business and investment climate kurdistan region - iraq
TRANSCRIPT
Business and Investment Climate Kurdistan Region -
Iraq
16-17 February 2015 OECD - PARIS
THE KURDISTAN REGION
INVEST IN THE FUTURE With one of the fastest growing
economies in the world, Kurdistan is fast becoming a magnet for foreign investors as it begins a new dawn.
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Kurdistan’s Location
A SECURE SPOT IN A WAR ZONE MAKES KURDISTAN BOOM
Kurdistan Region is a federal region of four governorates (Erbil, Slemani, Duhok and Halabja) in northern Iraq .
Total area: 40,643 km².
Population: 5.2 m.
Labor force: 1.2 m.
GDP Growth: 7%
.
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Facts and Figures
Halabja governorate borders still doesn't fixed
INVESTMENT LAW NO. 4 OF 2006
Open up ways to sustainably support the development and diversification of the Region’s economy beyond oil and gas
Create a conducive business climate that promotes investment in the Kurdistan Region
Remove legal obstacles and open the way for investment of national and foreign investors
Incentives Provision of land plots for subsidized lease Provision of public infrastructure (e.g. water, electricity,
sewage, public roads) to the project fence. Exemption from corporate taxes (10 years) Exemption from customs duties for imported raw
materials (5 years); additional different customs duty exemptions
Guarantees Full repatriation of profits generated by the project
and wages earned by foreign employees Transfer of investment to another foreign or national
investor Possibility to invest in Kurdistan with or without local
partners and to employ foreign labor ; however it is mandatory to register the company
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WHY INVESTMENT LAW ISSUED?!!
BOARD OF INVESTMENTBoard of Investment (BOI): Overview
Established in 2006 by KRG’s Investment Law No. 4.
Facilitates investments in all sectors except oil and gas to further develop the Region’s economy.
Serves as an "one-stop-shop" for investors within the Kurdistan Regional Government.
Grants public benefits to attainable investment projects by issuing investment licenses.
Main achievements 2006 - 2015
721 projects from all sectors licensed.
More than USD 41 bn of capital invested.
More than 52,436 Dunams of land allocated for investment projects
Investments by 77 % national & 14 % foreign as well as 9 % JV’s facilitated
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The Kurdistan Board of Investment (BOI) central office and it’s three brunches in Erbil. Slemani and Duhok
The Central BOI is in charge of investment policies in diferent sectors (tourism, agriculture , industry , health, banking, power plants, housing, transportation, education, etc…) and assumes the coordination of investment promotion activities.
Furthermore in charge of , initial validation of the investment projects , including assessing the economic impact capital invested, jobs created, taking into consideration the annual plan of the relevant ministries’ needs.
Issue licenses
The branch offices in each governorate take the approval of related directorates and take care of land allocation according to the Urban planning as well as follow-up during construction and operation phases.
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Housing 32.53%
Industry 30.49%
Tourism 15.70%
Trade 12.19%
Health 2.45%
Banks 1.77%
Agriculture 1.68%
Education 1.72%
Communication 0.52%
Service 0.45%
Sports 0.22%
transportation 0.25%
Arts 0.03%
Total 100%
Percentage by Sector
INVESTMENTS ACHIEVED IN KURDISTAN
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INVESTMENTS ACHIEVED IN KURDISTAN
GOVERNMENT POLICIES AND INCENTIVES- The KRG has made serious efforts to attract local
investment & FDI, the region’s investment law is deemed to be friendly towards businesses and investors that resulted in $41 BN Investments.
- The main focus before was on Real Estate and Energy, but now it is getting diversified in to new target Industries as first priority.
- Starting a business is some how bureaucratic but it is simpler than other areas.
- In comparison to other parts of MENA region in Kurdistan 100% foreign ownership is allowed.
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Tourism Sector based on International Brand (5 Star Hotel)
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Divan Erbil one of the art luxury to the heart of the world’s longest inhabited city, Erbil.
INTERNATIONAL REGULATIONS APPLIEDAwamedica Pharmaceutical factory/ cGMP
Partner of Sanofi, agreement was done in march 2014 for manufacturing of Sanofi product in Iraq.
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EUROPEAN AND IRAQI STANDARDS APPLIED IN CONSTRUCTION INDUSTRYMass and Bazian Cement factories.
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EUROPEAN AND IRAQI STANDARDS APPLIED IN CONSTRUCTION INDUSTRYErbil Steel FactoryAso Brick Factory
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Investment &Industrial Growth Assessment
Strength The presence of foreign industrial companies that possess good
experience in the region and availability of scientific youth capacity in various fields, are leading to experiences exchange, strengthening & enhancing the local expertise and gain new experiences.
Availability of low cost local labor and many facilities to bring foreign workers.
Land allocating & Providing the infrastructure (Water, Electricity, Roads) by the KRG for the investment projects.
Availability of Varies Row Materials and on the other hand large Agriculture Area are located in Kurdistan Region.
The presence of the official border gates land and air.
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Industrial Growth Assessment WeaknessesPoor Regulation specially in Food & Drinks
Industry.Lack of Modern Industrial Cities & Zones which
led to complex procedure of land allocating.Competitive prices of imported goods, which led
to fears in the creation of industrial projects.The lack of financial incentives for Investment
projects.There is a common defect and deficiency with the
central government, which Iraq still does not have a Bar Code of national industries.
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Support of International Organization is Needed in:-
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• Setting up construction projects based on (safety control) & Environmental Impact Assessment (EIA) required for projects.
• Enhancing food safety through establishing large agricultural industries & revise regulation for food safety.
• Developing Reporting and Documentation. (Data collection, analyzing, base & Project Management software).
• Share country and regional experiences in attracting foreign investment and enhancing outward investment.
• Facilitate access to technical assistance and promote training of IPAS.
• Legal & institutional improving investor protection in Joint Stock company by dissemination of stocks investment culture (Common procedures required to establish and operate business or Public Privet Partnership (P P P)
• (How Make Simple) our investment low generous but in actuality complex in application, how to make it easy.
WHAT TO ACHIEVE VIA INVESTMENT Prosper life in a developing region base on
strong economic infrastructure competing with developed countries.
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THANKS FOR YOUR KIND ATTENTION
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