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CONTENTS

14-23 28 China in Kurdistan 24 Tan Banglin, Chinese Consul THE REVIEW: General in the Kurdistan Safeguarding Financial Stability & Diplomacy & Politics Region Developing a Modern Economy Challenging Year Ahead Nechirvan Barzani, Prime Minister of the 30 Cooperation On All Kurdistan Region Fronts Bayan Sami Rahman, KRG High Rep. to the USA

31 Kurdistan in Italy Rezan Kader, KRG Representative in Italy

32 Partner Of Choice Karwan J. Tahir, KRG High Representative to the UK 40-43 34 Kurdistan in The Review: Business Australia Diversification Needed Haval Syan, KRG Representative in Australia

35 Notes from C Westminster M Gary Kent, Director, APPG

Y 36 What’s on the CM Horizon

MY Professor Dlawer Ala’Aldeen, President, MERI CY 46 26 CMY 38 MERI Forum 2015 Building Bridges Expanding Commercial Ties Sharing Visions for the K Falah Mustafa Bakir, Head of the DFR Steve Lutes, Executive Director, Middle Future of the Middle East East Affairs, U.S. Chamber of Commerce 44 Boosting Trade Fathi Al-Mudaris, Advisor, Ministry of Trade & Industry

45 Democracy & Economic Development Dr. Anwar Anaid, University of Kurdistan-Hewler 51 66 47 Insurance Landscape Randa Aractingi, CEO, Dilnia Geared to Build The Path to Excellence Insurance Peshraw Majid Agha, Chairman, Falcon Professor Michael Mulnix, President, AUK Group 48 Social Security Exemptions for Oil Companies Alain M. Hannouche, Hannouche Associates

49 Private Sector Reform Dave van Zoonen, MERI Research Fellow

Invest in Group — 9 CONTENTS Kurdistan Review 54-61 61 Sustainable Growth 97-101 Shwan Zulal, Director, Keeping an eye on the alluring leaders, emerging sectors, leading companies, The Review: Energy Carduchi Consulting The Review: Agriculture and rising trends shaping the future of the Kurdistan Region of Iraq. Slowly But Surely Discover the Potential 62 Major Plans Baz Karim, President & CEO, KAR Group

63 Off the Bottom, Emerging Stronger In partnership with Brad Camp, Analyst nvestIn Group (IIG) is pleased to announce the release of the 68 Commitment to eleventh issue of “Kurdistan IReview,” which provides fresh business Changing People’s Lives for the Better perspectives and features the alluring 70-71 Dr. Honar Issa, Member of 103-109 leaders, emerging sectors, leading the Board of Trustees, AUK companies, rising trends shaping the Snapshot: ICT The Guide Department of Foreign Relations (DFR) “The Guide” helps you to experience social future of the Kurdistan Region of Iraq. Get Connected 72 Kurdistan’s IT Kurdistan Regional Government (KRG) and cultural life in the Kurdistan Region The Kurdistan Region has remained Strategy in order to better realize its dynamics. It safe, stable, and open for business in Hiwa Afandi, Head of the Special Thanks to details the premium hotels, restaurants, spite of the recent political turmoil in Department of IT, KRG Minister Falah Mustafa Bakir health clubs, luxury brands, and shopping Iraq and the region. The outstanding centers of the Kurdistan Region. 88 Shifting Trends Project Leader: Niyaz Barzani, support of the international of the Kurdistan Job Director of Media & Communications, DFR community for the Kurdistan Region Market in its fight against terrorism reflects an investment in the future of Allegra Klein, COO, MSELECT Kurdistan and the Kurdish people. The Kurdistan Regional Government is committed to creating the 89 British Council best possible business environment for foreign companies operating David Pardoe, Director, in Kurdistan. A favorable Investment Law and stable business 75-83 British Council – Kurdistan Region environment have enabled Kurdistan to achieve economic progress How-To-Start-Up Published in June 2016 across a wide variety of sectors. We truly believe the Kurdistan Doing Business in the Kurdistan Region. 90 Ensuring the Copyright © InvestIn Group Region can serve as a beacon of economic and social progress. Protection of Minorities 2016 The IIG team has met with government officials and key players Samuel Morris, MERI from the private sector to examine recent developments in the Research Fellow Goldcrest Executive, Cluster C, Kurdistan Region. Kurdistan Review – Special Issue focuses JLT, Dubai, UAE on Diplomacy, Business, Energy, ICT, Higher Education, and 91 Resilience-building Agriculture. Roger Guiu, MERI Research Be kher bi [email protected] Fellow www.investingroup.org We would like to express our gratitude to Minister Falah Mustafa Bakir and the DFR team for their support of our project in the 92 Decide. Commit. Printed by Kurdistan Region of Iraq. Succeed. Express Basımevi Deposite İş Enjoy! Abdul Salam Medeni, CEO, Merkezi, 84-87 Rwanga Foundation A6 Blok, K: 3 No: 309, İkitelli 94 Educational Reform OSB, Snapshot: Human Capital Başakşehir İstanbul, Turkey The Best Investment & Capacity Building Jacob Shapiro, Rwanga All rights reserved. No part of this publication may be reproduced, or transmitted in any form or by 111 Setting the Bar High any means, electronic or mechanical, including Emre Altunal, General photocopy, recording, or any information storage Manager, Divan Erbil and retrieval system, without prior written Managing Director: Can Yirik | Production Director: Daphne Rosenstein permission of Invest in Group. Whilst every effort Creative Director: Mustafa Gülsün | Marketing Director: Rachael Walsh has been made to ensure the accuracy of the 114 Treasured Time Editors: George Dyson, Jeremy Alexiou, Matthew Thomson Ghassan Dalal, Manager, information contained in this publication, the Public Relations Alexandra Meier | Design: Catherine Bergman Erbil Rotana publisher accept no responsibility for any errors it may contain, for any loss, financial or otherwise, Contributors: Anwar Anaid, Brad Camp, Gary Kent, Shwan Zulal sustained by any person using this publication. Researcher: Sabine Ofer

10 — Kurdistan Review Invest in Group — 11 5 Minute Reading

THE KURDISTAN REGION $26.5B $7,000 $17.5B 6% Facts & Figures GDP (2013) GDP PER CAPITA (2013) GOV'T BUDGET (2013) INFLATION RATE (2013)

Duhok 1.3 million 3,886 MW The Kurdistan Region, Over 30 companies which borders Syria to Kurdistan has exported from 19 different countries (under construction) the west, Turkey to the over 138 million barrels of are operating in the north, and Iran to the oil in 2015. Area east, comprises a total Kurdistan Region 40,643 sq km area of 40,643 km2. (KRG-Administered T otal CapACITy Areas) Erbil Power Generation 2 million Capital Erbil

Established 1991

Status Federal Region Slemani 165 TCF 45 Billion 2 Million bpd 10BCM Government Neighbors 1.9 million Parliamentary Turkey, Syria, Iran Democracy Currency Legislative Power Iraqi Dinar 111-seat Kurdistan Gas Reserves OIL Reserves OIL PRODUCTION (2020) gas exports (2020) Parliament Traffic Flow Right Population 5.3 Million Religion Growth Rate %3 Muslims, Christians, Major Trade Median Age: 20 Yazidi, Kakayee 2995 $3Billion $2.3Billion Partners & FDI Age Structure Time Zone Countries 0-14 years: 36% GMT +3 Over 63: 3% UK, EU, Turkey, Lebanon, F oreign cOMPANIES FDI (2013) Investment projects Tel. Code Investment Law, Article 5: Jordan, Egypt, Iran, +964 (banking) Life Expectancy A Project shall be exempt from all UAE, China, USA 70 Top Level Domain non-custom taxes and duties for Offical Languages .krd 10 years starting from the date of Kurdish, Arabic providing services by the Project, or Climate the date of actual production. Ethnic Groups Semi-arid Continental Kurds, Assyrians, $41.5B 8% 2.1Million 10% Chaldeans, Turkmen, Literacy Armenians, Arabs, Syriac %93 TOTAL G rowth rATE 12 — Kurdistan Review LABOR FORCE UNEMPLOYMENT (2013) INVESTMENT(2006-2014) (2013) D & P DIPLOMACY & POLITICS

GOVERNMENT STRUCTURE DIPLOMACY & POLITICS The Review: The Kurdistan Regional Government legislative and executive authority (KRG) is the autonomous governing in certain areas, including allocating Challenging Year Ahead body of the Kurdistan Region, and the regional budget, security, edu- holds constitutionally recognized cation and health policies, natural Despite the challenges the Kurdistan Region faced since June 2014, the authority over the governorates of resources management, and infra- Erbil, Duhok, Slemani, and Halabja. structure development. The KRG’s governance of the Kurdistan has an independent KRG has not retreated from its main goals– improving security in the President Kurdistan Region is largely auton- judicial system. The system is head- Region and forging strong diplomatic ties globally. omous from federal Iraq. Iraq’s ed by a Supreme Court of Cassation, Masoud Barzani Constitution recognizes the KRG which decides cases of the highest and the Kurdistan Parliament as importance, as well as cases that Kurdistan’s governmental institu- have been appealed through low- tions and identifies the Peshmerga er courts. The judicial system also as the Kurdistan Region’s military has a number of lower courts that force. The Constitution also gives decide on commercial and criminal the KRG authority to exercise disputes. Prime Minister Deputy PM Nechirvan Barzani Qubad Talabani The Kurdistan Region is governed by a unicameral legislature, the Kurdistan Parliament.

his year marks the 25th anni- the allocation of federal budgetary formed over past year, Kurdistan's versary of the establishment of resources, fighting against ISIL ter- military forces, the Peshmerga, have the Kurdistan Region of Iraq. rorism, tackling deep economic crisis, been able to restore security along TSince its establishment in 1991, the and hosting large number of IDPs the borders of the Kurdistan Region. KURDISTAN AT A GLANCE Kurdistan Region of Iraq has man- and refugees dominated the KRG's Kurdistan’s fight against ISIL ter- aged to achieve a developing economy, political and diplomatic agenda. The rorism and Peshmerga forces outstand- robust security, and cultural tolerance. question of how and when the KRG ing performance raised the Kurdistan Established Status Political Legislative Such rapid economic growth has would be able to overcome those chal- Region’s global profile and positively 1991 Federal Region Structure Power provided an important foundation lenges loomed large, yet the Kurdistan impacted its foreign relations. Parliamentary 111-seat for the international business com- Region's stability, security, and confi- In a year marked by the terrible munity, which has successfully estab- dent foreign policy ended up paving human consequences of ISIL brutality, Democracy Kurdistan lished itself in the Kurdistan Region. the way for huge support to surmount Kurdistan also demonstrated its toler- Parliament However, the KRG encountered these issues from its regional and glob- ant and maturing democratic culture unexpected problems that proved to al partners. to the international community by be extremely serious since June 2014. Thanks to the help of the interna- opening its doors to 1.8 million IDPs Disagreements with Baghdad over tional coalition against ISIL that has and refugees.

14 — Kurdistan Review Invest in Group — 15 D & P DIPLOMACY & POLITICS

A t a GlANCE: Parliamentary elections

The 2013 Parliamentary elections proved once again that elections in the Kurdistan Region are conducted democratically and are reliable.

Voter turnout and political participation in Kurdistan are relatively high: the 2013 elections had a 74% turnout of explicitly reserved to the eligible voters. THE Iraqi federal government belong to Iraq’s regional The minimum age of PARLIAMENT authorities, including the parliamentary candidates is 25. Kurdistan Parliament. When The Kurdistan Region is regional laws contradict The legal minimum quota of governed by a unicameral federal legislation outside female parliamentarians is 30 legislature, the Kurdistan areas specifically reserved percent of the legislature. Parliament, which considers for federal authorities in The 111 MPs in the Kurdistan new legislation, scrutinizes the Iraqi Constitution, the government activities and Kurdistan Parliament has Parliament represent the policy, and debates major the authority to amend the following political lists and issues before the Region. application of federal laws parties: within the Kurdistan Region. The Kurdistan Parliament Political Parties shares legislative authority Under regional electoral law, Kurdistan Democratic Party with the Iraqi Council of elections for the Kurdistan Gorran Movement Representatives in the Parliament must be held Patriotic Union of Kurdistan areas of education, health every four years. Members Kurdistan Islamic Union policy, historic preservation, of the Kurdistan Parliament Kurdistan Islamic Group policing and internal are elected through a Islamic Movement of Kurdistan security, transport, natural system of proportional Socialist Democratic Party resource management, electoral representation. In February 2009 several five to Chaldean, Assyrian, Kurdistan Communist Party environmental policy, and The Parliament houses amendments were made to and Syriac representatives, Toilers Party tourism. The laws of the 11 functional committees the Kurdistan election law and one to the Armenian Turkoman Development List Kurdistan Region take that oversee legislative to increase the inclusiveness community. In addition, Erbil Turkoman List precedent over federal issues within their purview. of all groups. To encourage a legal minimum quota Turkoman Change and Reform legislation in issues involving In addition to legislating diversity, 11 seats in the is in place to ensure that List customs, the distribution Kurdistan’s laws and Kurdistan Parliament are women hold at least 30% Turkoman Movement List of electricity, internal water budget, the Parliament is automatically assigned of the seats in Parliament. Rafidain List resources, and general also responsible for ratifying to parties representing There are 111 seats in Chaldean, Assyrian, & Syriac planning. In addition, as agreements with foreign minority groups in Kurdistan. the parliament. The first Alliance per Article 115 of the Iraqi entities and working with Five seats are allocated to Parliamentary elections were Abna Rafidain List Constitution, all powers not the federal government. Turkoman representatives, held on 19 May 1992. Barwan Isan Mergoz Batros

16 — Kurdistan Review Invest in Group — 17 D & P DIPLOMACY & POLITICS

THE President

The President of the Kurdistan Region is elected directly by the people of Kurdistan. The President is the Commander-in-Chief of the Peshmerga (who are the Regional Guards). The President, as established by the Parliament in 2005, is elected every four years. The President appoints the Prime Minister from the largest bloc to form a government. The cabinet is then approved by the Kurdistan Parliament. Masoud Barzani is the current president of the Kurdistan Region. His term in office was extended by an act of the Kurdistan Parliament in 2013.

18 — Kurdistan Review Invest in Group — 19 D & P DIPLOMACY & POLITICS

Foreign Relations — The KRG’s energetic and broad foreign relations are KRG WORLDWIDE The KRG’s presence abroad has also grown crucial and integral components of the Kurdistan significantly since 2007. The KRG currently has Region’s economic and social development. representative offices in 14 countries. The KRG’s primary body for directing its for- eign affairs is the Department of Foreign Relations (DFR), which is headed by Minister Falah Mustafa Bakir. The DFR’s foremost objectives are to raise the global profile of the Kurdistan Region, improve the Region’s international ties with various governments and international organizations, and present the emerging opportunities in the Kurdistan Region Sweden to regional and international actors. Russia Kurdistan is determined to work closely with its immediate neighbors in order to contribute Switzerland Poland UK Germany stability, security, and prosperity to the region. In EU Austria accordance with its policy of open door diplomacy, France the KRG has been able to forge strong ties with its Italy immediate neighbors in recent years. Spain Iran The KRG has been able to shape the Kurdistan United States Region into a gateway to Iraq, not only with its economic development, but also with its active foreign policy vision. Moving into the future, the KRG intends to maintain a dynamic foreign pol- icy based on developing good relations with its neighbors and resolving issues through dialogue. This will allow Kurdistan to strengthen its ability to develop prosperous relationships with foreign capitals throughout the world.

Foreign Representations in Kurdistan The Kurdistan Region has made remarkable diplo- matic progress since 2003, achieving the establish- ment of 33 foreign representation offices including consulates general of the five permanent members of the UNSC in the Region. This significant diplo- matic presence demonstrates the confidence that foreign governments place in the Kurdistan Region. Australia

Consulate Generals: Consulates: Embassy Embassy Honorary Commercial Multinational bodies: Iran, Russia, Germany, Egypt, Offices: Consular Consulates: Offices: European Union France, Turkey, UK, USA, Italy, Korea Romania, Offices: Belarus, Brazil, Austria, United Nations Diplomatic Jordan, Palestine, UAE, Sweden Poland Denmark, Japan, Canada, International Committee of Red Cross Missions Czech Republic, Hungary, Slovakia, Spain Bulgaria, Japan International Cooperation Agency China, Netherlands, Greece Korea International Cooperation Agency Kuwait, Kingdom of Saudi Arabia, Sudan

20 — Kurdistan Review Invest in Group — 21 D & P DIPLOMACY & POLITICS

THE KURDISTAN REGION Through Vesna Pusić, Joe Biden, Sheikh Muhammad Bin Bohuslav Sobotka, Prime Viktor Orbán, Hungarian Norwegian Foreign Swedish Foreign Minister the eyes Former Croatian Deputy United States Zayed Al Nahyan, Crown Minister, Czech Republic Prime Minister Minister Børge Brendein Margot Wallstrom of Prime Minister Vice President Prince of Abu Dhabi “We will continue “We strongly “My visit is meant “Peshmerga forces WORLD “Croatia is “We praise the “We would like LEADERS to provide support for the to clearly illustrate have proven that committed to role of Peshmerga to develop our assistance to people of Kurdistan Norway’s support they are a reliable continue its forces in containing relations with the the Kurdistan and its legitimate for the people force. They have support to the ISIL advances and Kurdistan Region Region and its rights, particularly of the Kurdistan been an important The Kurdistan Kurdistan Region pushing them in various fields, Region has Peshmerga forces in the fight against Region element in the at both military back.” including the demonstrated in the fight against terrorism.” in their fight fight against ISIS. and humanitarian economic sector.” terrorism. We are against terrorism.” There is an urgent its tolerant levels.” and maturing ready to expand need to address democratic culture cooperation with the problem of ISIS to the international the Kurdistan and to support the community by Region to include Peshmerga forces.” opening its doors to other fields.” 1.8 million IDPs and Ursula von der Leyen, Defence Minister, Germany refugees. Roberta Pinotti, During their visits French President John Kerry, Philip Hammond, “We will continue Defence Minister, Italy François Hollande US Secretary of State UK Foreign Secretary to the Kurdistan to help the KRG by “We are ready to “Kurdistan is at “The Kurdistan “The UK will providing weapons, Region, various continue to work strengthen our world leaders have the forefront of the Region has military equipment, commitment to German Foreign Minister fight against ISIS achieved closely with its Frank-Walter Steinmeier reiterated their allies to ensure the Sebastian Kurz, and training as well the Kurdistan terrorists. remarkable Austrian Foreign Minister as the provision of “Germany will support for the KRG. delivery of aid, Region. We continue to provide France will progress in military support, “We are more humanitarian will increase continue to provide the past determined to aid. We praise the humanitarian aid to and training for the cooperation the IDPs. Germany humanitarian ten years.” Peshmerga forces continue to provide culture of tolerance between the and military aid so that they are humanitarian and peaceful will do whatever Peshmargas and it can to help the to Kurdistan in its better equipped to assistance to coexistence in the coalition forces.” fight against ISIS tackle and defeat refugees and Kurdistan Region.” KRG cope with the terrorists.” the terrorists.” displaced persons.” refugees.”

22 — Kurdistan Review Invest in Group — 23 D & P DIPLOMACY & POLITICS

Insight Safeguarding Financial Stability & Developing a Modern Economy

Prime Minister Nechirvan Barzani • Kurdistan Regional Government

ver recent months, various issues have become direct impact on all our citizens. Since the beginning of last the source of intense discussion and debate in year, I have personally supported the Ministry of Finance the Kurdistan Region. It is not surprising that & Economy in their efforts to develop and implement Oour fellow citizens are deeply concerned about the current plans intended to strengthen and enhance our capacities situation and their concerns have reached a level higher to respond to this crisis. than ever before. Their concerns are largely rooted in the Our aim has been to raise the Ministry of Finance & financial crisis facing our region, in their daily struggle Economy to an international standard in terms of financial to secure a better life, and to raise their children in good administration, within the framework of our mission to health and with access to good education. achieve economic stability and sustainable growth in the It is right that every citizen should pay attention to Kurdistan Region. We are determined to reorganize the these concerns. The response of the KRG over the coming structure of public banks, to modernize the financial sector, years will be to work toward ensuring that our economic to reinvigorate our economy and to galvanize support for system benefits all of our citizens. Our strategy should the private sector. We are also committed to strengthening remedy social vulnerabilities, provide protection and safe- transparency and accountability within the government. ty, provide youth with real opportunities, bring about Achieving these goals will create an environment con- institutions. We will put in place policies aimed at reduc- Considering the financial situation that we are going financial stability, and preserve our natural resources for ducive to bringing about financial stability and durability ing poverty, strengthening productive sectors, and we will through, especially the markedly inadequate support for future generations. for our government, and develop a modern economy in pursue an agenda of growth so as to benefit our future our Peshmerga, our institutions are in serious danger. As we all know, the dramatic events of the last year were the Kurdistan Region. It will also provide a healthy, com- generations. Therefore, I would like to call upon the United States totally unexpected. It was a tough and challenging year petitive environment for investment. I would also like to highlight the bravery of our of America and other members of the anti-ISIS coali- for our people and the economy of the Kurdistan Region. Despite the challenges facing our region, it is import- Peshmerga. Our Peshmerga forces are defending the val- tion to urgently raise their level of support to meet the We have been facing multiple shocks that have required ant to highlight the achievements of our region over the ues we share with our partners in the international com- needs of our Peshmerga forces and our public institutions. urgent responses. The sharp decline in global oil prices past 12 years. Since 2004, the economy of Kurdistan munity. We have invested so much blood and resources We, the people of the Kurdistan Region, especially our from more than $100 to below $30 per barrel within less Region has witnessed remarkable growth. The KRG Peshmerga forces, expect more support, par- than two years, which was completely unexpected, has has taken steps to facilitate economic opportunities in ticularly financial support from our friends been catastrophic. It has severely affected our economic the region. More than $40 billion was invested in the Our reform plans will in the international community. growth, our public revenues and our currency, and our region between 2006 and 2013 of which $5 billion was The people of Kurdistan have well-demon- social-economic condition. foreign investment. benefit all of us, above strated their resilience. I realize times are Prior to the dramatic fall in oil prices, the Iraqi Federal All of our social indicators have improved considerably especially tough, but I promise that we will Government had already been withholding the Kurdistan over the past 10 years. However, our economy is facing all the next generation. reach our ultimate objectives. We will destroy Region’s share of national revenue since the beginning of structural and institutional impediments - onerous regula- ISIS, we will build new industries, including 2014. This had caused a surge in our budget deficit which tion, inefficient financial markets, and an inflexible labor to protecting the common values for which we stand. natural gas, which we will export to the world market. We hampered our government’s capacity to respond to these market. To achieve more for our people we have to plan We are at the forefront of the war against ISIS and will build a just, prosperous and united society. During this unexpected circumstances. ISIS’ aggression, compound- for the future by engaging with the current challenges we care for nearly two million refugees and IDPs, more time of austerity, those who are more capable will have to ed by the influx of nearly two million refugees and inter- and committing ourselves to strengthening our public than 98% of whom are Iraqi citizens. Yet, regrettably, the share the burden with others who are less fortunate. We nally displaced persons caused by this war, has greatly institutions, to reform our economy and to strengthen Iraqi Federal Government has provided almost no finan- all have to work together. exacerbated our financial situation. Despite our limited accountability. cial support to the KRG. Further, most of our partners Our reform plans will benefit all of us, above all the resources, the KRG remains committed to helping those Therefore, we as a government will work as key partners in the international community refuse to directly arm next generation. I am convinced that the decisions we in need during this period of turmoil. with our business community, unions, trade unions and our Peshmerga forces. This is dangerous. I would not be make today in the near future will provide our children The reform plan prepared by the Ministry of Finance academics to support the reform process. This year will exaggerating if I were to say that this is as dangerous as with real opportunities. That is what the new generation & Economy, once implemented, should have a real and be a year of reform and modernization across government the threat of ISIS to the Kurdistan Region. expects from us and we cannot disappoint them. A 24 — Kurdistan Review Invest in Group — 25 D & P DIPLOMACY & POLITICS

Building Bridges

What have been the greatest success- internationally. The KRG uses public, crimes committed as acts of geno- conferences also provide us the oppor- What are the DFR's strategies and es achieved diplomatically in recent energy, commercial and social diplo- cide. The government has successful- tunity to raise awareness. priorities to increase the exposure years, and how do you see Kurdistan's macy to deepen ties. ly attempted to rescue captives and During all consular corps meet- of Kurdistan to the global business regional and global foreign policy provide care once they have reached ings, we stress on the humanitarian community? evolving over the long term? How would you characterize the safety in Kurdistan. crisis and further assistance. We ask for Thanks to the dedication of our peo- The KRG has been able to work accord- KRG’s diplomatic cooperation with The DFR developed a memoran- more support from donor countries, ple, the vigilance and sacrifices of ing to a clear objective of what it wants the international community against dum of understanding (MoU) with the our friends and allies in the interna- our Peshmerga and security forces, to achieve and where it is headed. The the Yazidi Genocide? government of Baden-Wurttemberg tional community, the United Nations we have been able to demonstrate to KRG is committed to certain princi- TheKRG leadership, party officials, and Lower Saxony to send female sur- agencies and international NGOs. the rest of the world that Kurdistan ples, values and goals that connect it civil society and the media all play a vivors to Germany for rehabilitation. The KRG representatives abroad still is an island of stability and pros- to the outside world. The clear vision role in mobilizing international sup- There are ongoing talks with various have been tasked to continue work- perity. People are friendly, the society of the leadership and their commit- port for the recognition of the Yezidi stakeholders on how to help rebuild ing with governments, parliaments, is welcoming and the government is Falah Mustafa Bakir ­— ment to good governance, openness Genocide. The KRG strongly believes trust between the local communities civil societies, humanitarian organi- supportive. Head of the Department of Foreign and interaction with the international in peaceful coexistence, tolerance and of the liberated areas, while a KRG zations and the media to convey our In our efforts to overcome the chal- Relations community has helped a great deal equal rights of all communities liv- ministerial committee is continuously message which states that Kurdistan lenges, in cooperation with UNAMI in building bridges. We benefit from ing in Kurdistan, as we are all equal working on documenting the crimes is proud to host this large number, and the G7 countries, we are focusing IIG talks to Minister Falah Mustafa our past and our tragic history of the partners in this country. The Kurds to help the case at the International but that we require more help. This on good governance, transparency Bakir on the KRG's foreign policy people of Kurdistan and translate this have been oppressed in the past, have Criminal Court. is a shared responsibility and mem- and diversifying our sources of eco- priorities. into prosperity for the future. All these been treated as second class citizens bers of the international community nomic revenue. By ensuring stability, factors meant that the KRG was able and therefore understand the situation to gradually expand its ties with the and pain of the Yezidi Kurds. We are international community. determined to ensure they are treated We want to raise the understanding Interaction with partners helped with respect and dignity, and that their participation in the international rights are guaranteed and protected. that helping the Kurdistan Region arena. First, we looked at friendly The tragedy that has befallen on nations around the world as partners. the Yezidi Kurds truly was genocide. economically will help us win the costly We tried to build strong relations and Therefore, the KRG explored different ties so that we work in partnership ways to highlight their case to try to war against ISIL and help us provide on two main fronts, within and out- bring the perpetrators of the heinous side Kurdistan Region. We encourage crimes to justice. The DFR wrote to the the needs of IDPs and refugees. nations to open diplomatic missions embassies in Baghdad and the diplo- which play a role in enhancing our ties matic missions residing in Kurdistan Kurdistan currently hosts over 1.8 must come forward to help us meet security and openness, we are able to with the countries represented local- Region so they can report back to the million refugees and IDPs. The KRG the needs locally and ensure a live with offer an attractive example. We are ly. Through the KRG offices abroad, ministries of their respective countries. provides humanitarian assistance to respect and dignity for these people. reaching out on various levels to coun- we try to sustain and further develop In addition, the DFR wrote letters to the refugees and IDPs, and the KRG It is a source of pride for the KRG to tries, companies and institutions to ties with the countries the offices ear over 30 foreign ministers to ensure the even made it one of the main pillars welcome this large number of refugees encourage them to come and partner located in. genocide of the Yezidis was illustrated of its policy. What steps does the DFR and IDPs, regardless of their ethnicity with the KRG. Especially since the The fight against ISIL and the in 2015 UN General Assembly speech- take to create more awareness on the or religious background. We under- humanitarian and security challenges role Peshmerga play have helped a es. During bilateral meetings that take refugees and IDPs in the interna- stand that resources are scarce and that we are facing are the responsibility great deal in promoting the case of place in and outside Kurdistan, the tional arena? needs are huge, therefore, we have tak- of the entire world. We want to raise About Kurdistan. The history of the Kurds plight of the Yezidis and the recogni- This crisis is not the sole responsibility en measures to ensure that what comes the understanding that helping the Falah Mustafa Bakir was born in Erbil led to our open door policy, we wel- tion of the genocide are raised, as well of one institution of the KRG. In fact, in, is well spent. The establishment Kurdistan Region economically will in 1964. He holds a B.A. in English comed 250,000 refugees from Syria as during international conferences. the Ministry of Interior, Ministry of of the JCC was a key step forward to help us win the costly war against ISIL Language and Literature from the and 1.5 million internally displaced The Yezidi case is high on the agen- Planning, as well as the Joint Crisis ensure good coordination and follow and help us provide the needs of IDPs University of Mosul, and an M.A. in Development Studies from the persons from the rest of Iraq, which da and the DFR puts a lot of effort Coordination Center (JCC) are work- up. Despite the economic and financial and refugees. University of Bath in the UK. He also has given us attention and apprecia- into meeting the needs of the Yezidi ing together. We are trying to coordi- challenges, the door remains open and We ask of our friends in the interna- completed the executive program for tion of the international community. Kurds. A special consular session for nate with the relevant KRG authorities we are proud that we have been able to tional community to continue working senior managers in government at Our firm belief and practice of sec- the diplomatic missions was organized to provide us with the information manage the situation and contain any with us to encourage their companies Harvard University’s Kennedy School of tarian, religious and national toler- to address the needs to stabilize and to communicate the right message tensions from developing between the to participate in international trade Government. ance has helped the case of Kurdistan rebuild Sinjar, and to recognize the to the outside world. International host and guest communities. fairs and invest in Kurdistan. A 26 — Kurdistan Review Invest in Group — 27 D & P DIPLOMACY & POLITICS

China in Kurdistan

How would you assess ongoing col- We offer our laborative endeavors between the highest praise to Consulate General of the People's Republic of China and the ministries the KRG for its and departments of the KRG? unremitting efforts Friendly relations have long existed in its fight against between China and all of Iraq, includ- terrorism, and ing the Kurdistan Region of Iraq. Ever since the opening of the Consulate the sheltering of General of China in Erbil at the end of refugees and IDPs. December 2014, we have maintained close working contacts and coop- to its full capacity. We are pressing eration with various ministries and forward with the construction of the Tan Banglin ­— departments of the KRG. All these consular section, so as to provide Chinese Consul General in the ministries and departments have treat- visa services as quickly as possible. Kurdistan Region ed us with hospitality, and have offered Secondly, we are working with vari- their full support to our work here. We ous ministries and departments of the Chinese Consul General Tan also have close and effective relations KRG to promote the development of Banglin discusses bilateral ties with the KRG on promoting cooper- our relations in various areas. With respect to cooperation in the field achieve final victory in the war against million yuan, to the Kurdistan Region. between China and the Kurdistan ation between our citizens in various With respect to economic coop- of education, we are currently holding terrorism. To the best of my knowledge, a new Region, and China’s humanitarian fields, including pragmatic coopera- eration, we support companies such discussions with various departments batch of humanitarian goods for Iraq assistance there. tion, and exchanges in areas such as as Huawei, Sinoma-Suzhou, and of the KRG about the possibility of How is the government of China (including the Kurdistan Region) is culture and education. Through our CMEC with their investments in the cooperating in the areas of high educa- helping the KRG to overcome its currently being prepared. At the same joint efforts, relations between China Kurdistan Region. Sinoma-Suzhou tion and vocational education, and to security, humanitarian and financial time, we provided small donations to and the Kurdistan Region are devel- has invested $13.4 million in the explore the feasibility of a plan to open challenges? an orphanage and a fund for children oping steadily. Kurdistan Region for the construc- a Confucius Institute or a Confucius China opposes all forms of terrorism in refugee or IDP camps. Although It has been only a short time since tion of a steel structure factory, which classroom in the region. We’ll contin- and supports international count- China still has 200 million people liv- we established the Consulate General is now in full operation. A cement ue within our efforts to offer humani- er-terrorism efforts, hoping to promote ing under the poverty line, we sympa- here, but we have deeply felt the factory construction project, led by tarian assistance by various means to international cooperation against thize with Iraqi and Syrian IDPs and strong willingness on the part on the CMEC, is in full swing. With the full the Kurdistan Region. It is our firm terrorism under the auspices of the refugees. We’ll continue to provide Kurdistan Region to develop cooper- support of the Consulate General of belief that with our joint efforts, coop- UN. This is a long-running practice humanitarian help within our capacity. ation in various fields. We’ll continue China, many Chinese companies have eration in all areas between China and in China's foreign policy. We do not We understand the financial diffi- our efforts to promote reciprocal visits come to the Kurdistan Region seeking the Kurdistan Region will develop participate in state groups of a mili- culties faced by the KRG, and note and collaborative efforts, encourag- investment and cooperation opportu- further this year. tary nature, but this doesn't mean that that the KRG is negotiating with the ing Chinese companies with relevant nities, or to participate in trade fairs China will not play its role in fighting Iraqi government to solve these prob- competences to develop economic and over the past year. How do you assess the KRG’s human- terrorism internationally. China par- lems and has initiated measures such trade relations with Kurdish partners. As for culture exchange, in 2015, itarian and military response in the ticipates in international counter-ter- as reforms to deal with the challenges. We’ll maintain our contacts and work we facilitated the visit of the “Happy face of challenges facing the region? rorism cooperation in its own way. China is willing to share its experiences with the ministries and departments Spring Festival” art troupe to the The Kurdistan Region is facing mul- We have been helping Iraq and other with regard to implementing reform, of the KRG to explore and push for- Kurdistan Region. The art troupe tiple difficulties currently. We offer frontline states with counter-terrorism and provides help in the form of train- ward our relations to provide benefits visited the Kurdistan Region at the our highest praise to the KRG for its capacity building, and working with ing personnel and enhancing admin- to both our peoples. beginning of 2016, and held two suc- unremitting efforts in its fight against some countries to exchange intelli- istrative capacity building. We will cessful performances in Erbil and in terrorism, and the sheltering of refu- gence on counter-terrorism and to cut keep on supporting and encouraging Could you please give us a brief over- Sulaimaniyah, marking a good start gees and IDPs. We note that the KRG the channels of financial resources and more Chinese companies to engage in view of the activities of the Consulate for cultural exchanges between China is taking a series of steps to deal with the movements of terrorists. China will economic cooperation and conduct General of the People's Republic of and the Kurdistan Region. these difficulties, and believe that with continue participating in international trade in the Kurdistan Region, and China in the Kurdistan Region in The Consulate General of China the concerted efforts of all the peo- counter-terrorism efforts in its own promote pragmatic cooperation in the 2015? in Erbil is also coordinating with the ple of Kurdistan and with support way and will continue to provide its areas of finance, industry and building In 2015, we focused on two aspects. relevant departments of the KRG to from the international community, due contributions. infrastructure, in order to contribute to Firstly, we are continuing with our provide personnel training and capac- the Kurdistan people will overcome In November 2014, we provided the economic and social development efforts to build the Consulate General ity building to enhance cooperation. the difficulties and challenges, and humanitarian goods, worth about 30 of the Kurdistan region. A 28 — Kurdistan Review Invest in Group — 29 D & P DIPLOMACY & POLITICS

Cooperation On All Fronts Kurdistan in Italy

How would you define the current and wider issues affecting Kurdistan’s How would you characterize the cur- who designed the metro network in the political relations between Erbil and economy. The economy faced several rent bilateral ties between Italy and city of Erbil, Duhok and Suleimania, Washington D.C.? shocks in 2014 which we are trying to the Kurdistan Region? Studio Galli, Impregilo, and Ansaldo, There is a very positive perception recover from. The United States and The exponential growth of the econ- operating mainly in the field of of Kurdistan among Americans other countries could help the KRG omy of the Kurdistan Region has infrastructure. today, among the Administration, by providing technical assistance as we attracted more and more Italian Clearly, we recognize the presence Congress and the public. The fact try to revive the economy. Kurdistan entrepreneurs. Italy is among the of around 2 million refugees and that the Peshmerga are so effective is still lacking in a vibrant banking Kurdistan’s biggest trading partners, IDPs in the Kurdistan Region and and courageous against ISIS and that and insurance sector which is another and many Italian companies are that the KRG’s valiant Peshmerga Kurdistan has embraced vast num- area that needs support and expertise. successfully operating in the fields forces are fully engaged in the man- bers of displaced people, especially There is interest in doing business in of engineering, infrastructure, and agement of the humanitarian cri- the minorities, has helped to foster Kurdistan. We have had meetings and tourism. Both the Italian govern- sis and in the fight against ISIS. a great deal of respect for the people discussions with the US Chamber of ment and Italian entrepreneurs have However, I can say with certainty Bayan Sami Rahman ­— and leadership of Kurdistan. There Commerce and the US-Kurdistan Rezan Kader — shown a keen interest in investing in that despite the current difficulties KRG High Representative to the are many high-level political meetings Business Council as well as with KRG Representative in Italy the Kurdistan Region. that the Kurdistan Region is expe- USA and visits on both sides, which help to individual investors and companies. Several memorandums of under- riencing due to ISIS’ terrorism, keep this momentum going. Already there are American companies IIG talks to Rezan Kader on the standing were signed with the Italian Italian business will always be a IIG talks to Bayan Sami Rahman working in Kurdistan, for example, in KRG - Italy bilateral ties. regions, such as the Veneto Region source of interest for the Kurdish on the KRG-U.S. relations and her What are your Representation’s top energy and hospitality. There are many and the Region of Lombardy, with government thanks to its high-lev- Representation's top priorities to priorities to further strengthen and other sectors that American businesses the aim of facilitating and strength- el of know-how. I therefore believe further strengthen the bilateral ties. elevate the bilateral ties? could consider, including healthcare, ening bilateral relations on various that bilateral relations between Italy Our immediate goals are to continue agriculture and education. levels, and we hope to soon sign other and the Kurdistan Region should be to strengthen the partnership with the MOUs with other Italian Regions. In intensified in all fields, since Italy has United States in the fields of security Have you noticed any misconception addition to the agreements between always been and continues to be a and humanitarian assistance. We are among the US business communi- the regions, MOUs were also signed good friend and a strong supporter grateful to the United States for the ty regarding the security situation between several Italian and Kurdish of the people of Kurdistan. leadership it has shown in the fight in the Kurdistan Region? What is universities introducing cultural against ISIS and for providing human- your key message to the US business exchanges, and in order to help new Have you noticed any misconceptions itarian aid. We need that security and community? generations of Kurdish graduates among members of the Italian busi- humanitarian assistance to continue It’s generally understood that develop their skills with precious ness community with regard to the and to grow. Kurdistan has seen a 30 Kurdistan is stable and that the Italian know-how. security situation in the Kurdistan percent increase in its population due Peshmerga, with the support of US Furthermore, we aim to organize an Region? to the arrival of refugees and displaced and Coalition airstrikes, are keep- economic forum in Kurdistan in order Frankly, I have not noticed any mis- people, notably Christians, Yezidis, ing ISIS out of Kurdistani territory. to introduce Italian businessmen to understandings among members of and other minorities. Both the dis- But capital is coward and the way to local partners and ongoing projects. the Italian business community with placed and host communities need encourage the business community to In turn, in collaboration with ANCE, respect to the security situation in help. In the longer term, our aim is engage with Kurdistan is by provid- the National Association of Builders, the Kurdistan Region. Kurdistan has to broaden the commercial and cul- ing information about our laws, reg- we will organize an Italy- Kurdistan always been considered an oasis of tural ties between Kurdistan and the ulations and business opportunities economic forum in Erbil. peace in the Middle East, as well as United States and to create a better as well as putting into context news I also would like to underline that being the gateway to the rest of Iraq. understanding among Americans of about events in Kurdistan and Iraq. It the KRG Representation in Italy pro- We have always preserved the security what Kurdistan is and what our aspi- also helps to connect business people vides full assistance to Italian entre- of our region. For this reason, and due rations are. with each other by bringing Kurdish preneurs who request information to the significant investment opportu- About trade delegations to the United States About about investment opportunities in nities offered by the Kurdistan Region, Bayan Sami Abdul Rahman was Rezan Kader has been the KRG’s Are there any business-related advo- and taking American delegations to Kurdistan and if they decide to reg- Italian investments have grown steadi- appointed to her current post in 2014. High Representative to Italy since Prior to her appointment, she was the cacy issues you would like to take up Kurdistan. the Representation’s establishment ister their companies at the local cham- ly in the Kurdistan Region. We have KRG’s High Representative to the UK. with Washington D.C.? Where do If there is one message to the in October 2009. Dr. Kader holds a bers of commerce, we facilitate the strong ties with Italy and would like She was elected to the Leadership you believe the US business involve- US business community it’s that medical degree from an Italian faculty authentication of documents of the to diversify our relationship at all Council of the Kurdistan Democratic ment in the Kurdistan Region will Kurdistan remains open for busi- of medicine, and has, for several years, company by sending them to the rel- levels. Party in 2010. She holds a degree in head in the future? ness and a warm welcome awaits our been heavily involved in women’s evant Kurdish authorities. Successful A history from London University. There are some business related issues American friends. A issues in the Kurdistan Region. examples include the FG Tecnopolo 30 — Kurdistan Review Invest in Group — 31 D & P DIPLOMACY & POLITICS

Partner Of Choice

How would you define the current in order to influence the British gov- There are over 120 British compa- British businesses is immense and we political relations between Erbil and ernment and to encourage progress in nies registered and operating in hope they will be able to take advan- London? the many areas outlined in the recent Kurdistan. The numbers are actually tage of it. The Kurdistan Region aims to further report of the British Parliament’s much higher if you include British strengthen its institutions and develop Foreign Affairs Select Committee pub- companies that have contracts with Have you noticed any misconception the process of democracy, diplomacy lished in January 2015. We are seeking other foreign and local companies among the UK business communi- and the economy as well as those val- progress in building stronger govern- carrying out investment projects in ty regarding the security situation ues that bring Kurdistan closer to the ment-to-government links, technical Kurdistan. Over many years British in the Kurdistan Region? What is democratic and civilized countries. support and assistance for KRG companies have been heavily involved your key message to the UK business The bilateral ties between London and ministries in areas that most need in the sectors of training, higher edu- community? the KRG have deepened considerably reform. The KRG’s Representation cation, infrastructure and design, oil Security is the top priority of the on many levels. The UK’s assistance to the UK is constantly seeking to and gas. For instance: many UK uni- KRG so the Kurdistan Region to Kurdistan paved the road for fur- identify new areas to build more versities have taken large numbers remains the safest and most pros- Karwan Jamal Tahir ­— ther relations especially in the areas of bridges, more mutual interests, and of students from the KRG’s Human perous throughout Iraq and the KRG High Representative to the UK economy and investment, education to encourage greater engagement with Capacity Development scholarship region. It is already a safe-haven for and science. Our relations are based the Kurdistan Government and its scheme, with 1,700 of ours students 1.8 million Syrian refuges and inter- IIG talks to Karwan Jamal Tahir, the on mutual benefit and have vastly institutions. In addition and despite all studying for their masters and doc- nally displaced people from the rest KRG High Representative to the improved, not least now we are allies the disasters that our Region has been torates. This has led to “university to of Iraq. Our Peshmerga forces have UK, on the KRG-U.K. relations, and in the fight against terrorism and that hit by, we have not forgotten about our university” partnerships in different heroically defended and maintained My message is his Representation's top priorities our relationship also includes military economy which is the key to promot- research fields. Last year, for exam- the security of Kurdistan, fighting “Kurdistan is safe with & goals to further strengthen and cooperation. We are very pleased that ing prosperity, pluralism and peace ple, Leicester University partnered the most brutal terrorist organiza- a prosperous future”. elevate the bilateral ties. the UK is committed to supporting the as a response to a cult of death mass with Soran University in Kurdistan by tion, ISIS, on behalf of the world. KRG politically and militarily in order murder and genocide. We are also establishing an International Centre We recognize there are misconcep- There are over 2,500 to protect its very existence. expanding our relations with the busi- for Natural Resources Research. tions in the UK business community foreign companies, ness community that has stood by us Furthermore, Reading University and elsewhere about security, but as including companies What are your Representation’s top to continue promoting the economic has been involved in the excavation we have seen throughout the years such as Lafarge, Exxon, priorities & goals to further strength- opportunities between Kurdistan and of archaeological sites in the gover- that this is changing as more British en and elevate the bilateral ties? the UK. This has included organis- norate of Slemani for many years. companies hear about the oppor- Chevron, and Gazprom We have tailored in parallel cur- ing market briefings, conferences and A multi-million dollar contract was tunities the market represents. My operating in Kurdistan. rent and long-standing objectives leading trade missions to Kurdistan. recently awarded to Biwater for a water message is “Kurdistan is safe with a Billions of dollars in in our relations with the UK, hav- Cultural relations are another area and sanitation project. The presence of prosperous future”. There are over private investment has ing realized the challenges that the that we are focusing on and aim to British oil companies in our thriving 2,500 foreign companies, including Kurdistan Region faces. The priority involve the Kurdistani diaspora and oil and gas sector is very evident with companies such as Lafarge, Exxon, been made throughout of the Representation at the moment its young talented peoples as we con- the presence, for example, of compa- Chevron, and Gazprom operating Kurdistan since 2006. is to obtain more support and assis- sider them a significant asset to the nies such as Genel Energy and Gulf in Kurdistan. Billions of dollars in We welcome British tance politically and militarily as the Kurdistan Region and “soft power” Keystone. private investment has been made expertise in helping us About Peshmerga forces need more military in furthering the bilateral ties. The ‘UK is our partner of choice’, throughout Kurdistan since 2006. We Karwan Jamal Tahir was appointed equipment and heavy weapons to sus- and we envisage an increase in the welcome British expertise in helping to continue building to his current post in June 2015. Prior to his appointment, he served as the tain the fight with ISIS. On human- Are there any business-related advo- number of British companies across us to continue building our infrastruc- our infrastructure, Deputy Minister for the Department of itarian issues, we need more support cacy issues you would like to take up all sectors of Kurdistan’s economy, ture, healthcare, education, tourism, healthcare, education, Foreign Relations between 2009-2015. too to cope with the huge scale of the with London? Where do you believe with agriculture, industry and tourism agriculture, industries and oil and gas tourism, agriculture, He holds a degree in Computer Science needs of the refugees and IDPs. British business involvement in the being priorities in the KRG’s econom- sector. As there is a saying that “seeing and Management from the University In the longer run, we certainly need Kurdistan Region will head in the ic development plan, Kurdistan 2020 is believing” so please come and see industries and oil of Manchester Science and Technology. to increase lobbying in several areas future? vision. The scope of opportunities for for yourself. A and gas sector. 32 — Kurdistan Review Invest in Group — 33 D & P DIPLOMACY & POLITICS

Kurdistan in Australia Insight

Could you provide our readers What areas does your mission priori- with a brief background of your tize in terms of promoting Kurdistan Notes from Westminster Representation’s history? in Australia? The Representation was established in For centuries, the Kurdistan Region Sydney in 2009. We work to build a was known as the ‘bread basket’ of Gary Kent • Director, All Party Parliamentary Group strong relationship between Australia the Middle East. However, with the and the Kurdistan Region, and also destruction of thousands of villages make businesses and entrepreneurs during the reign of Saddam Hussein, who wish to visit Kurdistan aware of its the Region’s agricultural industry suf- development and commercial oppor- fered immensely. It is only now slowly tunities. The Representation also recovering; much expertise has been serves those from Kurdistan who are lost. Australia is renowned for its agri- Haval Syan — now living in Australia, and supports cultural industry and modern farming KRG Representative in Australia the needs of Kurdistani-Australian cit- methods, and as such we encourage izens who want to return to live in Australian firms to invest in restoring IIG talks to Haval Syan, the KRG Kurdistan. Kurdistan’s agricultural potential. Representative in Commonwealth Higher education is a top priority ritish foreign policy has been relatively passive for such action is subsidiary to helping those who cannot of Australia, on the KRG-Australia What does the Kurdistan Region offer in Kurdistan, with a growing young over a year to avoid needless controversy before the leave the region and the need to end the Syrian war and bilateral ties. to Australian business community? population eager to gain knowledge election and as parliament and government have defeat Daesh. Kurdistan is home to a thriving econ- and new skills. Australia has many Bsettled in. Foreign policy barely featured in the election This should include increased support for the KRG omy and a young, rapidly growing internationally competitive univer- apart from the Opposition Leader citing his veto of British whose population has increased by a third with Syrian population. It is a region that is both sities, and investment in education- action against Syrian President Assad in August 2013 as refugees and internally displaced people. The new KRG rich in natural resources and governed al capacity building in the KRG will an example of leadership. Yet Labour suffered one of its High Representative in the UK, Karwan Jamal Tahir, has by an investment law that benefits for- help build long-term relationships most calamitous defeats and the Conservatives achieved suggested that western military action may prove necessary eign investors. We are home to interna- with universities in Australia and the their first solo victory for 23 years but with a slim major- in Iraq and campaigners are seeking no-fly zones and safe tional banks and international airlines KRG. These young people will be the ity. Key Conservative foreign policy players remained in havens inside Syria to stop Assad's barrel bombs. run regular flights that connect us to future leaders of business and govern- office, includingor F eign Secretary Philip Hammond and Influential and cross-party parliamentary committees the world. ment in the KRG, and strengthened Middle East Minister Tobias Ellwood. on defence and on foreign affairs, the latter including the The relationship between Australia ties can only benefit the long-term The government's defeat on Syria at the hands of British-Kurdish Conservative MP Nadhim Zahawi, will and Kurdistan is, and has for a long relationship between Australia and Conservative and Labour MPs reflected deep public sus- also examine security and foreign policy options and make time been, positive. This relation- Kurdistan. We would like to see a picion about military engagement in the Middle East recommendations for UK policy on combatting Daesh. ship bolsters our efforts to become larger number of students from the and anything that smacks of the intervention of 2003. The All-Party Parliamentary Group, now chaired by a modern state, with commercial Region discover the benefits of higher The decision to undertake airstrikes against Daesh last Conservative MP Jason McCartney, who himself served and economic growth to support the education in Australia. We hope to summer was not unpopular because it was sanctioned by in Zakho as part of the no-fly zone over Kurdistan in the ever-growing population. bring their knowledge and skills back the Iraqi and Kurdistani governments. Joining America 1990s, is becoming more active. It will send a fact-finding There are several Australian com- to Kurdistan. and others in direct action in Syria is seen as a logical next parliamentary delegation to Kurdistan in the Autumn to panies working in the Region, some step by the government. examine the new security, political and humanitarian land- in energy and construction. There is What is your key message to the Prime Minister Cameron is seeking to change the pub- scape. One of its priorities is reviewing the operation of the There are several plenty of room for more, particularly Australian business community? lic mood and advocate a comprehensive strategy against visa system for KRG citizens following an official revelation Australian companies within industries such as agriculture, We encourage the Australian business Daesh which he says is 'a challenge for a generation.' British that 55% of applications to visit Britain were refused in the working in the Kurdistan where Australia’s experience and the community to take full advantage of security officials also deem it highly likely that Daesh will year to March 2015 and the fear that a high refusal rate Region, some in energy similarities of climate make Kurdistan the current situation in Kurdistan. undertake atrocities in Britain. Cameron seeks a genuine will undermine British links with the Kurdistan Region. an ideal investment. The KRG provides a strong base from consensus in Parliament for joining airstrikes in Syria. That How British foreign policy responds to such inquiries and construction. We have yet to tap into the full which to do business in the rest of Iraq would not be endorsed by the new Labour Leader Jeremy depends on the ability of the government to make a com- There is plenty of potential of our mineral resources and while the current security situation is Corbyn and would require rebellion by Labour MPs. pelling case to a sceptical public about the mix of economic, room for more where our logistics, hospitality and tourism being resolved. We will be pleased to This may be helped by the strong British public anger political and military action needed to help Kurdistan and Australia’s experience sectors. Australia’s expertise and expe- provide Australian companies with over a photo of lifeless Alan Kurdi on a Turkish beach others, and begin to roll back Daesh. The Kurds are now rience in mining technology make it a any information they like, and will and the exodus of many thousands of refugees from Syria much more respected by UK opinion-formers and should make Kurdistan an natural partner for the full exploitation provide assistance for their visit to the to European countries. Cameron announced that Britain maintain their influence on this foreign policy debate as it ideal investment. of Kurdistan’s natural resources. Kurdistan Region. A will take 20,000 Syrian refugees over nearly five years but moves from a passive to a more active phase. A 34 — Kurdistan Review Invest in Group — 35 D & P DIPLOMACY & POLITICS

What’s on the Horizon

The Kurdistan Region has under- past years. They have too many cri- gone impressive economic develop- ses in common, including (among ments between 2009-2014. However, many) the war on ISIS, a financial the Region has faced considerable crisis, and dissatisfied public. The only economic challenges since early way of managing these crises is by 2015. At the same time, new oppor- reducing tension between the both tunities are rising which have the governments. Fortunately, there are potential to become decisive for the clear efforts from political parties on necessary reforms. Which immediate both sides to mend fences and nor- reforms are needed to respond these malize relations. challenges? That said, I do not expect any Kurdistan Region’s economy is that breakthroughs in relations. They Professor Dlawer Ala’Aldeen — of a typical rentier state, with almost have lost trust and confidence in President, Middle East Research total dependence on oil revenue. The each other, and Baghdad’s political Institute (MERI) KRG needs to commit itself to a range system is increasingly dysfunction- of radical structural reforms and adopt al. Except for some disputed oil and IIG talks to Prof. Dlawer Ala’Aldeen a credible overall economic vision, a land issues, Baghdad has accepted the about Erbil-Baghdad relations, the long term strategy and a serious plan KRG’s de facto economic, political MERI Forum, and Institutes’s future of implementation. Several initiatives and military independence and the projects. must be adopted in parallel in many KRG parties will not settle for any- key areas to regain the confidence thing less than what they have already of the business community. These earned. Therefore, we may see that include obvious ones, such as re-bal- both sides remain unhappy but tol- stakeholders. We presented the report However, the refugees can be a source ancing the budget deficit, through erate each other. to Kirkuk’s leaders at the Provincial of growth and long-term development increasing revenues and maximizing Council and urged them to seize the in the Kurdistan Region. So far, the MERI has recently efficiency, and revitalizing the dor- MERI conducted a research project initiative, own its leadership and lobby KRG has concentrated mainly on the mant sectors such as the agriculture, on Kirkuk that remains one of the for a lasting solution. urgent and short-term needs of these been awarded several tourism, manufacturing and banking. unsolvable problems between Erbil displaced populations, and due to its grants by the European In addition, better legislation and and Baghdad. Could you please Kurdistan hosts over 2 million ref- limited financial capacity it has relied Commission and United policies are needed to integrate the highlight some key findings of the ugees and IDPs. The influx of refu- mainly on international help to accom- Nations to study the entire economy, and provide long-term project? gees & IDPs are imposing substantial modate these needs. However, it is security to international investors. The We found that the political stalemate economic and social costs. How do now time to think about the long-term fast-changing political KRG ministries must be subject to has become too chronic to yield mira- refugees & IDPs affect the social, future of these displaced populations and socio-economic scrutiny and performance assessments cles, and, if left alone the communities’ security and economic environment and adopt new policies to promote dynamics and their as very few are guided by clear visions leaders are too divided to negotiate in the Kurdistan Region? economic resilience and social cohe- future implications or strategies and fewer still are working win-win solutions. Meanwhile, Kirkuk Population displacements have sion, because the signs indicate that to their maximum potential. Inaction will remain depressed, polarized and become fact of life in our neighbour- many are here to stay. on the landscape in is not an option and the consequences ready to ignite further conflicts. hood, and there is no end in sight. The the Middle East. can be dire. In our policy report, we took a people of Kurdistan demonstrated What will be the key projects & areas bottom-up approach and consid- their generosity and tolerance, despite of focus of MERI in 2016? promoting human rights, women’s MERI held its second inaugural ered the Kirkuk communities as the a long history of tension between them The key projects will include acting as rights, rule-of-law and democracy in About Forum in November 2015 with the key actors in proposed solutions. and the Arab Sunni communities catalysts for economic reform, insti- Iraq. MERI has recently been award- Professor Dlawer Ala’Aldeen is the participation of leading players from Following extensive interviews and where the vast majority of the IDPs tutionalisation of Peshmerga and ed several grants by the European Founding President of the MERI, Erbil and Baghdad. Could any work- focus group debates, we highlight- come from. enhancing relations between polit- Commission and United Nations to former Minister of Higher Education able solution be reached between the ed the issues and possible solutions. The presence of refugees and IDPs ical parties within the KRG, and study the fast-changing political and and Scientific Research in the KRG both sides in the short term? We designed a roadmap and made has clearly added to financial and secu- between Erbil, Baghdad, Tehran and socio-economic dynamics and their (2009-2012), and Professor of Medicine Relations between Baghdad and Erbil specific policy recommendations rity burden, at a time when the KRI Ankara. We will continue our stud- future implications on the landscape in Nottingham University, UK. are likely to be more stable than the to local, national and international itself has numerous existing crises. ies on displaced populations and in the Middle East. A 36 — Kurdistan Review Invest in Group — 37 D & P DIPLOMACY & POLITICS

Focus MERI Forum 2015: Sharing Visions for the Future of the Middle East

By bringing together leading figures in domestic and international politics, MERI aims to provide a platform for constructive dialogue to those committed to overcoming the crises currently facing the region.

he Middle East has recently gone through unprec- the Kirkuk conundrum, combating ISIS, the displacement edented turmoil that is destined to change its polit- crisis, the Iran nuclear deal and its implications for the ical and socioeconomic landscape. The impact of regional politics, the political crisis in Kurdistan, Erbil- Tthese changes will continue to affect the Middle East for Baghdad relations and the challenges of keeping Iraq years to come. Divergence and fragmentation of nations united. As in 2014, the second annual forum succeeded and communities throughout this region have reached in generating a lively debate by prominent figures with critical levels, and provided fertile grounds for extremism the live participation of the audience as well as extensive and terrorism to thrive. national and international media coverage. This year’s three day MERI Forum focused on Sharing By bringing together leading figures in domestic and Visions for the Future of the Middle East. It brought international politics, MERI aims to provide a platform for together senior ranking national and international poli- constructive dialogue to those committed to overcoming cymakers, respected academics, and opinion-makers who the crises currently facing the region – and will continue engaged in spirited debate on wide-ranging topics from to do so in the future. A

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The Review: BUSINESS Reforms Required The last year has been a time of unprec- a lack of available credit, sanctions lev- unemployment insurance system to edented challenges for the economy of ied by Baghdad against the KRG, and make employment in the private sector the Kurdistan Region. The economic a shortage of jobs that match the skill- seem more secure, and initiatives aimed growth figures were negatively impact- set of new entrants into the workforce at helping women participate and get ed by the regional developments. have been identified as factors hinder- ahead in the Kurdistan Region’s labor Looking at past GDP data, the ing reductions in unemployment lev- market. The KRG has set its sights on Diversification Kurdistan Region’s GDP grew at a rate els. In that regard, the diversification increasing private sector employment. of 12% in 2012. In 2013, GDP growth of the economy may help to get more In order to diversify its revenues, decreased slightly but remained a people into jobs in the long term. the government has signaled its desire robust 8%. Figures from 2013, the most The KRG announced a reform pol- to improve agriculture and industry Needed recent numbers available, estimate the icy to set up a modern economy and sectors. The both sectors could become The KRG aims to stepping up structural Kurdistan Region’s total GDP to be financial stability in January 2016. The top categories in terms of revenue gen- in the area of $26.5 billion. main pillars of this reform policy are eration. In 2014, that shift in emphasis reforms aimed at further developing the reducing the number of government GDP Growth employees, eliminating corruption, private sector. cutting of government spending, and The strategy also calls USD Billion 30 increasing non-oil revenues. for diversification of 25 The strategy also calls for diver- the Region’s market, a 20 sification of the Region’s market, a 15 streamlined investment process, and streamlined investment 10 a drive towards exports in order to process, and a drive 5 make the regional economy more com- towards exports in 0 petitive and raise standards of living. 2004 2006 2008 2010 2012 2013 order to make the The strategy targets include raising tourism, agriculture, and industry regional economy more Another testament to Kurdistan’s investment as well as developing the competitive and raise upward economic trajectory is the Region’s mining sector. standards of living. progress that has been made in raising Public sector employment remains standards of living. Annual per capita one of the largest sources of employ- income in the Kurdistan Region was ment for the people of Kurdistan. has borne fruit. Industrial investment around $7,000 in 2013, while in 2002 Since 2006, public employment has licenses have finally surpassed those in it stood at just $800. been a vehicle for the government to the housing sector and represent 184 address the lack of employment oppor- projects valued at a total of $12.8 bil- GDP per Capita Growth tunities for locals. Around two-third of lion according to data from the KRG’s USD Kurdistanis are employed by the pub- Ministry of Planning. That number 7K lic sector. Indeed, much of Kurdistan's is approaching but still short of the 6K budget is geared toward paying wages $13.6 billion in capital investments 5K and servicing debt, while development that have gone towards the housing 4K and infrastructure spending is side- sector in Kurdistan since 2006. The 3K lined. With this reform policy, the Ministry’s figures reveal that industry he Kurdistan Region witnessed remarkable economic KRG is lowering the numbers of its and housing together represent nearly 2K growth between 2006-2014. The oil and gas industry and public sector employees. two-thirds of capital investments and 1K regional stability were the two key driving forces of this The KRG plans to capitalize on half of all capital investment licenses Trapid economic development. However, Kurdistan’s solid economic 0 a young population (nearly 50% of in the Kurdistan Region to date. 2004 2006 2008 2010 2012 2013 growth and skyrocketing investment slowed downed in 2015 due to the Kurdistan Region’s population is A more efficient tax regime will be regional instability and the plunge in oil revenues. under the age of 20) and build an econ- crucial in getting government reve- The current prices hurt all the oil producing countries that are A high unemployment rate is one omy characterized by innovation and nues back on track, yet a successful solely rely on oil revenues. The Kurdistan Region of Iraq is one of key concern. In 2015, the unemploy- equal opportunity for the people of battle with inflation, a successful FDI them. Since there is little hope that oil prices will rebound 2014 level ment rate in the Kurdistan Region Kurdistan. To do so, the government haul, and overall economic growth any time soon, the time has come for Kurdistan to focus on econom- stood around 11%, having increased focuses on legal reforms, skills-build- will keep investor interest piqued in ic diversification in order to not to divert from its path of growth. from 7% at the end of 2013. Specifically, ing programs, the development of an the Kurdistan Region.

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The Investment Investment Budgetary Pressures Banking LAW Kurdistan has set itself apart in Iraq Disputes over budget have been at the center The KRG continues to strive for a The Kurdistan Region lacks the The KRG continues to The KRG’s 2006 as an investment destination between of developments of the past two years. During modern banking sector to comple- regulatory and physical infrastructure strive for a modern Investment Law, which 2006-2014. In the past few years, annu- 2014, disputes over oil revenue between the KRG ment Kurdistan’s growing economy. for industries that could support a has had great success al capital investment in licensed proj- and the central government led Baghdad to sus- The Kurdistan Region’s economy healthy banking sector. The Region’s banking sector to in both bringing foreign ects in the Kurdistan Region grew by pend payment of the entirety of the Kurdistan remains largely cash based and its insurance sector remains very limited, complement Kurdistan’s investors to the Region, nearly 400%, rising from $3.1 billion Region’s share of Iraq’s national budget. This banking sector is relatively underde- mortgages are virtually non-existent, growing economy. but also in spurring in 2011 to $12.4 billion over the course has been especially problematic since over 40 veloped compared to other markets in and a web of confusing regulations local investment and of 2013. There are currently around per cent of the Region’s population is employed the region. In addition to three large and out-of-date technology contribute entrepreneurialism. 80 planned or ongoing licensed in the public sector. state-owned banks, there are around to inefficiency. Since the law’s investment projects in the Kurdistan In December 2014, Baghdad and Erbil signed twenty homegrown private banks The task of creating a truly modern inception in 2006, Region. The total value of licensed a deal under which Kurdistan would transfer and over ten foreign private banks banking sector will require substan- the Region has seen investments in Kurdistan over the some average 550,000 bpd to Iraqi state oil firm operating in the Kurdistan Region. tial reform in Baghdad. The banking 693 licensed projects, 2006-2014 period was $41.9 billion. SOMO over the course of 2015 while receiving The majority of private international sector industry falls entirely under totaling over $40 Despite growing investor interest and 17 percent of Iraqi budget or over $1.1 billion banks working in the Kurdistan are the purview of the Central Bank of billion of foreign and an expanding portfolio of projects, a month. The deal failed almost immediately. from Lebanon and Turkey. Iraq (CBI) in Baghdad, which has the domestic investment, recent regional turmoil has touched Baghdad said Erbil was not transferring the The Kurdistan Region is also home sole authority to regulate the banking and countless new the Kurdistan Region and shaken agreed volumes and sent only $200 million in to a burgeoning Islamic banking indus- sector and issue licenses for banks to private sector jobs. investor sentiment. January 2015 instead of $1.1 billion. Between try. There are currently six local Islamic operate in Iraq. January-June 2015, Baghdad transferred around banks in operation, along with foreign Iraqi authorities have acknowl- Trade Ties $2 billion in total to Erbil – less than 40 per cent firms such as Abu Dhabi Islamic Bank edged the need for reform, yet little There are currently over 2,500 foreign Major Trade of what the KRG had expected. The KRG has and Al Baraka. One of the most suc- in the way of reform legislation has companies operating in the Kurdistan Partners & FDI falling behind with salary payments to state cessful local Islamic banks is Kurdistan actually been passed. Political turmoil Region. Turkish companies dominate the employees including the army. The KRG sala- International Bank, which is the only surrounding the rise of ISIL has only ranks of international firms and number Countries ries constitute some $750 million - half of this Islamic financial institution among contributed to doubts about the Iraqi approximately 1,000. Lebanese, Emirati, The KRG’s trade to security and Peshmerga forces. Independent Iraq’s five largest banks. The industry government’s ability to implement British, American, and German firms are strategy aims to sales have been allowing the KRG to generate is awaiting a regulatory structure from changes in the near-term that will also major players in the region, with create economic some $800 million-$850 million a month from Baghdad authorities that is specifically foster a more competitive, modern, around 100 companies from each country growth and jobs July 2015 to enable it to pay salaries and ongoing designed for Islamic banking. and capable banking sector. represented. in Kurdistan, and costs to oil companies. However, the crash in A strengthen ties with Turkey also dominates in terms of oil prices meant the gap in finances was much Banks in the Kurdistan Region the volume of trade it conducts with the its important trading more difficult to close. partners. Kurdistan Region. Nearly 80% of all Private Banks in the Region Islamic Banks in the Region Foreign Banks in the Region goods sold in Kurdistan are of Turkish Ashur International Bank for Investment Al-Baraka Bank Bank name Origin origin. Turkey plays a vital role in the Bank of Baghdad Region’s oil and gas industry, providing Al Bilad Islamic Bank for Investment and BankMed Bank of Sulaimanyia Finance a conduit to move Kurdish oil & gas to BBAC Credit Bank of Iraq Cihan Bank for Islamic Investment and Byblos Bank international markets. Credit Libanias Lebanon Dar Es Salaam Investment Bank Finance Iran is also a very important trad- UK IBL Bank Economy Bank for Investment and Finance Dijlah and Furat Bank for Development and ing partner for the Kurdistan Region. EU Fransabank Emerald Bank Investment Blom Bank Bilateral trade between the two is estimat- Erbil Bank for Investment and Finance International Development Bank for ed to have exceeded $4 billion in 2014. Investment and Islamic Finance Gulf Commercial Bank Last year saw the signing of an agreement Al-Baraka Bank TURKEY Iraqi Islamic Bank for Investment and Is Bank Iraqi Middle East Investment Bank Turkey to expand trade ties and joint investment LEBANON CHINA Development Vakıfbank IRAN Investment Bank of Iraq between Iran and the Kurdistan Region EGYPT Ziraat Bank JORDAN Mansour Bank for Investment Kurdistan International Bank for Investment in areas of electricity, infrastructure, tour- and Development ism, and energy. Mosul Bank for Development UAE and Investment The latest data issued by the Department Standard Chartered United Kingdom National Bank of Iraq State Banks in the Region of Import and Export of the Ministry North Bank Rasheed Bank show that 3,570 licenses worth $4.5 billion USA Sumer Commercial Bank Rafidain Bank were approved by the Ministry of Trade Union Bank of Iraq Trade Bank of Iraq and Industry in 2015. For the first quarter United Bank for Investment of 2016, 1,276 licenses worth $467 million Warka Bank for Investment and Finance were approved.

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Boosting Trade Insight How would you characterize the current investment landscape in Kurdistan? The KRG has three Democracy & Economic Development The KRG has set up a favorable legal framework for foreign investment by key objectives: create adopting a new Investment Law in a modern economy, in the Kurdistan Region 2006. Thanks to this friendly invest- diversify its revenue ment law, the Kurdistan Region sources, and improve Dr. Anwar Anaid • University of Kurdistan-Hewler attracted over $40 billion of investment between 2006 and 2014. Our trade ties its investment with our neighbors also improved sig- landscape. In order Fathi Al-Mudaris ­— nificantly in the same period. However, to attain these goals, Advisor, Ministry of Trade & the budgetary disagreements between the KRG announced Industry Erbil and Baghdad, the plunge in oil prices, and the war against ISIS deeply reform packages at the IIG talks to Fathi Al-Mudaris on the affected our economy in 2015. beginning of this year. t would be safe to say that there exists a strong inter- of democratic rights needs to take place within a societal trade and investment landscape in The KRG has three key objec- national consensus as to the benefits of democracy, context that places importance on long-term national devel- the Kurdistan Region. tives: create a modern economy, regulations to further increase foreign meaning that talking about the negative aspects of opment. The KRG needs to establish a political framework diversify its revenue sources, and investment, including more support Ithe introduction of democratic politics to a given territory prioritizing long-term development. The KRG needs to: improve its investment landscape. In and administrative assistance. The grinds somewhat against the grain of acceptable discourse. • Devise a long-term developmental plan that is order to attain these goals, the KRG KRG is discussing with the World The problems faced by Kurdistan with respect to the intro- endorsed by all political parties, under an agreed announced reform packages at the Bank, through its program in Iraq, duction of democratic politics stem from political parties national development strategy; beginning of this year. The KRG is ways to improve the investment land- seeking immediate gain by fulfilling their constituents’ • Promote productivity, efficiency and transparency in committed to boosting its private scape in order to achieve the targets short-term, material demands, at the expense of long- all branches of the government based on a compre- sector, and diversifying its economy. set in “KRG Vision 2020”. term development-focused planning. We see in this an hensive developmental agenda that has the support Kurdistan is a virgin market that offers example of what is, particularly for young democracies, of all political parties; numerous opportunities for foreign What areas is the Ministry prioritiz- a typical problem. • Carefully study government intervention in the econ- investors. Despite all the challenges, ing in 2016 and beyond? Democracy has flourished in the Kurdistan region. omy particularly with respect to its negative impact we believe that Kurdistan will be able Our focus is to amend existing regu- However, the socio-economic context of the region means on the functioning of market forces and long-term to successfully overcome these chal- lations to improve the environment that the introduction of democracy has created several socio-economic development. lenges, and we hope to see the same in Kurdistan for doing business, and obstacles for developmental policy: • Clarify the nature and model of economic develop- growth level that Kurdistan achieved to boost trade. Our Ministry has sim- • The people of the Kurdistan Region depend heavily ment that the KRG is pursuing and establish political between 2006 and 14 repeated over the plified procedures so as to reduce the on the regional government for their livelihood. and social apparatus that complement these. following years. time needed to obtain licenses and • Decades of wars and negligence have depleted human The KRG’s current financial crisis, which is partially due revised the forms related to the pay- capital and have created an unhealthy dependency to the burden on the government’s budget from the high What are the Ministry’s plans to ment of taxes and fees. We are also culture in the region. number of public employees, has put the government under increase the economy’s attractive- aiming to set up industrial zones in Consequently, a combination of the heavy reliance of pressure to promote the private sector. A more vibrant ness for foreign investment? Kurdistan that we believe it is crucially the populous on the state and political pragmatism encour- private sector would reduce the current pressures and We believe that Erbil, Slemani and important for the economic develop- ages politicians to focus overly on present concerns. This the need for the creation of even more public sector jobs. Duhok are prime investment desti- ment of the Kurdistan Region. One of leads to a short-term popular political approach to public In the last few years, thanks to its generous legal frame- nations. Agriculture, mining, indus- the key prioritized areas is to improve policymaking at the expense of comprehensive long-term work regulating investment, the KRG has, to some extent, try and tourism are the key sectors our trade ties with our neighboring economic development plans. been able to promote the private sector in the Kurdistan that have the greatest potential in countries. The latest data issued by the Long-term economic development requires a serious region. What is needed now is government policies aimed the Kurdistan Region in the medi- Department of Import and Export of investment in the areas of critical importance such as edu- at improving the quality of education in the region. Quality um and long term. The Ministry of the Ministry show that 3,570 licenses cation, infrastructure and health. However, an estimated 70 education, which, crucially, provides skills that comple- About Trade and Industry in collaboration worth $4.5 billion were approved by percent of the KRG’s budget is spent paying the salaries ment the developmental needs of the Kurdistan region, Fathi Al-Mudaris graduated from with the Kurdistan Investment Board the Ministry of Trade and Industry of a large number of public employees. This has diverted is required to develop a skilled labor force in the region. Baghdad University. He holds a has an attractive plan to draw new for- in 2015. For the first quarter of 2016, much-needed capital away from the key sectors. Better skills make new university graduates mores employ- master’s degree from Germany. He has eign investment to the Region main- 1,276 licenses worth $467 million were The negative impact of populist democratic politics on able in the private sector job market, reducing pressure been working as an economic relations ly through the creation of industrial approved. We would like to increase the long-term economic development of the Kurdistan on the government to provide employment in the public advisor for the Ministry since 2010. zones. The KRG has new introduced this volume in the medium term. A Region needs to be addressed. To do so, the exercising sector. A 44 — Kurdistan Review Invest in Group — 45 B BUSINESS

Expanding Commercial Ties Insurance Landscape & Challenges

In terms of the US Chamber’s Randa Aractingi ­— Middle East activities, where does CEO, Dilnia Insurance the Kurdistan Region and AmCham- We know that there Kurdistan fit? IIG talks to Randa Aractingi on the For many years, we have been focused are opportunities for insurance landscape & challenges on efforts to deepen and expand the American companies in the Kurdistan Region. commercial relationship between across all sectors and the United States and the Kurdistan that the Kurdistan How would you characterize the Legislation to regulate the setting premiums, we must advocate for high- Region of Iraq. We know that there insurance industry in the Kurdistan up of brokerage firms, investment er penetration in all classes of business. are opportunities for American com- Region very much Region? in the training of potential insurers, Today, premiums are calculated by panies across all sectors and that the welcomes American Insurance is just starting to receive and, of course, a level of minimum underwriters who know that insurance Kurdistan Region very much wel- investment, expertise interest in the KRG, as well as in Iraq. compulsory protection are required. is solicited only by expat managers, or Steve Lutes ­— comes American investment, expertise and quality products This is mostly from foreign compa- The authorities must also protect when the risk is very high. When insur- Executive Director, Middle East and quality products and services. Our nies who are investing in the market. local companies and make sure that ance becomes more universal, risk is Affairs, U.S. Chamber of Commerce efforts have included bringing U.S. and services. These companies, who are familiar all local risks are protected by local more diversified, and so the probabil- business to the Kurdistan Region to with insurance, are well aware of their companies. ity of claims being made is lower and IIG talks to Steve Lutes on the meet with government officials and needs, and often request contracts thus premium rates become lower. US Chamber’s activities in the business leaders in order to see and describe a region in flames and under with the same benefits and covers, There was talk of the introduction of Kurdistan Region. learn about the opportunities first- the constant threat of ISIS. A very as they would find abroad. However, compulsory insurance. What stage is Why would the government interfere? hand to providing a platform to KRG important responsibility of business insurance and reinsurance companies this at now? It is a good thing when the govern- officials in Washington, D.C. to edu- organizations like the US Chamber are not always ready to service them. This would be of great benefit to the ment contributes to creating wealth cate companies and raise awareness. and AmCham is to educate the busi- This means that many contracts are KRG. Kurdistan is in a phase of recon- and taxing it! However, on a more The new AmCham in the Kurdistan ness community on how the Kurdistan underwritten by insurance companies struction. We see brand new devel- immediate level, as we have already Region of Iraq plays an important Region is distinct and that it is stable not located in Iraq. There will be no opments across the region: factories, said, insurance protects the workforce. role in bridging the American busi- and quite different in terms of the secu- serious developments in this sector malls, hotels, residences, hospitals, etc. Liability insurance is made to protect ness community with the Kurdistan rity situation from Syria and other until Iraqi and Kurdish investors This means that billions of dollars have third parties. Access to compensation Region. parts of Iraq. When people ask me and entrepreneurs start purchasing been invested in the construction and will protect all employees. Insurance about the security situation, I often insurance. manufacturing sectors. These huge protects employees from various risks; Is there any misconception among the reply that I feel much safer walking sums have not yet been amortized. it benefits the entire community. US business community regarding the streets of Erbil than I do certain How will that happen? Any catastrophe to machinery would People from a wide range of pro- the security situation in Kurdistan? parts of Washington, D.C. at night. There are many ways to help the have immense repercussions. If money fessions work within the insurance It is certainly one of the key challenges expansion of the insurance indus- is not available for repairs, hundreds industry. We are most familiar with facing us. It is important to keep in What role would you say American try. The relevant legislative authority of workers would be unable to work. the salesperson or broker who sells a mind just how large the US business businesses could play in furthering can work to cultivate a more receptive Compulsory insurance must start by policy. However, behind them are the community is. The US Chamber of the US-Kurdistan Region bilateral environment. Capital requirements covering these areas and ensuring underwriters who devise the policies, Commerce represents over three mil- ties? must be the same for all. A distinction worker safety. the surveyors who assess the risks, the lion American companies through It really boils down to education and must be made between capital and back office that issues and produces About our federation. This is a very diverse raising awareness. This is absolutely technical reserves. Obtaining a license Will this raise the cost of production? policies, and of course, accountants Steve Lutes is executive director Middle East Affairs at the U.S. Chamber group and some are more aware of critical. We know that the door to the to operate in the sector has become Only marginally. Premiums are cal- and cashiers, among many others. In of Commerce. He is responsible for the situation in the Middle East, and Kurdistan Region is wide open. We expensive, which is good, because culated against the probability of the case of a claim, there are claims managing the U.S.-Egypt Business Kurdistan specifically, than others. need to do what we can to encourage it limits competition. However, the risk in question. Insurance is all officers, loss adjustors, legal advisors, Council, U.S.-Iraq Business Initiative, the The reality is that what many people American companies to push on that measures must be implemented to about volume. The larger the insured to name but a few. The expansion of U.S.-GCC Business Initiative, and serves know of the Middle East comes from open door because we know that our help ensure that operators receive population and portfolio, the smaller the industry will create hundreds of as executive director for each. television and newspapers stories that international competitors are. A a fair return on their investment. the premium. If we want reasonable jobs, which will also create wealth.A 46 — Kurdistan Review Invest in Group — 47 B BUSINESS

Insight Insight Social Security Exemptions for Identifying Global Beacons Oil Companies Operating in for Private Sector Reform

the Kurdistan Region of Iraq Dave van Zoonen • MERI Research Fellow

Alain M. Hannouche • Hannouche Associates

he vulnerability of Kurdistan’s economy to vol- While the KRG can benefit from the experiences of these atility in the international markets was painfully countries, it has to establish its own model for recovery in revealed by last year’s fall in oil prices. Now, almost accordance with its unique set of natural resources, eco- COMMENT ompanies operating in federal Iraq security contribution, withheld at source Ta year and a half later, it has become abundantly clear that nomic potential and geopolitics. Nonetheless, the KRG Although the and the Iraqi Kurdistan Region must by the employer. Kurdistan’s dependence on the export of a single commod- should identify parallels with existing cases and actively general legal register all local and foreign employ- ity as the main driver for its GDP is both economically seek to get technical assistance from leading experts expe- framework Cees with the Directorate of Labor and Social General exemptions and special exemptions undesirable and fiscally unsustainable. With the oil price rienced in implementing such economic reform plans. This organizing the Security. for oil companies hitting its lowest point in ten years, and no reason to suspect should move beyond the mere diagnosis of the infamous relationship The Pension and Social Security Law Foreign employees of all companies can be a turn for the better any time soon, the KRG finds itself in ‘Dutch Disease’ and the consequential loss of competitive- between employers (39/1971) applies in both regions and regu- exempted from social security registration desperate need to come up with a comprehensive policy ness in agricultural and manufacturing sectors. No one and the Directorate lates the different issues faced by employers and contributions if they demonstrate that for diversifying its economy and increasing production needs to explain to Kurdistan the detrimental effects of of Labor and and employees regarding their rights and they are registered with social security or any in the private sector. oil-dependency on the rest of the economy, or the extent Social Security is obligations towards each other on the one equivalent government programme in their This situation is not unique to the KRG and many of the damage done by the multiple external shocks. But, well systemized, hand and obligations towards the relevant home country. governments of oil-rich countries currently find them- understanding the problem is one thing and taking mean- exemptions are governmental authorities on the other hand. In accordance with Directive 17094/2013 – selves in the same position. In addition, history is laden ingful steps to solve it is another. still granted on a issued by the Ministry of Natural Resources, with examples of governments attempting to steer their There are a wide variety of policy-tools available to discretionary basis. Social security registration the governmental authority overseeing and economies away from resource dependence by developing governments to enhance private sector diversity ranging Therefore, despite and contributions regulating the activities of oil companies and implementing large-scale economic diversification from tax breaks, subsidies, public procurement and invest- the clear and All employers must register their employees in the Iraqi Kurdistan Region – a special strategies. Naturally, some have been more successful than ment, to deregulation, reducing restrictions on investment, flexible directives with the Directorate of Labor and Social exemption regime applies to foreign employ- others but all efforts, successful or not, can provide import- import-substituting policies, promoting public-private communicated Security as of the first day of employment. ees of oil companies. ant lessons learned to those pursuing a similar objective. partnerships and increasing assistance to small- and medi- by the Ministry of Any change in the number of employees The issued directive provides easier exemp- For example, in Chile, a country home to about 38% of um businesses. Some of these tools require an allocation Natural Resources, must be recorded and documented simulta- tion conditions for foreign employees of oil the world’s copper reserves, the government succeeded in of funds that currently may be out of reach for the govern- the Directorate of neously with payment of monthly contribu- companies based on the following procedure: steering its economy away from a single commodity and ment. Others, however, are financially more feasible such Labor and Social tions, where new and departing employees The employment contract must clearly added important alternatives such as wine, timber, fruit and as promoting public-private partnerships, implementing Security can still are registered along with the respective start state that both parties have agreed to register salmon to its main exports, reducing the country’s vulner- import tariffs and facilitating a better investment climate interpret and apply or end date of their employment. the employee with the Directorate of Labor ability to price fluctuations in the international markets. by increasing transparency and improving institutional the directives at its The Ministry of Interior imposes strict and Social Security. Historically, Malaysia was heavily dependent on the export oversight. discretion, which requirements on visa permits for unskilled The employee must either have private of rubber and tin, but through a sustained governmental The need for a sustained and comprehensive approach often proves to workers. Employers must sign a social securi- insurance coverage or be registered with a strategy was able to diversify its agricultural output by to private sector development in Kurdistan has revealed be a significant ty registration pledge in order to complete the government program that is similar to social including palm oil as a major export product. Moreover, itself beyond any doubt. Ultimately, what has worked in final hurdle visa issuance process. Once inside the coun- security. the country has made impressive progress in developing some countries may not work in Kurdistan and a success- when seeking try, all unskilled workers must be registered Supporting documents must be trans- a competitive manufacturing sector, particularly in higher ful policy-mix should always be tailored to realities on the exemptions. with social security before their residency lated into Kurdish and submitted to the added-value products such as industrial electronics. By ground. Nonetheless, the KRG would benefit from an permits can be issued. Directorate of Labor and Social Security. the early 2000’s, this manufacturing sector produced over outward-looking approach which draws inspiration from Employers make a 12% social securi- An exemption will be granted only if the 30% of Malaysia’s total GDP. Finally, Indonesia has a long other countries further along in their process of economic ty contribution for each employee, calcu- directorate determines that the presented history in government-led industrialisation, enabling it to reform. These countries can provide valuable council and lated based on each employee’s monthly coverage is more beneficial to the employee reduce its earlier dependence on primary commodities in serve as beacons along the KRG’s own path to private wages. Employees make a 5% social than Iraqi social security. A mining and agriculture. sector diversification. A 48 — Kurdistan Review Invest in Group — 49 Empire Ads-Kurdstan review.pdf 1 9/22/15 3:27 PM

BUSINESS

Geared to Build

Falcon Group is one of Kurdistan's top firms, and boasts a diversified line of businesses. What sectors do To date, we have you consider to be the cornerstones of your company? completed about 75% The sectors that stand out are our con- of the project and struction, security and real estate ser- are currently working vices. Together, they form the lynchpin on the Empire West of Falcon Group’s development strat- egy. The continuous pursuit of growth Wings, which features and diverse business opportunities residential towers Peshraw Majid Agha — have driven our success. and three business Chairman, Falcon Group towers. We will be What are Falcon Group's main objec- IIG talks to Peshraw Majid Agha tives for 2016, and what is its medi- handing over the keys C on Falcon Group’s Empire World um-term development strategy? of these landmark M project, and the company’s future Our goal is to maintain steady growth buildings next year. goals. Y in core sectors, including security, real estate, construction, and oil CM & gas services, while looking out MY for new opportunities elsewhere. Can you brief our readers on the CY Kurdistan is still a growing region, construction of the Empire World

CMY and while many sectors of the econ- project? omy have slowed in the past year, Empire World is a very large devel- K its long-term development model is opment that spans over 750,000sqm. sustainable and continues to attract It is probably the largest mixed-use investment. development in all of Iraq. To date, we have completed about 75% of the project and are currently working on the Empire West Wings, which fea- tures residential towers and three busi- ness towers. We will be handing over the keys of these landmark buildings next year.

What distinguishes Empire World from other projects in the Kurdistan Region? It's the thought which has gone into every stage of development, from the design and layout of Empire World, which was engineered by a top architec- ture firm in Dubai, to its facility manage- ment and prudent financial planning, which have ensured that the project has continued despite the credit crunch we are all witnessing in Kurdistan. A Invest in Group — 51 B BUSINESS

Empire World Total construction area: 2 continues to 1,250,000m

forge ahead, Building plot area: advancing the 429,835m2

construction Total green area and roads: of the Empire 360,000m2 World Project despite the Service plot area: 12,500m2 economic challenges Total cost of project: confronting $2.7 Billion the Kurdistan Total Units: Region. 88 towers &

The Empire West Wing’s 300 luxury villas residential projects are now 75% complete, Utilizing land for with its grand opening expected in mid-2016. The residential, leisure, shell structure of the three luxury Diamond Towers and work spaces, has been completed, while Empire’s multi- three out of five of the Empire Business Towers faceted and mixed- are due to be completed use approach to land by mid-2016. Empire Business Complex, a series development is the of six premium office blocks, was completed in project’s most distinct early 2015 and is ready for characteristic, and commercial tenants. lends it the feeling of Home to several major real estate and development a city within a city. projects, the Empire World Project spans a land area of 750,000m2.

52 — Kurdistan Review Invest in Group — 53 E ENERGY

The Review: Energy

In January 2015, Baghdad and Erbil Region, and consistently refused to end of June 2015 the KRG came to signed a deal under which Kurdistan respect Kurdistan’s right to its share of the conclusion that it had no option would transfer about 550,000 bpd to the budget, despite the January 2015 but to start independent oil sales in the Iraqi state oil firm SOMO over the agreement. The Kurdistan Region order to be able to pay its salaries. course of 2015 while receiving 17% of needs stable revenues to pay govern- Officials from the central government the Iraqi national budget (amounting ment employees and its Peshmerga in Baghdad continued to state that to $1.1 billion a month). However, the forces. In addition, the Region’s pop- Baghdad would provide Kurdistan’s deal failed immediately after Baghdad ulation increased dramatically due to share of the budget if Erbil would claimed that Erbil was not transfer- the influx of over 1.8 million Syrian stop its independent exporting of oil. ring the agreed volumes, and sent refugees and Iraqi IDPs, placing an However, confidence had been erod- Slowly But Surely only $200 million to the KRG instead additional burden on the KRG. ed, after a series of promises made by of $1.1 billion. The KRG upgraded Given the circumstances, at the the central government were not kept. its export infrastructure, In spite of all the challenges it has faced, 2015 has been a year of growth in and increased the capaci- Brent crude oil prices, January 2014 - January 2016 ty of its pipeline network. oil and gas production for the Kurdistan Region. $ per barrel Exports increased dramat- n spite of all the challenges it has reserves -- equivalent to almost one areas taken into consideration when ically and reached around 120 faced, 2015 has been a year of third of Iraq’s deposits. In addition to developing Kurdistan’s energy indus- 560K bpd over the course growth in oil and gas production oil, Kurdistan has large gas reserves, try during 2015. The MNR’s main of March and April 2015. 100 Ifor the Kurdistan Region. Kurdistan’s standing at 200 trillion cubic meters, policy for 2015 can be described as However, Baghdad trans- oil sector saw a rapid leap in terms of according to the data provided by the creating a stable energy industry that ferred around $1.9 billion in 80 production from an average 400K bpd KRG’s Ministry of Natural Resources serves the KRG’s main aim of safe- total to Erbil from January in 2014 to 600K in 2015. Moreover, the (MNR). Kurdistan plans to be export- guarding financial stability. Since the to June – less than 40 per 60 Region’s gas industry has stayed on ing as much as 1 million barrels of oil a Brent oil price is set to stay around cent of the amount to which course and the KRG took bold steps day by the end of 2016, and 20 billion $45-$55 in 2016, and the Baghdad- the Kurdistan Region was 40 towards becoming a significant gas cubic meters of gas a day by 2020. Erbil rift regarding the oil export entitled. exporter, which would put Kurdistan The rapid decline in oil prices issue has not been solved, IIG predicts The central govern- 20 firmly on the global energy map. (plunging from $112 in June 2014 to that these two issues will dominate ment effectively engaged 0 The Kurdistan Region holds an $38 at the end of 2015) and indepen- Kurdistan’s energy agenda during in financial discrimination estimated 45 billion barrels of oil dent oil exports have been the key 2016 and 2017. towards the Kurdistan Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16

54 — Kurdistan Review Invest in Group — 55 E ENERGY

Local Consumption (Million Barrels) Oil Production & Export $3.9 1,4 2,8 2,9 1,5 3 3,5 3,2 3,8 2,3 2,1 1,9 2,5 Global energy industry investment $1.9 slowed sharply during 2015 due to the Total Exports via KRG Pipeline per month (bbls) Billion Billion rapid drop in oil prices. It is predicted that global oil and gas investments Million bbls KRG Exports NOC Contribution will fall to their lowest in six years in 7,9 7,7 8,1 16,8 17,9 13,5 16 14,6 18,6 18,4 18 18,1 January-June June -December 2016, to $522 billion. 2015 2015 Like all oil producing countries, the JUL SEP FEB JUN JAN DEC APR OCT

MAY oil price plunge has obviously affect- AUG NOV MAR From 1st January 2015 – 23rd June 2015, ed investment in and the budget of the KRG only received $1,9 billion in export TOTAL: 31,4 Million bbls the Kurdistan Region, since the oil JUL SEP FEB JUN JAN DEC APR OCT MAY AUG NOV revenue from the federal government. The Barrels of oil sold to buyers in the domestic market industry represented a huge share of MAR KRG generated revenues of $3,9 billion from the region’s GDP. However, Kurdistan Total Exports during agreement Exports for Direct Oil Sales 24th June 2015 to 31st December 2015 when it gradually increased its oil production with the Federal Government: 107,4 million bbls began its independent oil sales. and export figures during 2015 despite 72,1 million bbls the crisis. In 2015, oil production in the Kurdistan Region stood at 210 mil- lion bbls, a major increase compared Gross Production 2015, Monthly Outputs to 2014, during which it was 114 mil- KRG Revenues 2015 — 876,6 440 585 550 721 127 650 lion bbls. In addition, monthly aver- (Million USD) age production reached 577,287 bpd Crude Oil Production in Million Barrels Average Barrels Per Day (Thousand) in 2015. The MNR’s long-term pre- diction is that production levels will 13,7 13,6 15 18 19,5 20,2 19,1 17,7 18,4 18,4 17,6 18,9 442 488 486 601 630 673 619 573 614 594 587 612 reach around 1 million bpd by the end of 2016. In 2015, local consumption stood at 31,404,649 bbls. 204,9 402,2 432,3 393,4 417 136,6 From 1st January 2015 – 23rd June 2015, the KRG exported its crude oil under an agreement reached with the federal government in Baghdad. Over this period, the KRG only JUL JUL SEP SEP FEB FEB JUN JUN JAN JAN DEC DEC APR APR OCT OCT MAY MAY AUG AUG NOV NOV MAR MAR received $1.9 billion in export reve- nue from the federal government. The TOTAL: 210,7 Million bbls TOTAL: 577,287 bpd Kurdistan Region generated revenues of $3.9 billion from 24th June 2015 to st JUL SEP FEB JUN JAN DEC APR 31 December 2015 when it began OCT MAY AUG NOV MAR Production Output per Block (bbls) its independent oil sales. The KRG independently exported 107,460,635 barrels of crude oil in the same period. Since June, independent sales have Total Paid by Federal Government: Achieved through Direct Export Sales: allowed the KRG to generate around $1,98 Billion $3,94 Billion (181% Increase) $628 million a month, enabling the Khurmala Tawke Taq Taq Shaikhan Garmian Sarsang Hawler Akre Bijel Khalakan government in Erbil to pay govern- 103,8 M 49,3 M 42,3 M 11,1 M 1,6 M 1 M 921K 355K 32K ment employees’ salaries and fees to The KRG does not comment on the Government has continued to deliver oil companies. It is expected that the buyers of its oil. However, the num- payments to companies, which have TOTAL ANNUAL PRODUCTION Kurdistan Region’s oil revenue will ber of countries receiving Kurdish been developing fields in Kurdistan. reach around $8 billion in 2016 even oil has risen to nine in 2015, accord- The KRG has also stated that pay- 210,7 Million bbls if prices stay at their current level – ing to Stratfor. Despite all the turbu- ments would be increased as oil prices which is $49 as of May 2016. lence in 2015, the Kurdistan Regional rebound.

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Gas Industry

The Kurdistan Region holds an esti- The Kurdistan Region increased its mated 200 trillion cubic meters of nat- gas production in 2015, and is plan- ural gas, accounting for around 3% of ning to start exporting gas by 2019. Focus the world's total reserves. With oil pric- The KRG has a gas agreement with Miran & Bina Bawi es set to stay low in the short term, the Turkey that was signed at the end of Gas Fields KRG aims to promote the gas sector in 2013. Under this agreement, Kurdistan The Miran and Bina Bawi order to become a significant export- aims to increase its gas exports to 20 gas fields are operated er of both oil and gas. The potential billion cubic meters a day by 2020. by Genel Energy in the boost in gas will provide additional Turkey, which used 46 billion cubic Kurdistan Region. Both gas benefits to the Kurdish economy. In meters of gas in 2013, and 48.7 billion blocks have an estimated accordance with this aim, the MNR cubic meters in 2014, is set to become 11.4 trillion cubic feet of prepared a detailed plan, with two one of Europe’s top three consum- raw gas reserves. The main objectives. The first leg of this ers of energy in the next decade. It is fields are expected to be plan was to develop Kurdistan’s gas also estimated that Turkey’s gas con- fully operative by the end of resources in order to meet domestic sumption was at least 48 bcm in 2015. 2016. Genel Energy plans to need for power stations and indus- Kurdish gas could meet almost 50% of start exporting gas to Turkey Refineries trial uses. The second leg focuses on Turkey’s gas demand in the medium by 2019. meeting the demand of Turkey and term. The Turkish government is seek- Kurdistan is expanding its refining capabilities, several European markets. ing to diversify its gas supply markets. with three major facilities already in place.

The Kalak Refinery, which is located in In the Slemani governorate, the Bazian Tawke Refinery is located in the the Erbil governorate and is operated refinery has been operated by Qaiwan Duhok governorate and is operated by KAR Group, to raise its capacity to Group since 2009. The facility raised by DNO. Tawke’s capacity stood at Electricity 175,000 bpd from 100,000 bpd. its capacity to 84,000 bpd in 2015 from 3,500 bpd in 2015. 34,000 bpd in 2013. The power sector’s developments over improved transmission infrastruc- The Kurdistan Regional the past decade paint an optimistic ture. Between 2009 and 2015, the Government will also need to address picture of the industry’s future. Until number of electricity consumers the issue of unplanned power outag- Refined Products 2015 2009, very little of the Region’s elec- increased from 705,000 to 1.1 mil- es across Kurdistan. Sets of reforms Annual Refining Outputs by Refineries tricity was generated locally, mak- lion, and the number of transformers are being implemented, signaling to ing Kurdistan dependent on Iraq’s from 20,000 to 28,000. investors that the government is com- Naptha Sweet Nap. Gasoline Kerosene Diesel Fuel Oil LPG Gasoline national grid and imported power The Kurdistan Region’s pow- mitted to solving this issue, but the from Turkey. Despite the fact that er generation capacity is primarily rising demand for electricity means demand was low and distribution managed by the private sector, which that greater generation capacity is infrastructure was underdeveloped, provides the bulk of Kurdistan’s elec- needed. The Kurdistan Region’s cur- 130,000 314,256 743,049 Kurdistan still suffered from a dearth tricity generating infrastructure. The rent operating capacity is 3,886 MW. of available power and often faced electric power industry relies largely Kurdistan's current minimum power

awke bbls bbls bbls

T blackouts. However, the KRG has on gas-fired power stations that are demand is in the range of 5,000 mega- vigorously developed its infrastructure supplied from fields at Khor Mor and watts, in order to secure a stable supply. since 2009. Khurmala, among others. Generating Currently, the Kurdistan Region sees Demand for electricity jumped capacity expanded from 482 mega- between 18 to 20 hours of electricity a from only 925 MW in 2004 to 5,000 watts in 2007 to around 2,850 mega- day. Many businesses and homes have 2,9M 35,957 1,8M 1,1M 1,3M 3,5M 110,946 MW in 2015. Since 2004, the private watts in 2015. Much of the growth their own back-up power generators bbls bbls bbls bbls bbls bbls bbls sector has invested over $5 billion in in generation was due to the con- to maintain a stable supply. The KRG BAZIAN electricity generation in Kurdistan. struction of three major gas power should invest in the sector and privat- The KRG’s Ministry of Electricity plants located in Erbil, Slemani, ization should be encouraged. The predicts demand for electricity will and Duhok, built and operated by government is not ignoring the prob- grow 15% annually over the next Mass Group Holding. The potential lem and has set a target of an installed 6,4M 28,788 4M 395,533 3,7M 12,1M 295,965 519,068 three years. This is due to a combi- capacity of these three stations alone capacity of 6,000 MW by 2017. The ALAK bbls bbls bbls bbls bbls bbls bbls bbls nation of increasing economic devel- is 3,500 MW, with room for addition- KRG plans to fully meet the demand K opment, a growing population, and al growth. for electricity in Kurdistan by 2017.

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DID YOU KNOW? Insight The IFC, a member of the World Bank Group, has announced a $375 million investment in the Kurdistan Region in April 2016. The project will provide electricity to millions of people across the country—particularly in the Kurdistan Region of Iraq, where a migrant crisis has strained power infrastructure. The financing package Sustainable Growth in includes $250 million from IFC’s account and $125 million from Bank Audi. Mass Global Energy will use the fund to add 500 megawatts of capacity to a 1,000-megawatt power plant in the Kurdistan Region of Iraq—pro- viding power to 3 million people—and to help complete a new power plant near Baghdad that will supply about Kurdistan’s Energy Industry half of the Iraqi capital’s electricity needs. Shwan Zulal • Director, Carduchi Consulting

Renewables

Installed capacity for renewable ener- KRG is currently carrying out a fea- gy sources in the Kurdistan Region sibility study for introducing wind Deralok remains quite limited. KRG officials power. Private sector solar projects project confirm that renewable energy plays have so far been limited to a relative- a minor role in meeting the Kurdistan ly small scale, providing around 50 The KRG inaugurated a 36 Region’s power needs at the moment, megawatts. While the KRG does not MW hydropower project but they point to the important role believe that renewables are practical in Duhok in Febraury 2016. alternative sources of energy play in for meeting the entirety of the Region’s The project is funded by he current state of the KRG’s energy industry is a its end of the bargain. Meanwhile, the KRG has managed their strategic energy outlook. The energy needs, Kurdish leadership does the Japan International far cry from its early days in 2007-8 and the speed to increase exports and find buyers on the international Kurdistan Region’s two hydroelec- emphasize a growing role for renew- Cooperation Agency, JICA. with which the industry has developed has been market. Oil was sold on forward sales contracts and in tric power plants at Darbandikhan able energy in a holistic strategy to The Deralok project will Tbreathtaking. The Region has attracted many of the big the second half of the year, the Kurdistan Region was and Dukan provide 300 megawatts meet their ambitious electricity gen- produce clean energy and international players in energy and the prospect of the expecting to receive around $850 million a month to cover of electricity at peak capacity, and the eration goals. store water for irrigation region producing 1 million bpd has attracted many inves- its expenses and pay oil companies around $100 million a purposes. tors. The building up of the industry has been impressive month. The plan looked great and the promise of payment but recently sustaining this speed of development has was very good for the industry, however, in August 2015 oil not been easy. prices took another dive and this has affected Kurdistan’s Two years ago the main issue for Kurdish oil was find- total receivables. ing a route to get it to market. The issue of how to get Despite all the issues, investors are still bullish toward Kurdish crude to market has now almost been resolved. the Kurdish oil industry’s prospects but the KRG has However, in the process other issues have arisen, such as, some serious choices to make if it is to overcome its recent the war with ISIS, the pipeline security, crippling public problems. sector salaries and low oil prices. Civil servants’ salaries make up the majority of govern- ISIS being on the border has not helped confidence ment expenditure and the government has been trying to from a security point of view, however, ISIS has not reform the public sector. There has, however, been little RECRUITMENT particularly affected the region’s oil industry, from an appetite on the part of the major political parties to move operational perspective. Turkey-PKK fight may cause on the issue. pipeline security issues but may very well be only a tem- To maintain the momentum in the Kurdish oil industry, STAFFING porary issue. regular payments to the IOCs are essential. Production The above factors have all contributed to a slowdown is still increasing but without new capital entering new in the pace of development, however a lack of regular development projects, the current rapid expansion will TALENT MANAGEMENT payments to oil companies and low oil prices have been come to a halt. the main factors causing the slowdown in the industry. The KRG has little power over oil prices and regional Low oil prices have affected operations elsewhere in the instability but the Kurdish government can start by reform- world, so this is not unique to Kurdistan. Low oil prices ing the public sector and reducing the huge burden on coupled with liquidity and a financial crisis in Kurdistan the region’s finances. Overdue reforms are gathering pace have however exacerbated the problem. and the main political parties are slowly coming around Despite a promising start in 2015, with the announce- to the idea. Although the problem has been identified, the ment of a deal with Baghdad favorable to the Kurds, this reforms will not be as quick as some are hoping but will [email protected] has been largely ignored and Baghdad did not commit to surely start soon. +964 (0)66 261 4455 A 60 — Kurdistan Review Invest in Group — 61 Erbil | Basra | Sulaimaniya | Dubai E ENERGY

Insight

Major Plans Off the Bottom, Emerging Stronger Brad Camp • ANALYST Looking back over 2015, how would you assess the impact of the low oil prices on the company? Our refinery is currently Two dynamics emerged from the low at 100,000 bpd, but at oil prices. First, there was a cash flow challenge. The price fell so quickly and 75,000 bpd expansion government reform could not keep is in commissioning. up. Money for energy companies was This will put our overall scarce for a while. That has changed refining capacity in 2016 as the systems have adjust- ed and the government is working at 175,000 bpd. he rapid plunge in oil prices shocked policy makers funding for longer-term economic development. with its energy partners to encour- around the globe, and the emerging energy market Fourth, Kurdistan is set to be an exporter of value added Baz Karim — age investment. Also, the price of oil What is the current capacity of the of Kurdistan was not immune. As exports from goods and services. The investment decisions of the past President & CEO, KAR Group has rebounded from its lows. Second, K AR’s Kalak refinery, and what is TKurdistan rapidly grew from 150,000 barrels per day to five years are starting to yield opportunities for the sale of for investment projects, the lower oil your expansion target for 2016 and 300,000 barrels per day to 600,000 barrels per day, down- industrial goods – steel and rebar, cement, fuels and even IIG talks to Baz Karim about KAR price translated into more cost effec- beyond? ward crude prices were mitigated by increases in exports. electricity – to the near abroad. This provides employment Group's ambitious future plans in tive projects. We took advantage of Our refinery is currently at 100,000 As oil sank into the $20 per barrel range, investment in opportunities for locals in the manufacturing of the goods. the Kurdistan Region. this at KAR. We signed with the KRG bpd, but at 75,000 bpd expansion is new production or sustaining current production seized It also creates important and stabilizing economic linkages a gas project to increase gas-process- in commissioning. This will put our up in every oil patch around the world. Again, Kurdistan with the neighbors. In the past several years, Iraq focused ing capabilities at Khurmala from overall refining capacity at 175,000 was not immune. on increasing oil exports with little value added. All the 100 mmscf/d to 300 mmscf/d. We bpd. We are adding a new element In the second quarter of 2016, oil prices leaped to nearly while, Kurdistan was quietly building industry that will started drilling gas wells also for feed- during this phase: condensate refining. $50 per barrel. A sense of the worst is behind us started pay dividends for decades to come. stock production for the gas plant. With increased gas production forth- prevailing and for several reasons, Kurdistan will rise off And, fifth, the brave Peshmerga continues to advance We installed a new crude stabilization coming, we see condensate refining as the bottom quicker and stronger. against the Islamic State enhancing the overall feeling that train at Avana, and we continued on a a good domestic value add. First, production is dominated by Kurdistan-focused the Region is stable, defendable, and safe for investment. water injection project for Bai Hasan, producers, including, KAR, DNO, Genel Energy, Oryx The international community has increased its support Avana and Khurmala. Do you have any plans to invest in and HKN. As the market normalizes and especially with for the war effort in recognition that the Peshmerga are renewables in the medium or long regular and contractual based payments of entitlements, aligned with the values of the modern world on fighting Looking ahead for the coming year, term? How do you see the global these companies will use the proceeds that they earn in and defeating threats to the homeland and the exportation what are the major plans for KAR renewable energy trend? Kurdistan to continue investing in Kurdistan. This cir- of terror around the world. Group? Since we have an abundance of natural culation of capital in the local market is essential for an Regional political stability remains a challenge. The We would like to raise output from gas, I feel that adding value to that natu- economic rebound, and it mitigates against capital flight. relationship between the Kurdistan Region and Baghdad is 350,000 bpd to 410,000 bpd. This ral gas domestically – by making power, Second, Kurdistan is relatively cheap oil to produce, at another threshold. The Kurdish people are increasingly requires a workover program, some petrochemicals, and industry – is a bet- compared to offshore oil, for example. Oil produced in calling for a process to determine the future of Kurdistan as new drilling and the use of artificial ter use than exporting the raw material. Kurdistan is efficiently exported by pipeline and sold to part of Iraq. Commitments made through political agree- lift and water injection. We also are Using is locally builds an economy and international markets. Major international oil purchasers ments, with some even enshrined in the Iraqi Constitution, expanding our power plant from 600 employ people. Renewables are good have extended pre-payment financing to the KRG, another continue to be shelved rather than implemented. There MW to 1000 MW. This project has for places without natural resources. testament that the oil is trusted and valuable. are multiple ways forward that are achievable, and none been in the works for some time, and Shall we make use of our abundant Third, the KRG has embarked on an ambitious and should concern investors. The common thread is a peaceful, About will be commissioned in 3rd quarter sun here in Kurdistan? Yes, but only if timely reform program to modernize the way the govern- agreeable solution that is accepted by all sides in good faith. Baz Karim is the founder of KAR Group. As one of the leading oil and of 2016. We will continue to expand it is cost competitive. I read that solar ment does business. While oil prices were high and export Although the oil price is the headline for measuring gas industry figures in the Kurdistan and upgrade the Kurdistan Export has come down in price, but still with volumes were increasing, the KRG had abundant funds economic performance, Kurdistan is much more dynam- Region, he follows the guiding principle Pipeline including gathering crude abundant gas, it is more efficient for to become complacent rather than constantly focusing on ic than that. 2016 is the year of better governance, bold of establishing a stable model of Iraqi from Sarsang, Atrush and Sheikhan. us to use it domestically and let other improving the delivery of services in more efficient and cost reform, industrial output advancement, contract affirma- employment for both operations and This will also include a pump station to markets without such resources transi- effective ways. The reform program will ease the burden tion, and the expression of the will of the people for peace investment activities. boost overall export capacity as well. tion to renewable energy. A on resources for operational expenses and provide more and prosperity. A 62 — Kurdistan Review Invest in Group — 63 H E HIGHER EDUCATION

AMERICAN UNIVERSITY OF KURDISTAN — DUHOK Established in 2014, the American University of Kurdistan (AUK) seeks to foster respect for learning, knowledge and genuine academic achievement. Located in the heart of Duhok, AUK aims to become a leading center of academic excellence and research. The main building, which has a total floor area of approximately 30,000 square meter, can accommodate 3,000 students. The University aims to mold the next generation of leaders through challenging courses, up- to-date methodology and qualified, experienced faculty members. AUK will be an academic institution built on excellence.

64 — Kurdistan Review Invest in Group — 65 H E HIGHER EDUCATION

We will promote a spirit of inquiry by The Path to Excellence creating a multi-cultural, intergenerational, and highly accessible institution that The AUK aims to establish itself it is the right thing to do. We will ask values and nurtures an innovative, as an institution with a reputation that our students at AUK increase their for excellence. How do you define knowledge of the cultures, traditions, reflective and experiential approach excellence in the context of AUK’s religions, politics, and languages of strategic plans? all parts of the world. We will teach to educational excellence. At The American University of our students to be multi-cultural and Kurdistan (AUK), excellence is tolerant of all races, creeds and polit- defined in terms of our mission which ical affiliations. This type of inclusive is, I believe, one of the strongest and education is the best and the fastest most powerful of any in higher educa- way to combat extremist groups such students to be prepared for the work as I said at our grand opening, we out. We are working hand-in-glove tion today. In part, the mission reads as the so-called Islamic State… the force and to become productive will challenge our students to effect with the AUK Board of Trustees, the that AUK is committed to shaping best and fastest way to bring peace citizens. personal, social, political and environ- Minister of Higher Education, the Professor Michael Mulnix — leaders for local and regional commu- to our world. The second pressing issue for high- mental change within a global context. Governor’s Office and many other President, American University of nities by “offering quality education, er education in Kurdistan is interna- We will promote a spirit of inquiry private and public agencies to define Kurdistan (AUK) research, and career-oriented pro- What do you consider the most press- tionalization of the curriculum. We by creating a multi-cultural, inter- our expansion strategy. We are starting grams . . . The University practices ing issues for higher education in have to begin stressing the importance generational, and highly accessible small, with only four active depart- IIG talks to Professor Michael the highest standards of intellectual Kurdistan and how will the AUK of the “education of the student as a institution that values and nurtures an ments including design, business Mulnix on the AUK’s strategic plans inquiry and scholarship . . . Academic respond to these issues? whole person.” In other words, stu- innovative, reflective and experiential and finance, politics and public pol- and targets in the medium term. freedom, equal opportunity, and unity I would answer this question with two dents need to graduate with employ- approach to educational excellence. icy, and computer science. However, in diversity are the hallmark compo- words: access and internationaliza- able work skills, for sure, but they Excellence in scientific research can we are conducting market research nents of AUK’s educational model.” tion. Regarding access, I’m constantly also need to be holistically educated be achieved by building lasting part- to determine the feasibility of start- As I stated at our recent grand surprised at the number of students with skills in the humanities, sciences, nerships with business and industry as ing programs in engineering, health opening, an education at AUK is val- who are denied any type of higher mathematics, world history and more. well as with other educational institu- sciences, international studies, educa- ues-based. We will demonstrate excel- education in Kurdistan. Entry into They should possess knowledge of tions on a local, regional, national and tion and arts and sciences. The nor- lence by creating a robust, challenging programs is based entirely on test different cultures, religions, political international basis. AUK has already mal structure for any university is to curriculum featuring innovative aca- scores. Although in the United States, systems, and have a deep understand- begun to develop a strong interna- have various colleges that are then demic programs with performance test scores are important, they are ing of current events. They should tional presence by building relation- comprised of different departments. indicators and student assessment out- only part of the admissions process. be encouraged to think creatively ships with a wide range of colleges For example, we may eventually have comes clearly articulated. We are not Personal interviews, public service, and independently; they need to be and universities. This will allow AUK a College of Engineering that could just going to graduate students. We are work experience and volunteerism are challenged to think for themselves, to to strengthen its research-based cur- potentially house departments with going to graduate the future leaders of all considered just as important as a think globally, as citizens of the world. riculum and, as a direct result, the architectural, agricultural, computer, Kurdistan….the future leaders of the test scores. Let’s say a young man or critical-thinking skills of its students. and petroleum programs. We don’t About MENA region and of the world. Our woman has a low test score but has How will the AUK work toward want to start any program that doesn’t Dr. Mulnix has been employed in a students will enter a global society and worked as volunteer in a hospital for improving the scientific research and Can you brief our readers regard- fulfill a real need in the region, such number of senior-level positions in to ensure their success we are going to the past three years or has worked as critical-thinking skills of its students? ing AUK’s expansion strategy in the as nursing or teacher education. This Saudi Arabia, Kuwait, the UAE, and internationalize our student body and a computer technician while going to I took this presidency after hearing medium term? What are your targets new University won’t ever be as large Mexico. He received his bachelor our curriculum, eventually bringing high school. Shouldn’t those experi- the Chairman’s vision for the future and priorities in terms of opening as, say, the University of Duhok. It in science degree in journalism to this campus the best and brightest ences be considered as well as a score of AUK. His Excellency Masrour new departments, research centers, is unlikely that AUK will ever grow and history from the University of Colorado in Boulder; his master of students from throughout the Middle on a single test? All students should Barzani envisions a strong, indepen- and staff and student numbers for larger than 4,000 students. That is a arts in communications from the East, from Europe, from Asia, from the have access to some type of education dent University that is recognized as 2017 and beyond? very nice size because it allows you to University of Notre Dame; and his United States and beyond. after high school. In the United States an outstanding teaching and research We are in the process of developing have resources for truly innovative, doctorate in public communication As the world grows increasingly there are community colleges, voca- institution. With that in mind, we will a strategic plan that lists our goals outstanding programs but also to be and business from the University of smaller, internationalizing our curricu- tional schools and more. Graduating empower our students to think critical- and objectives for the current year able to give individual attention to Maryland in College Park. lum is not only the smart thing to do, from these kinds of institutions allows ly and to think for themselves. Again, and, then, for three- and five-years your students. A 66 — Kurdistan Review Invest in Group — 67 H E HIGHER EDUCATION

Insight Commitment to changing people’s lives for the better

Dr. Honar Issa • Member of the Board of Trustees, American University Duhok Kurdistan Our main goal is to educate future leaders of the community and pave their way to the pinnacle of knowledge and excellence.

t goes without saying say that an educational sys- has brought significant changes in the quality of education. programs; Computer Science, Design, Management and academically. AUDK is the first institution in the region tem is the bedrock of any developed country. Efforts What distinguishes private educational institutions from Finance, Media Studies, and Politics and Public Policy. that offers a “Peace and Community” course of study as to nurture education demonstrate a commitment to their public counterparts is that they bring accountability, Within these five programs, there are 20 majors that are part of the general education that students take during Ihuman development. Despite the fact that Kurdistan has credibility and flexibility to education and research and not offered by any other institution in the region. These their first two semesters. This was decided after conducting grown exponentially over the last decade and has made consequently they attract people of high caliber. include Digital Forensic Science, Fashion Design, Digital a study on what courses should be developed to serve the great strides in its development, compared to Southern Unfortunately, most of the private universities in the Animation, Logistic and Supply Chain Management, community. Of equal importance in terms of social impact Iraq, certain educational issues have not been addressed region lack the credibility to assure quality education and Hospital and Healthcare Management, Insurance and Risk is AUDK’s positive contribution to the economy and the properly. For one thing, there has clearly not been a sys- they mainly rely on tuition fees to cover their operational Management, and Security and Strategic Studies. The BOT development of the community by offering professional tematic approach to rationalizing the educational system costs. They are not run by academics, but rather business- has recently appointed Professor Michael Mulnix as the development programs for professions such as teachers, in Kurdistan. men who seek a quick return on their investment. At the new president of AUDK. Prof. Mulnix has an outstanding nurses, managers and professionals, as well as providing After a safe haven was created in Kurdistan by the coa- same time, public universities have so far failed to attract academic record and strong leadership skills. He is currently them with English as a Second Language programs. lition forces in 1991, Kurdistan obtained de-facto semi-au- the high quality faculty and administrative staff members drawing up a long-term strategic plan to ensure the success Thanks to the vision of H.E. Masrour Barzani, AUDK tonomy that made it possible for the Kurdish people to needed to create a conducive environment for the devel- of the university. That plan will involve future expansions, has recently introduced the “Mustafa Barzani Honors attain self-rule within the region. Kurdistan became iso- opment of higher education. One of the reasons for this self-sufficiency and sustainability, as well as the initiating of Scholarship”, the “Chairman Barzani Honors Scholarship” lated from the international community due to the sanc- is that public universities offer a very low salary scale, one procedures needed to gain accreditation. One of the prima- and the “President’s Merit Scholarship”. These scholarship tions imposed on Iraq after the 1991 invasion of Kuwait. that has not attracted high quality staff members. ry goals of AUDK is to gain accreditation from a reputable programs will be awarded to the top students in the region However, Kurdistan began establishing public universities Among those few private universities in Kurdistan that accrediting body in the U.S. This will be an arduous pro- as part of the strategic plan to attract the highest quality to educate its young people. Although these institutions strive to provide high quality education is the American cess but it will guarantee high quality education at AUDK. students to AUDK. did not have any exchange programs with international University Duhok Kurdistan (AUDK). It is a nascent The university plans to establish more programs in the The BOT has established the AUDK-Foundation, which institutions for more than a decade, they endeavored to university which is less than one year old. The Chairman future including Nursing, Medical Science, Engineering, will allow the university to build warm, long-lasting rela- keep their doors open to students and managed to offer of the Board of Trustees (BOT), and the founder of the Education and Liberal Arts, and Art and Cinema. tionships with a wide range of stakeholders on the local, academic programs, albeit with a somewhat outdated university is His Excellency Masrour Barzani who has These will meet the learning needs and aspirations of stu- regional, national and international levels. The philosophy curriculum. Their contribution to the community was envisioned turning AUDK into a leading institution in the dents to develop their intellectual abilities. The programs behind this Foundation is to engage the community and limited by the facilities and capacities that they possessed region by offering state-of-the-art programs. As an academic will also reflect the market demands. its individuals in supporting the development of the uni- at the time. figure and a leader, Chairman Barzani has decided to make In accordance with its commitment to changing peo- versity and establishing it as one of the premier teaching The liberation of Iraq and Kurdistan in 2003 created a AUDK a not-for-profit institution to show his concern for ple’s lives for the better, AUDK offers diverse programs and research institutions in the Middle East and beyond. lot of opportunities for establishing private universities in promoting a high quality system of education in the region. to the community. It has recently established the Center Our main goal is to educate future leaders of the com- the region. It has been shown in many regions around the AUDK has enjoyed an outstanding start as a center of for Peace and Human Security which aims to address munity and pave their way to the pinnacle of knowledge globe that the emergence of private educational institutions education and research. The university currently offers five the issues of the local community and to approach them and excellence. A 68 — Kurdistan Review Invest in Group — 69 ICT ICT SNAPSHOT ICT The telecom industry is dominated by the three players: Korek, Asiacell, and Zain Iraq. Telecom Zain caters to nearly 50% of telecom subscribers; Asia Cell, 32%; Korek, 18% across Iraq. Mobile penetration rates, already relatively high at over 94% within the Kurdistan Region, are continuing to rise. Only a small percentage of the Kurdistan’s population is estimated to use smartphones with data plans, although trends in the sector suggest that this num- ber is likely to quickly grow. Social media usage is highly developed; the total number of social media users are about 90% of the population. The Kurdistan Region still faces all population in order to help substantial challenges in develop- boost growth. Get ing a sufficient ICT infrastructure There is still much to be to connect all of its population, desired in terms of the Kurdistan’s but a number of concerted moves computer and technical literacy. Internet penetration rates have been climbing steeply, with major growth in local Internet are underway to expand the net- Technological literacy, though, Internet Services Providers (ISPs). However, Internet penetration is still quite low (around 10%) Connected work and increase the number of is probably most important for by international and regional standards. The government is currently considering more innovative projects to encourage internet usage. Kurdistan’s ICT users. While Erbil and Slemani the future growth of the ICT remains well served, there is a sector itself. The creation of the The provision of Internet services in Kurdistan started from a low baseline– the first industry showed significant divide between urban “IT-enabled society” is essential international cables to bring data in and out of Kurdistan were only established in 2007- and rural users in all forms of tele- for further growth in the sector, 2008. While service and pricing for international data have greatly improved in recent years, continuing signs of communications technology use. and also for the economy more thus far, the market is not very competitive, and fees are significantly higher than in Europe. While major mobile operators provide 3G Internet to smartphone users, the use of the increasing development While acknowledging the fact broadly. that 2016 has been a challenging Although the many advanc- latest technologies in wireless data transmission, including 4G/LTE, is beginning to bring in recent years. year for the Kurdish economy es in Kurdistan’s ICT sector are fast wireless Internet services to computer users that have limited access to hardwired because of the shaky oil prices, to be commended, there are still options. FastLink, a company that uses small mobile devices to connect computers, smart- the ICT sector has the potential gaps in the market and there phones, and tablets to the Internet in the Kurdistan Region through 4G/LTE networks, is to help job creation as well to remains much room for invest- the Region’s technological leader in this field. the growth of the economy. The ment in the sector’s continued KRG seeks to expand access for growth.

More recently, the compa- Newroz TARINNET Top ny has begun aggressively Telecom TarinNet, an ISP and ICT pursuing wireless technol- Internet Newroz Telecom is the firm that provides the KRG ogies, particularly 4G/ LTE central player in Internet with much of its Internet services through FastLink, Players services provision thanks coverage, uses a point-to- its sister company. to its control of Kurdistan’s point network of towers only fiber optic cables into to distribute data around Turkey. Newroz Telecom's GoranNet Kurdistan using WiMAX GoranNet is the leading growth and investment technology. This allows ISP in Slemani. The compa- have brought Internet con- high volumes of data to ny works with IQ Networks nectivity to hundreds of travel long distances with- and Al Sard, both of which thousands of homes and out the expense or hassle operate cables into Iran. businesses since its estab- of wired options or 4G/ lishment in 2005. LTE technology.

INVESTMENT TIP The level of technological literacy among much of Kurdistan’s workforce is still relatively underdeveloped. Public sector training initiatives, and independent training centers teaching computer literacy is needed. Intermediate computing is one of the most in-demand courses in Kurdistan. For the broader population, there is a major gap in basic skills, which presents opportunities for companies willing to invest in training centers and ICT-focused education.

70 — Kurdistan Review Invest in Group — 71 ICT ICT

Kurdistan’s IT Strategy

The Department of Information What are the key components of Technology (DIT) announced the Kurdistan’s e-Government strategy? launch of the top level domain suffix And what are your current and future ‘.krd’, in 2015. Could you brief our projects for e-government initiatives readers on the purpose of the .krd and for improving the way the KRG domain? interacts with its citizens? The purpose of the .krd TLD is to The key components of our e-Govern- promote Kurdistan and raise the peo- ment strategy are: ple of Kurdistan to the international 1. Designing and implement- stage by providing an online space ing a connected and secure IT over which to promote and develop infrastructure the institutions, businesses, culture 2. Developing and sharing gov- Hiwa Afandi — and language of the Kurdistan Region ernment-wide IT applications, Head of the Department of and its people. As such, the TLD aims including utilities, data hubs and Information Technology, KRG to establish a dedicated, open name- e-Services space that represents Kurdish people 3. Providing clear IT governance IIG talks to Hiwa Afandi about the within Kurdistan and international- and leadership for govern- DIT’s current and future projects. ly, and offers a new and innovative ment-wide programs approach for internet users globally to 4. Building capacity in the region engage with the people of Kurdistan. through education and training Eric Schmidt, the executive chair- 5. Implementing sound IT policies The purpose of the .krd TLD is to promote Kurdistan and raise the people of man of Alphabet (Google) Inc in his enshrined in appropriate legisla- Kurdistan to the international stage by providing an online space over which to co-authored book, “The New Digital tion, standards and regulations promote and develop the institutions, businesses, culture and language of the Age: Reshaping the Future of People, 6. Encouraging IT participation in Kurdistan Region and its people. Nations and Business” states that order to nurture the emergence establishing the .krd is a step towards of a dynamic IT industry, and virtual statehood. helping raise the level of inter- most crucial infrastructural projects our leaders see great value in taking .krd is our pride and national flag net penetration in society that the Department of Information advantage of technologies in general in cyber space and plays a strategic 7. Ensuring efficient and transpar- Technology is working on. Digital and IT in particular. The recent economic role in validating our institutions in an ent mechanisms for IT investment Identity Management Systems as well Kurdistan is currently blessed with age of expanding globalization. It will The difficulties that the Middle as HR and Payroll are the first business a Prime Minister and Deputy Prime crisis showed the enable Kurdistan to take part in the East as a whole and Kurdistan in par- applications that will be implemented Minister who have a clear understand- value of Information increasing amount of global, cultural ticular are facing have slowed down with other e-services following. ing of the importance of Information Technology, with DIT and commercial activities that take our progress. Achieving the strategic Technology. If this support continues, playing a significant place online and will give Kurdistan goals mentioned above requires signif- How do you envision the DIT grow- we believe the next five years will bring About the ability to bring its rich language, icant resources and powerful IT gov- ing and evolving in its role over the huge steps forward. role in quantifying Prior to becoming the Head of DIT, cultures and traditions to the world. ernance. Therefore, it is essential to next five years? Payroll, Human Resources and measuring Hiwa Afandi worked for several We are working hard to make sure identify the projects that are of high- Running a government without IT is Management, Education, Health etc. Departments and Ministries of the government expenses. KRG as Director of IT. He studied at the rights of registrants are protected er priority and urgency. Delivering nearly impossible or at least extremely will all be managed efficiently and Hochschule Karlsruhe Technik und and that policies are in place that safe- any IT services requires crucial infra- inefficient. The recent economic -cri transparently within the next five Wirtschaft in Germany, and holds guard transparent operations. structure components and business- sis showed the value of Information years. Having these systems in place an M.A. degree from the KTH Royal .krd has a dedicated website es that will utilize them. Creating Technology, with DIT playing a signif- will contribute to a transparent and Institute of Technology in Sweden. answering any questions at: www. KRG’s first datacenter and ensuring icant role in quantifying and measur- healthy economy where decisions are Afandi speaks six languages. dot.krd. secure access network are the two ing government expenses. We believe made based on solid facts and data. A 72 — Kurdistan Review Invest in Group — 73 How to Start-Up Doing Business in the Kurdistan Region

Deloitte in Kurdistan Understanding local How will you benefit? requirements is key to success Using our expertise to add value and reduce risk Operating in over 150 countries around the world, Deloitte, the In a raw and lucrative market such as the Kurdistan largest professional services firm in the world, is recognized for its Region of Iraq, there are definite opportunities; talent, scale, position and size. Our firm brings the experience that hence, patience and local relationships are you require to mitigate the risks and challenges that your business essential ingredients to a successful entry. might face in Kurdistan. We have a deep understanding of the local The Kurdistan economy is heavily reliant on statutory accounting and tax compliance requirements; accordingly, oil revenues, but recognizing that oil export many of the world’s largest companies operating in the Region rely on our know-how. receipts cannot keep pace with spending for reconstruction, the Kurdistan Regional Government Knowledge and value introduced new legislations in an effort to attract Our team has extensive working knowledge of Kurdistan’s private sector and foreign investment. These new investment and regulatory climate. We are well placed to provide measures are meant to boost Kurdistan’s economy support with regards to accounting, corporate income tax, and social driving non-oil GDP up. security filing obligations, and to create lasting value. With such full- time dedicated resources on the ground in our Erbil office, Deloitte’s The primary beneficiaries are many industry practice in the Kurdistan Region blends global knowledge and local sectors including, but not limited to: construction expertise, a factor which we believe sets our firm apart. and construction materials, branded consumer goods, healthcare, technology & electronics, Deloitte’s Kurdistan practice provides comprehensive and retailing, financial services and capital markets. integrated solutions This start-up guide is designed to walk a new Deloitte is among the region’s leading professional services firms, providing audit, tax, consulting, and financial advisory entrant through the key steps in setting up a services through 26 offices in 15 countries in the Middle East, with business in Kurdistan. Please note that this guide uninterrupted presence since 1926. Deloitte has a legal entity is general in scope and should not be relied registered in Erbil with dedicated resources on the ground available upon as legal, tax or other professional advice to meet with clients of the public and private sectors locally and to specific to your industry, country of origin and liaise with regulatory and tax authority personnel as required. business structure. Subsequent changes in or to Commitment to being at the fore of supporting our clients the foregoing (for which Deloitte shall have no As you grow your business in Kurdistan, we will be available to help responsibility to advise readers) may result in the you every step of the way. We will work with you to ensure that information provided by Deloitte being rendered you are kept up-to-date on developments in the Kurdistan Region invalid. regulatory and tax areas. We would like to thank Hannouche Associates With a globally connected network of member firms, Deloitte for providing the legal section of this guide. We brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex hope that you will find this to be informative and business challenges. your experience here in Kurdistan enjoyable and Deloitte's professionals are unified by a collaborative culture rewarding. that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. Respectfully, They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, Ayad Mirza, building public trust, and making a positive impact in their Country Managing Partner, communities. Iraq Deloitte & Touche Management Consulting, WLL

74 — Kurdistan Review Invest in Group — 75 HOW TO START UP DELOITTE

• An LLC can own a motor vehicle but its 2.2 Practical guidelines foreign shareholders cannot own such • Incorporation time: 10 – 12 business days. vehicles in their own names unless they • Branches of foreign companies must hold a one year residency permit. keep the same name and ownership Choice of entity and legal • An oil services LLC needs to win a structure of the parent company. contract with an operating oil company • The parent company is financially and business structure in order to be granted the preapproval of legally liable for the branch’s activities. the Ministry of Natural Resources on its • Branches of foreign companies cannot As a general rule, a foreign company that is passport copy and/or other local incorporation. own real property. “carrying on business” in the Kurdistan identifications, and a power of attorney in • The approval of relevant syndicates for region of Iraq is required to establish a favor of a Kurdistan region lawyer to be 1.3 Foreign entity as a shareholder the branch registration is more costly legal presence in the region (e.g. company, signed by all individual shareholders. In case the LLC will be partially or wholly than the same approvals required for the In case the LLC branch office, etc.). While there is no • A copy of the leased premises’ contract in owned by a foreign entity, the latter must incorporation of an LLC. will be partially or specific definition as to what constitutes the Kurdistan region. have been incorporated for more than one • Branches of foreign companies can own a wholly owned by Iraq’s Companies “carrying on business”, typically an • Evidence of residency of proposed year. The documents below are to be motor vehicle. obligation would arise when the company managing director in the Kurdistan provided by the foreign entity. All • Branches of foreign companies are a foreign entity, Law 21 (of 1997) obtains premises (including rented region. documents must be translated to Arabic exempt from the classification the latter must be as amended in premises), retains personnel on a more • A minimum share capital for an LLC of 1 and certified at the Iraqi embassy in the requirements of the Ministry of Planning. incorporated for 2004, which is than temporary basis, or in general, enters million IQD must be fully paid up prior to entity’s home country: • Branches of foreign companies registered more than one adhered to in into agreements meant to be directly completion of the registration process (oil • Articles of Association in the Iraqi Kurdistan region cannot year. Kurdistan allows performed in the region. services companies shall have a minimum • Certificate of Incorporation operate in Federal Iraq. Iraq’s Companies Law 21 (of 1997) as share capital of 2 billion IQD). • Last filed financial statements • The parent company needs to have been for several types amended in 2004, which is adhered to in • An LLC must have one managing director • Resolution to own an LLC in the Kurdistan incorporated for more than a year in of legal business Kurdistan, provides for several types of and must appoint a statutory accountant Region order to be allowed to register a branch in structures. legal business structures. Principally these and a statutory lawyer. The latter two the Kurdistan Region of Iraq. Principally these include joint stock companies, limited must be Iraqi nationals while the 2. Registering a branch of a • A branch of a foreign oil services include joint liability companies, joint liability managing director could be a foreign foreign company company is not required to secure a companies, sole proprietorships, and national. 2.1 Legal requirements contract with an operating oil company in stock companies, branch offices. • An application form must be completed. order to be granted the Ministry of limited liability Below we set out to list some of the 1.2 Practical guidelines • Certificate of Incorporation of the Parent Natural Resources preapproval on its companies, more important legal requirements and • Incorporation time: 15 – 20 business Company registering the branch office. registration. joint liability practical guidelines necessary to set up the days. • Articles of Association/Charter of the companies, sole two most prevalent legal structures in • An LLC can be wholly owned by a Parent 3. Residency permits Kurdistan: Limited Liability Companies and foreign citizen or a foreign entity. • Company and a Resolution to open a • Locally incorporated LLCs and branches proprietorships, Branches of Foreign Entities. • The maximum number of shareholders is branch in the Kurdistan region of Iraq. of foreign companies have the same and branch 25. • A Power of Attorney from the branch rights regarding residency permits. offices. 1. Registering a new Limited • An LLC may engage in any activity other director and authorized signatory in favor • The LLC or the branch, is the only Branches of Liability Company (LLC) than banking, financial investments and of a Kurdistan region lawyer to undertake required guarantor for the issuance of foreign companies 1.1 Legal requirements insurance. registration procedures. residency permits for the company’s • A corporate name must be reserved at • An LLC is required by law to hold two • A copy of the leased premises’ contract in director, shareholders and employees. registered in the the local Chamber of Commerce. General Assembly meetings per year. the Kurdistan region. • Individuals entering the Kurdistan region Iraqi Kurdistan • An application form must be completed. • An LLC is allowed to own real property • Evidence of residency of proposed through a visa issued by the Iraqi Region cannot • Articles/Memorandum of association even if wholly owned by a foreign citizen managing director in the Kurdistan Region. embassy are not eligible for residency operate in Federal must be drafted and signed. or a foreign entity. • All documents must be translated to permits. Iraq. • For each corporate shareholder: a • An LLC incorporated in the Kurdistan Arabic and certified at the Iraqi embassy • The Ministry of Interior issues two types certificate of incorporation; articles of region cannot operate in Federal Iraq. in the entity’s home country. of visas: visit visas and work visas. The association/charter, last filed financial • An LLC incorporated in the Kurdistan • A branch must have one managing latter is the only type of visa enabling the statements and a power of attorney in region can open a branch in Federal Iraq. director and must appoint a statutory foreign individual to issue a residency favor of a Kurdistan region lawyer is to be • An LLC is subject to the classification accountant and a statutory lawyer. The permit. signed by the authorized signatory of the requirements of the Ministry of Planning latter two must be Iraqi nationals while corporate shareholder. when such classification is required to the managing director could be a foreign • For each individual shareholder: a enter into a certain contract or tender. national.

76 — Kurdistan Review Invest in Group — 77 HOW TO START UP DELOITTE

Taxation

Registered companies and branches of As a semi-autonomous Region, the forwards, but in accordance with Iraqi Kurdistan Region has introduced certain Income Tax Law No. 113 of 1982 as foreign entities are required to make annual tax laws and practices that diverge from amended in 2003: the position in Federal Iraq. This section • Losses incurred during the year may be The current discusses corporate income tax; including carried forward for a maximum of five income tax rate corporate tax filings with the IncomeT ax issues such as compliance, income tax rate, consecutive years, to be offset against for all industries and loss carry forwards. profits generated from the same source is a flat 15% Directorate (ITD), and make payment of Transfer pricing, capital gains, as the original loss. withholding tax, employment tax, social • Up to 50% of the taxable income in a calculated security contributions, VAT/sales tax and year may be sheltered by brought based on the corporation tax, by 30th of June following import, export and customs duties are also forward tax losses. net accounting discussed. • To the extent that an entity is loss profits per year-end (Note: the statutory filing deadline making, the tax authority may seek to audited financial 1. Corporate tax assess the entity on a deemed profits statements; is 31 May, but a 1 month extension is in 1.1 Compliance basis, which would effectively disregard • Entities are required to register with the any losses incurred in the current year however, it is not Income Tax Directorate (ITD) in Kurdistan and deny the entity of tax relief for uncommon for practice applied by the tax authority to all Region for corporate income taxes. carried forward losses in future periods. the ITD to assess • The Income Tax Directorate (ITD) corporate income businesses). typically requires Kurdistan entities to 2. Transfer pricing complete the tax registration by way of • There are no formal transfer pricing rules taxes based on their first corporate tax filing. in Kurdistan Region. pre-determined • Registered companies and branches of • The tax authority, however, reserves the industry sector foreign entities are required to make right to adjust transactions, for tax deemed profit annual corporate tax filings with the ITD, purposes, which they consider not to be schedules. and make payment of corporation tax, by at arm’s length. 30th of June following year-end (Note: 4. Import – Export the statutory filing deadline is 31 May, but 3. Capital gains • All companies are allowed to issue an foreign employees. Foreign employees a 1 month extension is in practice applied • There is no separate capital gains tax import/export license. can legally perform their duties based by the tax authority to all businesses). regime in Kurdistan Region. Currently, three • The type of products that needs to be only on their residency permit. • The penalty for late filing is currently 10% of • Gains and losses realized by a Kurdistan imported must be specified in the license • Legal disputes arising out of the the tax due, capped at IQD 75,000 per year. entity on disposal of non-current assets is industrial free application. employment relationship fall under the classified as ordinary income and is zones are under • The ports of entry that will be used by jurisdiction of a special labor court. 1.2 Corporate income tax rate subject to corporate income tax at the consideration as the company need to be specified in the • The current corporate income tax rate for applicable corporate income tax rate. approved projects license application. 6. Free zones all industries is a flat rate of 15%. • The tax law does not specifically provide by the Board of • Once the license is issued, it must be • Currently, three Industrial free zones are • According to the tax law, if supporting for a tax on gains realized by a non- The Kurdistan notified to the relevant ports of entry. under consideration as approved projects books and records are maintained, resident. However, there are provisions Investments. They Region does not • A ceiling for the value of goods imported by the Board of Investments. corporate income tax should be included within the tax law which the tax currently impose are the Duhok, throughout the year must be specified in • The Duhok industrial zone is already calculated based on the net accounting authority could use to seek to assess tax Erbil and Slemani the license. Once the limit is reached, implemented and more investors are profits per audited financial statements. on a gain realized from the disposal by a withholding industrial zones. imports are suspended until the ceiling is sought to submit proposals for industrial • In the absence of audited financial non-resident of Kurdistan assets. taxes on service adjusted accordingly. projects. The Erbil industrial zone has statements and supporting payments reached the final setup stage and soon documentation, it is not uncommon for 4. Withholding tax and dividend 5. Labor law investors will be requested to submit their the ITD to assess corporate income taxes • In practice, there is no withholding tax on payments. • No minimum requirement on the number proposals for prospective projects. The based on pre-determined industry sector dividends. of local employees in a company is two Sulemani industrial zones offer great deemed profit schedules. • A tax of 15% should apply to payments of imposed on all types of entities. potential for investments; one of the interest to non-residents but this is not • All employment agreements must be zones is currently being developed, and, 1.3 Loss carry forwards always consistently applied. either in Arabic or bilingual, with Arabic master developers are being sought for Kurdistan Income Tax Law No. 26 of 2007 • The Kurdistan Region does not currently being the prevalent language. the other one to propose scenarios of and its subsequent amendment Law No. impose withholding taxes on service • No work permits are required for local or developing the area for industrial projects. 20 of 2011 are both silent about loss carry payments.

78 — Kurdistan Review Invest in Group — 79 HOW TO START UP DELOITTE

5. Employment tax • Entities registered in Kurdistan Region • Employers are required to pay 12% of the » Custom duties, taxes, import licenses • Health and environment. must register with the ITD for salary in respect of their employees on imported vehicles, equipment, • Science and technology research, and employment taxes with respect to their working in the Kurdistan Region of Iraq. instruments, etc, provided they are information technology. In order to avail employees working in Kurdistan. • Exemptions are available to foreign imported within two years of approval by • Modern communication and transport. of the provisions • Employment tax filings are due annually nationals working in the Kurdistan Region the Investment Commission Chairman. • Banks, insurance companies, and other by 30th of June following year-end. if covered in their home country and » Custom duties and taxes on imports of financial institutions. of the Investment Employees • Employees working in the Kurdistan proof of coverage is documented with the linens, carpets, furniture and other • Infrastructure projects, including Law, the Kurdistan working in the Region are subject to personal income social security office. renovation items once every three years construction, reconstruction and housing entity is required Kurdistan Region tax at a rate of 5% on their income in • Such proof must be authenticated by the for hotels, hospitals, universities, schools, projects, roads and bridges, railways, to obtain an are subject to excess of IQD 1,000,000 per month. Iraqi embassy in the country where the and tourist institutions. airports, irrigation and dams. investment license personal income • Social security contributions withheld foreign employee resides. » Custom duties for five years on • Free zones, modern commercial markets, from the employee are deductible when imports of raw materials for production. and relevant advisory services. in respect of the tax at a rate of 5% calculating taxable income. 7. VAT/Sales tax • Employment of foreign workers provided • Education at all levels, within the specific project. on their income • Both foreign and local Iraqi national • There is currently no VAT or sales tax no capable Iraqis are available. Foreign framework of the educational policy of in excess of IQD employees are assessed tax on the same levied on goods or services in the workers may repatriate earnings. the Region. 1,000,000 per basis. Kurdistan Region. • Equal treatment of foreign investor and • Any project in any other industry which month. capital as national investor and capital. the council agrees is covered by the 6. Social Security contributions 8. Import, export and custom • An investor may transfer his investment provisions of this law. • All employers operating in the Kurdistan duties totally or partially to another foreign or to Region are required to remit Social • Under Iraq domestic legislation, customs a national investor, or may assign the 3. Licensing procedures Security and Pensions Contributions duty on goods brought into Iraq is project to his partner with the approval of In order to avail of the provisions of the (SSPC) for their employees in the generally 5% of the CIF value of the the board. Investment Law, the Kurdistan entity is Kurdistan Region. goods imported. • Services provided by the Kurdistan required to obtain an investment license in • There are two components to the SSPC: • Customs duty exemptions may be Regional Government to the boundary of respect of the specific project. The Employees are required to contribute 5% available for goods and equipment the project, such as water, electricity, following are necessary procedures when of their monthly salary. The employer imported in connection with upstream oil sewage, public roads, submitting a request: deducts at source this amount from the and gas activity, or goods imported on a telecommunications, etc. • The entity is required to submit an employee’s salary. temporary basis. • Foreign or domestic insurance and application to the Board of Investment additional incentives for projects in “less accompanied with documentation that developed areas” and “joint projects” would assist in obtaining the exemption between Kurds and foreigners. e.g. description of the project, copy of the • Protection under the Supremacy of contract (if available) and a summary of Kurdistan Law (Art. 115 of Iraq’s how the project would contribute to the Investment Law Constitution) whenever there is any development of the Region. contradiction between this law and “other • The board will have to decide on the Law No 4 of Law No 4 of 2006, Law of Investment in approvals) should benefit from: relevant laws,” the provision of this law application within 30 days from the date 2006, Law of the Kurdistan Region (the “Investment • Total ownership of project land allowed, shall be applicable. of fulfillment of the technical, legal, and Full repartition Law”) provides for tax incentives and except investors may not own land • An investor’s initiative and technical economic conditions and requirements. Investment in the exemptions for foreign investors in the containing oil, gas or mineral resources. know- how are protected under this law • The board shall then consult with of project Kurdistan Region Kurdistan Region who are involved in • Full repartition of project investment and and any person, by virtue of his post, who competent authorities on the advantages investment (the “Investment certain qualifying projects. The Investment profits. discloses any information, will be of issuing the license and such authorities and profits is Law”) provides Law sets out specific projects which are • A foreign investor shall be entitled to punished. will give their viewpoint for the allowed and upon for tax incentives considered to qualify for an investment send his capital back abroad upon acceptance, rejection or amendment liquidation or license. In general, projects involving vital winding up or disposal of the Project 2. Eligible projects request within 30 days from the date of and exemptions sectors, such as electricity, agriculture, without prejudice to applicable laws and The provisions of this Law shall apply to the board’s referral of the application to disposal of the for foreign health and environment, infrastructure and regulations regarding taxes and customs. the projects approved by the board in one them. project, a foreign investors in education, etc. qualify as eligible projects. • Exemption from the following taxes: of the following sectors: • If the application is rejected, the applicant investor shall be the Kurdistan » All non-custom taxes and duties for a • Manufacturing industries, electric power may raise an objection to the president of entitled to send Region who 1. Key provisions of the period of ten years from the date and related services. the council within 15 days from the date his capital abroad. Investment Law production commences or the date • Agriculture, whether crop growing farms or of the rejection notice. are involved in According to the Investment Law, projects services are offered. animal farms, forestry and related services. • The president of the council will have to certain qualifying which qualify for an investment license » Custom duties on imports of spare • Hotels, tourist and recreational projects, respond within 30 days and his decision projects. (and which have obtained the requisite parts up to 15% of project cost. funfairs, and amusement parks. shall be conclusive.

80 — Kurdistan Review Invest in Group — 81 HOW TO START UP DELOITTE

This guide has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this guide. Deloitte, Deloitte & Touche (M.E.) and Deloitte & Touche Management Consulting, WLL would be pleased to advise readers on how to apply the principles set out in this guide to their specific circumstances. Deloitte, Deloitte & Touche (M.E.) and Deloitte & Touche Local statutory accounting Management Consulting, WLL accept no duty of care or any liability for any loss occasioned to any person acting or and auditing requirements refraining from action as a result of any material in this guide.

There is a requirement for Iraqi entities to auditor and/or the accountant must have • It also provides for unified depreciation About Deloitte submit annual audited financial statements the audited financial statements stamped methods and tables by industry sector and Deloitte refers to one or more of Deloitte Touche Tohmatsu to the Companies Registrar and General by the Institute of Accountants and asset type. The financial statement presentation Limited, a UK private company limited by guarantee, and its Commission for Taxation. The financial Auditors. follows that numbering scheme and provides for network of member firms, each of which is a legally separate statements must be in Arabic and in • Typically, five originals are needed: a uniform design to all financial statements with and independent entity. Please see www.deloitte.com/about accordance with Iraq’s Unified Accounting » Two original copies to be kept by the extensive statements, analysis and tables to for a detailed description of the legal structure of Deloitte System (IUAS). Strictly, Iraqi corporate law company support every single line. Touche Tohmatsu Limited and its member firms. requires that Iraqi entities maintain Arabic » One original copy to be kept by the Deloitte provides audit, tax, consulting, and financial accounting books and records inside Iraq. local auditor 4. IUAS manual and guide advisory services to public and private clients spanning » One original copy to be submitted to • The Unified Accounting System (UAS) manual multiple industries. With a globally connected network of 1. Local statutory accounting the Companies Registrar on or before consists of the following main chapters: member firms in more than 150 countries, Deloitte brings requirements April 30th following year-end » The general framework of the chart of world-class capabilities and high-quality service to clients, • For companies that maintain an ERP » One original copy to be submitted to accounts delivering the insights they need to address their most system in a language other than Arabic, the General Commission for Taxation on » Explanations of the chart complex business challenges. Deloitte has in the region of all of the General Ledger line item or before June 30th following year-end » Handling of transactions 200,000 professionals, all committed to becoming the transactions as shown on the ERP system » Accounting books standard of excellence. There is a must be translated into Arabic on a 3. Brief history of Iraq’s Unified » Financial reporting Deloitte's professionals are unified by a collaborative requirement for monthly basis in compliance with Accounting System » Guide to depreciation and amortization culture that fosters integrity, outstanding value to markets and Iraqi entities statutory requirements. • Work on the Unified Accounting System schedules clients, commitment to each other, and strength from cultural to prepare • For companies that maintain their books in Iraq started in April 1979 by the » Costing in light of the UAS diversity. They enjoy an environment of continuous learning, and records under International establishment of a committee which was » Budget planning challenging experiences, and enriching career opportunities. annual financial Accounting Standards, an annual formed by representatives of various » National accounts Deloitte's professionals are dedicated to strengthening statements in conversion to the Iraq Unified Accounting governmental institutions and accounting » Mechanization of UAS corporate responsibility, building public trust, and making a Arabic and in System is mandatory. experts. • The guide to Unified Accounting System positive impact in their communities. accordance with • The aim was to establish a Unified includes the basic forms of the financial the Iraq Unified 2. Local auditing requirements Accounting System for the government statements that are believed to satisfy the needs About Deloitte & Touche (M.E.) • Under Iraqi law, an entity must engage directed economy at that time to facilitate of all users: Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Accounting with a local licensed auditor to sign off more accurate decision making and firm » The balance sheet Tohmatsu Limited (DTTL) and is the first Arab professional System (IUAS). the audited IUAS financial statements. It financial control. » Manufacturing, trading, profit and loss, and services firm established in the Middle East region with is noteworthy to mention that currently, • The final version of the guide to the appropriation account uninterrupted presence since 1926. none of the international accounting firms Unified Accounting System was » Profit and loss account for completed Deloitte is among the region’s leading professional services have a local audit license to be able to presented in March 1981. contracts firms, providing audit, tax, consulting, and financial advisory sign off on the IUAS financial statements. • The primary objective of the Unified » The statement of current operations services through 26 offices in 15 countries with around 3,000 • The audited financial statements must Accounting System is to provide a » The statement of the total added value partners, directors and staff. It is a Tier 1 Tax advisor in the GCC also be signed off by the company’s standardized and uniform chart of » The statement of the distribution of total region since 2010 (according to the International Tax Review managing director in the case of an LLC accounts that is rigorously applied and added value World Tax Rankings). It has received numerous awards in the or by the branch manager in the case of a used across various industries. » The accompanied detailed statements last few years which include Best Employer in the Middle East, foreign branch. • It provides for a rigid numbering scheme (disclosures and footnotes) best consulting firm, and the Middle East Training & • A third signature from the company’s for asset accounts, liabilities, equity, Development Excellence Award by the Institute of Chartered statutory accountant is required. revenue and expenditure accounts and Accountants in England and Wales (ICAEW). • Once signed off, the local licensed for multiple sub-accounts per category. © Deloitte & Touche (M.E.). All rights reserved.

82 — Kurdistan Review Invest in Group — 83 H C HUMAN CAPITAL

Investment Tip HUMAN CAPITAL SNAPSHOT Written and spoken English proficiency often presents challenges; professionalism in writing and communica- tion is sometimes found lacking; and basic to intermediate computer skills can need touching up. These skills can be developed at many different professional development and training centers and institutes.

The Best Investment Major investments in the Kurdistan Region’s higher education system are helping to develop well-trained human capital.

List of the Universities A growing number of universities in Kurdistan are establishing connec- tions with their peers abroad in an The KRG Ministry of effort to expand opportunities for Higher Education their students and benefit from inter- Skilled Professionals Needed The KRG Ministry of Higher commercial product. In accordance national expertise. Authorities within the KRG have Universities and technical insti- Authorities within the Education is implementing guidelines wit this policy, the Ministry has Public Universities recognized the need to better tailor tutes themselves often struggle with KRG have recognized to ensure quality in higher education weighed applications for new private 1. University of Duhok higher education in both universities obsolete course materials and fail to across the Kurdistan Region and team- universities against the key metrics of 2. University of Koya and technical institutes to the skillsets provide opportunities for students the need to better tailor ing with key players in the regional a Quality Assurance Plan for high- 3. University of Kurdistan - Hawler demanded by local and internation- to receive on-the-job training or real higher education in economy to ensure that new graduates er education that it adopted in 2011, 4. University of Raparin al firms operating in the Kurdistan world experience, resulting in new both universities and have the skillset and experience to approving just 3 out of the 18 propos- 5. University of Salahaddin Region. Many international and local graduates finding themselves at a technical institutes succeed in the local workplace. The als for new private universities it has 6. Soran University firms cannot find applicants with the competitive disadvantage in the labor Ministry runs two-year technical insti- received since that time. The strategy 7. University of Sulaimani technical backgrounds and com- market. This situation has contributed to the skillsets tutes and four-year technical colleges also establishes a system to evaluate 8. Sulaimani Polytechnic University munication abilities necessary to fill to the growing momentum behind demanded by local across Kurdistan that are managed teaching methods, course materials, 9. University of Zakho available jobs. In its “Roadmap to efforts to bring higher education and and international under three polytechnic universities exam design, and lecture styles in par- 10. Duhok Polytechnic University Quality,” the Ministry acknowledged business leaders together in an insti- firms operating in the representing the Erbil, Slemani, and allel with a planned accreditation sys- 11. Erbil Polytechnic University the imperative to make higher educa- tutionalized way to design a modern, Duhok governorates. tem to ensure that institutes, colleges, 12. University of Halabja tion in Kurdistan more relevant and continuously updated curriculum that Kurdistan Region. The Ministry’s strategy is to prevent and universities conform to acceptable 13. University of Garmian effective. ensures students are ready to enter the higher education from becoming a academic standards. 14. Hawler Medical University job market when they graduate.

84 — Kurdistan Review Invest in Group — 85 H C HUMAN CAPITAL

Employment must shift to the foreign direct investment, or privat- private sector! ization of some government functions. The vast majority of Region’s work- The KRG’s public sector already force is employed in the public sec- employs a far outsized percentage of tor. Creating increased employment its population in its bureaucracy and 63% opportunities in the private sector is direct government employment, state among the most important factors in owned enterprises, and public-private insuring social and economic health in initiatives. Indeed, as of 2012, only 20% IOCs employ 4,137 people in Kurdistan. This will require increased of all wage-paying jobs in the Kurdistan 64+36U local entrepreneurialism, increased Region were in the private sector. This Kurdistan, 63% of whom are statistic, however, is untenable—some- locals. thing which the KRG’s leadership Public sector understands—and is changing. The median age of the Kurdistan employment remains Region is only 20-21 years, meaning one of the largest that the working age population is sources of employment set to expand massively in the com- for the people of ing decade, which the already bloated public sector certainly cannot absorb. 90% Kurdistan. Since 2006, It is estimated that the Kurdistan public employment has Region will add between 850,000 and been a vehicle for the 1.1 million new employees to its work- 90The MNR has set a target+10U government to address force in the coming 20 years—equiva- of reaching 90% local lent to over 20% of the Region’s entire the lack of employment current population, and 100% growth employment in the energy opportunities for locals. on current employment figures. sector by 2016.

The Leader: MSelect The Ministry of Natural Resources Some of the biggest momentum for (MNR) capacity development and training, International oil companies (IOCs), and private sector employment, comes as part of their Production Sharing directly from the private sector. Contracts (PSCs) with the MNR to Human Capacity The Workforce: PRIVATE Universities The leader in this field is MSelect explore and produce oil, must con- Development Program • Large The KRG aims to accommodate more in Kurdistan and Iraq. MSelect is tribute a certain percentage of their The KRG has founded a Human • Young Kurdistanis are in the private sector than a recruitment agency, has the most income towards the MNR’s capacity Capacity Development Program that • Yearning for Professional ever before. Therefore, an increased focus promising training and development development programs. seeks to cultivate professional skills Development on higher education is qualifying more center, as do specific sector oriented The MNR has set a target of reach- and leadership abilities among stu- Perhaps more than any other sec- Kurdistanis for sophisticated jobs. MSelect is the premier companies. ing 90% local employment in the ener- dents from the Kurdistan Region by tor, Kurdistan’s quickly expanding MSelect also works in collaboration gy sector by 2016. The 64% of current giving them the opportunity to earn a workforce contains arguably the most 1. American University Kurdistan, Duhok recruitment and staffing with the world-known institutions such local employment by the IOCs in degree abroad. In 2014, the program potential to reshape the Kurdistan 2. American University in Iraq-Sulaimani provider for Iraq, as World Bank’s International Finance Kurdistan is largely concentrated in gave 4,351 of the Region’s most talent- Region’s business, economic, and 3. Cihan University including the Kurdistan Corporation (IFC). MSelect has been the lower rungs of the employment ed students the opportunity to study social landscape for the better, over 4. Ishik University Region. The company's selected by the IFC to lead Business ladder—largely in unskilled and semi- abroad for the 2014 academic year the long term. This untapped poten- 5. Komar University of Science and Edge courses in Kurdistan and Iraq skilled labor, where locals represent with the help of government-spon- tial is a result of several factors com- Technology staffing experts provide in English, Arabic and Kurdish. The 88% and 95% of the workforce, respec- sored scholarships. During the same ing together, including latency in the 6. Lebanese French University a premium service program is active in 30 developing tively. Moving locals into more execu- period, 670 of those students finished professional capacities of the Region’s 7. Nawroz University for corporations that countries, in 10 languages, covering 59 tive, senior, and managerial positions their foreign academic pursuits and workforce, a major demographic skew 8. Sabis University operate in what can be individual topics, tailoring its program- is a long-term goal of the MNR, but returned to join Kurdistan’s labor towards younger generations, and the 9. University of Human Development, ming to the needs of local workers, and one which will take time, as education force. influx of investment that has swept Sulaimani a difficult part of the seeking broadly to improve the pro- and experience accrue among the local into the Region over the past decade. 10. Hayat University world to navigate. fessional competencies of employees. IOC workforce. A 86 — Kurdistan Review Invest in Group — 87 H C HUMAN CAPITAL

Insight Shifting Trends of the British Council in Kurdistan

Could you brief our readers regard- Kurdistan Job Market ing the British Council’s activities in the Kurdistan Region? Allegra E. Klein • Chief Operating Officer, MSELECT The British Council is the United We will be launching Kingdom’s official cultural organiza- a global publication tion. Our purpose is to create interna- based on research in he Kurdistan region has experienced a series of resources (HR), which are also needed for INGOs. And tional opportunities for the peoples of economic blows in the past 18 months, the effects of if they have previously worked with international compa- the UK and other countries and build Kurdistan “English which have been profoundly felt in the job market, nies, that’s an added bonus since most development work trust between them worldwide. In the medium instruction in Tparticularly in the private sector. With the advent of the entails interaction in a multicultural setting. Kurdistan Region of Iraq we have been the Kurdistan Region Islamic State (ISIS), drastically reduced oil prices, and a Another effect of the changed job market has been on working for many years and opened of Iraq” perspectives freeze on funds from the central government of Iraq, the the training and capacity building sector. As workforce an office in Erbil in 2009. Our main region is struggling to maintain financial stability. development needs have changed, we have seen a rise in David Pardoe — areas of work are in English language from lecturers in This triple threat has led to two key developments demand from job-seekers for basic business skill sets such Director, British Council – teaching, Education and the Arts. Kurdistan universities. directly affecting the workforce in the region: as HR, Project Management, and Finance. Kurdistan Region • A scaling down of the Oil & Gas industry’s activities Additionally, we are seeing a new need for vocational What are your plans and objectives Are Kurdish students showing sig- • An influx of refugees from Syria and internally dis- training for INGO beneficiaries. Among the most requested IIG talks to David Pardoe on the for 2016? nificant interest in studying in the placed persons (IDPs) from other parts of Iraq who “hot” topics are Administrative Skills, Customer Service, British Council’s current and future In 2016 we have an exciting program UK? What are your plans to increase are fleeing ISIS. Retail Sales, Hospitality, and Basic Security Guard, in addi- activities in the Kurdistan Region. of activities, including supporting more awareness? The first development has resulted in the downsizing tion to the more traditional English Language and Computer the Ministry of Education to improve Yes, Kurdish students greatly value and, in some cases, loss of jobs in the Oil and Gas sector, Software skills. And INGOs are also looking for professional English Language teaching by provid- studying in the UK and it is a popular whereas the second has occasioned an increase in employ- training for their internal staff in subjects like Communication ing training in “English for Teachers” choice for students in Kurdistan. We ment opportunities within international non-government Skills, Supervisory Skills and Team-Building. as well as workshops in methodology, will continue to support UK univer- organizations (INGOs) and aid agencies such as the United At MSELECT, we have seen a dramatic increase in we will be launching a global publica- sities in their campaigns to promote Nations, who are working to assist the newly displaced requests from all kinds of international organizations in tion based on research in Kurdistan, their courses in the UK. We have an populations in the region. the region, both for recruitment and training services. In entitled “English medium instruction exams center in Erbil for the IELTS 2015, we conducted a 6-month capacity building project in Iraq Kurdistan”, presenting the per- test which is a requirement for all stu- So what does this mean for the local workforce? for USAID which involved opening six centers throughout spectives of lecturers in Kurdistan dents going to the UK to study. Just last year, it was a job-seekers market, with not enough Iraq (three in Kurdistan) to train job-seekers – including universities. You have recently signed an agree- qualified candidates to fill the vast number of vacancies large numbers of IDPs – in employment and vocational We have contracted a consultant ment with Sulaimani Polytechnic available. Now, however, we have shifted to an employers skills. More than 11,000 trainees participated in this proj- on Refugee Education to advise us on University to deliver online English market, with a sharp increase in workers laid off from their ect. Since then, several other major INGOs have sought how best we can support Kurdistan courses. Could you give us more jobs in the O&G sector, joined by a glut of fresh graduates our assistance with similar activities. in building resilience through English information regarding this partner- from petroleum and engineering programs. teaching for IDPs and Syrian refugees ship, and also your cooperation with Furthermore, these newly unemployed are oftentimes So what does the future hold for the job market in Kurdistan? in the region. In February another other Universities in the Kurdistan applying for INGO vacancies that don’t match their qualifi- As long as conflict persists in the region, international consultant will be advising MHE Region? cations – square pegs trying to fit into round holes. Add to aid organizations will maintain a presence and continue on an English preparatory year pro- We passionately believe that the future that the influx of jobless refugees and IDPs all competing to have a profound effect on the local workforce. Sectors gram at Charmo University. We have of learning in Higher Education is for a dwindling number of available jobs, and you have a supporting these institutions, such as hospitality, retail, a program of work with schools called digital and we have offered to partner radical shift in the employment scene in Kurdistan. and real estate, will also be active, as will companies that “Connecting Classrooms” and we will with all universities in the Kurdistan As a result, we are finding that a whole new and different provide training and capacity building services. be launching a major EU project work- Region on our Learn English Connect set of skills and expertise are needed in order to fill the avail- Meanwhile, other sectors are on the rise, including new ing with schools in Iraq, including in courses. Learn English Connect is an able vacancies. For example, qualified social workers are entrants in technology such as IT and networking companies, About KRI. 2016 is the 400th anniversary exciting and innovative blended learn- now in great demand, while engineers and drilling experts and construction is making a comeback as more and more David Pardoe has been working as of William Shakespeare’s birth so we ing course which enables university much less so. People with previous NGO experience are now international agencies establish a presence in the region. the Director of British Council in the are running the “Shakespeare Lives” students to study a British Council more highly valued than those with a corporate background. Until the O&G sector returns to full capacity, govern- Kurdistan Region since 2015. He holds program, including a live theatre per- English course at their usual place However, it is still possible for job-seekers to make the ment funds are replenished, and ISIS is pushed out, the key a B.A. degree from the Nottingham formance in Erbil in April, led by the of study. The Sulaimani Polytechnic transition, especially if they have experience with skills to surviving in this new economic environment – for both Trent University, and a Master degree world famous Globe Theatre from University is the first in Kurdistan to such as accounting, administration/logistics and human employers and job-seekers – will be the ability to adapt. A from the University of Manchester. London among other activities. sign this partnership with us. A 88 — Kurdistan Review Invest in Group — 89 H C HUMAN CAPITAL

Insight Insight Ensuring the Protection of Resilience-building in Minorities within the the Kurdistan Region

Kurdistan Region Roger Guiu • MERI Research Fellow

Samuel Morris • MERI Research Fellow

ntil 2014, the humanitarian response plan for the barriers are not addressed. A crucial barrier, for instance, Syrian refugee crisis in Turkey, Iraq, Lebanon and is the legal constraints on refugees to establish a business Jordan was focused on providing refugees with outside of the camp, because their property rights are not Ulife-saving assistance. Since then, a new plan endorsed by recognized. international actors includes a resilience component in Regarding institutional resilience, the provision of pub- parallel to the life-saving component. This new component lic services in Kurdistan is non-resilient, in the sense that aims to move from solely providing humanitarian assis- the capacity and delivery mechanisms were largely con- tance to supporting long-term self-reliance between both strained. This was true in many sectors, such as education, the refugee and host communities equally. For the near health or municipal services, even before the onset of the 240,000 Syrian refugees in the Kurdistan Region, building crisis. There was no buffer capacity to absorb shocks, due resilience means reducing people’s external dependen- to historical underinvestment, and there is currently no cy and providing communities and institutions with an financial room for quick response actions. increased capacity to absorb future crises. urdistan’s myriad of ethnic and religious minori- providing minority groups with a voice, at the highest level. In the development context, resilience building com- Key principles to take forward ties is becoming an anomaly, in an increasingly The creation and establishment of two councils should bines two dimensions: human resilience is based on peoples Building resilience is definitely in the hands of both the homogeneous region. Kurdistan provides a home not replace the current process of minority representation capacity to sustain their own livelihoods, while institu- humanitarian actors and the KRG; however, combined Kto often persecuted minority groups such as, Yazidis, in the Kurdistan Parliament as it neither conflicts with tional resilience is based on the capacity of the national interventions are required. Kaka’is, Christians (Armenians, Chaldean Assyrian and their objectives or their authority. In fact, it bolsters the system to meet and maintain the delivery of public goods Firstly, livelihoods support that is targeted towards refu- Syriacs), Zoroastrians, Mandaeans and Baha’is. influence of these representatives by institutionalizing the and services. gees and host community must be boosted, such as building The many years of sectarian conflict that have plagued rights of minorities. How far is the situation to be resilient for the refugees credit and savings facilities, improving the productive value Iraq have created rifts that are difficult to bridge. To The drafting of the Kurdistan Region’s constitution in Kurdistan? In terms of human resilience, in spite of the chain in which they participate, supporting employment remedy this, confidence building measures are needed is also a unique opportunity to reconsider the Region’s economic slowdown, rates of participation in the labor force allocation schemes, encouraging women participation in and a process to engage minority groups in the decision system of governance while fostering an increasing level are very similar between refugees and the host community. the labor market and building community trust. making process is required. Stability and security can only of democratization. This can be achieved through the 57% of the male adult population and 6% of the female Secondly, institutional resilience cannot be solved at be achieved through genuine political participation. Iraq provision of rights for all who reside within the region adult population are employed. A policy of free movement refugee camp level. It depends inevitably on system-wide as a whole will have to learn this lesson if it is ever to bring despite their religious and ethnic background. This will in and out of the camp and the facilitation of work permits resilience. International support has to be more targeted its varied ethnic and religious communities back together. lead to an improvement in levels of social justice, a vital allow refugees to freely pursue employment opportunities. towards capacity building within Kurdistan’s local author- Therefore, if the Kurdistan Region hopes to maintain factor required to maintain peace, stability and security. However, the employment situation, in terms of type and ities, which do not necessarily have the required capacity lasting stability and independence, it should ensure the The system of governance in Kurdistan should be quality of jobs, severely undermines refugees’ livelihoods. to ensure access to quality services, both in normal times rights of its communities are met. able to provide the adequate provision of rights that Due to the functioning of the regional labor market, ref- and time of stress. To give minorities a stronger voice, a unique mechanism minority communities require. Otherwise, it is not an ugees mostly work in unskilled and temporary positions, Third, advocacy is required for key policy changes in which guarantees true representation for the Kurdistan attractive model for these communities living in the irrespective of their qualifications. As a general result, the Kurdistan, such as labor market reforms, better protection Region’s diverse ethno-religious constituency is required. disputed territories, the majority of which the KRG is average household income is largely lower for refugees if of employment rights, legal property rights for refugees With this in mind, two councils should be formed to now in control of, which become a major barrier in the compared to the host community. and participation in safety nets. Crucially, this means that represent both religious and ethnic groups. The role of such future. More should be done to protect the cultural, In addition, there has been a successful focus on sup- Kurdistan should see the refugee population as assets, councils should be to develop polices and legislation for educational, linguistic and religious rights of ethnic porting business entrepreneurship within refugee camps. rather than as people that need to be taken care of. Their the KRG that protects minority groups. Similar projects and religious minorities in the Kurdistan Region. This However, it must be taken into account that the camp capabilities to initiate private endeavors that can create have been successful in Romania, Serbia, Bosnia and would ensure lasting stability and build confidence setting is a closed economy, with a very limited market. employment in the host community, which is now legally Croatia, who have developed similar councils established among the myriad of minorities that are based within There is a substantial risk to fall into an excess of internal not allowed, is something to be welcomed in such a situ- with the aim of providing advice, monitoring rights and the Kurdistan Region. A competition and non-profitable businesses in the camps if ation of economic deterioration. A 90 — Kurdistan Review Invest in Group — 91 H C HUMAN CAPITAL

Decide. Commit. Succeed.

Rwanga Foundation conducts vari- Silatech organization (silatech.org). ous relief and development projects The website is the biggest platform in the sectors of education, minori- in Kurdistan bringing together job ties, women, environment, and sports seekers and job providers, and also in the Kurdistan Region. How many providing e-learning options for job projects has Rwanga Foundation seekers and more features. We are also implemented in the last two years? raising funds to establish a school that From September 2013 to December can be a model for modern learning 2015 Rwanga Foundation implement- which we believe will be unique and ed 78 projects in Kurdistan through prepare students from Kurdistan to which 858,600 beneficiaries were direct- compete on an international level. ly supported by Rwanga Foundation Abdul Salam Medeni — in the sectors of Education, Health, Kurdistan hosts over 2 million ref- CEO, Rwanga Foundation Women, Unsupported Minors, ugees and IDPs. How is Rwanga Vulnerable Families, Environment, adapting its programs and approach IIG talks to Abdul Salam Medeni on Sports and Scholarships. to account for this? the Rwanga Foundation’s current I want to emphasize that all Rwanga and future projects. Could you brief our readers more on projects and activities, from those Rwanga Foundation’s current strate- targeting high school students (such gic projects? What are the key areas as helping students think about how that the Foundation will focus on to prepare for exams) to projects in in 2016? which we establish a camp for IDPs, Rwanga Foundation’s vision is a world all support our main purpose: to pro- where quality education is accessible vide people with an environment in juice, canned fish, canned beans, baby which started in 2014, with this being for all. Our strategic aims are: pro- which learning processes can be pro- milk, baby diapers, women’s sanitary its second year. The main purposes of viding services, building capacity ductive. Within this framework and napkins, blankets, mattresses, cook- the Rwanga Awards were to: and designing policies. Inspired by in light of the emergency situation in ing sets, clothes, and shoes. Rwanga · Explore, discover and identify tal- these goals, Rwanga Foundation is Iraq and Syria following the attacks Foundation further conducted var- ented youth in Kurdistan; working on enhancing the abilities of by terrorist groups at the beginning ious successful joint projects with · Encourage and support these youth social researchers in Kurdistan high of June 2014, Rwanga Foundation was the governments of Germany and to further improve their skills, ideas, schools to enhance a positive and one of the first humanitarian organi- the Netherlands, Samaritan’s Purse and projects; productive learning environment. A zations present on the ground. One International Relief, the Italian NGO · Encourage an atmosphere of pro- pilot version of the project is being of the biggest projects implemented Music for Peace, Khalifa Bin Zayed fessional competition among young conducted in Erbil governorate in by Rwanga Foundation was to estab- Al-Nahyan Foundation as well as UAE people; coordination with the Ministry of lish ‘Rwanga Community’ in Duhok Red Crescent to provide further aid to · Promote a sense of belongingness Labor, the Ministry of Education province which is a camp of 3,000 Iraqi displaced people who had fled and ownership among the youth in and UNICEF. We also are working cabins (containers) to accommodate to Kurdistan seeking protection and Kurdistan; Rwanga Foundation’s to promote a culture of volunteerism 24,000 IDPs and it includes all the assistance. All these were done with · Prevent young people from becom- vision is a world where and a culture of physical education necessary public services and learning the aim of resettling these families and ing involved in negative activities such in Kurdistan high schools. For uni- facilities such as a school, a library, a to help provide a good learning envi- as abusing alcohol, drugs, or being quality education is versity students we have an inten- computer lab, and an art and music ronment for students. involved in activities related to ideo- accessible for all. Our sive program to help them enhance room). In addition, 292,380 Syrian, logical extremism; Our main purpose is to strategic aims are: their professional skills. For univer- Yazidi, Christian, Arab and Turkmen What is the main purpose of the The main categories of the Rwanga provide IDPs with an providing services, sity graduate students and youth in refugees as well as Kurdish displaced Rwanga Awards, and in which cat- Awards are: Photography, Short Film, environment in which general we are running the Rwanga people were provided with emergen- egories did Rwanga give awards to Short Story, Scientific Innovation, building capacity and Foras web site (which previously was cy relief food and non-food items talented Kurdish youth? Solo Musician, Entrepreneurship and learning processes designing policies. USAID FORAS) in partnership with including hot meals, bread, water, Rwanga Awards is an annual project, Recycling Arts. A can be productive. 92 — Kurdistan Review Invest in Group — 93 H C HUMAN CAPITAL

Insight Educational Reform & Capacity Building

Jacob Shapiro • Rwanga Foundation

t the Rwanga Foundation we believe that education Kurdistan while simultaneously creating increased oppor- is an investment in future. Education is not only tunities within the region and subsequently reducing the a few lessons in a classroom, or some information need for human displacement towards other parts of the transferredA from a speaker to a listener but an integral world. In essence, by creating a better Kurdistan, you Rwanga Community is situated in the creation of a human being, thereby drawing the ultimately build a better and brighter future for all. on a rural plot of land which alignments of a society and reserving an identity for a Additionally, to create better educational opportunities contains substantial and nation. With a shift in focus towards educational reform, by helping students to develop their capabilities of learn- continuous undeveloped and the Rwanga Foundation is now entering a new phase in ing in the digital age, Rwanga Foundation was called in to semi-arable land. This aspect which it tackles the obstacles faced by the growing number join the project for developing and improving education creates a strong potential in the of refugees as well as the local population. After successful in Kurdistan by empowering social researcher roles in the future for a level of sustainability implementation of world class logistical performance in education sector and resolving issues faced by students in within the parameters of the community; IDPs and residents aid distribution to the refugees and IDPs throughout the schools. The project was funded by UNICEF, designed by with existing agricultural skills region through local and international partnerships, a new Ministry of Labor and Social Affairs in association with and knowledge, together spotlight has been employed. Through the education of Rwanga Foundation. The introductory meeting attended with NGOs/IOs, will have the all ages in the region, the Rwanga Foundation is building by the student representatives, parents, social workers, ability to benefit and utilize the the future one step at a time. and training center Directors to discuss the challenges community’s land resources. In cooperation with the KRG’s Ministry of Education and needs of the students. With the pledge to train 100 we are now engaging in a number of projects to build social workers through skill based improvement and to capacities and change mentalities through education cen- find a reasonable solution to the problems faced by the tered projects to build the future of the Region and to be students with their schools or families, the project made recognized as an intellectual hub of the Middle East as meaningful reform on a social and governmental level well as in the world. Through a comprehensive agenda to to not only draw attention to the ongoing issues but to implement world class standards on an institutional and begin an active improvement process through the afore- governmental level, Rwanga has engaged in a wide variety mentioned departments. of projects with other organizations to explore the vari- Such projects are the initial steps that the foundation has ous strengths each can offer and create a lasting synergy taken to build the future of Kurdistan for generations to through the integration of various aspects of education. come. In line with our vision of enabling access to a qual- Recently, a training course initiated, funded, and direct- ity education for all, the reform across all levels of society ed by the Kurdistan Regional Government was organized needs to take hold so that we can all work together towards and led by the Rwanga Foundation and UNICEF to dis- regional development and future success. By changing the cuss the leading techniques and cutting edge methods of mentalities and bringing in alternate viewpoints on the var- altering human behavior with a focus on water conserva- ious issues affecting society we help developments towards tion in line with Rwanga’s focus on educational reform, a more competitive market for education and labor force. not only on school curriculum but on the various other In line with the KRG’s aim towards a diversified economic elements of education relating to social, economic, and and social market we strive to educate those in need and environmental awareness. The Chief Executive Director help them enter the competitive job environment in both of the Rwanga Foundation, Abdul Salam Medeni, acted the public and private sector. as the head trainer to the attendees of the various sessions, In conclusion, the initial steps are in process with much spreading his experience to those who joined. By chang- more to come. By cooperating with other organizations ing mentalities across all levels of society, you create the and helping those in need to access a quality education capacities to innovate, build, and develop the future of the future of Kurdistan is improving continuously. A 94 — Kurdistan Review Invest in Group — 95 AGRICULTURE

The Review: AGRICULTURE

Discover the Potential Pressure from low crude prices has led the KRG, like all other oil & gas producing governments, to think beyond oil and to diversify its economy. In light of its huge potential, Kurdistan’s agriculture industry could play a leading role in the KRG’s economic diversification plans.

ince Kurdistan’s economy is has still not reached self-sufficiency largely driven by the oil & gas in terms of basic food production. Contribution industry, the agriculture sector The Kurdistan Regional Government 10% to GDP Shas been largely separate from the wid- forecast an investment of around $3 90+10O er economy despite being identified as billion over the next five years in a prioritized industry for investment order to attain self-sufficiency for the by the Board of Investment in 2007. industry. This, however, was before Population relies on 9% agriculture for their However, the plunge in oil prices has the financial crisis in 2014. Despite the incomes led to a growing consensus that it is fact that Kurdistan has the potential 91+9O time for a new approach to the diversi- to become self-sufficient in food pro- fication of the economy and investing duction, Kurdistan’s food industry is in the fertile land of Kurdistan. overly reliant on imports today. More 250 Million The KRG's subvention Even though, between 2006-2013, than 90 percent of food products are $ (annual) around $1 billion had been invest- imported, even though Kurdistan ed in Kurdistan’s agriculture indus- could easily produce at least its pri- try, Kurdistan’s agriculture industry mary food requirements locally.

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A model of exporting oil and gas in The Board of Investment statis- The unique topography There are three primary reasons for the gov- order to import primary food prod- tics indicate that agriculture projects ernment to push the expansion of agriculture. ucts is not sustainable for the Kurdish constitute 3% of all projects licensed of the Kurdistan Region economy in the long run. Therefore, in 2014 amounting to a total of $704 makes it ideally suited 1. The Potential the current government is seeking million (1.79% of all investment). to the development Kurdistan sits on one of the largest and most to support local farmers in order to Both of these figures represent a of a prominent fertile lands in the Middle East. Its relatively attain self-sufficiency for the Kurdistan decrease from the corresponding fig- varied climate allows for a wide range of crops Region in a number of areas of agricul- ures Kurdistan Review reported in agriculture industry. to be cultivated—many of which are in great tural production. The KRG has made 2014 and 2015. Agriculture projects demand regionally. During the 1960s and 1970s, limited steps towards implementing in the Erbil Governorate continue to Kurdistan's diverse and export-orientated agri- a tariff system that would favor local receive the largest amount of allocated cultural sector was renowned across the region. production, but the widespread avail- land compared to Slemani and Duhok. Kurdistan was the region's biggest exporter of ability of cheap, foreign foodstuffs However, in terms of investment cap- grain, tomatoes and cucumbers. However, con- continues to inhibit the development ital by governorate, Duhok leads the tinued regional instability, conflicts, and lack of of the Kurdish agricultural system. way, increasing its share to around 60% investment have negatively impacted the sector The Ministry of Agriculture aims to of all agriculture investment. and reduced its appeal for potential new entrants. put agriculture once more at the heart The industry currently provides If Kurdistan once again makes the industry a of the economy by boosting the local direct employment to around 5% of the priority, it will surely benefit from regaining its production rate. In accordance with population throughout the Kurdistan status as an agricultural powerhouse. this policy, the Ministry did not allow Region. The sector generated around 2. Food Security types of products that were produced 10% of the Region's total GDP, if the Kurdistan’s economy has experienced unprece- locally to be imported in 2015. The pol- KRG provides more support and fund- dented growth between 2007 and 2014. However, icy of supporting local production led ing this rate has the potential to reach it has become ever more reliant on foreign mar- to a twenty-eight percent decrease in 30 percent of contribution in the reve- kets for its food. This is costly, unnecessary, and imports of Turkish and Iranian prod- nues for the government. The contri- not sustainable in the long term. The KRG ucts to the Kurdistan Region in 2015, bution of agriculture to GDP must be should make agriculture a priority once more, according to data from the Ministry boosted considering the importance ensuring the region has greater food security. of Agriculture. and potential of this industry. 3. Growth & Employment Kurdistan’s agricultural labor force makes up 6% of the population. The sector has high potential due to the region’s growing population. Food demand grew by XXX% between 2007 and 2015 and is forecast to maintain growth of 6% over the period 2015-2017. Supporting farmers and improving their working conditions are key ele- ments for an economic diversification plan.

Wheat Production Wheat remains one of the biggest crops in the 80% Kurdistan Region.

Production (As of July 2015) 80+20+T Production growth The KRG purchased 802,000 730,000 (2014) The area of land harvested for tons of wheat at a price of 584,000 (2013) wheat has increased by 80% in $660 per ton the last decade. (January - July 2015) Revenue (As of July 2015) $428 million (2014)

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Production Top Crops Production TONS Despite the budgetary restrictions, there have been improvements in local production. Potato production increased by 136,054 34,327 15,204 88,063 153%, and wheat by 103%. The pro- duction of other products, such as eggs, increasing by 95%, and vege- tables increasing by 93%, has come TOMATOES OKRA EGGPLANT WATERMELON close to the level of internal demand. Kurdistan’s harvest is dominated by wheat, barley, potatoes, onions and tomatoes. The region has a surplus Kurdistan has achieved at of wheat, potatoes, eggs and onions. 47,610 140,000 12K least 75% self-sufficiency in terms of its production Wheat and barley combined constitute of cucumbers, onions, and a significant percentage of all agricul- potatoes, and has made tural production. strong gains in terms of Fruit production remains a primary re-establishing itself as area of need, with statistics indicat- CUCUMBER POTATOES ONION a strong local producer ing that production and infrastructure of tomatoes, peppers, costs associated with fruit cultivation watermelons, and eggplants. (specifically those that necessitate orchard development) serve as a deter- rent to small-scale local expansion into the sector. In 2015, Kurdistan produced The strongest segment in terms of 390,000 tons of meat, 563,000 tons of Investment Tips domestic supply was vegetables, of eggs, and 566,000 tons of milk. The which 11.4 million tons were produced region nonetheless imported 2,756,000 Lack of irrigation: in 2013, supplemented by just 424,000 tons of XXX. 60% of the rivers in Kurdistan tons of imports. Only around 1,000 While the Kurdistan region’s trans- originate within the Region. If tons of vegetables were exported. portation infrastructure has improved regulated properly, irrigation by leaps and bounds, it is still largely in the Region could be ineffective at helping connect growers complete and effective. in remote rural areas with the urban Currently, only 11% of the centers that require their produce. The arable land in the Region is process of carrying products to market sufficiently irrigated. can therefore be time consuming and deleterious to the quality and con- Silos: dition of produce. Similarly, a lack The KRG’s development plan of storage facilities (specifically cold prioritizes the construction of storage units) provides little incentive new wheat and barley silos. for farms in Kurdistan to expand their At the moment, Kurdistan output capacities. The KRG’s devel- has only seven silos, and the opment plan prioritizes the construc- storage capacity is about tion of new wheat and barley silos. 385,000 tons. However, the At the moment, Kurdistan has only KRG has concrete plans to seven silos, and their storage capacity increase that capacity to 1 is about 385,000 tons. However, the million tons in the short term. KRG has concrete plans to increase that capacity to 1 million tons in the short term. A 100 — Kurdistan Review Invest in Group — 101 AL SAFADI THE GUIDE VIP Room Kurdistan Region Ready for our special guests Time Zone GMT +3 Business Hours Country Code +964 Sunday – Wednesday 09:00 – 16:00 Thursday 09:00 – 14:00

Population: 5.3 Million

Weather Geography The summer months are The Kurdistan Region, dry and hot. Temperatures which borders Syria to the often reach as high as 48C west, Turkey to the north, and during the summer. The winter Iran to the east, comprises a total months are generally cold area of 40,643 km2. Kurdistan and rainy, with average features plentiful rivers and temperatures ranging prominent mountain ranges, from 5C to 13C. with an average elevation of 2,400 meters.

Demographics General Board of Tourism ATM & Credit Card The Kurdistan Region is composed One of the best digital sources for Modern banking is only in of an ethnically diverse populace detailed information about tourist its infancy in Kurdistan. As that includes Kurds, Arabs, sites is the website of the General such, ATMs can be difficult to find. Assyrians, Chaldeans, Turkmen, and Board of Tourism. The Board has Additionally, most hotels receive Armenians. The population of the also produced a mobile app for commission from credit card Region is skewed young, with 36% tourists visiting the Kurdistan payments. Some of the larger hotels 100th street, Erbil, aged 0-14 years and only 4% over Region. and shopping malls house ATMs, Kurdistan - Iraq the age of 63. The median age is as do more recently constructed Reservation: just over 20. Religion banks. +964 7505989898 The majority of Kurds are Sunni [email protected] Language: Muslims. There are also multiple Mobile Operators: Kurdish, Arabic, Turkmen Christian sects including Syrian Asiacell, Korek, Zain Catholics, Syrian Orthodox, and Traffic Flow: Right Assyrians. Electrical Appliances: 220V.

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Diplomatic Missions Basic Expressions Visa Austria: +962 (0) 6 462 4304 English Sorani Kurmanji Citizens of the US, Canada, Australia, New Zealand, Turkey, Belarus: +964 (0) 750 445 0973 Hello Rozh-bash Rozh-bash and EU countries are issued free, 15-day visa stamps upon Brazil: +964 (0) 750 446 7906 Good morning Beyanee-bash Beyanee-bash Be kher bi Supas! arrival in the Kurdistan Region. Other nationalities are Czech Rep.: +964 (0) 66 254 7983 Welcome! (on arrival) Be kher bi(t) Be kher hati required to get a valid “Iraqi” visa from their local Iraqi diplomatic Goodbye Khwa-hafees Khwa-hafees Denmark: +964 (0) 66 264 8299 office. KRG Representations abroad do not issue Iraqi visas. Travelers Thank you Supas Supas Supas! Egypt: +964 (0) 66 210 1730 wishing to remain in Kurdistan for a period longer than 15 days You’re welcome Ser chaw Ser Chaava +964 (0) 66 257 3583 are required to visit an immigration office to obtain the necessary France: How are you? Chonee? Chaawani? documentation. The entire process can take up to four hours to Germany: +964 (0) 750 790 7909 Are you well? Bashee? Bashee? Rozh-bash! complete. Companies may expedite the visa application process by Greece: +964 (0) 770 640 8848 I’m fine, thank you Bashem, supas Bashem, supas registering a new employee with Iraqi authorities and applying for Iran: +964 (0) 66 222 2444 What’s your name? Naw-et cheeya? Nav-ey ta cheeya? all necessary permits on behalf of the individual prior to his or her Italy: +964 (0) 770 144 9000 My name is John Naw-em John-ah Nav-ey min John-ah Ser chaw arrival in Kurdistan. Japan: +964 (0) 66 257 3661 Please Zahmat Nabe Bey Zahmat Jordan: +964 (0) 750 811 4442 Where is the bazaar? Bazaar le chweya? Bazaar la kidareya? Korea: +964 (0) 750 793 4501 Where is the Hotel? Otel la chweya? Otel la kidareya? Airports Netherlands: +964 (0) 750 198 7002 Yes Aa / Balay Aa / Balay Erbil International Airport (EIA) Palestine: +964 (0) 750 881 5420 No Na Na Slemani International Airport (SIA) OK Bale Bale/Arey Poland: +964 (0) 750 173 4346

Romania: +964 (0) 66 224 6715 Airlines Flying to Kurdistan Russia: +964 (0) 750 134 8674 Air Arabia, Air Berlin, Air Olympic, Al-Naser, Aseman Airlines, AtlasJet, Hospitals Pharmacies +++++++++++ Banks Slovakia: +964 (0) 750 445 7412 Austrian Airlines, Azmar Airlines, Caspian Airlines, Cyprus Airways, PAR Hospital Pharmacy One BankMed +964 (0) 750 630 0503 Emergency Egypt Airlines, Emirates, Etihad Airways, FlyDubai, FlyGeorgia, Spain: 60m St., Erbil Bakhtiyari St., Erbil T: +964 (0) 66 2579777 Sweden: +964 (0) 770 045 9530 T: +964 (0) 66 210 7001 T: 0750-330-5888 Services Georgia Airways, Germania Airlines, Gulf Air, Hermes Airways, Police: 144 / 124 / 104 Iraqi Airways, Lufthansa, Mahan Air, Middle East Airlines, Olympic Turkey: +964 (0) 66 224 6233 BBAC Bank Ambulance: 122 Airlines, Pegasus Airlines, Qatar Airways, Royal Falcon Airlines, Royal UAE: +964 (0) 66 224 6710 Azadi Hospital Hawler Pharmacy T: +964 (0) 66 2574300 Jordanian, Transavia, Turkish Airlines, Viking Hellas, ZagrosJet UK: +964 (0) 750 722 8178 Nakhosh-Khana St., 60 Meter St., Erbil Fire Station: 066115 USA: +1 240 553 0590 Duhok T: 066-223-6633 Byblos Bank T: +964 (0) 627224074 T: +964 (0) 66 2560017 Upon Arrival Dental Care English News Media There are two main ways for a traveler to get from Erbil Public Holidays International Hospital European Dental Center Rudaw News İş Bank International Airport to a destination in Erbil. The longer 1 January – New Year’s Day Salim St., Slemani Bakhtiyari St., Erbil www.rudaw.net/english T: +964 (0) 66 2100546 (but cheaper) route involves new arrivals taking an airport 6 January – Army Day T: +964 (0) 770 384 4040 T: 066-210-0251 bus to a separate terminal, where passengers may then bargain 5 March – Uprising Day English Radio Kurdistan with taxi drivers for a fare usually between 5,000-10,000 IQD. 11 March – Liberation of Erbil City Babylon FM – 99.3 FM International Bank The more direct (and expensive) route is to book a private taxi for 14 March – Mustafa Barzani’s Birthday Handy-man Travel Agency T: +964 (0) 66 2239149 approximately 25,000-30,000 IQD. “Hello Taxi,” a local company, 21-23rd March – Nawroz (Kurdish New Erbil Maintenance Laru Travel Rental car has an agreement with the airport that allows its vehicles to access Year) erbilmaintenance.com Divan Erbil Hotel Europcar North Bank the terminal directly. Vehicles can be booked in advance via the 9 April – Baghdad Liberation Day T: 0750-455-4411 Italian Village, Erbil T: +964 (0) 7702138349 company's website or by waiting in line outside the main arrival/ 1 May – Labour Day House Cleaning T: 0750-737-2288 departure terminal. 14 July – Republic Day My Flavor Catering Grocery Stores Currency Exchange 25 December – Christmas Day Ainkawa, Erbil Carrefour Avis There are formal currency T: 0750-203-9337 Family Mall, Erbil Divan Hotel, Erbil exchange centers at Taxis Religious Holidays myflavorcatering.com T: 0750-522-4986 airports and modern Taxis in Kurdistan do not have meters. Instead, passengers The dates for the holidays listed below Holland Bazaar shopping facilities in and a driver must agree on a price prior to departing for are based on the Muslim calendar, and Dry-Cleaning English Village, Erbil Logistics Kurdistan. However, a destination. Taxis are readily available on most major therefore change each year. Comfortable Dry-cleaning Aramex informal exchange booths roads in all large cities in Kurdistan. Rides within cities Dream City, Erbil Food Delivery Ankawa, Erbil in the traditional bazaar normally cost somewhere between 5,000-10,000 IQD. A private • Mouloud (Prophet Mohammad’s T: 0750-861-9944 B2B Restaurant T: 066-225-2299 areas offer more favorable taxi between any of Kurdistan’s three major cities will cost between Birthday) T: 0750-814-1444 rates. 120,000-150,000 IQD. There are generally two types of taxis in major • Eid-al-Fitr (End of Ramadan) Post Office DHL cities: those painted in white (private drivers), and others painted in • Eid-al-Qurban PelePost Hardware Store 5 Khabat Street, a light tan color (government vetted drivers). The latter are generally • Muharram 30 Meter Street, Erbil Ace Hardware Ankawa, Erbil Currency newer and safer options. • Ashura T: 066-222-3222 aceiraq.com T: 0790-190-9519 $1= 1,200 IQD

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Erbil— The beginning of life in Erbil is associated with the creation of the historic Erbil Citadel, which has been continuously inhabited since at least 6000 BCE. The Citadel, which sits atop a plateau and is designed in a circular shape, has inspired the development of the city as a whole, which forms increasingly large, concentric rings expanding out from the structure. The size of the city has expanded dramatically in recent years as its population has grown from 500,000 in 2004 to 2 million in 2012. This rapid development has strained Erbil’s existing infrastructure, particularly its road networks and sewer systems. The considerable amount of infrastructure development that has taken place within the capital over the past few years has somewhat alleviated these issues, though.

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Slemani— Nicknamed the “cultural capital” of the Kurdistan Region, the modern city of Slemani was founded in 1784. Today, it is well known for its open, relatively liberal, and tolerant society, as well as being a center for culture and learning. The city boasts a population of approximately 1.9 million inhabitants and is expanding at a rapid pace. Prior to 2003, the city was contained within a Duhok— 60-kilometer ring road. Since then, The modern city of Duhok has however, rapid urbanization has historically served as a bridge to led to residential and commercial the Region’s most strategically development beyond this significant neighbor: Turkey. The area. Without the benefit of a city, which is home to approximately development master plan, this 1.3 million residents, has a growth has resulted in urban comprehensive master plan that sprawl. A master plan has since will guide development through been implemented and is designed 2032. The plan itself calls for a to improve functionality while phased approach to address current supporting projected population and future issues, particularly the growth. As such, Slemani currently need for urban rehabilitation and has the capacity to accommodate infrastructure improvement. Duhok’s its projected five-year population proximity to the Tigris River (and growth without the need for the scenic mountain ranges that additional horizontal expansion. frame the waterway) make it ideally suited for Kurdistan's developing tourism industry.

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Setting the Bar High

How would you define the hospitality industry in the Kurdistan Region, and Divan Erbil’s added value to the market? As the most visually Despite the KRG’s current difficul- striking modern ties, the outside world has increas- structure in Erbil, and a ingly been acknowledging the appeal local landmark, Divan of the region’s diversity of peoples, landscapes and traditions. I believe it Erbil incorporates the is time the word went out again that latest in leisure and the KRG is a great place to see. The business technology, region was recognized as one of the “41 luxury accommodation Emre Altunal — Places to Go in 2011” by The New York General Manager, Divan Erbil Times. National Geographic similarly and amenities, named the region as of the “20 Best redefining the concept IIG talks to Emre Altunal, General Trips of 2011”. Aside from its natural of the business hotel Manager of Divan Erbil, on beauty, the approximately 3,500 his- from the ground up. the hospitality industry in the torical sites spread across the three Kurdistan Region. governorates make the region a key destination for foreign visitors. As a towering addition to Divan team puts all their effort into making Group’s collection of fine 5 star hotels, our guests feel that they are in safe Divan Erbil brought an innovative hands. This is something that they do style and state-of–the-art luxury to the with great passion. heart of the world’s longest-inhabited On top of our passion for service, city, Erbil, Iraq. As the most visually we have an unbeatable location and striking modern structure in Erbil, and lay out, top-level security measures, a a local landmark, Divan Erbil incorpo- variety of well-equipped guest rooms rates the latest in leisure and business starting from 45 square meters up to technology, luxury accommodation 300 square meter suites, different kinds and amenities, redefining the concept of cuisine, including ‘local tastes’, of the business hotel from the ground international flavors, Turkish cuisine up. We, at Divan Erbil, as people, a and far-east cuisine. Our Sushi bar brand and a property always aim to on the top floor is a unique place not provide the highest-end hospitality only for its delicious rolls but thanks experience to our guests by making to its view and atmosphere. Moreover, them feel fully at home. we have a variety of hi-tech meeting rooms, we have the biggest ballroom What is it that makes Divan Erbil in the region with a 1000pax capacity, different from the other hotels in the a fully-fledged spa with an in-door Kurdistan Region? heated pool, a Turkish bath, massage There are many areas in which I believe rooms, a steam and sauna, and gym we excel, however above everything I facilities. would simply say that it is “people”. All of the above-mentioned features From our security to the doorman, are what make Divan Erbil “unique” from reception to housekeeping, food in the region. These make it an ideal and beverage, kitchen staff, engineer- choice for clients and travelers from ing, sales, finance; in short the entire all different backgrounds. A Invest in Group — 111 G The GUIDE

Divan Erbil The 24-story Divan hotel features 227 guest rooms, ten meeting rooms, five restaurants, four up-scale boutiques, a cigar lounge, multiple bars, a gym, and a spa. The hotel seeks to redefine the business experience with its well- appointed rooms, gourmet dining options, luxurious décor, and spacious meeting areas. For its efforts, the World Travel Awards named the Divan “Iraq’s Leading Business Hotel” for 2014.

Luxury Recreation & Fitness The Divan Erbil has added an expansive spa to its portfolio of luxury amenities. Hotel guests and Erbil residents alike can take advantage of the spa’s state-of – the- art fitness facilities. The spa also features a 20-m semi-Olympic indoor pool, sauna, and steam room, as well as message suites and a Turkish bath.

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Treasured Time

What are your own main objectives we have, in terms of MICE space. We for the remainder of the year? have a dedicated team taking care of The Rotana’s capability and wealth The remainder of this year looks pos- large events. These events require a lot itive for our property, considering the of backstage work. Organizing con- of experience, along with its vast exhibitions that are planned to take ferences involves a lot of details and place in Erbil, which we are working this requires a special team to handle understanding of the hospitality needs to capitalize upon to get more busi- it. One major event could occupy one ness from MICE and large groups. staff member full-time for two to three of the Middle East and Africa, ensured Furthermore, we are very keen on weeks so we need a structured and attracting new markets. Part of our dedicated team in place and thankfully the success of its Erbil branch. strategy is to cover the Levant area we have both. I believe we will remain since we have seen much interest in the only venue that can cater to such Ghassan Dalal ­— investment from this region, in addi- services for the time being. Manager, Erbil Rotana tion to the GCC countries. The Rotana brand is renowned across the region Rotana is a brand known for excel- employee morale and emphasizing What would you say is the signif- Rotana IIG talks to Ghassan Dalal, General for its excellent high standards service lent customer service. In your view, career development and sustainabil- icance of the Erbil Rotana with- Rotana currently manages a portfolio of over 100 properties throughout the Manager of Erbil Rotana, on the and reputation. what factors enable this, and what ity. We cannot but mention our true in the company's Middle East Middle East, Africa, South Asia and hospitality industry and the hotel’s Erbil Rotana is well-known for culi- company values, and with those we does Erbil Rotana add to the field? portfolio? Eastern Europe with an aggressive future plans. nary indulgence. We are known for the What sets us apart is the high bench- ensure our brand is delivered with Erbil Rotana has become a landmark expansion plan in place. Rotana has sublime tastes we deliver, complement- mark we have set that other hotels in consistency and integrity. We call this in Erbil and a leader in both service chosen to acknowledge how precious ed by world-class service. As such, we Erbil cannot match because we are the Rotana L.I.F.E, standing for long- and occupancy. It is truly one of the time is by making all time spent in continue to surprise our loyal visitors backed by a strong company. First of term, innovation, friendly and ethical. gems of the historic city and has their range of hotels ‘Treasured Time’. with new and interesting theme nights, all, the Rotana’s capability and wealth Another area we have focused on is received many awards since its open- This means Rotana has pledged to promotions and enticing offers at any of experience, along with its vast rewarding our clients' loyalty through ing in 2011. This glittering five star understand and meet the individual of our four outlets, each with its own understanding of the hospitality needs the Rotana Rewards Program (www. property defines luxurious hospitality needs of all guests. In so doing, Rotana has evolved its product brands to delectable variety of cuisine. of the Middle East and Africa, ensured rotanarewards.com). We have set up standards in Erbil. Not only this, Erbil include Rotana Hotels & Resorts, the success of its Erbil branch. Since ways to recognize repeat customers so Rotana has ranked as the top secured Centro Hotels by Rotana, Rayhaan How important are international opening we have delivered our brand we can make them feel really part of hotel by the US Governmental Oil & Hotels & Resorts by Rotana, Arjaan events and conferences for your busi- promise, which is “Treasured Time. this hotel, as a team and as a family. Gas Organizations and the United Hotel Apartments by Rotana and The ness? Why should customers choose Our promise to you”. Nowadays, From the very first day we wanted to Nations. Residences by Rotana. Rotana for events and conferences? time is the most precious commodity make every guest feel at home and we The hotel’s location has lent it sig- Erbil Rotana offers seven fully in everybody’s busy life and, there- have done this with genuine service nificance and an advantage for both equipped meeting and events venues fore, we have chosen to embrace this and by building strong relationships business and leisure travelers. Built on with flexible seating plans. These can and make Treasured Time a priority with them on an emotional and per- a premium 20,000 sqm area of land, accommodate requests of any type. for our guests, owners, partners and sonal level, not just as their preferred Erbil Rotana is strategically located The Grand Ballroom, with a capacity colleagues. accommodation. Our facilities and adjacent to the English and Italian of 1,000 persons, can be divided into In addition, we have a 350-per- rooms are certainly important, but villages, while the Erbil International two sections and is a perfect venue son team, committed to our goal of the relationships are key. I believe it Airport and major business areas are for local and international seminars delivering the highest standards pos- was by doing these that we won the less than a 10 minute drive away. The and conferences. We have a dedicated sible. Erbil is a very young city and World Travel Award of Iraq’s Leading hotel is close to the Erbil International About team available to facilitate every detail we came here to provide the best we Hotel for four consecutive years in Fair Ground and opposite the beau- Ghassan Dalal has over twenty years of experience in the international hotel involved in hosting outstanding busi- can. Moreover, our careers website 2012, 2013, 2014 and 2015. Moreover, tiful park Sami Abdul Rahman; the industry including Canada, Egypt, ness, social and private events, such as www.rotanacareers.com has generated we promise to maintain our reputa- largest park in Iraq. Its ideal loca- Lebanon, Nigeria and Sudan. He holds engagements, weddings and more. We us a great database of potential can- tion into future. We have strategically tion also gives guests the opportunity a B.S. degree from the University of are the only hotel that provides such didates. Our HR Research and our located outbound sales offices all over to explore sites such as the histori- Calgary and and GMP from Cornell services in the city; none of the other Learning & Development departments the world which provide us with both cal “Citadel” and the downtown University. hotels in the market offer the facilities have also played a role in boosting exposure and business opportunities. bazaars. A 114 — Kurdistan Review Invest in Group — 115 G The GUIDE

Rotana Erbil Rotana Erbil has been named “Iraq’s Leading Hotel” for 2012, 2013, and 2014. The hotel features 201 lavish rooms and suites, five food and beverage outlets, a grand ballroom, five small meeting rooms, a health and wellness center, and multiple luxury boutiques. The hotel’s dining options (notably Basilico, Italian restaurant, and Al Bustan, which offers authentic Lebanese cuisine) are known throughout the surrounding region.

Zen the Spa Zen the Spa provides premier therapeutic treatments offered by certified spa therapists. The facility, the first of its kind in Kurdistan, features five massage rooms, as well as dedicated sauna and steam rooms.

Poolside Living Every day in the summer from 07:30 to 22:30, 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 options and fresh drinks at the Aquarius Pool Bar.

116 — Kurdistan Review Invest in Group — 117 C

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Conveniently located 10 minutes away from Erbil international Airport, the main international fairground and business center. The hotel is adjacent to the English and Italian villages and opposite of the beautiful park Sami Abd Al Rahman; one of the largest parks in Iraq.

Erbil Rotana is an ideal venue to serve your business needs, meetings and events. The hotel provides state-of-the-art conference and seminar requirements spread over 2 floors. The banquet area includes 7 fully equipped and flexible meeting rooms offering daylight with the latest audio-visual equipments addressing the needs of business conferences, meetings, wedding parties or gala dinners. A professional catering & events team is available all the time to make your event a success.

Business travelers can enjoy our wide variety of facilities ranging from 5 restaurants to our enchanting Zen the spa by Rotana or Bodylines Leisure & Fitness Club.

To learn more about Erbil Rotana ongoing promotions, please visit rotanatimes.com. 120 — Kurdistan Review