Erbil is the most desirable city for foreign investment

ERBIL, Jan. 11 (AKnews) – Erbil Governorate is the most desired destination for foreign investment in 2011 with over $1 billion USD (1.1 trillion IQD) channeled into Kurdistan Region in 2011.

Erbil Governorate received the lion’s share, $1.26 billion USD (1.5 trillion IQD). That is about 57% of the $2.18 billion USD (2.5 trillion IQD) foreign money sloshing about the region according to a survey by Kurdistan Region’s Investment Board.

The remaining two governorates of Kurdistan Region, Sulaimaniyah and Duhok, each attracted $563 million USD (657 billion IQD) and $457 million USD (534 billion IQD) in foreign investments respectively.

The majority of the foreign investment has gone to the housing sector, according to the survey.

Kurdistan Region is the hot spot for investment in Iraq since 2003 and is regarded as one of the Middle East's best growth prospects in 2012. According to statistics released by the Investment Board, the region has attracted some $16.2 billion (19 trillion IQD) in foreign investment over the past five years.

Of this again Erbil Governorate has received the lion’s share, attracting 61% - $9.8 billion USD (11.5 trillion IQD) - across the five years.

In the same period Sulaimaniyah and Duhok attracted $2.7 billion (3.2 trillion IQD) and $1.5 billion (1.8 trillion IQD) respectively.

Kurdistan Region’s boom in foreign investment has been accredited to its accommodating Investment Law, passed in 2007. The law provides incentives for foreign investors including the possibility of owning land, up to 10 year tax holidays, easy repatriation of profits and removal of tariffs on exports and imports related to the project.

Figures obtained from the Kurdistan Regional Government’s Ministry of Trade last month showed a 30% increase in the number of foreign companies registering in Kurdistan Region in 2011. Up from 331 companies in 2010 to 433 companies this year.

By Raber Aziz

RY/JS/AKnews

Completion of the DNO-RAK MENA Merger

 Today the Norwegian oil company DNO International ASA (DNO) acquired United Arab Emirates based RAK petroleums MENA operating subsidiaries. MENA stands for the Middle east and North Afica according to the World Bank definition. DNO International and RAK Petroleum, both of which have operations in Kurdistan, have both anounced the merger today on their respective websites through press releases. A total of 153,422,343 DNO International shares were issued to RAK Petroleum as consideration for the merger. The DNO shares listed on the Olso Stock Exchange under the ticker(DNO), are valued at NOK 8.64 as of this post. The Norwegian Krone has a current exchange rate of NOK 5.9845/1 USD. Which means that the deal in US Dollars is valued at $221,499,273 as of this post.

Kurds to stay clear of Iraq sectarian strife

Reuters 16:47:56 05 Jan. 2012

 By Jon Hemming

Erbil, Iraq (Reuters) - Iraq's Kurds are determined not to get dragged into a sectarian conflict over Shi'ite Prime Minister Nuri al-Maliki's attempted arrest of the Sunni vice-president, and the Kurds' leader said failure to implement a federal system would lead to disaster.

Nine years after the U.S.-led invasion, much of Iraq is still plagued by Sunni insurgents and Shi'ite militias, but Iraqi Kurdistan has enjoyed relative peace and prosperity after successfully rising up against Saddam Hussein in 1991 and achieving federal autonomy under Iraq's 2005 constitution.

Unless their interests are directly affected, the Kurds have tried to remain largely aloof from the interminable political wrangling that has beset the central government in Baghdad, attempting to act as a mediator to resolve potential conflicts.

But Vice President Tareq al-Hashemi's flight to Kurdistan last month after an attempt to arrest him on accusations of running death squads has thrust the Kurds centre stage in a political drama that could descend into sectarian violence.

"I don't want to be dragged into this," Masoud Barzani, president of the Kurdish region, told Reuters in an interview on Wednesday.

"We are not part of the sectarian struggle that is there. Of course we are part of the political disagreement and political struggle, but not of the sectarian one."

The Kurds have called for a national conference to settle the differences between Maliki and the cross-sectarian Iraqiya bloc which is boycotting parliament and cabinet meetings, accusing Maliki's Shi'ite-led government of concentrating power.

"We are all waiting for the concerned groups to reach an agreement on when and where to meet," Barzani said.

Barzani said he was ready to host the conference, but political sources said Maliki was against meeting in the Kurdish capital Erbil and wanted the issue of Hashemi cleared up first.

"If they decide to have it somewhere else, then it is up to them, but as far as we are concerned, the venue is not a problem," said Barzani, wearing traditional Kurdish costume of khaki baggy trousers, waistcoat and cummerbund.

"I believe many of the concerned groups are not ready to go to Baghdad," he said.

As for the fate of Hashemi, "this something that the judicial system and the courts have to decide," Barzani said. "We will not interfere in whatever proceedings the judicial system decides."

Hashemi says he is willing to be tried inside the Kurdish zone, and insists a fair trial is not possible in Baghdad.

OIL DEAL, FEDERAL SYSTEM

The crisis put the Kurds in a precarious, but potentially powerful position as brokers if any political deal can be reached, and, if not, both Maliki and the Iraqiya bloc would need Kurdish backing in parliament to overcome the other side.

The Kurds may use this as leverage to win concessions on their own strategic interests, such as control of oil resources and territories disputed between Baghdad and Iraqi Kurdistan.

While relatively secure in the mountains of northern Iraq, the Kurds are upset by the Baghdad's failure to resolve the status of Kirkuk, the city at the centre of large oil reserves, which the Kurdish government claims as part of Kurdistan.

A referendum set in Article 140 of the constitution for 2007 has still not been held.

"We as Kurds we have opted for a voluntary union between Arabs and Kurds and for the system of governance in Iraq to be federal. This is a constitutional right therefore for us and for the people of Iraq, we support a federal system in this country," said Barzani who led Kurdish peshmerga forces fighting Saddam from 1979 after the death of his father who fought Baghdad-rule from the 1940s onwards.

"Preventing the implementation of constitutional articles, this will lead the country to face huge problems," he said. "This will bring about disasters."

With political wrangling in Baghdad also holding up a long-awaited law on the future exploitation of oil riches, the Kurdistan government has gone ahead and signed a series of its own oil deals, most notably with Exxon Mobil, much to the annoyance of others in the central government.

Barzani said there was an agreement with Baghdad that each side could continue signing such contracts until the oil law was passed. The Exxon deal also encompasses areas whose control is disputed by Erbil and Baghdad.

"As for places that are called disputed territories by others, for us they are part of the Kurdistan region," said Barzani. "If they have got any disagreement with this then let them come and implement Article 140 as it says in the constitution."

(Editing by Louise Ireland)

Kurdistan negotiations under attack from Iraq Central Government

http://www.foxnews.com/world/2011/12/28/deal-between-exxon-mobil-and-kurds-fuels-tension-in-northern-iraq/

Third construction fair to open in Erbil as housing and infrastructure demand grows

Erbil, Kurdistan – Iraq  – Erbil will host Iraq’s major construction sector trade fair later this month as the country’s demand for private sector housing and infrastructure continues to grow.

The third Project Iraq trade fair will bring together some 300 exhibiting companies from all over the world on 27 - 30 September and is expected to attract 50,000 professional visitors, including project owners, engineers, contractors, traders and officials.

Mr Fady Darwish, General Manager of the exhibition’s organiser IFP Iraq, said, “With some 25 billion (US) dollars in housing projects, 8 billion in transportation and 5.5 billion in water and sewage, the Iraqi government is focusing primarily on reconstruction and rehabilitation. Several new cement plants are being either revamped or erected to satisfy a growing need and major international players are now present. Iraq consumes around 15 million tons of cement yearly with the Iraqi ministry being the largest consumer”. He added, “We have decided to dedicate a standalone show because of the rising need for construction solutions.”

The Kurdistan Regional Government has already attracted both national and foreign investors to build housing and commercial property and industrial facilities in the region, thanks to its very investor-friendly and open investment law, and more construction is needed. The Iraqi government has decided to build 1 million new housing units as part of its 2010-2014 development plan, and estimates that 85% of home building will be carried out by the private sector and foreign investments.

Project Iraq 2010 is held with the support of the Kurdistan Regional Government Ministry of Construction and Housing. Minister Falah Mustafa Bakir, Head of the KRG Department of Foreign Relations, said,"The KRG is pleased to host this event, which not only promotes the development of the Kurdistan Region but also contributes substantively to the reconstruction of all Iraq. The fair is an opportunity for the private sector to engage with the public sector through the provision of know-how and technology." He added,

"The KRG is committed to its open door policy and we welcome the international participants to consider this an entry point to the Iraqi construction market. I appreciate the efforts of the organizers - citizens and businesses throughout Iraq will benefit from such events."

Sixth International Trade Fair in Kurdistan

Erbil to host sixth international trade fair in October 

Erbil, Kurdistan – Iraq  – This year the Kurdistan Region will once again host several major trade shows and exhibitions, providing excellent opportunities for international companies to meet companies and decision makers from Iraq and the Kurdistan Region. Kurdistan’s three main cities of Erbil, Suleimaniah and Dohuk are well established commercial centres and offer a secure and stable gateway to doing business with all of Iraq. Every year since 2005, Erbil the Kurdistan Region’s capital, and Suleimaniah, a major province of over 1.5 million people, have hosted trade fairs that help to introduce new products and services to a market with great needs and opportunities. Duhok, a thriving trading city, will also host a trade show this year. Visitors and exhibitors will see for themselves why Duhok, with its excellent location near the Turkish border, is Iraq’s door to the West.

Several sector-specific fairs are also planned for this year, including the 5th international book fair, an Italian expo, and fairs for cosmetics, the hotel industry and municipalities. Please see below for trade fair details and websites.

Erbil 5th International Book Fair
2 - 11 April 2010
Website: Erbil International Book Fair

4th Iranian Industries Fair
11 - 15 May 2010

4th ItalianExpo for Industries and Technologies
12 - 15 June 2010
Website: www.italianexpo.it

Erbil Cosmetics Fair
27 - 30 June 2010

2nd Erbil Trade Solo Exhibition for Construction and Municipalities 2010 & Erbil Stone
12 – 15 July 2010
Website: www.pyramidsfair.com

DBX Duhok Internatianal Fair
1 – 4 August 2010
Website: www.dbxkurdistan.com

3rd Project Iraq Construction Fair
27 - 30 September 2010
Website: www.ifpiraq.com and Project Iraq 2010
In Iraq there is a focus on reconstruction with the participation of foreign investments and the private sector. The Project Iraq exhibition is the showcase for those who can supply Iraq in the high-priority areas of construction and construction technology, housing, building materials, electricity and transport infrastructure.

6th Erbil International Trade Fair
18 - 21 October 2010
Website: www.ifpiraq.com and Erbil International Fair 2010
Over the past few years, Iraq has attracted massive interest from the international business community in the secure and stable region of Kurdistan now dubbed as “The Other Iraq”. Erbil is the capital and seat of the Kurdistan Regional Government (KRG). It serves as the Northern Gateway to Iraq and is the epicentre of a region offering all the advantages that matter in the era of globalisation. The KRG investment law, passed in July 2006, is one of the friendliest to foreign investors looking for lucrative business ventures. Some benefits of this law include entitlement to buy and own land for investment purposes, 10 year non-custom tax breaks, ownership of all the capital of any project, allocation of free or reduced price land for investment projects, and repatriation of profits in full.

The Iraqi government has undertaken a massive 70 billion-dollar plan to invest in key sectors. This opens up a great range of opportunities for international companies, including small to medium enterprises.

Erbil International Fair is a platform to network with decision-makers from across Iraq. It features exhibitors from various sectors, all of them eager to do business in Kurdistan and Iraq. It will be the ideal meeting point to network and explore new business opportunities with key decisions makers, investors, distributors, agents, traders and government officials.

5th DBX Suleimaniah International Expo
11 – 14 November 2010
Website: www.dbxkurdistan.com
Suleimaniah International Trade Show is in its fifth year and growing fast, last year over 400 companies participated as exhibitors and over 100,000 visitors attended the event.

Hotel Supplies and Equipment Fair
23 - 26 November 2010

Iraq Medicare Fair
6 - 9 December 2010
Website: www.ifpiraq.com and Iraq Medicare 2010
Perhaps the most pressing of all the needs of Iraq today is the rehabilitation of hospitals and the establishment of regular and professional healthcare. The modernization of the healthcare sector is a top priority for the Iraqi government, which budgeted 4 billion dollars for the sector in 2009.

The exhibition and conference will be organised at a time when the Iraqi government is planning to overhaul its healthcare sector. Erbil has taken the centre stage and is now considered the Northern Gateway to Iraq, and is the perfect choice for an exhibition and conference targeting the whole Iraqi Market.

3rd Iraq Agro-Food Fair
6 - 9 December 2010
Website: Iraq Agro-Food Fair 2010
Iraq, once considered the breadbasket of the Middle East, currently relies heavily on imports which constitute 80% of basic food estimated at almost 1.4 billion dollars per year. Agriculture is Iraq’s second largest GDP contributor at almost 11%, and employs 30% of Iraqi people. Iraq imports nearly 80% of basic food at almost 1.4 billion dollars per year.

Massive investment in Kurdistan’s and Iraq’s agricultural sectors is underway.
The Iraqi cabinet has allocated 17 billion dollars to support agriculture all across Iraq. In addition, the KRG’s Ministry of Agriculture 2009 annual budget was 0.8 billion dollars, and a five-year Strategic Investment Plan was set out aiming to rehabilitate the agriculture sector in Kurdistan and provide food self-sufficiency.

Kurdistan’s agriculture sector needs modernization, expansion and international expertise to help farmers boost local food production. The KRG Ministry of Agriculture identified the need for foreign investment in many areas, such as olive oil, dairy, tomato past, sunflower and potato production, greenhouses, machinery, cold storage, packaging and soil dams and ponds.

Construction Fair
27 - 30 December 2010

Erbil International Fair Ground
The venue for Erbil's fairs, located inside the green and welcoming Sami Abdul Rahman park. See www.erbilfair.com