KURDISTAN REGIONAL GOVERNMENT REPRESENTATION IN SPAIN TRADE AND INVESTMENT DESK

KURDISTAN REGIONAL GOVERNMENT

REPRESENTATION IN SPAIN

TRADE AND INVESTMENT DESK

KURDISTAN REGION OF IRAQ

KURDISTAN REGION OF IRAQ

The Kurdistan Region’s

population is similar to

those of Norway,

Ireland, New Zealand

and Croatia.

Its land size is roughly

the same as Switzerland

and larger than The

Netherlands.

FACTS & FIGURES

FACT VALUE

Area (KRG) 40,643 km2

Population 4.6 million

Main cities Erbil, Sulaymaniyah, Duhok

System of Government Parliamentary Democracy

Languages Kurdish, Arabic and English

Peoples Kurds, Arabs, Turkmen, Assyrians

Average temperature 20 - 25 ºC

GNP $18.6 billion

GDP Growth 7%

GDP Per Capita $4,800

Annual Budget $11.6billion (2011)

Labour Force 1.16 million (15% of Iraqi labour force)

Electricity Capacity 1.200 kWh

Oil Production 150,000 bdp

Oil Reserves 47 billion barrels

Natural Gas Production 300/MT per day

Natural Gas Reserves 3-6 Trillion Cubic Meters

SECURITY

Kurdistan has its own regional military and intelligence services independently managed.

Since 2003, no coalition soldier or foreign civilian has been killed or kidnapped in the Kurdistan Region

Only part of Iraq that receives direct flights to and from European destinations

Austrian, Lufthansa, Turkish Airlines

11 diplomatic representations in Erbil:

US, UK, Germany, France, Italy, Russia, South Korea, Jordan, Egypt, Turkey and Iran

Honorary Consuls: Japan, Denmark, the Netherlands, and Sweden

KURDISTAN INVESTMENT LAW

2006 Kurdistan Region Investment Law. Considered one of the most liberal in the Middle East. Main benefits: 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 (arbitrary 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

BANKING INFRASTRUCTURE

BUDGET OVERVIEW

The Kurdistan Regional Government recieves 17% of the Iraqi national budget.

IRAQ AND KRG BUDGETS 2008 – 2010 in US$ Billion

Iraq’s public debt has been decreasing gradually over the past 4 years.

In 2011 there was a large reduction in public debt as production and export of oil increased.

PUBLIC DEBT AS % OF GDP

REGISTERED COMPANIES

10,433 companies currently registered in the Kurdistan Region

1,170 are foreign companies (11% of total)

From May 2009 till May 2010, 1,444 companies were registered (16%

increase)

105 of those companies were foreign

60% of foreign companies are Turkish, trade between Turkey and the

Kurdistan Region amounted to $6 billion in 2010

INVESTMENT

Investment has been booming, with over $14 Billion dollars in investment since

2006 in the region.

$13 billion worth of license agreements from 2006 till 2009 granted by the

Investment Board

In 2003,GDP per capita in Iraq was barely $465. Current GDP per capita the

Region is estimated at $4,800, which compares to $3,600 in Iraq as a whole.

Healthy investment law has moved the region away from a centrally planned

economy, creating an investor friendly environment.

11

FOREIGN DIRECT INVESTMENT

12

SECTOR INVESTMENT (2006 – 2010)

BOI - ONE-STOP-SHOP

ONE-STOP-SHOP

The Board of Investment (BOI) reviews and processes investment

applications.

Grants all permits and licenses for projects.

Its “one-stop-shop” design eliminates bureaucratic hassle and

provides decisions within 45 days of application submission

TRADE

$20 billion worth of trade facilitated through Kurdistan between Iraq,

Turkey and Iran

$9 billion worth of imports of goods and products to Kurdistan from 2008

till 2010

Kurdistan is a net importer of food stuff and consumer products.

80% of imports to the region come from Turkey and Iran.

EXPORTING TO IRAQ

In May 2011 Iraq contracted Bureau Veritas for pre-export Verification of Conformity of imported goods,

certified to both Iraqi national requirements and also International Standards.

The VOC programme covers 89 categories of products. Testing in accredited laboratories are performed for

those goods where documents do not demonstrate compliance to Iraqi requirements.

All companies wishing to export to Iraq are advised to contact with Bureau Veritas for assistance concerning

compliance to the new import regulations.

LOCAL PARTNERS

Companies interested in trading with Kurdistan and Iraq are advised to find local

partners.

To find out more on local partners interested companies should contact:

The Erbil, Sulaymaniyah and Duhok Chambers of Commerce

The Kurdistan Regional Government Ministry of Trade and Industry

The Kurdistan Importers and Exporters Union.

KEY SECTORS: CONSTRUCTION

High demand for construction materials because of residential and civil project

developments. Iraqi building specifications require Spanish ceramics, tiles and

paving.

Demand for Housing

Iraqi government needs to build 1 million housing units to meet demand

Kurdistan Region requires 300,000 housing units

MATERIAL NEEDED ANNUALLY

Cement 2,500,000 tons

Marble 124,000 m2

Granite 300,000 m2

Concrete 63,000,000 units

ANNUAL NEED FOR KEY CONSTRUCTION MATERIALS

KEY SECTORS: TOURISM AND HOSPITALITY

Increasing number of tourists traveling to Kurdistan as well as trade and investment

delegations.

New York Times and National Geographic both recommend Kurdistan to tourists in

2011

The Hilton DoubleTree and Marriot hotels will be opening in Erbil and more

international hotel chains are expanding to the Kurdistan market.

Tourism projects are in high demand with annual tourist numbers increasing year on

year.

So far in 2011 1.15 million domestic and international tourists have visited

Kurdistan.

KEY SECTORS: AGRICULTURE

Agriculture is Iraq’s second-largest economic sector (after oil sector), producing about

12% of GDP, and the second-largest source of jobs (after the public sector), employing

at least 15% of the labor force.

Despite its abundant land and water resources, Iraq is a net food importer.

Needs: new technology in plant and animal genetics, fertilizers, irrigation and

drainage systems, and farm equipment, seed, plants and orchids, plastic green

houses.

KEY SECTORS: HEALTH AND PHARMACEUTICALS

Over the next few years the Kurdistan Regional

Government is constructing:

6 General Hospitals (100 - 400 beds)

Various medical clinics and centers

Products in demand

Pharma Drugs

Swab 5 tons annual

Needle 2,500,000 pcs, annual

IV Fluid

KEY SECTORS: FOOD AND DRINKS

Kurdistan and Iraq are dependent on imports of food stuffs and consumer goods.

The country as a whole is a net importer and recieves most of these imports from

Turkey and Iran.

Products in demand:

Cooking oils

Tinned and processed foods

Fruits and vegetables

Cereals

Dairy products

Dried fruits and nuts

Bottled beverages and juices

2011 TRADE MISSIONS TO KURDISTAN

46 companies ICEX

delegation – April 2011

Italian Trade Minister and

50 companies – Oct 2011 British MPs and 40

companies – Oct 2011

Turkish PM and 40

companies – March 2011

2011 TRADE SHOWS

Project Iraq, PMV Iraq, and Elenex Iraq, Erbil 19 – 22 September 2011 Construction, building materials, equipment & environmental technology. Architects, engineers, contractors, construction specialists, diplomats, high-ranking officials, regional and national investment authorities.

Of the 302 exhibitors, more than 200 were international companies from 24 countries. Makinat Iraq 2011, Erbil 3 - 6 October 2011 Machinery, machine tools, equipment, accessories and spare parts by Iraqi, regional and international manufacturers and suppliers. Iraq Medicare Fair, Erbil 4 - 6 October 2011 Healthcare products, equipment and services, and to reach doctors, hospitals, buyers and health sector professionals from the Kurdistan Region and the rest of Iraq. 7th Erbil International Trade Fair, Erbil 24 - 27 October 2011 Largest general trade fair in Iraq covering various economic sectors.

Trade promotion agencies, chambers of commerce, trade associations, ministries and embassies, the fair will attract more than 850 exhibitors from over 25 countries.

All of Iraq’s major trade exhibitions are held in Erbil which has become the trade hub of the country.

2011 TRADE SHOWS

7th DBX Suleimaniah International Expo, 1 - 4 November 2011

Organised by the Iraqi-American Chamber of Commerce and Industry Over 550 international and

local companies participated last year, attracting more than 95,000 visitors.

4th Iraq Agro-Food Fair, Erbil, 21 - 24 November 2011

Agricultural products and machinery, food and beverages, fertilizers and pesticides, food additives,

processing technology and packaging materials.

Suleimaniah Build Expo, 29 November – 2 December 2011

Household and Hotel Equipment Fair, Erbil, 5 – 8 December 2011

TRAVEL TO KURDISTAN

Two international airports in Erbil and Suleimaniah with direct flights to and from

European and Middle Eastern destinations

Erbil International Airport has expanded considerably, adding a large new terminal in

2010 designed to handle up to 3 million passengers annually.

10 day tourist visas are issued on arrival at the airports of the Kurdistan Region.

IATA scheduled carriers that fly to the Kurdistan Region include:

Austrian Airlines via Vienna

Lufthansa via Frankfurt

Turkish Airlines via Istanbul

Royal Jordanian via Amman

KRG SPAIN FOR MORE INFORMATION ABOUT THE KURDISTAN REGION OF

IRAQ PLEASE CONTACT:

KRG REPRESENTATION IN SPAIN

C/ SERRANO 31, 4 izq 28001, MARID

Tel: +34 91 436 26 20 / Fax: +34 91 435 29 14

[email protected]

www.krgspain.org