Business and Investment Climate – Kurdistan Region, Iraq
-
Upload
oecdglobal -
Category
Government & Nonprofit
-
view
212 -
download
2
Transcript of Business and Investment Climate – Kurdistan Region, Iraq
Business and Investment Climate
Kurdistan Region - Iraq
16-17 February 2015
OECD - PARIS
THE KURDISTAN REGION
INVEST IN THE FUTUREWith one of the fastest growing economies inthe world, Kurdistan is fast becoming amagnet for foreign investors as it begins a newdawn.
2
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%
.3
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
4
WHY INVESTMENT LAW
ISSUED?!!
BOARD OF INVESTMENT
Board 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.
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
5
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.
6
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%
INVESTMENTS ACHIEVED IN KURDISTAN
7
INVESTMENTS ACHIEVED IN KURDISTAN
GOVERNMENT POLICIES AND INCENTIVES- The KRG has made serious efforts to attract local
investment & FDI, the region’s investment law isdeemed to be friendly towards businesses andinvestors 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 targetIndustries as first priority.
- Starting a business is some how bureaucratic but it issimpler than other areas.
- In comparison to other parts of MENA region inKurdistan 100% foreign ownership is allowed.
8
Tourism Sector based on International Brand (5 Star Hotel)
9
Divan Erbil one of the art luxury to the heart of the world’s longest inhabited city, Erbil.
INTERNATIONAL REGULATIONS APPLIED Awamedica Pharmaceutical factory/ cGMP
Partner of Sanofi, agreement was done in march 2014 for manufacturing of Sanofi product in Iraq.
10
EUROPEAN AND IRAQI STANDARDS APPLIED IN CONSTRUCTION INDUSTRY
Mass and Bazian Cement factories.
11
EUROPEAN AND IRAQI STANDARDS APPLIED IN CONSTRUCTION INDUSTRY
Erbil Steel Factory
Aso Brick Factory
12
Investment &Industrial Growth Assessment
Strength
The presence of foreign industrial companies that possess goodexperience in the region and availability of scientific youth capacity invarious 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 foreignworkers.
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 largeAgriculture Area are located in Kurdistan Region.
The presence of the official border gates land and air.
13
Industrial Growth Assessment Weaknesses
Poor Regulation specially in Food & Drinks Industry.
Lack of Modern Industrial Cities & Zones which led tocomplex procedure of land allocating.
Competitive prices of imported goods, which led tofears in the creation of industrial projects.
The lack of financial incentives for Investmentprojects.
There is a common defect and deficiency with thecentral government, which Iraq still does not have aBar Code of national industries.
14
Support of International Organization is Needed in:-
15
•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 INVESTMENTProsper life in a developing region base on strongeconomic infrastructure competing with developedcountries.
16
THANKS FOR YOUR KIND ATTENTION
17