceutical for Ford and Lincoln vehicles in the largest in the region. As a market leader, Asia Insurance is largest galvanization pool (13x1.5x2.5m) in the Region, with all nications services in Iraq, with Rasan Pharmaceutical is the first company of its kind in Iraq. Iraq. NIVA has currently three committed to adding value to all of its clients’ activities. The necessary pre- and post- treating baths. A quality assurance over 10 million subscribers. The manufacturing of IV solutions is critical to the well being main distribution centers, company places particular emphasis on building long term lab is also integrated into the same area. Asiacell was the first mobile of the Iraqi people. With that in mind, Rasan was designed to which are located in Baghdad, relationships with clients and associates based on exclusivity, telecommunications provider meet top-quality international standards, an approach that is Erbil, and Slemani. All centers mutual trust, transparency, and quality of service. in Iraq to achieve nationwide fundamental in guaranteeing the highest-quality production, are fully equipped with state- coverage, offering its services manufacturing, and technology. The primary product line of of-the-art facilities providing across all of Iraq’s 18 gover- the plant is standard, large-volume IV solution, which contains maintenance according to Cement norates including the national international standards. The Bazian Cement and purified water (to facilitate injections) and then concentrations capital Baghdad and all other More centers are planned to Tasluja plants [approximately of different solutions, including dextrose, sodium chloride, ringer major Iraqi cities. Asiacell’s be opened in the short and 30 kilometers apart] enable lactate, ringer solution, and sodium chloride/dextrose. network covers 97% of the medium terms to cover further the group to respond to the Iraqi population, making the Iraqi governorates.Vehicles strong demand for building company’s national coverage sold by NIVA carry a three- materials in the Iraqi market, a the most extensive of any Iraqi year or 60,000 km warranty country undergoing massive mobile telecommunications and free service with original reconstruction. The demand operator. Asiacell’s network is spare parts, as applicable. for cement grows 15% per heralded as one of the most year. FGH seeks to provide ground breaking accomplish- for this increasing need by ments in the history of Iraq. supplying quality materials for the construction of housing and infrastructure. One out of every four tons of cement in Iraq today comes from either Bazian or Tasluja plants.

38 The Review Kurdistan Region of Iraq 39 ECONOMY “Slemani is an open that need the most investment. However, Invest in Slemani in the city, where there is more modern- gate for people to ization, our primary goal has been the pro- motion of the industrial sector. We feel it come invest in the is impossible to make significant progress tourism sector. We without the development of this key sector. IIG: From the statistics that we’ve seen, believe that it will only about 28% of all licensed projects become the main were for Slemani. However, it seems that Slemani and Duhok are getting more hub for tourism focus now, whereas Erbil was perhaps emphasized early on. Do you expect the in the Kurdistan number of licensed projects in Slemani to increase over the next few years? Region, and there FGS: Investment licensing will increase, are signs of this de- particularly in the tourism sector. In Slemani, because of the nature of the peo- velopment already.” ple, the climate, and the overall environment, things are more suited for tourism. We believe that Slemani will see a huge for new projects has been stopped for surge in this sector, and there are signs of almost a year and a half. So, that data has this development already. changed significantly. I believe people pur- If you look at the hospitality industry, sued opportunities in the housing sector we have seven large brand names actively Licensed Projects for three reasons: there was a demand for involved in the city, the majority of whom houses, there was minimal risk, and there are constructing multiple hotels. Millenium 567 158 Total in Slemani was a very fast return on investment. Prior is working on three hotels, Sheraton is to the suspension of those licenses, people working on two hotels, Hilton is working Agriculture: 2 could buy and sell very easily, and there on two hotels, and Highcrest is working on Communication: 3 were no restrictions on transactions in the two hotels. Ramada, Rotana, and Titanic Education: 4 Farman Gharib Sa’eed IIG: Can you give us a bit of background investment licenses with a total investment housing market. Those mistakes will not are all building hotels. Radisson Blu has Health: 2 General Director, Slemani Branch, regarding the Slemani Branch of the BOI capital of over $2 billion. happen again. So, we are working to ensure requested permission to begin working Housing: 45 Board of Investment (BOI), and how it has evolved over time? that reforms are in place to correct these on one as well. Industry: 35 Kurdistan Board of Investment FGS: Prior to October 2011, everything IIG: Do the changes you mentioned past issues. All of this development demonstrates Service: 2 Sports: in terms of investment licensing was impact overall BOI investment policy? In regards to the trading sector, the rea- that Slemani is an open gate for people 10 Tourism: 12 Farman Gharib Sa’eed explains the managed via Erbil. Based on a propos- For example, at the BOI central office, the sons for investment are the same as those to come invest in the tourism sector. If Trading: 43 evolution of the Board of Investment al by Minister Herish Muharam [the priority sectors are agriculture, industry, of the housing sector. Again, there’s a fast you look at opportunities for shopping, in Slemani, the priority areas and Chairman of the BOI], after that date, and tourism. Are those also the priority return on investment and minimal risk. we know the Slemani Majidi Mall and opportunities for investment, and licensing authorization was delegated to sectors here? As a result, we will most likely review this the Slemani Family Mall will be larg- the overall plans for expanding the the General Directorate’s across the three FGS: The government plan for investment sector as well, and add additional restric- er than their Erbil counterparts. This is Investment by Sector burgeoning tourism industry. governorates. Upon approval of that pro- is the same as our plan for investment. tions if necessary. We tried not to have primarily because, in terms of purchas- Agriculture: $10.6 Million posal by Dr. Barham Salih, who was then Thus, for the past six months, there are a large amount of restriction on trading ing power, people in Slemani are willing Communication: $92.9 Million the Prime Minister, we received the full the areas have been prioritized. We have projects on a sub-district level, specifically to spend more money on entertainment. Education: $459.1 Million authorization to issue licenses for the begun to see the effects of this strategy in in regards to the smaller towns. In these Chavi Amusement Park, which is one Health: $102.5 Million Slemani governorate. As a result of this terms of the infrastructure that has been areas, we want to facilitate construction as of the largest such parks in the region, is Housing: $2.248 Billion decentralization and increased authority developed and the projects that have been much as possible so that the people there an excellent example of this idea. There’s Industry: $3.273 Billion given to the local administrations, there pursued. can have an easy way to exchange goods another 2,760,000 square meters park cur- Service: $36.5 Million has been better competition and better and services. rently under construction, which will be Sports: $18.3 Million investment management. The individual IIG: The areas that have had the most one of the largest in the country. Faruk Tourism: $733.1 Million Trading: cities or governorates are more aware of investment in Slemani are the housing IIG: So, are the majority of licenses cur- Group Holding and Dubai-based Emaar $437.3 Million their needs. So, rather than having things and trading sectors. Why do you think rently being awarded by your office going Properties are cooperating to build a decided for them via a centralized perspec- those three sectors have been so active in to those three priority sectors? 2,760,000 square meters park project near $7.4 Billion tive, they are now free to pursue specific comparison to others? FGS: Generally speaking, industry and the Dukkan area. All of these facts make Grand Total objectives. Since this decision was made, FGS: Regarding the housing sector, I tourism are currently the most active sec- it clear that Slemani will become the main we have authorized more than 60 different should note that the licensing process tors in Slemani, because they are the areas hub for tourism in the Region.

40 The Review Kurdistan Region of Iraq 41 ECONOMY benefits of having different types of insur- consulting with the govern- “If you look at the figures of the ance. We believe that personal selling (face- ment to overcome the current Changing the Mindset to-face) is the best approach to spreading market state. We believe that insurance industry in our sur- our message regarding the fundamental it is critical to do so in order rounding region, you can see About importance of insurance. However, suc- to ensure the success of both the value of the sector. In Saudi Jamal Asfour holds an Accounting and ceeding in this field requires diligence and the industry and the foreign Finance honors degree from the UK. Mr. significant staff training. So, we worked on companies investing in the Arabia, the insurance industry Asfour worked for a Jordanian insurance building a core team. We managed to hire Kurdistan Region. Such com- is worth around $5.5 billion. In company for 6 years, where he was the talented individuals with significant expe- panies tend to buy insurance project manager for the business plan Jordan, it is around $700 million. of Asia Insurance. He participated in rience in regional markets. Generally, these from outside of the country, multiple technical insurance training staff members had intensive training from which has an obvious adverse Iraq is one of the highest growing programs in Germany, UK, Jordan, UAE, the aforementioned Munich RE and Swiss effect on the local sector. economies in the world; we and Bahrain. RE, as well as from Allianz. We also pro- This is a very critical issue. cured state of the art Insurance IT software According to the Investment believe that the event that will Munich RE awarded him with a prestig- to ensure that we had the proper set-up in Law, any foreign company spark the growth of the insurance ious scholarship, and selected him as place. It is part of our overriding vision to that applies for an investment sector is imminent as Insurance one of the most promising candidates in facilitate the development of local talents license is permitted to insure the MENA region. The MENA Insurance by transferring considerable knowledge abroad. So, if the local insur- is normally a direct follower to Review chose him as one of the most powerful 50 people in the insurance and know-how for redefining insurance ance industry is to develop, economic growth. If the gov- industry in the MENA region. here in the Region. To that end, we have we need the support of the conducted or participated in a significant government. We need laws ernment were to support local number of programs, including in-house to be amended so that foreign insurance companies, automatic training, job rotation shifts, and overseas investors will be compelled to insurance premium will be created with reinsurance, as well as technical and training in major companies in Europe and utilize local insurance com- administrative health insurance support. the MENA region. Continuously conduct- panies. Another example of that will allow our insurance sector Together, we established MedNet Iraq, the ing such programs will support our goal of leakage of premium is Marine to compete with major markets in first administrative company for health establishing a culture in which the local Insurance (Land, Sea, or Air insurance in the country. We also have community understands why insurance is Shipments). A majority of the the MENA region. ” a partnership with Swiss RE, the second crucial. Our work is still in its infancy, so imports to Iraq are on CIF/ largest reinsurance company in the world. there is much to be done. Our message is CIP (Cost Insurance Freight/Paid) which They support us in all our non-health clear: you cannot sustain a strong economy most countries in the MENA region made insurance lines, including property, engi- without a stable insurance industry. If Iraq initiatives to limit it. This is because they neering, and casualty. We were also cho- wants to compete with the other countries want to protect the insurance industry sen by Zurich Insurance Group, the 4th in this region, it needs to develop a strong from the leakage of premium to other Jamal Asfour IIG: Asia Insurance has managed to forge largest insurance company in the world, insurance industry. countries’ companies. If you look at the Asia Insurance CEO, Asia Insurance strong partnerships with the giant insur- to be their preferred partner in Iraq; Asia figures of the insurance industry in our Founded 2012 ance companies in a very brief time. Can Insurance is also on the verge of signing an IIG: What are the major challenges the surrounding region, you can see the value Chairman Omar H. Ahmad Jamal Asfour explains the you tell us about some of the work the agreement with AIG [American Insurance insurance sector is facing and what role of the sector. In Saudi Arabia, the insurance CEO Jamal Asfour importance of international company has done in that regard? Group]. . I think it is important to note should the KRG play in supporting the industry is worth around $5.5 billion. In Branches Slemani, Erbil partnerships for the growth of Asia JA: Faruk Group Holding [FGH], our that we have done all this in a very short growth of the industry? Jordan, it is around $700 million. Iraq is Insurance, the role the KRG should majority shareholder, has a vision of period of time, as we were only established JA: The major challenges we are facing one of the fastest growing economies in the Lines of Business play in promoting the development developing the infrastructure of Iraq to last July. These partnerships have given us while operating in the Kurdistan Region world; we believe that the event that will Property, General Accidents, Engineering, of the insurance industry, and his provide the country with all the services a huge edge above other local players, and and in Iraq as a whole relate to regulation. If spark the growth of the insurance sector is Energy, Aviation, Marine & Inland transit, outlook for the future of the sector. that it requires. So, FGH has pursued have elevated our reputation significantly. you look at the other companies operating imminent as Insurance is normally a direct Motor, Health Insurance, Travel opportunities to invest in a variety of areas, in the MENA region, you can observe how follower to economic growth. If the gov- including cement, telecom, construction, IIG: What can be done further develop the insurance industry there has developed ernment were to support local insurance Services Insurance Consultations hospitality, healthcare, and insurance. the insurance sector in the Kurdistan over the last 20 years, how the public rec- companies, automatic insurance premium Identifying Clients Needs Whenever FGH pursues new opportu- Region and create a better insurance ognized the benefits of insurance, and how will be created that will allow our insurance Risk Management nities, it always seeks to do so according culture among the public? enforcement of regulations and compulso- sector to compete with major markets in Claims Management to international standards. This was also JA: For the past 25 years, the Kurdistan ry insurance were key in boosting insur- the MENA region. This is our vision and HealthCare Claims Management the case with Asia Insurance, as we were Region of Iraq has not had insurance. So, ance awareness. In the Region, however, our overarching goal at Asia Insurance. Motor Claims Center able to manage to partner with multiple we have to counter that fact with utmost standard compulsory insurance (such as We feel that if the KRG and the central majors of the insurance industry. We patience and a variety of initiatives. Prior Motor Third Party Liability and Workman’s government support the development of Major Business Partners signed an agreement with Munich Health, to beginning our operations, we orga- Compensation) are not yet enforced. We the insurance industry, a new era will be Swiss Re, Munich RE, Hannover Re, which is wholly owned by Munich RE, the nized a marketing campaign called “Know also do not have a suitable Insurance Law created. We could then establish new stan- Zurich, AIG world’s largest reinsurer. They provide us Insurance”, in which we demonstrated the in place. So, we at Asia Insurance are dards for other countries to follow.

42 The Review Kurdistan Region of Iraq 43 ECONOMY We are working to establish three more IIG: One project that seems to be of par- “We have seven plants in the near future that will be capa- ticular importance is the planned petro- Huge Opportunities ble of producing similar numbers. For that chemical facility that will be constructed brick factories that reason, the federal government elected not in Slemani. How did that project come to to import cement from abroad; we have be and what are you expectations for it? were established become self-sufficient in this area. We have SM: Since that project is considered strate- fairly recently, but seven brick factories that were established gically significant, it was placed under the “We are planning fairly recently, but now supply 100% of the responsibility of the Ministry of Natural now supply 100% to have around 100 market need for the Region and 30% for Resources [MNR]. We pushed through a of the market need proposal for the facility and then, factories within the 17 different areas that are in once it was accepted, the MNR for the Region and Slemani Industrial took over. We have not decid- need of development, reform, ed how the project itself will be 30% for the whole Zone, five of which or further investment. financed. Our proposal called for country. With further will be the largest it to be 50% public sector and 50% the whole country. With further growth private sector. So, essentially, a public-pri- growth and invest- steel factories in the and investment, we aim to be able to vate joint venture. Of course, in an ideal ment, we aim to be Middle East.” satisfy 100% of the Iraqi market. We are scenario, it would be a 100% private sector working to promote similar development undertaking from which the government able to satisfy 100% in the water sector, specifically relating to would receive taxes. As of now, there are bottling. To ensure that our economy con- approximately 10 foreign companies inter- of the Iraqi market.” tinues to grow in the right direction, the ested in participating. We expect that ten- KRG has set aside certain areas to further dering via special invitation will be utilized enhance our industrial capacities. There to determine who wins the contract. We have two large dams in place, but our will be four such industrial zones [one each water, generally speaking, is either being in the three main governorates and then IIG: What other opportunities have you wasted or is not clean. Because we are not one in the Garmian Region as well]. The identified as critical or in need of further fully utilizing our water resources, we are government has provided the land and improvement? creating a serious environmental issue. will also help finance some of the facilities SM: We have identified 17 different areas We are pushing the government to identi- that will be located there. Many companies that are in need of development, reform, fy immediate solutions for this issue. Then have applied for space within the Slemani or further investment. These areas range we are also looking to promote better urban Industrial Zone, and we are excited to see in terms of size and specificity. So, we need planning and better recycling programs. All how the opportunities there progress. We to turn our attention to further promoting of these programs are aimed to improve Serwan M. Mahmood IIG: The SCCI was established in 1967, framework stays in place, but that it also are planning to have around 100 factories domestic production inside the Region. To the quality of life of our people while at the Chairman, Slemani Chamber of and has undergone many changes in its reflects the modern state of our economy. there, five of which will be the largest steel name just a few, there has also been a push same time promote the economic evolution Commerce and Industry (SCCI) history. Can you give us some informa- We also push, whenever possible, for local factories in the Middle East. from the SCCI to improve the environment. of the Kurdistan Region. tion regarding its current operations? production or training rather than simply Serwan M. Mahmood provides SM: We currently have approximately relying on foreign imports. So, we encour- insight into the regular operations 48,000 members covering all economic age foreign companies to become active of the SCCI, the economic sectors sectors. We are a part of the Federal Union participants and invest in the Region. The that have been identified as crucial of the Chambers of Commerce, which also Board of Investment and the Investment for the overall development of includes the Erbil and Duhok branches. Law have been quite successful in encourag- the governorate, and the planned That organization meets once a month ing this, but we have been very active as well. petrochemical facility to be to discuss specific industries or econom- constructed in the near future. ic activities in the Region, as well as to IIG: Would you say that, thus far, you all make recommendations for how best to have been successful in these endeavors? improve them. The primary responsibility SM: We have been highly successful across of the SCCI is to organize and cooperate a wide variety of areas, although I am par- with the industrial and commercial enti- ticularly proud of the work we have done to ties in the city, and refer them to the rel- establish the industrial sector in Slemani. evant governmental bodies. Basically, we We have facilitated the construction of are doing everything we can to advise the multiple factories that can now provide for government and ensure that the economy the needs of both the Kurdistan Region and moves in the right direction. So, we have Iraq in general. For example, the Slemani provided consultation regarding amending Cement Factory, which is operated by Mass old or outdated laws to ensure that the legal Group, produces 20,000 tons per day.

44 The Review ECONOMY women to work in many roles . To give an appropriate certification are the most About example, we recently had a woman accept in-demand personnel. Many of our clients Haller Dleir Miran was born in Erbil and Staffing Kurdistan a Personal Assistant role. We later received are looking for particular technicians. They grew up in the UK. Prior to founding a call from her brother telling us that “This also require that these technicians have MSelect, he worked for Reed as a is not appropriate for our family”. She was the proper certification. Ideally, we would graduate, the largest recruitment firm in the UK. Mr. Miran also has a happy, but they weren’t. The women of the utilize local labor to staff these positions. strong business background, given his Kurdistan Region want to work; they want However, locals with certification are few significant experience in investment to liberate themselves and be independent. and far between. This will probably con- banking and investment management. However, on certain occasions, the com- tinue to be the case until we are able to set munity or family may not necessarily allow up the necessary training institutions and for that. As a result, I think the hardest job facilities. That isn’t even particularly chal- that we have to fill is that of a reception- lenging. However, the issue then becomes ist. Very few people are interested in that finding a certified instructor who can teach work because there’s a stigma attached to these international courses in Kurdish. The it. Similarly, you would be hard pressed to positions I mentioned are lower level, so find a Kurdish woman working in a hotel. So, if you look at the international hotels that are here, even though they offer good prospects and respectable jobs, they end up having to hire foreigners. Additionally, we don’t have hospitality here as a trade. It’s not taught in universities. We all hear about the upcoming tourism boom, but I’m not certain how we as a region plan to cater to that. However, I believe that this attitude regarding women in the workforce will change as private sector employment becomes more desirable and such roles become more recognized trades.

IIG: For what positions do you think it is Haller Dleir Miran IIG: Do international companies that are especially difficult to fill or find currently culturally acceptable for wom- CEO and Founder, MSelect demand a set standard of knowledge for qualified personnel for? en to apply? potential employees to have or do they HDM: There are certainly positions, such HDM: Without trying to generalize, it’s Participants who completed an IOSH MSelect is the premier recruitment prefer to train new hires according to that as oil and gas technicians or engineers, office work that seems to be the most Managing Safely course and staffing provider for Iraq, company’s specific operating policies? which are hard to fill with local employees. appealing. A typical mother of two, how- including the Kurdistan Region. HDM: Above all, I believe international We lack the necessary industry certifica- ever, would go for an office administrator Haller Dleir Miran discusses the companies are looking for locals that show tions, which are essential for satisfying the position, which accommodates working “Many of the international companies are challenges of staffing a frontier potential capability and the willingness to health and safety requirements of interna- from 9 to 4. We’ve been looking for a PA to asking for drivers, welders, electricians, and market at its development stage, learn quickly. They want to see dedicated tional companies. We recently polled our the CEO for a client of ours for a while now. the impact of cultural and religious candidates that are not afraid to work hard. clients to determine the skills that are most It should be such an easy spot to fill, but machinists. They also require that these beliefs in the hiring process, and the Obviously, some jobs do require a certain in demand. The majority of the respons- it isn’t. We do get some applications, but potential hires have the proper recognized work that is required to modernize skillset. However, in general, most, if not all, es related to vocational certifications for we know there are better ones out there. and train the local workforce. employers are willing to train according to employees such as, certified forklift drivers, There are more qualified people who are certification. Ideally, we would utilize local labor their own standards. That said, I believe we welders, and crane operators etc. In terms not applying. So, at the moment, we have to staff these positions. However, locals with should also encourage companies to bring of administrative roles, I was pleased to to adapt. Sometimes we have to advise a in expertise from outside the Kurdistan learn that we have been successful in terms client to change a title to suit local under- certification are few and far between.” Region in order to transfer knowledge to of filling these vacancies. However, there standing. But we are seeing the market local employees. This is especially import- are other factors that impact the hiring advance, since we began operating, things the people applying for them tend not to be ant because it will ensure the success of a process, specifically relating to culture. have changed. able to speak English. Most of the instruc- variety of projects. If we are going to con- tors we’ve contacted only teach in English sider the Region as a business hub, we need IIG: Would one of those cultural influ- IIG: Going back to your earlier point or Arabic. Currently, the work around for to have access to the very best people in ences relate to women in the workplace? regarding particular skill sets or certifi- such staff is to learn English. A person business, regardless of where they are from. Specifically, have you all seen the role of cations, what can be done to rectify what who speaks English and is certified in the women in the workforce change over time? appears to be a fairly widespread issue? required field is highly in demand here in IIG: Are there certain jobs or positions HDM: It is still taboo in our culture for HDM: At the moment, workers with the the Kurdistan Region.

46 The Review Kurdistan Region of Iraq 47 ECONOMY enforcement, journalism, investment continues to grow and the space and facil- CONTROL RISKS banking, and government services who ities provided at the Domiz refugee camp Control Risks is an independent, global An eye on Integrity, Political & Security Risks specialize in gathering and analyzing busi- are limited. risks consultancy specializing in political, ness critical intelligence. In addition, we integrity, and security risks. The company About have a highly sophisticated eDiscovery and IIG: How does the Kurdistan Region helps some of the most influential organ- Harry Bucknall was educated in the computer forensic expertise. measure up in terms of your “country izations in the world to understand and manage the risks and opportunities of UK and earned a Bachelor’s degree It is vital for any organisation invest- risk” rating? operating in complex environments. in English Literature and a Master’s ing in a country to understand the polit- HB: Our country risk rating methodol- degree in Russian and Czech ical dynamics of that country, which, as ogy is a complex system comprised of Language and Literature. After living Chairman Crawford Gillies in both Russia and Czechoslovakia the events in the Middle East over the last numerous elements. For example, we don’t CEO Richard Fenning he went to work for the British two years prove, can change rapidly and simply use the expertise of our in-house Headquarters London Foreign and Commonwealth Office dramatically. We have a team of over fif- analysts, but rather we also interview secu- Establishment 1975 (FCO). He has been in the private ty analysts with country and global issue rity experts across the global business com- Number of employees 3000 sector for the past twelve years, expertise that follows trends in political munity. What was clear from our surveys Global presence 34 countries specializing in risk management and risk, and analyze what these mean to our is that most security directors believe the consultancy. He spent four years in clients. world is becoming more complex and dan- Baghdad and Basra, and has been People are the most important asset for gerous, with risks such as financial insta- with Control Risks in Erbil since the any company, and securing your people bility, geopolitical instability, and cyber beginning of 2013. is clearly critical. Loss of life can have a terrorism featuring high among their devastating impact on a business. Control major concerns. Respondents also stated Risks works with businesses to provide that the number of security incidents is them robust market entry plans, to help increasing and that security functions are prevent events that could threaten opera- coming under closer senior management tions, and to develop crisis and resilience scrutiny. However, the good news is that plans in the event of extreme situations. most security directors now perceive they Harry Bucknall IIG: Control Risks established a perma- office here. It understandably took time have greater ability to influence their orga- Regional Manager, Control Risks nent presence in the Kurdistan Region in for the infrastructure to catch up, but now IIG: From what you have observed, what nization and make a difference. 2006. Why did the company begin oper- it is a critical enabler helping to realize the have been the major sources of stability Harry Bucknall provides IIG with ating here at that time and what was the Region’s potential. and strength in terms of development “In terms of the Kurdistan Region and our exclusive analysis of the major situation like on the ground? in the Kurdistan Region? Has Control sources of stability and strength HB: Kurdistan Region, like the whole of IIG: Control Risks offers analysis relating Risks identified any factors contributing country risk rating I would say that we view in terms of development in the Iraq, was still under the control of US to Integrity, Political, and Security risks. or relating to regional instability? Region as an open business environment with Kurdistan Region, and the services and Coalition forces in 2006 and condi- Can you tell us about those services and HB: There are two main keys to the sta- offered by Control Risks relating to tions on the ground were challenging to what exactly each entails? bility enjoyed in the Region. First, the significant investment potential. Indeed, we are integrity, political, and security risks say the least. Although the security situ- HB: Control Risks is an independent, glob- Kurdistan Region does not suffer from in the Region. ation has always been markedly better in al risk consultancy specializing in help- the same sectarian fault lines as the rest of very enthusiastic about the Kurdistan Region the Kurdistan Region than Federal Iraq, ing organisations manage risk, which we Iraq. Secondly, the Kurdish security forces and would like to see many more international the Region was still nevertheless suffering divide into three main categories: integrity, are extremely professional and have been from the aftermath of the conflict. The lack political, and security. very successful at ensuring terrorists and businesses establish a presence here.” of infrastructure, in particular, was a real Integrity is vital to any organisation and insurgents cannot infiltrate the border. problem. Looking back from In terms of factors that could poten- In terms of the Kurdistan Region and the relative peace and quiet To date, we have not seen any tially create instability, it is worth noting our country risk rating, I would say that of 2013, a perfect example is that terrorist and insurgent groups, most we view the Region as an open business the airport. In 2006, access significant effect on the security notably linked to Al Qaeda, maintain an environment with significant investment to the Kurdistan Region was situation created by the influx of active presence in cities like Mosul and potential. Indeed, we are very enthusiastic difficult. Indeed, just getting a Kirkuk. The threat is real and unlikely to about the Kurdistan Region and would plane to Erbil was fraught with refugees from the Syrian crisis. recede in the short to medium term. That like to see many more international busi- problems. Today, Erbil has a is precisely why it is so important that the nesses establish a presence here. Since the modern, state of the art airport. A number once damaged it is almost impossible to Kurdish security forces continue to main- Kurdistan Region is part of Iraq, it is too of international carriers already fly to Erbil restore. Integrity can be compromised in a tain the integrity of the Region’s borders. easy for those without experience of the and more are keen to open up the route. number of ways. It could be via inappropri- To date, we have not seen any significant Region to believe the Kurdistan Region It was clear back in 2006 that the ate relationships with suppliers or because effect on the security situation created by suffers from all the same issues as Federal Kurdistan Region had enormous invest- of employees who break international laws the influx of refugees from the Syrian crisis. Iraq. That is clearly not the case and the ment potential, and that is one of the rea- relating to bribery and corruption. We However, the Kurdistan Region, like other message that the Kurdistan Region is a sons why Control Risks decided to have have an expert team of consultants with countries surrounding Syria, has taken in thriving business environment is one that a permanent presence and establish an backgrounds in the legal profession, law a large number of refugees. This number we actively promote.

48 The Review Kurdistan Region of Iraq 49

ENERGY Preparing to Export “The KRG truly wants About Yasin Sheikh Abu Bakir Mawati was to serve its people, appointed Minister of Electricity in December 2009 and has served in the so it has aggressively position since that time. Minister Mawati pursued opportunities has worked in the Ministry of Electricity since 1995, serving in a variety of to improve its infra- positions. Prior to his ministerial appointment, he was appointed by structure and local President Masoud Barzani to serve as an advisor to the Minister of Electricity. capabilities. I believe Minister Mawati has a background in that another key dif- electrical engineering, with a specializa- tion in power engineering. ference relates to the involvement of the private sector, specifically in terms of how active it has been in Yasin Sheikh Abu Bakir IIG: There has been considerable growth an increase in the governmental budget Region, such as Kirkuk and Mosul. These key difference relates to the involvement of the power generation Muhammad Mawati in terms of power generation, distribu- allocation for the Ministry of Electricity? areas are supposed to be managed and the private sector, specifically in terms of sector.” Minister of Electricity, tion, and transmission in the Kurdistan YSABMM: We need to upgrade our trans- administered by the Central Government how active it has been in the power gener- Kurdistan Regional Government Region. This development has obviously mission and distribution capabilities in in Baghdad. The Central Government ation sector. Here in the Kurdistan Region, required a significant amount of invest- preparation for our next growth period. should also take the lead in allocating private sector companies that have pursued Minister Yasin Sheikh Abu Bakir ment from both the public and private Currently, we have a number of ongoing adequate power to these areas. At least, opportunities have, for the most part, been Muhammad Mawati provides IIG sectors. Can you provide us with updated projects relating to the transmission sector. those responsibilities are provided for in successful. In other parts of Iraq, however, Sector At a Glance with exclusive analysis of power figures relating to overall investment in The budget for these is around $1 billion. their budget. However, because there have the private sector was not necessarily incor- generation, distribution, and electricity production here in the Region? This is an excellent first step. However, we been deficiencies in that area, we have done porated into the development process. 15% annual transmission in the Kurdistan YSABMM: In terms of private sector have targeted a growth rate of 15% in order what we can to help. With that in mind, Instead, the government tended to prefer Targeted growth rate Region, and outlines the strategic investment, the majority of investment has to provide stable power for our communi- there is an important date that I would like to rely on its own resources or public sector projects that will further facilitate the been focused on power generation. This ty. To achieve this target, we need further to mention. On June 22, 2010, the Iraqi capabilities. I firmly believe that the deci- export of electricity to neighboring figure is around $5 billion. However, we funding. Our estimates indicate that, by Government disconnected all transmis- sions made by the Central Government in 1,700 MW by 2016 countries. expect that number to increase to $7 billion 2016, our investment projects alone will sion lines and power supplies that were Baghdad will never resolve the issues that Power generation Power generation by 2016. So, that’s for the private sector. need to be able to generate around 1,700 coming to the Kurdistan Region. One year the country is presently facing. Since 2003, by the Private Sector Governmental investment or expenditure MW. To clarify, this is not just for genera- later, on that same exact date, we provided the budget allocated for the Ministry of is a little more complicated, as it’s divided tion, but for the electricity networks as well. Kirkuk with 200 MW of power for the first Electricity in Baghdad was approximately into three distinct sectors. Firstly, there is This is obviously a significant challenge, time. This date was purely coincidental, but $40 billion. Despite that massive amount the money spent on fuel, which is used for particularly when the governmental bud- it reflects the great strides the Kurdistan of expenditure, even today, there are still $1 billion Budget for ongoing projects power generation. Secondly, there are the get remains somewhat limited. Region and the Ministry of Electricity have parts of Iraq that have only an average of 4 relating to the transmission sector costs for the general infrastructure of the made in a short period of time. hours of electricity per day. In the summer electricity sector, including transmission, IIG: Are there still plans in place to begin of 2013! Even in the best cases, they may distribution, and multiple other depart- exporting power to neighboring countries IIG: Why do you think the Kurdistan only have 8 hours of electricity per day. So, Power generation investment ments. Lastly, there is the operational and regions, or is the focus more so on Region has been able to develop its power in the Kurdistan Region, we rely on our- budget, which includes salaries and other domestic production for internal usage? generation, distribution, and transmis- selves and our own power generation and $5 $7 operational activities. If you analyze these YSABMM: We have a plan to export pow- sion capabilities so quickly, whereas the distribution. Moreover, we have faith in our three elements as a whole, it becomes clear er to the surrounding regions by 2015. rest of Iraq has had only limited success? development plan and trust that we will billion billion that we need an increase in our overall gov- However, we have already taken steps YSABMM: The KRG truly wants to serve continue to grow exponentially. Of course, by 2013 by 2016 ernmental budget. in that direction. We recently exported its people, so it has aggressively pursued we are always ready and willing to assist approximately 400 MW to the Kurdish opportunities to improve its infrastructure the Central Government in whatever ways IIG: What areas would most benefit from areas located outside of the Kurdistan and local capabilities. I believe that another possible, if they were to want our help.

52 The Review Kurdistan Region of Iraq 53 ENERGY Electricity in Numbers

2009 2013 Maximum Power Demand 2,096 MW 3,750 MW

Total Average Distributed Power Distributed Electricity

2009 809 MW 2009 809 MW 2013 2,500 MW 2012 3,000 MW

Distribution Transformers Total Consumers

2009 2013 2009 2013 20,000 UNITS 28,000 UNITS 705,000 1.1 Million

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54 The Review Gulan Street, Erbil, Kurdistan, Iraq. T: +964 (0)66 210 55 55, F: +964 (0)66 210 55 56, [email protected] ENERGY exist when diesel is utilized. Here in the IIG: Clearly, the company has already About Kurdistan Region, they tend to feel more invested a considerable amount in the Shakir Wajid Shakir has worked for Commitment to Clean Energy comfortable burning gas than they do Region. However, Dana Gas has expressed Dana Gas since 2007, and has served burning the diesel. Generally speaking, a willingness to increase their level of as Country Manager in Erbil since 2008. it presents fewer complications. So, all of involvement here in the Kurdistan Region. Prior to joining Dana Gas, he served as a Project Manager for the UN Food that said, natural gas has more value to the Can you tell us about any plans for future and Agriculture Organization and as a KRG. Then you add in the $2.5-3 billion in expansion or involvement in other areas? Development Specialist with USAID. Mr. savings, and natural gas is the clear option. SWS: What is currently happening in the Shakir graduated with a BSC in Physics Region represents a major revolution in from Al-Mustansiriyah University in IIG: $3 billion is a pretty significant terms of the development of the econo- Baghdad. figure. The other big number is that my. If you examine the cities in the Region Dana Gas has the highest private sector and how they are growing, you will see investment in the oil and gas sector of that there are countless infrastructure and any company currently operating in the development projects. All of these projects Kurdistan Region. will need electricity. The Kurdistan Region, SWS: We have exceeded $1 billion of as it exists today, cannot be satisfied with investment in the Kurdistan Region. When the generation of 1,000 MW or 2,000 MW, we first entered the market back in 2007, because those figures do not meet the non- there were only a few companies that were stop demand for electricity. Moreover, this willing to take such a risk. There were even demand is increasing on a daily basis, and fewer who were willing to invest $1 billion is doing so at an incredibly fast rate. So, this into the Region. However, we felt that it increased demand puts greater responsi- was the right decision to make. As you can bility on the shoulders of Dana Gas and see, the giant companies have come and Crescent Petroleum. It means that we have they are now operating here. However, we to double and triple our current rates of were one of the first companies to identify production. DANA GAS the potential of the Region, enter the mar- Currently, we are producing roughly ket, and begin operating in the Kurdistan 330 million cubic feet of natural gas per Dr. Adel Khalid Region. More importantly, the wisdom day. However, this amount will not be suf- Al-Sabeeh and the sharp long term strategic vision ficient to meet future demand. So, we are Chairman of the KRG leadership gave us confidence currently in discussions with the govern- to invest and plan to have long term activ- ment to double our production. Doubling ities in the Kurdistan Region. our production requires doubling every- Established 2005 thing else as well. We have to have Headquarters Sharjah Egypt, UAE, another package of investment, which Operations “Currently, we are means between $500 and $700 million Kurdistan Region Shakir Wajid Shakir IIG: How critical do you think gas pro- for the Kurdistan Region alone. This is Net Profit Growth 20% (2012) Country Manager, Dana Gas duction will be for the Kurdistan Region? “We have exceeded $1 producing roughly 330 what must happen, because we know Gross Revenues 2.3B AED (2012) SWS: Imagine, for a moment, that natural billion of investment in million cubic feet of natural that there will be a definite increase in Cash Balance 605M AED (2012) Shakir Wajid Shakir discusses gas were not available. The KRG would demand. So, we are preparing for it. To the role Dana Gas has played in need to buy approximately $2.5-3 billion the Kurdistan Region.” gas per day. However, put it in another way, the power plants Kor Mor Block facilitating the evolution of electricity of diesel fuel every year in order to replace being proposed. If we compare burning gas of the Kurdistan Region are thirsty for Dana Gas (40%), Crescent this amount will not be Interest production, the significance of the gas that it currently utilizes. In other with burning diesel, you can see that there sufficient to meet future more gas. The new plants that are under Petroleum (40%) natural gas in limiting environmental words, Dana Gas and Crescent Petroleum is a significant environmental difference. construction or have been planned will Reserve 1,8 TCG impact, and his forecast for energy are returning roughly $2.5-3 billion to the Gas is a clean energy source, whereas burn- demand. So, we are all need more natural gas. Production 79 Million Barrels of Oil demands in the Kurdistan Region. government’s budget every year. These fig- ing diesel will have a significant negative currently in discussions The government also has a strong (2007-2012) ures alone demonstrate the importance of environmental impact. desire to export gas outside the country, Production 88,000 bpd, natural gas, especially in terms of ensuring There are numerous other advantages to with the government to which will further increase the demand. (2013) 340 mmcfd, 15,000 bpd the long-term energy stability of the gov- utilizing gas as opposed to other products. double our production. As Minister Dr. Ashti Hawrami noted, of condensate liquids ernment of the Kurdistan Region. For example, gas can be easily transport- We have to have another by 2016, the Kurdistan Region plans to Then there is the fact that natural gas ed via pipeline. Diesel, however, requires be able to export its natural gas to Turkey. Chemchemal Block package of investment, Dana Gas (20%), Crescent is friendlier in terms of its environmental trucks and roads. This then means that This means that doubling the current Interest impact. Today, when countries are con- you have to take into consideration road which means between $500 numbers may still not be enough to sat- Petroleum (40%) sidering signing contracts with private depreciation, the logistics of transporta- isfy future energy needs. So, we hope to Reserve 2,7 TCG companies, a major consideration is the tion, and the fluctuating cost of diesel fuel. and $700 million for the be able to do everything in our power to environmental friendliness of the project Even within the power stations, difficulties Kurdistan Region alone.” help satisfy the growing market.

56 The Review Kurdistan Region of Iraq 57 ENERGY IIG: What are GKP’s overall production at the Tawke Field and TTOPCO at Taq About targets for the Shaikan Field and do you Taq. I want to emphasize that both Tawke Umur Eminkahyagil has worked for Developing to be a Major expect them to be achieved? and Taq Taq were discovered decades ago. GKP since March 2012, first serving as UE: Our initial production capacity has Shaikan is the first giant oilfield that was, Development and Production Manager already begun following the commission- from scratch, discovered, appraised, and and then as Country Manager for the Kurdistan Region since September 2012. ing of our first purpose built Production brought to the development plan approval Prior to his tenure with GKP, he worked Facility (Shaikan PF-1), and will steadily stage in the last four years. as a Vice President for MB Petroleum increase to 20,000 barrels of oil per day Services, in various positions at Expro (bopd). Our production capacity will IIG: Regarding the production capacity, Group, and as a Reservoir Engineer for then quickly progress to 40,000 bpd upon how do you plan to go from 40,000 to Shell, mainly in Turkey and Thailand. Mr. the completion of the second produc- 150,000 bpd? Eminkahyagil earned a degree with high tion facility (Shaikan PF-2) later in 2013. UE: The nameplate capacity for each honors in Petroleum and Natural Gas Construction work at Shaikan PF-2 is facility is 20,000 bpd. One of the primary Engineering from Middle East Technical progressing well and we are excited about reasons why we are so determined to estab- University in Ankara in 1991. our future growth potential. Going back to lish continuous production is because we want to see how these facilities Shaikan is the first giant operate and how the reservoir behaves. Speaking from my pro- oilfield that was, from scratch, fessional experience, I believe discovered, appraised, and we can debottleneck these facilities in order to allow them to brought to the development produce 25,000 bpd each. So, plan approval stage in the last with that in mind and provided that there is continuous pro- four years. duction, Shaikan PF-1 and PF-2 would be able to produce 50,000 the field development plan for a moment, bpd. Of course, there is still a significant Shaikan’s production capacity in the first difference between 50,000 and our target of phase will be 40,000 bopd, increasing to 100-150,000 bpd. Therefore, our plan calls Umur Eminkahyagil IIG: GKP’s Field Development Plan 150,000 bopd in the next three years and for us to order new facilities that will allow GULF KEYSTONE Country Manager, Gulf Keystone (FDP) for the Shaikan field was recent- “During the 250,000 bpd by 2018. us to increase our production capacity to Petroleum International (GKP) ly approved by the Ministry of Natural extended well 100-150,000 bpd. Resources (MNR). Can you give our IIG: What was the timeline for the FDP’s Todd Kozel Umur Eminkahyagil discusses the readers some background regarding the testing stage at the creation, submission, and approval? IIG: Do you envision any challenges CEO role GKP has played in leading FDP itself? UE: We declared Shaikan as a commercial related to the need for further invest- the search for the Kurdistan UE: The FDP itself is composed of sever- Shaikan field, we discovery as of August 1, 2012. From that ment, manpower, or something else? Region’s significant oil and gas al distinct sections and is predicated on date, it took us approximately 6 months to UE: If you are only producing 40-50,000 Founded 2001 reserves, the company’s plans for everything that we have learned thus far produced one million complete the work the plan, which began bpd, then you can truck your crude oil. Headquarters London the development of its massive from the field itself. So, it captures the infor- in the summer 2011 while we were still However, this becomes much more diffi- Shaikan, Sheikh Fields discovery of the Shaikan field made mation we garnered during the exploration barrels. That number appraising the field. The FDP was submit- cult once production reaches our targeted Adi, Akri Bijeel in 2009, and his expectations for a and appraisal phases. It also talks about ted to the MNR at the end of January 2013, numbers. If we were to try to truck 100- regional pipeline development. does not even reach our understanding of the geology of the and then we reviewed it together. This is 150,000 bpd, we would need approximately FOCUS: SHAIKAN subsurface structure of the reservoirs that 1/10,000th of the because the MNR is not just a regulatory 500 trucks coming into our facilities and Discovered by Gulf Keystone in 2009. we encountered in the field. From there, body, but also our partner in the develop- 500 going out, all in the same day. This It is one of the biggest onshore it details our future plans. Lastly, there is field’s gross oil-in- ment. Based on the MNR’s recommenda- would be quite difficult. So, once we reach discoveries. the development plan itself, which explains tions and some of our own findings, we that level, our hope is that we would be able how we plan to develop the Shaikan field place volumes. So, made some changes to the plan and then to transport our production via a pipeline. Operators Gulf Keystone, MOL to its full potential. The fact of the matter submitted an addendum. The approval that In addition, we would obviously need more Reserves 14 Billion Barrels of Oil is that the field is massive in size. During we still have quite was granted by the MNR represents a sig- wells to allow for increased production. Production 40,000 bpd the extended well testing stage, which was nificant milestone, not only for GKP but So, GKP has plans in place to begin a very Capacity as of 2013 a bit to learn about 250,000 bpd part of the Shaikan appraisal program, we also for all the Kurdistan Region fields as aggressive drilling campaign in 2014. We Target produced one million barrels of oil. That the reservoir and well. Regarding the work that went into this are currently preparing tendering doc- in 2018 Producing number does not even reach 1/10,000th of process, there is one other thing I would umentation, and will be working with 12 the field’s gross oil-in-place volumes. So, we how it will react in like to emphasize. There are two compa- three or four rigs over the next two years Wells still have quite a bit to learn about the res- nies who seem to be ahead of us in terms to ensure that we will be able to meet our ervoir and how it will react in production. production.” of production and development: DNO production targets.

58 The Review Kurdistan Region of Iraq 59 ENERGY “When we look at the Kurdistan Region compare to the Marathon Oil High-Level of Expertise other areas in which the company is President and CEO Lee M. Tillman our business in the active? Specifically, in relation to the Headquarters Houston topography and geology with which Founded 1887 Kurdistan Region, of you are dealing, have you undertaken a Global Operations 11 countries course we reflect on unique endeavor? Blocks & Working Interest in Kurdistan AC: When we look at our business in the Harir (45%), Safen (45%), all of the experiences Kurdistan Region, of course we reflect on Sarsang (25%), Atrush (15%) all of the experiences that we have gained that we have gained from our operations in other parts of the full development activities in the next few from our operations world. The breadth of Marathon Oil’s years. At the same time, we have further worldwide experience is of the utmost val- exploration and appraisal activities taking in other parts of the ue in order to be successful in the Kurdistan place in the Sarsang Block. Hopefully, we Region. So, we draw from our experiences will have further discoveries as these activ- world. The breadth in the Canadian oil sands, our U.S. onshore ities in Sarsang Block progress. We are also About of Marathon Oil’s conventional and unconventional resource very hopeful that we will see success in our Dr. Adel Chaouch is entering his activities, as well as our experience as an own operated blocks, particularly the area third year as the head of Marathon worldwide experience operator in Africa and in Europe. This that we are currently testing in Harir. Oil’s development efforts in the manifests itself in various areas of our Kurdistan Region. Prior to his work is of the utmost business, including geology, exploration, IIG: In terms of the areas in which you in the Region, Dr. Chaouch served value in order to be operations and production. We utilize all of personally have worked or the areas in as the director of Corporate Social these prior experiences and capabilities to which Marathon Oil has been active, how Responsibility (CSR) for Marathon successful in the ensure that our work here in the Kurdistan does the Kurdistan Region match-up in Oil’s worldwide activities and as Region is of the highest caliber. Of course, terms of stability and security? the Sustainable Growth Manager Kurdistan Region.” for Marathon Oil’s Central Africa the Kurdistan Region, like any other area, AC: We were pleasantly surprised to see Operations. Dr. Chaouch holds a Ph.D. became further enhanced by this addition. has its own unique set of challenges and that the security conditions in the Kurdistan in Engineering with emphasis on Looking back to 2010 in the Kurdistan opportunities. So, when possible, we try to Region are very stable. Of course, we deepwater offshore structures from Region, if you examine the operators pres- adjust to that context. To that end, we have also have our own security protocols in Texas A&M University. ent at that time I believe you will see that assembled a team of highly Marathon Oil was one of the first large, experienced Marathon Oil We believe Kurdistan Region to publicly traded oil and gas companies professionals from all around from the USA to enter this Region. In that the world. The members of be one of the few remaining on- Dr. Adel Chaouch IIG: Can you give our readers, a bit of I believe that our entry was unique in the sense, we believe that Marathon Oil helped our Kurdistan Region team shore, unexplored areas with very President and General Manager, the background about how Marathon Kurdistan Region. At the same time, how- pave the way for other larger companies have worked in a number of Kurdistan Development Venture, Oil first became interested in the Region? ever, we utilized the same approaches that to enter. In terms of the evolution of our the operations I mentioned significant resource potential. Marathon Oil AC: Marathon Oil has a growth strategy we have implemented in our other opera- involvement, you probably have a good before. In fact, some of them that focuses on capturing opportunities tions around the world. Our goal contin- idea of how the oil and gas sector has been have worked in virtually every operation place that are administered based on the Dr. Adel Chaouch discusses the that will create long-term shareholder values to be to enter a new area bringing the evolving. Over the past three years, there Marathon Oil has around the world. So, requirements of each individual operation. similarities and differences between ue. This strategy has included analyzing necessary high-level of expertise without have been significant changes. We have we are utilizing that depth of experience Certainly, we have had a positive response oil and gas exploration in the various business opportunities around the compromising our ability to focus on safely witnessed the entry of the larger companies here on the ground to enhance our abili- from our employees who have been work- Kurdistan Region and the other world. We believe the Kurdistan Region to delivering sustainable benefits to the local while very few of the smaller pioneer com- ty to deliver a successful exploration pro- ing here. In fact, I believe that most of countries in which Marathon Oil is be one of the key resource basins we are communities in which we are operating panies have remained. We have seen not gram, and in the future, development and Marathon Oil’s staff on returning to their active, the company’s evolving plans targeting as a potential growth opportu- along with a firm commitment to protect only the growth, but also the maturing of production. homes, wherever that may be in the world, for the Safen and Harir Blocks, and nity. Marathon Oil extensively analyzed the environment. the oil and gas industry here, particularly in will likely be unofficial goodwill ambas- Marathon Oil’s overall outlook for the the Region and the opportunities here by regard to the services industry. Significant IIG: Can you give our readers a sense of sadors for the Kurdistan Region based on Kurdistan Region of Iraq’s oil and gas conducting our due diligence first to con- IIG: How has the company’s presence inroads are also apparent in infrastructure Marathon Oil’s plans for the future in their experiences while based here. As a sector. clude that the Kurdistan Region was, and or involvement in the Kurdistan Region development supporting the oil and gas the Region? personal observation, I have found the situ- continues to be, an excellent match as a evolved since that time? industry. This includes the physical infra- AC: Marathon Oil was very fortunate in ation here in the Region to be very similar to place where Marathon Oil can do business. AC: Late last year, the French major Total structure of roads and pipeline systems, that very early after our entry in 2010 we the early days of the oil rush in West Africa. So, after a period of discussions with the became our partner in our two operated as well as additional storage and power participated in oil discoveries in both of I can see that situation repeating itself here, KRG, we entered the Region on October blocks with a 35% interest in each. We have generation. I think these and other areas our non-operated blocks [Atrush and except probably on a larger scale. So, with 20, 2010. Our approach was to have a bal- partnered with them in other parts of the will continue to progress, as will Marathon Sarsang]. Late last year, together with our the significant and growing level of activity anced portfolio with four blocks. In two world and they bring a wealth of experi- Oil in terms of this industry’s growth and partners in Atrush block, we declared here in terms of exploration and, very soon, blocks [Harir and Safen] we entered as ence and significant technical knowledge its overall success. commerciality. Since then, we have filed development and production, I would say operator and the other two blocks [Sarsang to the table. So, our the Kurdistan Region a field development plan in early May of that it is certainly a very good time to be and Atrush] we entered as non-operator. portfolio, which was already balanced, IIG: In terms of exploration, how does this year, which will move us forward to working in the Kurdistan Region.

60 The Review Kurdistan Region of Iraq 61 EXCELLENCE IN ENERGY AIRCRAFT HANDLING 100% Success

Bill Jack IIG: Western Zagros is involved in two at that discovery. In terms of our opera- General Manager, Western Zagros blocks here in the Kurdistan Region: it tions, in May of this year we completed our has a 40% stake in the Kurdamir block seismic survey on the southern portion of Bill Jack discusses the major and a 40% stake in the Garmian block. the block. We are currently drilling with developments in the Garmian Block, Can you give us any updates regarding two rigs. We spudded the first big, deep the company’s goals and targets in drilling operations in either area? well in June and we’re running casing at terms of exploration and production, BJ: As you noted, we have two blocks in the moment. We also have a project on a and the Western Zagros’ innovative which we participate. In the north, the shallower horizon that we’re currently in plan for gas monetization. Kurdamir block is operated by our partner the process of finishing, which will be the Talisman; we operate the Garmian block 2nd well in that program. Lastly, we have on behalf of both our partner Gazprom a third rig that is currently being imported Neft and the KRG, who also obviously into the country from the United States. have a share as well. We believe that 2013 may prove to be a transformational year “At the highest level, for us. We have, thus far, had four success- our expectations for the ful exploration wells and we have located a substantial amount of oil and gas. block are being met. Currently, we have a well at Kurdamir We have already drilled that is very near completion and we are very optimistic about its future. They are 4 wells and have had also in the final stages of completing 3D a 100% success rate in MACAIR FLIGHT SUPPORT / PRIVATE JET EXCLUSIVE HANDLERS seismic imaging of Kurdamir. This will ERBIL INTERNATIONAL AIRPORT MEMBER help to further clarify the resource base our exploration.” Mobile +964 750.330.2777 [email protected] Office +964 750.386.2363 www.macairinc.com The Voice of Aviation Business Kurdistan Region of Iraq 63 This unit will be utilized to drill further IIG: In terms of exploration and produc- About wells in the northern extent of the block. tion targets, what are Western Zagros’s Bill Jack has served as General Manager These are the highest value wells that we expectations for the Kurdistan Region of Western Zagros’ operations in the have in our program this year. going forward? Kurdistan Region since February 2013. BJ: The federal government in Baghdad His background includes positions in a variety of oil and gas sectors, with IIG: Western Zagros obviously has con- has targeted significant growth in its pro- specific emphasis on operations and siderable expertise and familiarity with duction numbers. Obviously, the Kurdistan field development. Prior to his work for the oil and gas sector of the Kurdistan Region has its own contribution to that Western Zagros in the Kurdistan Region, Region. Have there been issues along the target, which I believe actually exceeds Mr. Jack served in a variety of commer- way that were unexpected or unanticipat- Baghdad’s numbers. Dr. Ashti Hawrami cial, technical, and managerial positions ed and how has the company gone about has specified 1 million barrels by 2015 and around the world, including Alaska, the dealing with those challenges? 2 million by 2019. We believe that, based UK, Azerbaijan, Australia, Kuwait, the BJ: At the highest level, our expectations for on the size of the fields that we have thus far UAE, and Tunisia. the block are being met. We have already discovered, we can contribute substantial drilled 4 wells and have had a 100% success volume towards those numbers. Our field rate in our exploration. We’re drilling addi- developments are 20-30 years in duration, tional wells this year and we know that, at so it will certainly be a long-term involve- the very least, some will be successful. By ment. We calculate that something on the any standard in the world, the fields that we order of 500,000 bpd from our area is quite are finding are giants. These are world-class possible. discoveries, which, for a company of our “Our field devel- size, is incredibly exciting. Generally speak- IIG: You mentioned earlier that you ing, the geology has worked in our favor. Of all have encountered significant natu- opments are 20-30 course, to enter the Kurdistan Region, you ral gas deposits, and have planned for have to get used to the culture and the ways those finds accordingly. Can you tell our years in duration, so in which the Region operates. I think that readers about the company’s gas mone- has been a challenge and is, to some extent, tization plan? it will be certainly BJ: In terms of the gas demand in be a long-term By any standard in the the Kurdistan Region and the neighboring areas, the biggest market that involvement. We world, the fields that we are currently exists is power generation. There is a significant and growing calculate that finding are giants. These are demand for gas, but there is also world-class discoveries is currently only a limited supply for something on the the power stations of this region. incredibly exciting. As a result, according to Dr. Ashti order of 500,000 Hawrami, the KRG is planning to bpd from our area still a work in progress. However, we feel double the amount of electricity produc- that, thus far, we have done a good job in tion in the very near future. So, there will is quite possible.” that regard. Then, of course, there is the fact potentially be a significant market not that this is a landlocked region. So, main- being met that could have an immediate develop the field, there may even be suf- taining strong relations with the KRG, the economic impact. There exists a similar sit- ficient gas reserves for export. However, federal government, Turkey, and various uation in Turkey; if you look at that market, the first field for export is the Miran field, other groups or governments is important; it has grown fantastically and continues which isn’t due to be in production until it can also be difficult and unpredictable. If to do so. It represents an ideal market for 2016. Additionally, there is currently no you look at when we first made our entry Kurdish gas to be exported. Meanwhile, we gas pipeline, so we’re also short a route of back in 2004, who could have predicted have world-class fields here that are capa- export. However, the government has a then the situation on the ground now? We ble of producing a tremendous amount plan to construct a gas pipeline that will are very pleased and very optimistic about of gas. So, when we discuss gas monetiza- be twinned into the recent pipe. Our role the fact that we have pipelines under con- tion, we’re talking about the government then becomes fitting into that sort of jigsaw struction inside the Kurdistan Region bor- needing to displace the usage of diesel fuel puzzle. Every field development plan has to der. There are active discussions going on at their current power plants. I have no also include a gas plan. That plan obviously with the federal government. Turkey is in doubt that our share of the market can help has to be approved by the government. So, the mix in those talks, and they have been supply gas into their system. Depending there’s a very large market both internal- very positive. So, we remain optimistic that on the success of our exploration, as ly and abroad, and there’s no shortage of the political situation will be resolved. well as on how the government elects to opportunity.

64 The Review ENERGY Most of those resources are now produced. we signed the agreement with Mass Global; we plan to implement phased develop- So, we have developed our UK business we’re currently going through the steps to ment. We will start with 30,000 bpd and Sustainable Model “When we do go into production, we into a long-term sustainable model. In con- finalize the partnership. At the moment, then do everything in our power to get don’t want to flare off gas or release trast, if you look at the situation in Iraq and the plant produces 750 MW of power. production up and running as quickly as the Kurdistan Region, the we can. We are also aiming to sulfur into the atmosphere. resource base is enormous be involved in the infrastruc- and the regulatory system “We will start with 30,000 bpd ture necessary for exporting Therefore, we are considering is developing, but there is and then do everything in our our oil. Obviously, we want to converting the associated gas that no infrastructure and a have access to the global mar- limited local workforce. So, ket, whether that be through will be produced with the oil into the opportunities here are power to get production up and the Iraqi pipeline or any alter- power. In addition, we aim to equally exciting, but at the running as quickly as we can.” native structure. The more other end of the scale. opportunities there are for us utilize the liberated sulfur in the to get access to the markets, the production of fertilizer.” IIG: What are TAQA’s plans or expec- When the deal is completed, we expect to better. We don’t want to get into political tations for exploration and production increase that amount by another 250 MW. debates, we just want to do the right thing activities in the Kurdistan Region? We plan to do this by converting the plant and make sure we generate sufficient funds LK: Within four months of taking pos- from its present form [an open-cycle gas for Iraq and the KRG. session of the block, we had already sub- powered plant] to a closed-cycle system. mitted our field development plan to the We also believe there is potential for addi- Ministry of Natural Resource [MNR]. We tional investment that will help to further are currently in discussions with the MNR expand the capacity of the facility. regarding details of the plan; we expect to ultimately receive approval of the plan IIG: Have you also looked at oppor- and then kick off the field development tunities in the water sector here in the TAQA plan in a phased approach. We expect our Kurdistan Region? Is that an area where approach to be easily replicable, so we can you all might target further investment? amend and repeat it as we develop our LK: If you look at what is required to devel- Hamad Al-Hurr understanding of the block. We also believe op the Atrush block, it is quite complicated. Al-Suwaidi that this approach can be exported to other Although it contains a significant quantity Chairman areas in the Kurdistan Region. We are still of oil, it is a fractured reservoir. So, there is in the appraisal stage of the field, and are quite a bit of sulfur in the crude. Moreover, Leo Koot IIG: Can you give us some background done in the Region and how we should currently laying our third well in the block. when we do go into production, we don’t Managing Director, Iraq TAQA regarding why TAQA decided to pursue develop our subsequent position. We then So, we’re going through well evaluations want to flare off gas or release sulfur into Carl Robert opportunities in the Kurdistan Region? sold our stake in Western Zagros around as we speak, and we feel there are many the atmosphere. Therefore, we are consid- Sheldon CEO Leo Koot explains TAQA’s decision LK: In 2011, we articulated a strategy that the time we picked up the Atrush Block. reasons for us to be optimistic regarding ering converting the associated gas that to pursue opportunities in the we wanted to develop our presence in the how this region is going to further develop. will be produced with the oil into power. Kurdistan Region, the company’s MENA region because we feel it is an ide- IIG: What were your perceptions of the In addition, we aim to utilize the liberat- Founded 2005 expectations for exploration and al location to be in and because we’ve got opportunities in the Kurdistan Region? IIG: Is part of that optimism rooted ed sulfur in the production of fertilizer. 2012 Revenue $7.6B production activities, and the the right political passport. Obviously, our LK: The Kurdistan Region is the last explo- in the agreement TAQA has with Mass However, pursuing this option is probably 2012 profit $176.7M importance TAQA has placed on specific background is in the Middle East. ration frontier, and the potential discover- Global Investment Company for the insufficient to justify this type of expendi- Total assets $33.4B alternative energy projects and We are an Abu Dhabi state owned com- ies here are enormous. It’s a unique space Slemani Independent Power Project? ture. So, we will need to develop further Employees 2800 transformational solutions for energy North America, pany; 72.5% of the stake is owned by the compared to, for example, the UK. There LK: At TAQA, our roots are in energy and partnerships with the KRG and other pos- Global Operations production. Abu Dhabi government and 27.5% is list- they have all the infrastructure in the world in providing power. We exist as a result of sible partners to justify investment in that Europe, MENA Power generation ed on the Abu Dhabi Securities the privatization of the Abu Dhabi power sulfur removal system. If, however, there is 16,395 MW Exchange. So, because of our The Kurdistan Region is the plants in 2005. TAQA produces most of excess power remaining, we certainly aim capacity Water desalination focus on the Middle East, we Abu Dhabi’s power and all of Abu Dhabi’s to utilize it in water conversion. This will 887 MIGD have identified certain countries last exploration frontier, and water. That privatization gave us the capital then enable us to begin providing clean capacity as being of particular interest; the potential discoveries to grow our global portfolio and devel- water to the Kurdistan Region. Oil & Gas production 135,400 bpd Iraq was one such country. We op into the company we are now. At the began looking for specific oppor- here are enourmous. moment, we’re close to $33,4 billion in asset IIG: Once you receive approval from the Shareholders Abu Dhabi Government 72.5%, tunities in the country, which is value. Since we are an energy company MNR for the field development plan, how Abu Dhabi Securities Exchange 27.5% why we pursued our initial venture with and available global resource technologies, rather than simply an oil and gas entity, we do you expect your activities to proceed? Western Zagros. We had a stake in the but their reserve base is shrinking. Early want to use all our skills in Iraq and in the LK: I think everyone here is focused on company, and that provided us with a step- on, the asset we operated in the UK North Kurdistan Region of Iraq. That’s where the getting oil production flowing as quickly ping-stone to understand how business is Sea had three billion barrels of oil in place. Slemani Power Plant comes in. Last year, as possible, and we are no exception. So,

66 The Review Kurdistan Region of Iraq 67 TRANSPORT Best Emerging Market Airport

About Talar Faiq Salih was appointed as the Director at EIA in July 2010. Ms. Salih was awarded, “Best Woman in Aviation” at the Emerging Markets Airport Awards, in Dubai in June 2011. In January 2013, she was honoured to accept, on behalf of the airport, when EIA was named “Best Airport”, in the category of airports in emerging markets with fewer than five million passengers per annum.

growth patterns of cargo and passenger traffic. This will, in turn, allow us to cali- brate our investment in the coming years and ensure that we continue to be a “fit for purpose” airport.

IIG: Are there any new routes planned to begin service in the near future? TFS: So far this year, routes to Georgia and a new route to Iran were launched. Iraqi Airways has also launched new routes to Dusselfdorf and Frankfurt. Erbil is seen by many airlines as a place of interest, but regulatory approval is always needed and these things take time.

IIG: Because of the lack of a maritime Talar Faiq Salih IIG: Erbil International Airport (EIA) port in the Kurdistan Region, there are General Director, won the ‘Best Emerging Market Airport’ fewer options for commercial import- Erbil International Airport [EIA] award in 2013. What is EIA’s capacity ers. How can the airport play a role in expansion strategy? increasing the availability of necessary Talar Faiq Salih talks to IIG about TFS: Passenger traffic grew by 53% in goods? To that end, how has freight vol- increased passenger rates, new 2012. This year, passenger traffic is up by ume changed over time? routes and airline carriers for the 35% in comparison to the same period TFS: Cargo volumes increased to 27,859 Erbil International Airport, as well in 2012. The Kurdish economy is grow- tons in 2012, which is a 54% increase on as the role the facility can play in ing. With that growth comes increased the previous year’s figures. In terms of At the forefront of the emerging markets of the Middle East helping to develop the Kurdistan demand for air travel. Each year, on aver- airfreight services, Erbil is well placed to Region’s infrastructure and overall age, air travel around the world increases be the gateway not just to the Kurdistan global identity. by about 4% or 5%. However, it is difficult Region, but to greater Iraq as well. With for new services to get landing permission that in mind, we will look to further from the regulatory agency in Baghdad. invest to ensure that we are able to fulfill So, existing carriers that wish to increase that potential. Our expectations are that the frequency of flights into Erbil are rou- road-based logistics will continue to dom- tinely held back. That said, we will shortly inate. However, it will be interesting to see initiate an in-depth study to help us ana- how rail transport impacts cargo volumes lyze, and therefore understand, the future once those services are up and running.

Kurdistan Region of Iraq 69 EIA at a Glance 947,600 Total number of passengers in 2012

27,859 tons Total cargo tonnage in 2012

2,590 Daily Passengers Copthorne Hotel Baranan 13 17 are dominated by environmental issues. As Average Average cargo a result, the link between the connectivity Sarchinar Main Street, commercial flights per week an airport brings and the commensurate P.O. Box No. 444 flights per day economic and social enhancement is lost. Sulaimania, Kurdistan, Iraq Erbil’s airport provides connections to 24 T. +964 770 600 0000 cities in 15 countries via the services of 23 23 15 different airlines. In 2003, there were no E. [email protected] airports countries such links. With that in mind, it can be connected connected clearly seen that the airport plays a sig- to EIA to EIA nificant role as a gateway, as a connector, and as a facilitator of economic and social growth.

A healthy economy needs a diverse range IIG: What role do you see the airport of transport and logistics solutions, and playing in attracting tourists to the at EIA we will do our utmost to ensure we Kurdistan Region? have the necessary facilities to meet the TFS: As a result of the connectivity that I needs of our customers. mentioned before, EIA makes it easy for tourists to enter the Region. Unfortunately, IIG: How crucial of a role do you believe some people still see the Kurdistan Region EIA plays in the development of the as unsafe for travel, despite the fact that it Kurdistan Region in general and Erbil is statistically much safer than the rest of in particular? the country. TFS: Prior to 2003, Iraqi Kurdistan had no So, when it comes to marketing the air- “Passenger traffic civilian airport. It was effectively isolated port, we are marketing the Kurdistan Region grew by 53% in 2012. from the rest of the world. The Kurdistan as a place to visit for business purposes. Our Region was cut off from the south by a attendance at international conferences and This year, passenger Saddam Hussein-inspired blockade. our work with international media are aimed Limited access due to difficult road con- firstly at promoting the airport. However, traffic is up by 35% ditions through the mountains to the north this work also has a secondary benefit in that in comparison to the further compounded the situation. In it delivers the message that the Kurdistan 2004, Prime Minister Nechirvan Barzani Region is different from the rest of Iraq; spe- same period in 2012. identified ending this isolation as a key cifically, that it is a safe place to visit and do component in enabling economic growth. business. We believe that the airport itself The Kurdish economy Airports in general are catalysts for growth; help challenge pre-conceptions. The moder- is growing. With they bring investment and jobs. They also nity and efficiency of the facility tends to allow for an influx of individuals willing surprise first time visitors. So, I believe that that growth comes to provide similar services across many we performing a key service in terms of increased demand for sectors of the economy. In the west, debates persuading people to change their thinking about new runways and airport expansion regarding the Kurdistan Region. air travel.”

70 The Review TRANSPORT Becoming a Hub for Regional Cargo Exchange 3

1 Airport traffic control tower 2,4 Slemani International Airport 3 126,878 passangers departed (2011) 4 5 Airport security

local, on-the-ground presence. Our expec- governorate as a whole. As a result of that budget, and we work hard to provide the tation is that this new, modern facility will development, there is a need for increased best possible services to our community. 2 encourage many cargo companies to begin transportation options. SIA satisfies many I think our growth in terms of passenger operating in Slemani and that the airport of those requirements. For example, since rates reflects our commitment to hard work will, as a result, become a hub for regional 2009, there has been a noticeable increase and development. In 2012, we had a total About cargo exchange. We conducted an analysis in the number of our local population of approximately 286,000 passengers. For Tahir A. Qadir first became involved with the of the Sharjah and Dubai Airports, specif- who are traveling abroad for touristic 2013, we are expecting that number to SIA when he was appointed Project Manager ically in regards to their relative distances increase to more than 300,000 passengers. for the construction of the facility in 2004. Upon from key export areas such as Europe and “If you look at the statis- completion of the project, he served as the South Asia. Our report confirmed that the IIG: With that in mind, what are the most Director General for Technical Issues at the airport tics for passenger services until he was appointed Director General in 2009. routes into and out of the Kurdistan Region popular destinations for flights out of Mr. Qadir has a background in Civil Engineering were much shorter. This means that cargo from 2005 until today, SIA? Additionally, which routes or des- and graduated from Slemani University in 1979. companies could utilize SIA in order to cut you can see that SIA has tinations would like to see be one day costs and save fuel. So, we strongly feel that increased its rates 10-15% connected to the SIA? our airport could play a significant role in TAQ: Turkey and Lebanon are, general- Tahir A. Qadir IIG: How is the SIA handling increased we have now begun the process for improv- the future of both local and global trade, each year. Between 2010 ly speaking, the most popular. However, Director General, Slemani consumer demands while at the same ing our capability in this area. and we are working towards that goal. and 2011, there was a 15% our flights to Malaysia and Georgia are International Airport time staying current according to inter- increase in passenger also becoming increasingly popular, again national standards? IIG: What specifically is being done to IIG: Is the plan to focus more on cargo because of the simple process for obtain- Tahir A. Qadir, who has been TAQ: Aviation is progressing and develop- allow for the increased handling of car- operations in the short term? Or is there rates. In fact, from 2011 ing a Visa. Regarding future possibilities, of involved with Slemani International ing each and every day. So, we have to be go at SIA? a dual emphasis on passenger services to 2012, there was a 20% course, every airport wants to be connected Airport [SIA] since construction able to train and prepare our staff to match TAQ: As per the stipulations of the and cargo alike? increase. We had a total to every other airport. However, this possi- first began, discusses the growth that progress. To do so, each year we send Investment Law, the KRG has given autho- TAQ: We will continue to emphasize both bility always depends on the market itself. We and expansion of the airport, the a number of our staff from a variety of dif- rization to a joint-venture partnership of areas to the best of our abilities. When “The of approximately 286,000 recently started offering direct flights to the new flights and carriers available to ferent areas of operations to get additional a local company and a company from the Cargo Village” becomes operational, the passengers. For 2013, we UK, and I think the ultimate goal would be passengers, and the strategic role training. They then return to SIA, where Gulf to construct a new cargo facility inside airport will be split between cargo and pas- are expecting that number to offer similar services to the United States. he expects the facility to play in they work to keep the airport running the airport grounds. This facility, which senger services. If you look at the statis- This service would be of critical importance, promoting international trade. according to international procedures and will be called “The Cargo Village”, is cur- tics for passenger services from 2005 until to increase to more than and would certainly increase economic con- regulations. In terms of the demands the rently approximately 50% complete and is today, you can see that SIA has increased 300,000 passengers.” nections between the Kurdistan Region and airport faces, there are two primary areas: expected to be operational by the end of its rates 10-15% each year. For example, America. I should note that the service to the passenger travel and then cargo services. this year. The facility will contain storage, between 2010 and 2011, there was a 15% reasons [specifically to Turkey, Lebanon, UK is provided by Iraqi Airways. SIA is also When construction first commenced, only cold storage, security, customs, veterinary increase in passenger rates. In fact, from Malaysia, and Georgia]. So, SIA is clearly serviced by a number of high quality, inter- a small facility was set up to handle car- services, quarantine areas, quality control, 2011 to 2012, there was a 20% increase. I very important for the country, and the nationally known carriers, including Turkish go. The primary aim of this facility was to and immigration services. Additionally, would argue that this indicates that there KRG is doing everything it can to support Airlines, Qatar Airlines, Germania, Royal handle passenger services. However, cargo there will be space available that can be has been considerable progress both in our growth and development. The govern- Jordanian, Azmar Air, Fly Olympic, Atlasjet, demands have grown to such an extent that utilized by companies that prefer to have a terms of the city of Slemani as well as the ment continually allocates the facility a fair Georgian Airlines, and Fly Dubai.

72 The Review Kurdistan Region of Iraq 73 TRANSPORT Red Carpet Arrival

“We offer the full, red carpet treatment. The aircraft these clients travel on range from a small Cessna Citation all the way up to an Airbus. The size of the plane doesn’t matter as long “The airport itself was gone through NATA-First [National Air but on a smaller scale. So, as a result, our as the client is a VIP.” Transport Association] training. So, when customer service is much more personal designed extremely they walk up to your aircraft, they have the and therefore much more specified. well. The runway is confidence and ability to help you with whatever you need. Generally, what they IIG: You all have been operating in the great, the taxiways need is the red carpet treatment, and we Kurdistan Region for quite some time. are nice, and security offer that to every aircraft that comes to us. How have the expectations of the coming traveling to the Region changed over that is terrific. In fact, I IIG: Since you are dealing pretty much period? Do you feel that people see the would have to say that exclusively with VIP clients, are there area differently than they used to? other unique services that you provide DA: Certainly. I would say that expecta- it’s really one of the or offer? tions are much higher, and I feel that we best-secured airports DA: We believe everyone that comes to us have raised the bar to meet those expecta- is going to be a VIP. So, there are special tions. We still have some clients from the anywhere. It’s well lit, things we do to take care of our customers. United States and Europe who have never Dori F. Abouzeid IIG: Can you tell us what you offer in immigration and customs, and/or luggage well guarded, and well As I said, we have people ready to antici- flown into Erbil. They tend to wonder what CEO and President, Macair Flight terms of services here in Erbil and services. We have 24/7 concierge services pate and understand the needs of both the it will look like and how safe it will be. Once Support & Komar Aviation Group abroad? with a live person answering the calls. We staffed.” passengers and the crews. For example, we they arrive, they are always surprised. I DA: There are two types of flights coming offer the full, red carpet treatment. The frequently deal with international busi- think there are multiple reasons for this. Dori F. Abouzeid explains his into Erbil: scheduled and non-scheduled. aircraft these clients travel on range from a nessmen. So, we’re adding a service called Firstly, the airport itself was designed company’s expanding activities in “Scheduled” means that it’s an airliner, and small Cessna Citation all the way up to an “Newspaper Direct.” I will print any news- extremely well. The runway is great, the the Kurdistan Region, as well as passenger services for those flights are han- Airbus. The size of the plane doesn’t matter nitrogen in your tires, it can’t be provided paper in the world (whether its Chinese, taxiways are nice, and security is terrific. the benefits of having the parent dled by a company called DeNata. We han- as long as the client is a VIP. here. We have also identified a goal of pro- Russian, English, French, or anything else) In fact, I would have to say that it’s really company, Komar Aviation Group, dle “Non-Scheduled” flights affiliated with viding hangars for private planes. They’re and hand it to [a client] as soon as they step one of the best-secured airports anywhere. with 120 years of combined aviation Macair Flights, which would be private or IIG: So, you currently offer VIP services needed here in the Region because of the off the plane. However, that’s just one of It’s well lit, well guarded, and well staffed. experience, to support and enhance VIP flights. If you were flying your own jet to passengers flying into Erbil on private extreme temperatures in the summer and the many unique services we offer. When I have no doubt that that level of security the expansion of the new company into Erbil tomorrow, I would handle it for planes. What services do you plan to offer winter. These are all amenities that we will the aircraft arrives, the plane is met by our is due in large part to the hard work of into the Region. you. Komar Aviation, our parent company, going forward? hopefully be able to add in the future. well-trained personnel, who perform the the local government. I wish I could take has over 120 years of combined aviation DA: Construction on the FBO facility itself standard services (chocking the plane, lay- credit for the security of the airport, but I experience. So, all the people that work will be starting very soon, and will be state- IIG: How does your staff reflect your goal ing out cones) like clockwork. The red car- can’t. So, right now, we’re the only com- for us, including pilots, directors of main- of-the-art across the board. It will feature of giving every client the VIP treatment? pet is waiting and, at the end of it, we have pany offering these specific services. We tenance, accountants, charter salespeople, two VIP lounges, rest areas, conference DA: We facilitate things for both the clients golf carts waiting to take our passengers feel that this will be the case for the fore- are very experienced and very well trained. rooms, and, potentially, a small gym that and the pilots of non-scheduled flights. and their luggage to immigration and cus- seeable future. However, we can’t afford The core of our business is the fixed-base will help our crews to relax. We’re also We aim to surprise our clients when they toms. We have people in place to help our to act like that. It doesn’t matter whether operation [FBO], a facility that caters to all hoping to eventually build a Maintenance, arrive here; 99% of the time, we succeed. clients with customs and with the potential we’re the only company or whether there VIP passengers and aircraft. Our clients Repair, and Operations [MRO] facility; it In numerous airports in the region, there language barrier. We can arrange transpor- are ten other competitors in the field, we are non-scheduled, VIP passengers, and would provide fueling and maintenance aren’t many such services offered. Those tation and, if necessary, armed guards. So, want to provide the best possible service we offer them world class service across services for private jets. At the moment, that are offered are frequently chaotic or the passengers are taken care of, but so too and maintain our stellar reputation. This is the board. We handle whatever they no one offers that type of service here in disorganized. Here, our personnel are well is the crew. We can perform basic main- our name, and this is the service we want need: arrival, departure, flight planning, Erbil. So, if you need additional oxygen or trained and multi-lingual. They have all tenance services; exactly like the airlines, to offer.

74 The Review Kurdistan Region of Iraq 75 EDUCATION

KURDISTAN BOARD of INVESTMENT The Kurdistan Region of Iraq is a booming market that offers promising investment opportunities especially in the agriculture, industry, and tourism sectors.

IIG: The education sector was allotted charge of supervising all private insti- Bright Future 16% of the overall budget this year. Is that tutions to ensure that education stan- Dr. Asmat Muhamad Khalid enough to satisfy the needs of the sector? dards are being met. The most recent Minister of Education, Kurdistan AMK: This 16% is not the only funding figures we have indicate that there are Regional Government that we are getting, but I can say with cer- around 165 private schools in operation tainty that it is not enough. With the num- in the Kurdistan Region. However, that Dr. Asmat Khalid discusses his ber you mentioned, we are only able to number is increasing on a regular basis. Ministry’s current initiatives and plans run our existing schools at their current I am pleased with this growth in that it The BOI is providing professional one-stop-shop services to for reform, methods for alleviating standard and in the prevailing style of the provides greater educational opportuni- budgetary and infrastructure Region. We need a greater amount allocat- ties to the people of the Region. As long investors and is responsible for granting public benefits to eligible constraints, and his desire to ed from the budget. We have announced as the schools are not too expensive and incorporate innovative approaches the construction of 500 new schools. These provide a high standard of education (spe- private investment projects based on the investment law of 2006. for education into the curriculum of facilities may cost approximately $10 bil- cifically in the sciences) then I am pleased. the Kurdistan Region. lion. Our current budget allocation obviously does not cover that amount. So, that IIG: There seem to be a number of excit- $10 billion is an extra cost. In addition to ing concepts or plans regarding how to that figure, there are special programs that improve the education sector. Have any are needed to better educate our students. of those ideas been implemented? AMK: We have been implementing a vari- IIG: Can you give us some information ety of our plans for the past year. When I regarding the development of private was appointed Minister, my first action www.kurdistaninvestment.org education, as well as your thoughts on was to prepare a detailed report that that growth? was separated into two parts. The first General Directorate of Investment Erbil General Directorate of Investment Slemani General Directorate of Investment Duhok AMK: My primary responsibility is identified the challenges we were facing (Branch office) (Branch office) (Branch office) to public schools. However, I am in and the second relating to the proposed Emergency Hospital Street, Bakhtiary, Erbil Sarchnar, next to Mashxalan Masjid, Slemani 1st Shubat Street, Duhok +964 66 / 264 21 18 +964 53 / 318 17 23 , or - 318 17 24 +964 62 / 762 71 75, or - 762 70 13 Kurdistan Region of Iraq 77 [email protected] [email protected] [email protected] “The most recent figures we have indicate that there are around 165 private schools in operation in the Kurdistan Region. I am pleased with this growth in that it provides greater educational opportunities to the people of the Region.”

solutions. This report then became the running of the MOE itself. basis for our strategic plan, which itself Looking at education itself, we announced was divided into two parts: a one-year plan the construction of 500 new schools. and a five-year plan. The one-year plan However, new schools require addition- has, I am pleased to say, been almost fully al staff. Once again, our procedures for implemented. We are now in the process hiring and training required revision. We of finalizing the five-year plan, which will have prepared proposals to make these give us a very clear vision of what needs changes and implement new teacher Education in Numbers to be accomplished and the direction in training courses. Making these chang- which we need to head. So, I feel that we es requires considerable investment, but 1,650,000 have started with a very strong first step we expect that this process will be com- Students enrolled in public school in our journey. It was a small step, but it plete in the near future. The draft of the was very important that it also be a cor- law has been completed and is now in the rect step. I am pleased that I can look Prime Minister’s office awaiting approv- 130,000 back and say, “That first step has allowed al. So, those are just a few of the things New Students (per year) us to begin securing a very bright future that we accomplished in the past year. for education in the Kurdistan Region”. IIG: Has it been difficult to get teachers IIG: Can you tell us some of the challeng- to embrace these innovative approaches 165,000 es that were identified in that one-year to education? Has there been resistance Teachers plan and how they were addressed? to these ideas because they are a newer AMK: Some of the regulations themselves concept? Enrolment were creating daily problem for our admin- AMK: Our teachers can be classified istration, because they were unclear or into two groups: those who are willing to 95,9% 88,9% unspecific in certain areas. So, we stream- improve themselves and those are not will- Primary School Secondary School lined them and eliminated unnecessary ing to do so. With that in mind, I believe aspects. Similarly, we decentralized the that the MOE should have a two-fold objec- administrative system to the greatest extent tive in dealing with its teachers. Our goal Illiteracy Rates possible. Prior to my appointment, it was should be to help the members of the first very centralized, and therefore not as effi- group to pursue any and all opportunities 23% 7% cient as possible. Every small decision had to help them improve their overall abilities. 2008 2015 (targeted) to come from this office. This is no -lon At the same time, we also need to institute ger the case; we feel that the responsibil- a date by which all personnel must have a ity of the Ministry of Education [MOE] certain standard of skills or abilities. From should be macromanagement as opposed what we have seen so far, the majority of our 500 to micromanagement. We also addressed teachers seem very happy to pursue these New schools to be built legal issues as well. The laws relating to the opportunities, especially since they will MOE were severely outdated. They were receive improvements in their salaries for first drafted in 1992. Since that time, there doing so. This is in addition to the fact that have been many changes in the field of this training will be free. So, overall, I feel education. So, we prepared a new draft law that we have created an environment that to better accommodate modern demands rewards our teachers for pushing them- and needs. Those are all pertaining to selves to do the best work possible.

78 The Review EDUCATION only tests on a specific set of criteria. So, it have to be very careful about how we adopt AUIS About affects us insofar as the students who have this position. We can’t go directly against Established 2007 Creating Future Leaders Dr. Athanasios Moulakis was appointed the best scores will be required to pursue the system, because that would provoke a President Dr. Dawn Dekle President of AUIS in 2010, and served one of two fields: medicine or engineer- strong reaction. Instead, we have to do so Total Students 1000 in that position until July 2013. Prior ing. This means that they will then go to obliquely and slowly. This is why, in my Language English to working in the Kurdistan Region, he state universities where those positions are opinion, it is good for AUIS to be small served as Provost and acting President at Partnerships the American University in Afghanistan. offered for free. AUIS is unique in that we and different. We can serve as an exam- Miami University (OH), Old Dominion Dr. Moulakis has taught in a number of are the only place that is a not-for-profit ple of a different model, and we can be a University, Stanford Law School, universities in Europe and the United institution for public benefit. However, we facilitator of change. I believe that the best SUNY-Albany, University of Amsterdam, States, including Harvard, the University still want to compete for these students. As way for AUIS to do this is to demonstrate University of California, Los Angeles, of Bern, the University of Colorado, and a result of our progressive fee structure, how successful our students can be across University of Colorado-Boulder St. John’s College in Annapolis. we have managed to improve the admis- a wide variety of strata. sions process. Our current system operates Undergraduate Programs under the notion that the better you are, IIG: AUIS successfully organizes inter- • BS Business Administration • BS General Engineering the less you pay. This means that we get national events such as the Sulaimani • BS Information Technology some of the top students. Forum. How do such events contribute • BA International Studies to international awareness of Slemani?? • BS Mechanical Engineering IIG: What are some of the other major AM: We are uniquely placed in the Region • BA English Journalism issues that AUIS has confronted during to bring people in to promote a discus- your presidency? sion of international affairs and promote Executive MBA Program AM: A major problem relates to our posi- international understanding or intergroup International Management in conjunction tion as a liberal arts college. The Zanko understanding. This is because of the toler- with Steinbeis Hochschule Berlin Line is rooted in a very rigid, very old-fash- ance and security present here. The events Research Center ioned school system. This is also the case, you mentioned bring together analytical The Institute of Regional and to a certain extent, with the value system people (scholars and journalists and the International Studies Dr. Athanasios Moulakis IIG: For those unfamiliar with the uni- established. They are more solid and they surrounding education itself. For exam- like) with practitioners and politicians. Former President, The American versity, how would you define AUIS? are more institutionalized than many oth- ple, high schools in this country have two As the Region becomes increasingly rich, University of Iraq – Slemani (AUIS) AM: In terms of numbers, we are a very ers in the rest of the country. This is in large tracks: the scientific branch and the liter- small university. However, we have more part due to the quality of our professors. ary branch. In theory, they are nominally Former AUIS President Dr. people from different sects and ethnici- We have a relatively large rotation, partly equivalent. In actuality, they are hierar- Athanasios Moulakis provides IIG ties than all the other universities put because we are in a place where it’s diffi- chical. The system in its present form dic- with exclusive insight regarding together. We have Yazidis, Turkmen, cult to recruit. It’s much less difficult than tates that if you are smart, you will take the unique opportunities provided Armenians, Shi’ia, Sunni, Kurds, Arabs. it would be in Baghdad. I think it would science. If you’re not smart, you will take by AUIS, the implementation of a We grant scholarships for students from be literally impossible for us to be based arts. I believe that this approach is coun- Liberal Arts style education, and the the southern part of Iraq, which is a very there. Nevertheless, I find that the level and terproductive, but it is the way it is. Every role that the university has played valuable service to be providing. We are quality of our faculty is very much higher parent that I have spoken to believes firmly in transforming the mindsets of its very eager to embrace them. We are, in than when I arrived. I think this is in part in this hierarchy. In fact, I only have one students. fact, the most diverse university in Iraq. So, due to the effectiveness of our adminis- Iraqi trustee who is not an engineer, and I would define AUIS as the most diverse tration and in part to the effectiveness of he is a doctor. There seems to have been university in Iraq. an increasingly national administration. a very strange effort made to implement only those Western educational values that “We are uniquely placed in the Region to IIG: Each year, high school seniors in the are deemed worthwhile (engineering and Kurdistan Region take an examination medicine) without the intellectual under- bring people in to promote a discussion called “the baccalaureate”. Based on their pinnings that go with them. So, everyone of international affairs and promote in- scores, they are then placed into pub- wants to be a doctor or an engineer because lic university programs. This system is it is what the society embraces. I feel that ternational understanding or intergroup known as “The Zanko Line”. However, this is incredibly dangerous. When you’re understanding. This is because of the this is generally only applied for public building a new democracy and a new PM Nechirvan Barzani at AUIS schools. So, how does The Zanko Line economy, you need people from a variety prominent, and engaged in the geopolitics Graduation Ceremony tolerance and security present here.” place system impact the admissions pro- of backgrounds, including history, litera- of the surrounding region, the pertinence cess here at AUIS? ture, and philosophy. You need people who of current events and the location of the use to further this standing: fellowships, IIG: Has the location of the university AM: The Zanko Line serves as an indicator have the capacity to think in a variety of university become even more import- internships, research programs, and so on. impacted your ability to attract profes- of a student’s general ability, but it is a very different ways. We at AUIS feel that this ant. So, in essence, these types of events These events also allow for the showcasing sional staff? rigid indicator. It’s a test that measures the diversity and creativity is fundamental, become markers and serve to enrich the of a variety of talents, and make it more AM: To start off, I would like to note that capability and the aptitude of the student. which is why our role is truly important, intellectual life of our community. To that attractive for the individuals that we recruit our academic programs are proven and However, it’s only one examination and it if unconventional. At the same time, we end, there are a number of vehicles we can for our own teaching purposes.

80 The Review Kurdistan Region of Iraq 81 HEALTH Awamedica Changing the face of Iraqi Awamedica, which began manufacturing operations in 2010, is the first pharmaceuticals pharmaceutical company to operate in Iraqi Kurdistan. The facility produces medicines and related products according to United States and British pharmacopeia regulations. Awamedica presently employs roughly 180 employees, 150 of whom are from the local population. The company currently has 96 products developed, with 56 already in circulation. In November 2011, Awamedica signed a joint-partnership agreement with France pharmaceutical giant Senofi to facilitate further growth within the region. The company recently opened its first branch in Baghdad.

Dr. Bahram Resul Since its founding in 2004, Awamedica which frequently had little or no effect. In CEO, Awamedica pharmaceutical company has sought to certain instances, these “medicines” actu- enhance the reputation of the Kurdistan ally worsened the patients’ conditions. IIG talks to the award winning Dr. Region as a provider of quality medicines. Counterfeit medicines made up rough- Bahram Resul, CEO of Awamedica, Indeed, the Kurdish owned and operated ly 30% of the market. By comparison, in about the groundbreaking facility has significantly increased its pro- major European markets, such medicines pharmaceutical company and the duction capacity in recent years. Presently, constituted about 3% of the available supply. state of the the Kurdistan Region Awamedica has 56 products in circulation, Moreover, in more developed countries, healthcare sector. Awamedica is and aims to increase that number to 96 in counterfeit medicines were only available in the first and only state-of-the-art the first quarter of the year. Perhaps most limited quantities via the internet or small pharmaceutical manufacturer in the significantly, the company recently signed stores. According to Dr. Resul. “Here in the history of the Kurdistan Region. a partnership agreement with French phar- Kurdistan Region, they used to be carried maceutical giant Senofi. These facts seem in on large trucks.” inconceivable when compared to the situ- However, with the fall of Saddam ation in the region less than a decade ago. Hussein in 2003, the Kurdistan Region In the early years of the 21st century, the Prime Minister Nechirvan Barzani was able Region was plagued by an influx of counter- to take decisive action. He identified a goal feit or low quality medicines. This issue was of eliminating the widespread availability exacerbated by the fact that the Kurdistan of counterfeit medicine in the region by Region had long required effective treat- establishing a high quality pharmaceuti- ments for chronic illnesses such as cardio- cal production facility that could generate vascular diseases and diabetes. consumer confidence. Enter Awamedica. According to Dr. Bahram Resul, CEO In 2004, Dr. Resul was authorized by of Awamedica, the population was forced Prime Minister Barzani to create a plan- to take whatever products were available, ning committee. This committee would

Kurdistan Region of Iraq 83 be tasked with designing a state-of-the-art Atenolol, a product used to lower blood ten times, and each time Awamedica was production facility capable of producing pressure, provides an excellent example. determined to have achieved the necessary medicines of similar quality to those pro- Twice a week, Awamedica sends two trucks, standard,” said Dr. Result. “We started with duced in Europe or the United States. Dr. which comply with international shipping packaging their items, but have since moved Resul notes that it took about a year to get regulations, from its headquarters in Erbil on to manufacturing some of their prod- the design completed, as emphasis was to the Ministry of Health in Baghdad. The ucts. Now, we are considered a European placed on making the facility comply with products are then distributed from the Iraqi company based here in Erbil.” The agree- all international regulations. capital to all regions of the country. ment between the two companies marked Construction and installation of the nec- This large-scale production capacity has the first time in history that a Kurdish essary equipment began in 2006. However, not caused Awamedica to sacrifice its ded- pharmaceutical company partnered with to verify that each segment of the process ication to producing was conducted according to good manu- quality products. The “We are considered a European A Boutique Hotel in Erbil facturing practice (GMP), standards took facility features a com- three years. As a result, it was not until 2009 mitted quality control company based in Erbil. So, that the facility was officially opened, with department, which naturally, our intention is to develop manufacturing beginning in January 2010. keeps it in line with According to Dr. Resul, convincing all international stan- into an international brand, and Blue Mercury Hotel the local population to trust Awamedica dards and practices. then begin supplying high-quality was the hardest part of the entire process. Notes Dr. Resul, “We Blue Mercury Hotel is located near the Ainkawa Bridge on 60 Meter Street, only “People saw our company and thought, ‘It control every aspect of medicines produced in the Region is only a local company. It’s only a Kurdish production and make to new markets all over the world.” 5 minutes from the famous Erbil Citadel. The hotel offers a complimentary company’. However, when they tried our sure that everything breakfast buffet, wireless internet, 24/7 room service, and transport services to medicines, they realized that the products complies with US and British pharmaco- an international provider. While this new were safe, efficient, and effective.” peia regulations. By staying dedicated to partnership is certainly a positive step for and from Erbil International Airport upon request. Today, Awamedica features five differ- these qualities, we have achieved success.” Awamedica, Dr. Resul hopes it proves even ent assembly lines. This number allows the This commitment to quality hasn’t gone more beneficial for all of the region: “We are company to produce enough materials to unnoticed. In 2011, Awamedica signed a confident that this partnership will help to satisfy demand not only in the Kurdistan partnership agreement with pharmaceutical end the availability of poor quality medi- Region but also in the whole of Iraq. giant Senofi. “They inspected our facilities cines here in Kurdistan Region.” 60 Meter Street, Near the Ainkawa Bridge [email protected] 84 The Review +964 (0) 66 256 9777 DOING BUSINESS Deloitte drives progress in the Kurdistan Region As one of the world’s leading professional services firms, with uninterrupted presence for over 87 years in the Middle East region, Deloitte has a proven track record globally, and in the Deloitte offers a full suite of professional services in the Kurdistan Region, with particular focus on: Middle East of advancing the aims of our clients and their Accounting and Consulting and Financial Taxation Services; stakeholders, striving to make them leaders wherever they choose Assurance Services; Advisory Services; Including corporate income tax Including preparation of financial Including feasibility studies, compliance, employment tax and to compete. 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What do we bring to drive progress in the Kurdistan Region? Private Sector & Foreign Investment

Operating in over 150 locations around and returned in January 2011 under the with a strong understanding of the local Recognizing that oil export receipts GDP up. The primary beneficiaries will be in Iraq. Reforming the banking sector the world, we are recognized for our leadership of an internationally qualified accounting and tax environment in the cannot keep pace with spending for the following industry sectors: construc- will also ease the flow of money into the talent, scale, position and size With 31.3 and experienced managing partner. To Kurdistan Region in order to mitigate risk reconstruction, the government of the tion and construction materials, branded country and transform it from a cash- billion US dollars of revenue in fiscal solidify our intent and commitment to and maximize value. Our people are not Kurdistan Region introduced new legis- consumer goods, healthcare, electronics, based society into a modern and vibrant year 2012, we have scale and the widest Iraq and the Kurdistan Region, we built only subject matter experts, but are also lation in an effort to boost private sec- retailing and, financial services and cap- community. scope (235 market segments) of services a core team consisting of experienced highly experienced in industries that are tor and foreign investment. Many tax ital markets. Despite the challenges, regional and of any professional services company in Deloitte staff members who have relo- of priority to the Kurdistan Region, like incentives were legislated, providing However, it should be noted that global multinationals see huge opportu- the world. Coupled with access to the cated and made Erbil their home. With energy, oil & gas, financial services, tele- for exemption from taxes and fees for a merely creating facilities for interna- nities and are flocking to the Kurdistan com, public sector and other important period of 10 years as of the date of com- sectors. mencing commercial activity. These Operating in over 150 locations around the world, we are Our practice in the Kurdistan Region exemptions can be further extended for Deloitte is committed to making a significant recognized for our talent, scale, position and size With is led by Ayad Mirza. Ayad is an Iraqi/ an additional five years upon meeting American national with CPA certifications certain criteria. The tax incentives also positive and long-term difference in realizing 31.3 billion US dollars of revenue in fiscal year 2012, we from the United States. He is based per- provided for exemptions from import opportunity or overcoming challenge, through have scale and the widest scope (235 market segments) of manently in Erbil, the Kurdistan Region duties for the purpose of the investment services of any professional services company in the world. and is responsible for managing and project for up to three years as of the date our work for clients, impact on our people and developing Deloitte’s practice to offer of the grant of the investment license. our broader contribution as a leading global services and advice to our clients in audit, These import duty exemptions are also deep intellectual capital of 200,000 such full-time dedicated resources on the tax, consulting and financial advisory and extendable for the purpose of expanding, business in Iraq and the Kurdistan Region. people worldwide, we deliver services ground in our Erbil office, available to for the delivery of accounting and audit- developing or modernizing the invest- in four professional areas – audit, tax, meet with our clients locally and to liaise ing services in the country. ment project for up to three years as of consulting, and financial advisory ser- with regulatory and tax authority person- Given the nature of the business cli- the date of notification to the invest- tional firms to enter the local market is Region in large numbers. Deloitte is vices—and serves more than 85 percent nel, Deloitte’s practice in the Kurdistan mate in Iraq, the International Oil & Gas ment authority. Imported spare parts not a sufficient step towards increasing committed to making a significant pos- of the world’s largest companies, as Region blends local knowledge with operators represent the largest number for the same project are also exempt from business in the Kurdistan Region. Rules itive and long-term difference in realiz- well as large national enterprises, public international expertise, a factor which we of clients in our portfolio. Yet the land- duties if the value of these parts does not and regulations must be relaxed and all ing opportunity or overcoming challenge, institutions, locally important clients, and believe sets our firm apart. We under- scape is changing whereby other major exceed 20% of the value of fixed assets. ministries must work together to ensure through our work for clients, impact on fast-growing companies. stand the risks and challenges facing firms in the fields of power generation, In an economy that is heavily reliant expediency and efficiency in processing our people and our broader contribution Our Middle East firm operated in businesses investing into the Kurdistan real estate construction, banking, and on oil revenue, these measures will sup- company registrations and issuing tax as a leading global business in Iraq and Iraq for many decades since its estab- Region, and our team of professionals consumer products have entered the plement the reconstruction efforts and clearance certificates which are the ini- the Kurdistan Region. lishment in the 40’s of the last century brings deep industry expertise together market in large numbers. will boost Iraq’s economy driving non-oil tial requirements for starting a business

86 The Review Kurdistan Region of Iraq 87 TOURISM MJW: The Kurdistan Region is committed 2020, and the third has a targeted comple- “We have seen the to being a part of Iraq. However, the per- tion date of 2025. We evaluate the plan on Planning for the Future ception of Iraq abroad is obviously quite an annual basis to ensure that we are on tourism industry negative. This therefore negatively impacts track and that all of its components are still develop at an incredi- the development of the tourism sector here applicable. Many unforeseen obstacles and in the Region to some extent. Many people challenges will present themselves over the bly rapid pace. The sta- are unable to differentiate the cities of the course of this project, so we do our best to tistics support this fact. Region from those of the rest of Iraq. As a handle them accordingly and remain on result, they may not believe that the Region track towards the successful execution of In 2007, there were is stable and secure. So, our key duty is to the plan. Obviously, the overall goal of the only 39 hotels in Erbil. continue our marketing and promote the SMP is to ensure that the Kurdistan Region fact that things here are safe, stable, and takes its place as an international tourism Today, we have more worthy of visiting. We are doing everything destination. than 250, including in our power to demonstrate to the rest of the world that things here secure. To do IIG: What are the primary goals of the multiple internationally so, we have been developing a marketing plan and how do you expect them to be branded, five-star fa- strategy to better spread this message, and accomplished? we expect that it will play a major role in MJW: Our primary target is to have 7 mil- cilities. In 2007, a total facilitating greater tourism figures. lion tourists visit the Kurdistan Region of 377,000 tourists in 2025. However, we also have strategic IIG: Can you give us a little more goals along the way. For example, we have visited the Kurdistan information regarding that marketing placed particular emphasis on developing Region. In 2012, that strategy? the tourism/hospitality education sector. MJW: Per the strategy, we have identified We will be setting up special departments number increased to three different target markets in which we at local universities to accommodate these 2.2 million.” hope to spread our message. The first mar- new fields. In addition, there will be three ket is in greater Iraq, which we believe will training centers (one each in Erbil, Duhok, have more of an immediate impact. The and Slemani). We are hoping to import second market consists of our neighboring French expertise in terms of managing countries, particularly Turkey, Iran, and these training facilities. the Gulf Coast Countries. The third market Obviously, a primary goal of the SMP Mawlawi Jabar Wahab IIG: How do you assess the development from the United Nations World Tourism would be European countries, particularly is to enhance the Kurdistan Region’s inter- Chairman, General Board of Tourism, of the tourism industry in the Kurdistan Organization (UNWTO), which indicated those who have already established diplo- national brand. To do this, we feel it will Kurdistan Regional Government Region? that global tourism industry will develop matic representations here in the Region. be necessary to re-organize the structure of MJW: Prior to 2007, the infrastructure of approximately 3-4% this year. Our research As I indicated, I believe we have been quite the General Board of Tourism in order to Mawlawi Jabar Wahab explains the the Kurdistan Region was limited. This was confirms these figures in terms of global successful in the first market. We are con- ensure that it operates on a more efficient development of the tourism industry especially the case for the tourism industry. tourism. However, the general opinion is tinuing to promote ourselves in the sec- level. We will also seek to properly incen- in the Region, his office’s efforts to So, at that time, the KRG began to place that this growth rate will be much higher ond market, and we are starting to see the tivize private sector investment by provid- properly brand the Kurdistan Region, emphasis on tourism to make sure that for the MENA area and for the Kurdistan results. So, we are pleased with this target ing loans without interest and by helping to and the specific components of the it would become an active, economically Region in particular. I believe that the area. However, we have had some difficulty develop their overall operational capacity. Board of Tourism’s Strategic Master beneficial sector. Since then, we have seen Region is uniquely positioned to contin- with the third market. So, we will need to We feel that our goals cannot be achieved Plan, which includes the creation of the sector develop at an incredibly rapid ue its rapid growth in the tourism sector, further promote ourselves in those areas. without an active and eager private sector, facilities for hospitality education. pace. The statistics support this fact. In as we have all the necessary components so we will do everything we can do ensure 2007, there were only 39 hotels in Erbil. to develop successfully. We have an ideal IIG: In your opinion, aside from issues that it remains involved. Today, we have more than 250, including location, notable historical sites, beautiful relating to the perception of security, Lastly, we have placed emphasis on multiple internationally branded, five-star natural settings, a friendly population, and what needs to be done to ensure sustain- supporting the development of the infra- facilities. In 2007, a total of 377,000 tourists abundant natural resources. So, I believe able growth in tourism sector? structure of the tourism sector. Erbil, Our primary visited the Kurdistan Region. In 2012, that that the tourism industry can produce sig- MJW: I believe that we have already Duhok, and Slemani all need further number increased to 2.2 million. nificant revenue for the KRG, and it was achieved one major element that will allow improvement if they are to accommodate target is to have therefore no surprise that the government us to ensure further development: a stra- increased numbers of visitors each year. To IIG: Obviously, with Erbil being named elected to prioritize this critical sector. tegic master plan (SMP). Our SMP was that end, foreign direct investment in the 7 million tourists the 2014 Arab Tourism Capital, the prepared by the joint venture of a Lebanese tourism sector will be become increasingly industry will continue to grow. With that IIG: Do you think that there is miscon- and an Austrian company, and is struc- important. So, we are working diligently visit the Kurdistan in mind, what are your expectations for ception about the security situation in the tured in three phases. The first phase has to establish connections and promote our the tourism sector in the short term? Region? If so, how do you believe your a targeted completion date of 2016, the SMP abroad. Region in 2025. MJW: We have reviewed recent reports office can help change that perception? second has a targeted completion date of

88 The Review Kurdistan Region of Iraq 89 LIFE & CULTURE Landmark of Slemani

Safwan Khayat IIG: Can you give us some background About Area General Manager, regarding the Copthorne Hotel Baranan, Safwan Khayat graduated from the Millennium & Copthorne Hotels including when it was established and the Conrad N. Hilton College of Hotel obstacles or challenges to working in IIG: Obviously, the Copthorne Hotel as with the Copthorne, we plan to provide services it offers? and Restaurant Management at the Slemani? How have you gone about solv- Baranan is already up and running. unique options for Slemani. So, we aim to Safwan Khayat explains the role the SK: We obtained the building in 2010 and University of Houston. As a member ing these issues? However, Millennium Hotels and feature an all-day international buffet, an Copthorne Hotel Baranan played in of the Millenium Hotels Management then the construction process was complet- team, Mr. Khayat has been assigned to SK: Our challenge here has been finding Resorts has more plans for the city. Can authentic Lebanese restaurant, a revolving initiating the international hospitality ed in two years. The services we offer reflect open the company’s properties in the properly trained employees. This results you tell us about those? fusion restaurant located on the top floor industry Slemani, the challenges of our company standard that targets achiev- Kurdistan Region. from the lack of hotel schools or other SK: We plan to open two more facilities of the building, an Executive Lounge, a expanding to a new geographic area ing maximum guest satisfaction. As a result, international hotels operating in the areas. in the near future. The first is the Grand Champaigne Bar, a Café, a Pub Bar, and of operations, and the new hotels the we have adjusted or improved some areas SK: The Kurdistan Region, Slemani in Currently, most of our employees are for- Millennium Slemani Hotel (GMSH), a sports café. company plans to open in the near of operation since we opened. Currently, particular, only recently opened to the eigners from a variety of different coun- which we believe will become a landmark The second facility is the Millennium future. we offer the highest quality available in international hotel industry. In fact, we tries. Generally speaking, they already have of the city. It is located in the middle of Hotel and Spa, which will feature a total of terms of technology, including the fastest are the first international hotel company experience working in international hotels the city on Shary Jwan Hill, and is tall 134 rooms and suites specially designed Internet possible, which is available for free operating in the city of Slemani. Hopefully, and so they are familiar with the standard enough to be seen from virtually any place for short term and long term accommo- to our in-house guests. Our restaurants are more international chains will come in the that we demand. This issue will be solved in Slemani. The hotel will be composed dation. The crowning achievement of the international in inspiration and utilize the near future. I believe that it is healthy to in the near future once it becomes easier to of 256 rooms and suites, all of which will hotel will be the spa facility. It will feature highest quality of imported foods. For these have more branded hotels in Slemani, train local personnel. In addition, as I men- be luxuriously appointed and completed a wide variety of services, including fusion reasons, I would say they are unique among because that would allow for the quality tioned, we are forced to import a majority with the best possible guest amenities. The therapies, Turkish baths, steam rooms, a the dining options in Slemani. of the industry to improve. This would also of the ingredients used in our restaurants GMSH will also feature a business center, floating pool, an ice fountain, a Hypoxi have an impact on pricing. However, for from abroad. We’re coping with this prob- 5 executive floors, a club floor and lounge, Studio, and a fully equipped gym. IIG: Speaking of other options, how now, I don’t believe anyone in the city can lem by working closely with the govern- 11 meeting rooms, a car park, a health and would you describe the current hospital- compete with what we offer. ment to ensure the import process runs fitness center, a hair and beauty salon, ity industry in Slemani? Is it fairly com- smoothly. I believe that the government is indoor and outdoor swimming pools, a petitive at the moment and do you expect IIG: You’ve managed or worked in hotels doing its best to solve these issues, as well tennis court, a squash court, and a 2,800 more competition in the near future? all over the world. Are there unique as any others coming our way. m2 ballroom. In terms of dining options,

90 The Review Kurdistan Region of Iraq 91 LIFE & CULTURE LIFE & CULTURE Sushi in Erbil Noura Jewellery & When people think about the Kurdistan Region, sushi hasn’t Watches historically been one of the The Kurdistan Region has become known things that most readily came to internationally as an excellent place to do mind. Now, however, that may be business. Now, however, boutique stores changing thanks to the delicious and globally recognized brands are eager offerings currently being served to cement the Region’s growing reputation up at “Qi 21”, a Japanese sushi as a luxury-shopping destination. One and steak restaurant located on shining example of this paradigm shift is the 21st floor of the Divan Hotel. Noura Jewellery and Watches (NJW), the Featuring resplendent views, premier stop for fine jewelry and watches intricate décor, exquisite cock- in Erbil. Located on the first floor of the tails, and mouth-watering menu Divan Hotel, NJW offers its customers the options, “Qi 21” is a must-vis- world’s most prestigious brands [Rolex, it destination for any traveler Hublot, and Chopard], as well as brands to Erbil. Expertly trained chefs prepare and serve dishes that were previously unheard of in the Region, with fan favorites including the unique Tekkadon (rice topped with thin-sliced raw tuna sashimi) or the more traditional Beef Teriyaki. Dining service begins at 6:00pm and runs until 11:30pm, with bar service until 12:30am. Reservations recommended.

more identified with the Middle East (the Al-Kurdi collection). NJW also features handcrafted, one-of-a-kind pieces of jewelry, as well as the latest edition of Vertu phones. The store, which is owned by Iraqi investor Noura Al-Souhail, also provides repair and adjustment services. The design of the NJW store itself reflects Noura Al-Souhail’s attention to detail, with the carpet, chairs, and the rest of the décor all designed by the owner. A visitor to NJW comes away with the feeling that each item, a piece for sale, has its own unique story that reflects a blend of the traditions of the Kurdistan Region and the luxury of the modern world.

92 The Review Kurdistan Region of Iraq 93 LIFE & CULTURE Spotlight Fitness Made Easy Located on Kirkuk Road in Featuring numerous pieces Erbil, the Tangram Hotel of Technogym equipment has already established [including multiple tread- itself as one of the premier mills, elliptical, stationary hotels in the Kurdistan bicycles, and exercise Region. The Tangram Hotel stations], the spacious Fitness Center is perhaps Tangram Hotel Fitness the most well-equipped, Center also includes mod- planned, and provisioned ern changing rooms and a facility in all of the Region, sauna room that helps to let alone Erbil. perfectly end a hard day’s workout.

Zen the Spa at Erbil Rotana Offering relief from the Zen the Spa Signature sweltering heat of a Massage [a unique holistic summer in the Kurdistan massage combines the best Region and the stresses from east & west], Swedish of Erbil’s business Massage, Shirobhyanga [a environment, Zen the deeply relaxing head, neck, Spa provides premier and shoulder massage], therapeutic treatments the Deluxe Reflexology offered by certified spa Massage [a massage therapists. The facility, focused on pressure points the first of its kind in the in the feet that correspond Kurdistan Region, is located to different parts of the at the Rotana Hotel and body], and the Sport features five massage Massage [deep pressure or rooms, as well as dedicated neuromuscular therapy are sauna and steam rooms. used to work out spasms Patrons can choose from and chronic pain within the a variety of different muscles and connective treatments, including the tissue].

Poolside Living Every day from 7:30am to 10:30pm, guests at the Rotana Hotel are invited to take a break from their busy schedules and indulge in a bit of relaxation courtesy of the finest swimming pool in Erbil. The facility, which is surrounded by a lush, green garden, also offers outdoor dining operations and fresh drinks at the Aquarius Pool Bar.

94 The Review