Photos from conference
17 June 2010 / 16 June / 15 June / 26 May
Successful trade and investment conference confirms Kurdistan Region as global energy player
The Kurdistan Region of Iraq’s international trade conference is proclaimed a success as potential investors welcome the strongest news yet on impending oil flows from the Region – and look to seize the wider investment opportunities available in other sectors.
The event on June 15th and 16th was hosted in the City of London by the Kurdistan Regional Government UK Representation with Prime Minister Barham Salih the keynote speaker, and attended by over 500 delegates including potential investors representing international businesses from 26 countries, and diplomats from 12 countries.
Prime Minister Salih declared that the fine detail on international oil contracts would soon be ironed out between the Kurdistan Regional Government and Baghdad, and oil revenues would start flowing into the country again on an increasingly large scale.
Minister for Natural Resources, Ashti Hawrami stated that the Region currently can produce 100,000 barrels per day and can double production to 200,000 barrels by early 2011. Within four years, the Region will be pumping 1 million barrels per day out of the ground, and a new 1-million bpd pipeline will be ready in some 15 months.
British government ministers joined delegates in heralding the conference a success and welcoming the opportunities it has created.
Speaking at the conference, Alistair Burt, UK Foreign Office Minister for the Middle East, welcomed the “great opportunity for British businesses to build strong commercial links between the UK and the Kurdistan Region”.
Also speaking at the conference, UK Trade and Investment Minister Baroness Wilcox said: "The Iraqi Kurdistan region is a gateway for British companies looking to establish a foothold in Iraq. The Iraqi Kurdistan region offers huge potential across a range of sectors for British companies that want to secure a share of this emerging market."
Paul Brunet, Atlantic Oil Field Services, said: “We are already active in the Kurdistan Region, so we appreciate the stable and secure business environment it offers. News of progress in agreement between Baghdad and Erbil regarding oil revenue-sharing is to be warmly welcomed. This will surely be instrumental in stimulating the Region’s ongoing development.”
Chris Frost, Partner at PriceWaterhouseCoopers, said: “This event has presented great opportunities to renew existing relationships and build new ones. PriceWaterhouseCoopers are delighted to let people know about our office in Erbil, and we’re keen to help facilitate further investment in this exciting and dynamic Region.”
Stephan John, People 1st, said: “This conference has been tremendously successful in demonstrating the breadth of investment opportunities the Kurdistan Region has on offer – not just in the oil and natural gas sectors, but in areas as diverse as education, telecoms, agriculture and finance. We are working to develop higher and vocational education in the Region – something we see a fundamental to its long-term development. We have been extremely impressed by both the ambition of the Region, and the strides it has made so far.”
Pasquale Cataldo, Business Manager at New Holland Agriculture – part of the Fiat Group – said: “This conference has been a huge success, and made clear that the economic regeneration of the Kurdistan Region is no distant dream – rather, an exciting reality. The opportunities are expansive and the territory favourable. The Kurdistan Region has a promising economic future ahead.”
International companies represented a range of critical sectors at the event, including:
- Banking & finance: HSBC, Credit Suisse, the Trade Bank of Iraq, Standard Chartered Bank, Forbes & Manhattan
- Consumer: Pepsico
- Construction: Lafarge, Caterpillar
- Defence & aerospace: Aegis, BAE Systems, Lufthansa
- Oil & gas: Shell, GE International, Heritage Oil, Genel Enerji, Korea National Oil Corporation
- Professional services: PriceWaterhouseCoopers, Norton Rose, DLA Piper, YouGov
- Telecoms: Asiacell, Motorola, Korek Telecom
Representatives from the following Embassies attended:
- Czech Republic
- Germany
- Hungary
- Islamic Republic of Iran
- Kuwait
- Poland
- Spain
- Republic of Slovenia
- Republic of Turkey
- Russia
- USA
- Catalonia
About Kurdistan
The Kurdistan Region is an autonomous region in federal Iraq. It borders Syria to the west, Iran to the East and Turkey to the north. Iraq’s Constitution recognises the democratically elected Kurdistan Regional Government, the Kurdistan Parliament and the Peshmerga guard as the legitimate regional forces.
Economy
Iraq’s GDP was $112 billion in 2009 (this is the figure at purchasing power parity. GDP at the official exchange rate was $71 billion). Iraq’s economy is expected to grow by an estimated 7.3% in 2010, 7.9% in 2011 and at similar rates for the next few years. This is above the average projected growth for the Middle East.
General Investment
A liberal foreign investment law was ratified in 2006, with incentives for foreign investors such as the possibility of owning land, up to 10-year tax breaks and repatriation of profits.
Kurdistan has attracted more than 12 billion US dollars (8.3 billion pounds) from local and foreign investors in non-oil sectors over the last three-and-a-half years, mainly in housing, agriculture and banking.
Foreign companies have invested around $3.1 billion from August 2006 to April this year. The largest foreign investors in terms of money were from Kuwait and Lebanon.
Investment from Iraqi national companies was about $8.7 billion during the same period. Joint ventures accounted for around $664 million.
Top areas of investment since 2006 are: public and high-income housing (nearly $4.8 billion); banking ($2.29 billion); industry ($1.6 billion) and tourism ($1.3 billion).
Oil and Gas Investment
The investment figures above do not include the oil sector, where 35 oil and gas firms from 17 countries have struck production-sharing agreements. These include Austria’s OMV, the Korean National Oil Corporation, India’s Reliance, Channel Islands-based Heritage Oil, Canada’s Talisman and the US’s Hunt. Norway's DNO and Turkey's Genel Enerji are already producing oil from their discoveries.
The Kurdistan Region is also developing gas following the UAE consortium Dana Gas and Crescent Petroleum reappraisal of the Khor Mor gas field in 2008. The field, which is expected to produce 8.5 million cubic metres per day in later phases, now feeds two power plants that together produce 1,250 megawatts of electricity to meet Kurdistan’s growing power needs. The nearby field of Chemchemal may hold gas reserves of 6.2 billion cubic metres.
Case studies
There are 1,200 foreign companies working in Kurdistan including: Byblos bank of Lebanon; National Real Estate of Kuwait; Forbes & Manhattan of the United States – a privately funded investment company; Coca Cola; Pepsi Cola; ArcelorMittal; Lafarge; and Rotana.
See also the photo gallery of the Kurdistan Trade and Investment Conference 16 June 2010
Trade crucial to easing tensions in the Middle East, says Kurdistan
Head of Foreign Relations
15 June 2010
Press releases
Prime Minister Salih extends invitation to foreign investors
Prime Minister Salih calls for new era of British and international business engagement with Kurdistan
Press coverage
KurdishMedia.com: Kurdistan unveils itself to the business world
Bloomberg: Kurdish Minister Says Oil Exports Will Resume Soon
BBC Persian: A report on the Kurdistan Trade and Investment Conference in London
Channel 4: Kurdistan's riches point to a bright future
Global Arab Network: Iraq - Significant Growth Predicted for Kurdistan Banking and Financial Services
WAM: UAE is interested in boosting its commercial and investment ties with Iraq: MoFT
Guardian: Kurdistan pitches to western investors as secure gateway to Iraq
Bloomberg: UAE to Increase Investment in Iraqi Kurdistan, Official Says
Global Arab Network: Kurdistan PM opens gateway to Iraq in the city of London
Independent: Kurdistan reaches out to US and Europe for investment
Wall Street Journal: Kurds Seek Guarantees From Iraqi Lawmakers
Kurdish Globe: Kurdistan reaches out to US and Europe for investment
International Security Research and Intelligence Agency: UK - MFA - Iraqi Kurdistan: a gateway for business
Arabic press coverage
Al-Hayat article on the conference
26 May 2010
Kurdistan Prime Minister to lead international trade and investment conference in London
The Prime Minister of the Kurdistan region of Iraq will play host to delegates from around the world when he visits London next month and leads a conference to promote international trade and investment.
Prime Minister Barham Salih will speak at the conference, organised by the Kurdistan Regional Government (KRG) and supported by UK Trade & Investment, which takes place on June 15-16.
Five other members of the Kurdistan Cabinet will address the conference, including Ministers for Natural Resources, Trade and Industry, Higher Education and Scientific Research, the Interior, and Agriculture and Water Resources. They will be joined by Kurdistan’s Head of the Investment Board and Head of Foreign Relations, as well as the KRG’s Representative to the US.
Delegates representing British and multinational companies, foreign governments, international economists and industry analysts will be offered unparalleled access to Kurdistan’s political leadership, as well as the opportunity to meet with major firms and chambers of commerce from the Kurdistan Region.
In anticipation of the conference, KRG Prime Minister Salih said:
“We welcome international companies to come and do business in Kurdistan. Private sector investment has been helping the economy of the Kurdistan Region, making it a hub for economic and construction activity and a gateway to the rest of Iraq. The Kurdistan Regional Government is committed to improving our business environment and making it more conducive to investment by
the day.”
Ms Bayan Sami Abdul Rahman, High Representative to the UK, will be chairing the conference.
She said:
“Kurdistan is already home to many international brands, from Coca Cola and Pepsi to Lafarge and Mercedes Benz. These companies and many others are already doing business successfully in Kurdistan. The London conference will give the opportunity to British and international business people to find out why and how they too can make the most of Kurdistan's potential as the gateway
to Iraq.”
Notes to Editors
For further information please contact: Stephanie Blott, Daniel Dolan or Helen Davison on:
Tel +44 (0)20 7618 9100 or e-mail: krg@luther.co.uk
About Kurdistan
- Kurdistan Region is an autonomous region in federal Iraq. It borders Syria to the west, Iran to the East and Turkey to the north
- With a population of currently 4.7 million and rapidly increasing, the three governorates of Duhok, Erbil and Suleimaniah cover approximately 40,000 square kilometres - four times the area of Lebanon and larger than that of the Netherlands
- Since March 2003 not a single coalition soldier has died nor a single foreigner been kidnapped in the areas administered by the Kurdistan Regional Government (KRG)
- The capital and seat of the Kurdistan Regional Government is Erbil, a city known locally as Hawler. The Citadel in Erbil is said to be the longest continually inhabited place in the world
- The Kurdistan Regional Government exercises executive power according to the Kurdistan Region’s laws as enacted by the democratically elected Kurdistan Parliament
- Iraq’s Constitution recognises the Kurdistan Regional Government, the Kurdistan Parliament and the Peshmerga guard as the legitimate regional forces
- The current coalition government consists of several political parties that reflect the diversity of the Region’s people, who are Chaldeans, Assyrians, Turkmen, Yazidis and Kurds living together in harmony and tolerance
- Since the Anfal genocide campaign by Saddam Hussein’s regime in the 1980s, more than 65% of the razed villages have been rebuilt by the Regional Administration. The Region is geographically diverse, from hot plains to cooler mountainous areas with natural springs
- The Kurdish language is distinct and is in the family of Iranian languages, such as Persian and Pashto. There are two main dialects, Sorani and Kurmanji
- The Kurdistan Region has seven universities, including the English-language University of Kurdistan-Hawler and the American University of Iraq in Suleimaniah, opened in 2006/07
- A liberal foreign investment law was ratified in 2006, with incentives for foreign investors such as the possibility of owning land, up to 10-year tax breaks and repatriation of profits
- Kurdistan Region has two international airports. Austrian Airlines, Lufthansa, Royal Jordanian, Gulf Air and Middle East Airlines already fly to Erbil, and more IATA members are planning to start flights
Back to top >> |
