Información sobre el Kurdistán Iraquí 2014 - Programa de Internacionalización de empresas de la Cámara Internacional de Empresarios de Barcelona. export@ciebarcelona.com

1. BUSINESS IN KURDISTAN
PREPARED BY: KURDISTAN REGIONAL GOVERNMENT REPRESENTATION IN SPAIN
C/ Puerto de Santa Maria 42, Madrid, 28043
telf: +34 91 436 26 20 / Fax: +34 91 435 29 14
website: www.krgspain.org

2. BUSINESS IN KURDISTAN
EMERGING MARKET
Federal Region of Iraq
Political Stability
Democratic Governance
Economic Development
National Cohesion

3. BUSINESS IN KURDISTAN
PROFILE OF THE REGION
Area
40,643 sq. km
Population
5.3 Million
Neighbors
Turkey, Syria, Iran
Climate
Semiarid Continental
Summer: 39-48
Winter: 2-13
Time Zone
GMT + 3
Tel. Code
+964
Administrative Divisions
Erbil (capital – pop 2 mil)
Slemani (pop 2.1 mil)
Duhok (pop 1.3 mil)
Official Languages
Kurdish, Arabic
Religion
Islam, Christianity, Yazidism
Security
One incident in past six years
– civilians not targeted
Ethnic Groups
Kurds, Assyrians, Chaldeans,
Turkmen, Armenians, Arabs

4. BUSINESS IN KURDISTAN
KURDISTAN PARLIAMENT
34
WOMEN
111
TOTAL
MPS
77 MEN
Election Results
KDP
Gorran
PUK
Yekgrtu
Komali
Other
37.8%
24.2%
17.8%
9.5%
66%
Most Recent
Elections 2013
1,968,775 Voters 74% Turnout

5. BUSINESS IN KURDISTAN
KURDISTAN REGIONAL GOVERNMENT
President :
Masoud Barzani
Prime Minister : Nechirvan Barzani
Kurdistan Regional Government Cabinet Consists of 19
Ministries
Parliamentary Democracy
Established in1991
Federal Region of Iraq
Established: 2005

6. ECONOMY|FINANCE
GDP PER CAPITA
GDP
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2006 2008 2010 2012 2014
Annual GDP growth
10% in the next 5 years

7. ECONOMY|FINANCE
GDP CONSUMPTION BY SECTOR
Mining &
Manufacturing 9.4%
Agriculture 17.5%
Trade & Transportation
13.5%
Construction 7.6%
Services 30.1%
Public Services 20.6%

8. ECONOMY|FINANCE
BUDGET
0
2
4
6
8
10
12
14
2008 2009 2010 2011 2012 2013
KRG BUDGET
USD Billions
KRG
$13.1 billion in 2013

9. ECONOMY|FINCANCE
BANKING
3 state owned
19 local private
11 foreign private
6 local & 1 foreign Islamic
FOREIGN BANKS IN THE REGION
BankMed
BBAC
BYBLOS
Credit Libanias
IBL Bank
Al-Baraka Bank
Bank Asya
Is Bank
Vakifbank
Ziraat Bank
Standard Chatered
BANKS
TOP FIVE FOREIGN BANKS
0
10
20
30
% TOTAL CAPITAL
Banking sector receives 16.67% of
economy’s overall capital investment

10. TRADE|INVESTMENT
INVESTMENT SUMMARY
2006|INVESTMENT LAW
One of the most liberal in the Middle East
 Foreign investors can own 100% of
investment project capital
 Full ownership rights of real estate and
movable assets
 Equal treatment for foreign and local
investors (arbitration court, in Kurdistan
and Iraq)
 Foreign investors can repatriate 100%
of investment and profits
 10 year tax holiday and 5 year customs
and duties exemption on imports
Total Investment
$30.5 billion(2006 – 2013)
FDI
$5billion (2012)
Foreign companies 2,300
Local Companies
15,000

11. TRADE|INVESTMENT
INVESTMENT BY SECTOR
0
2
4
6
8
10
12
14
16
18
Investment by Sector
USD billions

12. TRADE|INVESTMENT
MAJOR COMPANIES
BANKING
OIL|GAS
HOSPITALITY AIRLINES
OTHERS

13. TRADE|INVESTMENT
TRADE
Major Trade Partners – USA, UK, EU, Lebanon, Turkey, Jordan,
UAE, China, Egypt
Imports account for 85% of external trade. All imports locally
consumed
$20 billion worth of trade facilitated through Kurdistan between
Iraq, Turkey and Iran
Kurdistan is a net importer of food stuff and consumer products.

14. SECTOR ANALYSIS
AGRICULTURE
10% contribution to GDP
Investment of $1.2 billion 2013– 2020
$3 billion investment in water
Employs 7.1% of workforce

15. SECTOR ANALYSIS
AGRICULTURE
GOVERNMENT SUBSIDIES
Forestry
Poultry
Machinery/Technology
Pastures
Livestock
Horticulture
KRG STRATEGIC PLAN
KRG aims to increase the following by 2017:
 Vegetable production at 8% annually
 Livestock at 5% annually
 Cultivable land at 10% annually

16. SECTOR ANALYSIS
OIL|GAS
45 Billion Barrels of Proven Oil
Reserves
100-200 Trillion Cubic Feet of
Natural Gas Reserves
57 Discovered Oil & Gas Fields
14 upstream projects as of
2013
$15 - $20 billion investment
as of 2013
39 Companies from 19
different countries
Energy deal signed between Kurdistan Region and Turkey will see export of 300,000 bpd of
crude. Second pipeline to be completed mid-2014
KRG aims to be producing 1 million bpd by 2015 and 2 million by 2019

17. SECTOR ANALYSIS
OIL|GAS
0
50
100
150
200
250
300
350
Proven Oil Reserves
billions of barrels
Kurdistan Region 6th
OPPORTUNITIES
Mid and Downstream opportunities
 Transportation
 Storage
 Processing
 Refining
 Marketing
 Training and vocational education

18. SECTOR ANALYSIS
ELECTRICITY
1,700mw by 2016 power generation from private sector
Power demand in 2013 is 3,750 MW
2,800 mw of distributed electricity in 2012
2,500 mw average distributed power in 2013
$1billion budget for ongoing projects relating to the transmission
sector
Power generation investment will be $7 billion by 2016

19. SECTOR ANALYSIS
CONSTRUCTION
• Projected Investment for next 6 years $1.3 billion
• Annual housing demand - 58,690
• A total of 166 construction projects have been
completed since 2006 with $13.7 billion in
capital investment
Airport Construction:
 Erbil International Airport
 Slemani International Airport
 Duhok International Airport (2015)

20. SECTOR ANALYSIS
CONSTRUCTION
OPPURTUNITIES:
 Real Estate
 Commercial
 Schools
 Shopping Malls
 Hotels
 Hospitals
INFRASTRUCTURE:
The Kurdistan Region is still recovering from years
of neglect and conflict and there is high demand
for infrastructure construction project
 Roads, highways
 Bridges, underpasses, junctions
 Sanitation and sewage system
 Rail and tram
Lafarge Iraq
2 cement plants
Bazian & Tasluja
Combined capacity
4.8million tons
annually

21. SECTOR ANALYSIS
TOURISM
MAJOR HOTELS
Divan
Rotana Erbil
Tangram
COMING SOON
Hilton
Marriot
Kempinski
Sheraton
ARAB CAPITAL OF TOURISM 2014
75% HOTEL OCCUPANCY RATES

22. SECTOR ANALYSIS
TOURISM
TOURISM REVENUE
$1billion in 2013
250 hotels in Erbil alone
$1.5billion projected tourism
revenue (2015)
TOURISTS
2.2 million tourists visited the region
in 2012
7 million tourists by 2015 (target)
AIRLINES
INVESTMENT
Major Airlines run routes to the Region:
Air Berlin, Air Sweden, Austrian, Egypt Air,
Emirates, Etihad, Flydubai, Germania
Airline, Gulf Air, Lufthansa, Middle East
Airlines, Royal Jordanian, Turkish Airlines
1.3million airline passengers
$950 million allocated by Ministry of
Tourism to Implement 47 projects for 2013
Opportunities in:
Hotel construction
Resorts
Leisure, Spa and fitness
Theme Parks

23. BUSINESS IN KURDISTAN
CONCLUSION
 Kurdistan Region budget and GDP increasing year on year
 Rapidly developing oil and gas industry with increasing oil output although political problems persist
 Liberal and business friendly investment law
 Promising export market for European companies
 Trade and investment opportunities across diverse sectors of the economy
 KRG Strategic Plan 2013 – 2017 focus on priority sectors;
 agriculture,
 industry,
 construction and infrastructure
 Tourism
 Construction, industry and manufacturing, agriculture, tourism, banking and finance and oil and gas
offer most potential
 Regular trade fairs held throughout the year