Kurdistan Economy

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$7.5 Billion in Projects completed

Kurdistan’s tourism industry has witnessed what officials describe as an “unprecedented transformation” over the past five years, with $7.5 billion worth of tourism projects completed under the current ninth cabinet

Amal Jalal, head of the Tourism Board, said in an interview that 80 projects valued at $7,555,305,000 have been finalized across the region, marking a turning point in the sector’s growth and modernization.

Jalal said the past five years have seen “a historic transformation in terms of infrastructure, the increase in tourism projects, and the diversification of tourism activities.”

She added that local employment within the sector has risen steadily, with most new projects relying heavily on Kurdish workers. “All tourism centers and sites have also been committed to the decision to use the Kurdish language,” she said, describing it as a step toward cultural preservation and the promotion of the region’s identity.

The official also pointed out that the Tourism Board, in coordination with the Investment Board, is working on a comprehensive guide to highlight tourism investment opportunities for both domestic and international investors. “Our goal is to attract the attention of local and international investors to carry out tourism projects and further develop the infrastructure of this sector,” Jalal noted.

The tourism sector has become one of the Kurdistan Regional Government’s strategic focuses in recent years as part of efforts to diversify the economy and reduce reliance on oil revenues. The region’s natural beauty, including the mountains of Duhok, the waterfalls of Sulaymaniyah, and the cultural landmarks of Erbil Citadel, has helped attract growing numbers of local and foreign visitors.

According to the Tourism Board, more than seven million tourists visited the Kurdistan Region in 2023, a record figure that reflects the region’s growing reputation as a safe and affordable destination within Iraq and the broader Middle East. The board has also emphasized sustainable tourism, introducing initiatives to protect natural sites, improve waste management, and regulate unlicensed tourist accommodations.

Despite this progress, challenges remain. The tourism industry continues to face seasonal fluctuations, limited international flight connections, and occasional security or political tensions that affect visitor numbers. However, officials believe that continued investment, infrastructure development, and coordination with the private sector will help the region consolidate its status as Iraq’s tourism hub.

In recent years, the KRG has worked closely with neighboring countries, including Turkey and Iran, to promote cross-border tourism and facilitate easier travel for regional visitors. Erbil’s expansion of hotels, resorts, and entertainment centers, along with major infrastructure upgrades like new roads leading to mountain areas and historic sites, has made the region increasingly accessible.

Officials say the long-term goal is to position the Kurdistan Region as a year-round tourism destination offering cultural heritage, nature-based tourism, and modern leisure facilities—all contributing to job creation and sustainable economic growth.

https://www.basnews.com/en/babat/896891

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Erbil, Berlin Sign New Cooperation
Deal to Deepen Partnership

Kurdistan Interior Minister Rebar Ahmed on Thursday lauded the “historic and strong” relations between Kurdistan and Germany, announcing the signing of a new memorandum of understanding (MoU) with the German development agency GIZ to strengthen cooperation in humanitarian, migration, and capacity-building fields

Speaking at a joint press conference alongside the German Consul General in Erbil, Ahmed said Germany had consistently stood by the people of Kurdistan during challenging times. “We have a long history and good relations with Germany, and it is appropriate to always thank Germany and its consulate in Kurdistan for their support and cooperation, which have played a significant role in difficult days,” he stated.

Ahmed highlighted Germany’s direct military and humanitarian support during the war against ISIS, calling it “effective and essential assistance that helped protect Kurdistan, the Peshmerga forces, and humanity from terrorism.” He said Berlin’s contributions through organizations such as GIZ and THW (German Federal Agency for Technical Relief) have strengthened institutions in areas including education, health, refugee support, and civil protection.

The minister added that cooperation through the Joint Crisis Coordination Centre (JCC) has resulted in successful initiatives such as the “Qudra” and “Cash for Work” programs, which have provided jobs, improved local services, and helped displaced families rebuild their lives. “Today, another understanding was signed — the first of its kind between the Ministry of Interior and GIZ — as a sign of our deepening partnership,” he announced.

For his part, the German Consul General emphasized the growing economic, social, and security ties between Germany and the Kurdistan Region. He said Berlin is committed to opening legal pathways for skilled Kurdish youth seeking to work in Germany, while also supporting voluntary returnees who wish to reintegrate into the Kurdistan Region.

“Germany needs skilled labor, and for this purpose, we are working through the JCC and the Migration Development Program in cooperation with the Kurdistan Region to help young people reach Germany through legal channels,” the consul said.

He also underlined Germany’s reintegration efforts for voluntary returnees from Europe, explaining that GIZ supports them by offering vocational training and job opportunities. “We help those who return voluntarily, and through GIZ, we ensure they can reintegrate and contribute to their communities,” he said, noting that new support centers have opened in Halabja, Raperin, and Zakho.

The consul concluded by thanking the Kurdistan Regional Government (KRG) and the Ministry of Interior for their “continuous coordination and cooperation,” describing the new MoU as a milestone that would further enhance joint work in governance, development, and humanitarian affairs.

Germany remains one of the Kurdistan Region’s most consistent partners in security, reconstruction, and migration management. Since 2014, Berlin has provided extensive military training to Peshmerga forces, humanitarian aid to displaced Yezidis and Syrians, and long-term development support through GIZ and other institutions. The new agreement is expected to expand these efforts in line with both governments’ shared commitment to stability and sustainable growth.

https://www.basnews.com/en/babat/897019

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Iraq’s Water Crisis Devastates
Farmers and Livestock

Rising water salinity in southern Iraq is devastating crops, killing livestock and worsening displacement, farmers and experts told AFP, as the country reels from years of drought and mismanagement of its water resources

In Basra’s Al-Mashab marshes, farmer Umm Ali said dozens of her ducks and 15 chickens died this season alone after being exposed to brackish river water.

“We used to drink, wash and cook with water from the river, but now it’s hurting us,” the 40-year-old widow and mother of three said. “I cried and grieved, I felt as if all my hard work had been wasted.”

Iraq’s Water Ministry spokesman Khaled Shamal said salinity in Basra province had reached levels unseen in almost nine decades. “We haven’t seen such high levels of salinity in 89 years,” he told AFP.

Last month, salinity in central Basra province climbed to around 29,000 parts per million (ppm), compared to 2,600 ppm a year ago, ministry figures showed. Freshwater should contain less than 1,000 ppm, while seawater averages 35,000 ppm, according to the US Geological Survey.

Farmers and buffalo dying

The decline has had a severe impact on livelihoods. Farmers said they could no longer irrigate crops such as pomegranates, figs and berries, while buffalo herds — vital for dairy production — are dying in alarming numbers.

We cannot even leave. Where would we go?

The United Nations says nearly a quarter of women in Basra and nearby provinces are employed in agriculture. The International Organization for Migration has warned that rising salinity is driving families off their land, with around 170,000 people displaced across central and southern Iraq by October last year due to drought and water scarcity.

In Missan province, farmer Maryam Salman said she had relocated to Basra with her buffalo, only to face the same challenges. Nearby, AFP reporters saw buffalo skeletons lying on parched soil. Water is not available… neither summer nor winter.

Ecological decline

Hasan al-Khateeb, a water expert at the University of Kufa, said the Shatt al-Arab waterway — where the Tigris and Euphrates meet before flowing into the Gulf — was failing to hold back seawater intrusion, compounding the effects of pollution and low river flows.

Tigris and Euphrates converge at Basra’s Shatt al-Arab laden with pollutants

Fishermen also report declining stocks. “The murky and salty water has made life very hard,” said Hamdiyah Mehdi, 52, whose husband often returns home empty-handed. “It has been tough. We take our frustrations out on each other.”

Regional tensions

Iraq blames upstream dams in Turkey and Iran for reducing flows into the Tigris and Euphrates. Authorities say the country receives less than 35 percent of its allocated share, while decades of conflict and neglect have left its water infrastructure ill-equipped to adapt.

Khateeb urged Iraq to accelerate desalination projects in Basra, where the government has pledged to build a facility with a daily capacity of one million cubic meters.

Until then, farmers like Umm Ali say their lives remain tied to the changing taste of water. “We used to live from it,” she said. “Now it is killing everything around us.”

https://www.basnews.com/en/babat/897088

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UAE Delegation Visits Erbil
to Boost Political and Economic Ties

A high-level delegation from the United Arab Emirates arrived in Erbil on Monday to advance political, economic, and commercial relations with the Kurdistan Region

Omed Khoshnaw, Governor of Erbil, welcomed the delegation at Erbil International Airport alongside Sheikha Bashir Farhan, Acting Consul General of the UAE in Erbil, and Ahmed Hoshyar, Director of the airport. The delegation is led by Abdullah Lootah, Deputy Minister and Head of the Coordination Office at the Council of Ministers of the UAE.

According to the governor’s office, the visit is part of ongoing initiatives between the Kurdistan Regional Government and the UAE to enhance bilateral cooperation across multiple sectors, including trade, investment, infrastructure, energy, and technology. The delegation is scheduled to hold meetings with senior officials of the KRG to discuss joint projects, investment opportunities, and strategies for deeper political collaboration.

The UAE has been a key partner for the Kurdistan Region for years, with a focus on investment in strategic sectors such as real estate, tourism, logistics, and renewable energy. In recent years, Emirati companies have also participated in infrastructure projects, including road construction, urban development, and power generation. Additionally, the UAE has consistently supported initiatives aimed at promoting economic diversification and private-sector development in Kurdistan.

Diplomatic engagement between the two sides has intensified in the past decade. The UAE has maintained an official consulate in Erbil, fostering economic and cultural exchanges, while the Kurdistan Regional Government has actively encouraged Emirati investment through incentives, regulatory support, and public-private partnership initiatives.

Analysts note that the UAE’s growing role in the region reflects its broader strategy of strengthening economic influence and fostering stability in Iraq’s semi-autonomous Kurdistan Region.

https://www.basnews.com/en/babat/897306

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Greece to Send Delegation
to Boost Kurdistan Trade

The Consul General of Greece in Erbil, Nikolaos Stergioulas, announced that a high-level delegation of Greek government officials and business representatives will visit the Kurdistan Region early next year to enhance bilateral trade and investment ties

In a statement released by the Erbil Chamber of Commerce and Industry, Stergioulas made the remarks during a meeting with Gaylan Haji Saeed, President of the Chamber, alongside the commercial attaché of the Greek Consulate.

He said the upcoming visit will include meetings with Kurdish officials and private sector representatives, in addition to plans for a joint business forum connecting entrepreneurs and companies from both sides.

“We are working to attract more Greek companies and investors to the Kurdistan Region,” Stergioulas said, stressing that the visit aims to strengthen commercial and economic cooperation between Erbil and Athens and to explore investment opportunities in key sectors.

Gaylan Haji Saeed welcomed the initiative and expressed the Chamber’s full support for expanding cooperation. He also called on the Greek Consulate to help establish direct ties between the Erbil Chamber of Commerce and Greek business associations, organizations, and economic unions. He said such coordination would serve as an important bridge for developing trade and investment relations between the two sides.

In recent years, economic interaction between Greece and the Kurdistan Region has steadily grown, particularly in construction, tourism, and energy-related services. Greek companies have shown interest in infrastructure and renewable energy projects across Iraq and the Kurdistan Region.

The anticipated delegation visit is expected to open new opportunities for joint ventures and partnerships, as well as to highlight the Kurdistan Region’s role as a stable investment gateway to Iraq and the wider Middle East.

The initiative also reflects Greece’s broader policy of deepening ties with partners in the Middle East and the Eastern Mediterranean. The Kurdistan Region, with its relative stability and investor-friendly laws, has become a key destination for foreign businesses seeking access to Iraq’s market.

Greek officials hope that this visit will lay the groundwork for long-term economic collaboration and an institutional framework for trade and investment promotion between the two sides.

https://www.basnews.com/en/babat/897314

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Major livestock project creating
1,000 jobs to open in Erbil

A giant livestock project is set to be opened in the Kurdistan Region capital city Erbil on Sunday after three years of construction works, said an official, adding it will create around 1,000 jobs

The Megal (herd) Project has been constructed on a million square meters of land, and has the capacity to slaughter 3,000 sheep and 400 goats per hour, applying world standards, said Bargasht Akraiy, spokesperson of the Board of Investment.

"There are a number of factories in the project, including for repairing animal feet, storing and tanning animal skins, cleaning the stomach and intestines," Akraiy added.

The project is located on the Erbil-Gwer road, an estimated 20 kilometers from the city center. It will be inaugurated by Prime Minister Masrour Barzani.

"The project has been constructed at the cost of $100 million," Akraiy said. "It will become a modern trade center for importing, exporting, selling, and buying sheep, goats, and cattle, not just in Kurdistan, but to the entire Iraq" he said.

The investment board spokesperson said the Megal Project will create an estimated 1,000 jobs.

"All health and environmental requirements have been taken into account in the project," he said.

The Kurdish market is highly reliant on Iranian and Syrian animals. It also relies on foreign dairy products to meet the local demand.

The Kurdistan Government (KRG) has identified agriculture as a sector it wants to develop as part of efforts to diversify the economy, rather than merely relying on oil revenues.

https://www.rudaw.net/english/business/26102025

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KRG's Gashanawa Project
Ignites Entrepreneurial Spirit

ERBIL (Kurdistan24) – In a quiet but bustling factory in the Kurdistan Region, where the air is rich with the scent of sunflower, olive, and coconut, a young entrepreneur named Chia Ali is overseeing the production of 101 different types of natural oils, his business a thriving testament to a dream realized

Just a year after starting operations, Ali's factory, which now employs more than 25 people, received a crucial financial boost from "Gashanawa" (Shine), a landmark initiative by the Kurdistan Regional Government (KRG) designed to ignite the region's entrepreneurial spirit and transform the dreams of its youth into tangible, job-creating enterprises.

Ali's story, and those of the 24 other young business owners who benefited from the project's first phase, is a powerful illustration of the KRG's strategic shift towards fostering a vibrant private sector and building a diversified, resilient economy from the ground up.

The Gashanawa project, which was officially announced by KRG Prime Minister Masrour Barzani in September 2023, is a targeted and innovative program dedicated to providing small commercial loans to project owners and small to medium-sized businesses looking to expand

The initiative, supervised by the Ministry of Labor and Social Affairs, is a cornerstone of the Ninth Cabinet's economic agenda, aimed at supporting young entrepreneurs, reducing unemployment, and creating a more dynamic and inclusive economy.

With the successful completion of its first phase, the project is now poised to begin its second, with plans to support an additional 100 projects, a move that is expected to create thousands of new job opportunities across the Kurdistan Region.

A Seed of an Idea, a Harvest of Opportunity

Chia Ali's oil factory is a perfect case study in the transformative power of the Gashanawa project. The idea for the factory was born in 2019, the culmination of a multi-year dream.

After a period of careful planning and preparation, the factory officially started its work in 2022. Just one year later, with a proven concept and a growing market for its diverse range of natural oils, the business was selected as a beneficiary of the Gashanawa project.

The financial support, Ali explained, was a game-changer. "It was a good financial support for us and led to the advancement of our project," he told Kurdistan24, expressing his happiness at being chosen.

The loan allowed him to scale up his operations, invest in new equipment, and expand his workforce, which now numbers over 25 employees. The factory's product line is impressive, boasting about "101 types of natural oil," including essential cooking oils like sunflower, olive, and sesame, as well as a wide variety of other specialty oils.

The Gashanawa loan did more than just provide capital; it validated his vision and fueled his ambition for the future.

"We have created job opportunities for several people and we intend to be supported more in the future, so that we can develop our factory further," Ali said.

His story is a powerful example of the project's ripple effect: a single loan not only helps one entrepreneur but creates a cascade of employment and economic activity that benefits the entire community.

For Chia Ali and the 24 other young people whose dreams were brought to fruition in the first phase, Gashanawa has been a gateway to self-reliance. It has enabled them to "stand on their own feet," becoming owners of their own projects and, in turn, creators of jobs and opportunities for others.

A Strategic Vision for a Diversified Economy

The Gashanawa project is a direct and practical application of a broader strategic vision laid out by Prime Minister Masrour Barzani and the Ninth Cabinet.

At the project's launch event in September 2023, the Prime Minister emphasized that a thriving private sector is "essential for a robust economy," and that this, in turn, hinges on a "strong and efficient banking system that facilitates economic and commercial development."

He noted at the time that small and medium-sized businesses account for over 50% of private sector activity and employment in the Kurdistan Region, yet they have historically faced significant challenges in accessing the financial support needed to grow.

Gashanawa was designed to directly address this gap. The project, overseen by the Ministry of Labor and Social Affairs, provides loans of up to 150 million Iraqi dinars to entrepreneurs, with an accessible and modern application process managed through a digital portal.

Nahro Jawhar, the deputy director of the Gashanawa project, confirmed the scale and impact of this financial support. "The projects that have been financially supported have received up to 150 million Iraqi dinars to develop their projects," he told Kurdistan24.

He also highlighted the project's indirect but equally important economic benefits. "The Gashanawa project, in addition to directly benefiting the project owners, also indirectly creates many job opportunities," he explained.

Looking ahead, he confirmed the ambitious plans for the project's expansion: "In the future, we plan to support 100 other projects and with that, thousands of job opportunities will be created."

A New Model of Trust-Based Lending

One of the most innovative and groundbreaking aspects of the Gashanawa project is its approach to loan approval.

As Prime Minister Barzani explained at the launch, it represents the first time the KRG has extended commercial loans through private banks, and, crucially, it introduces a new model of lending that prioritizes the viability of the business itself over traditional forms of security.

The project, he stated, "introduces a groundbreaking approach of considering the strength of private businesses as the primary indicator for loan approval, eliminating the need for collateral."

This trust-based lending model is a radical departure from the often rigid and prohibitive requirements of traditional banking, which can stifle entrepreneurship and prevent promising small businesses from accessing the capital they need to grow.

By removing the barrier of collateral, the KRG is sending a powerful message of confidence in its entrepreneurs and fostering a more conducive and dynamic environment for private sector growth.

The Prime Minister's vision for Gashanawa is rooted in a deep belief in the principles of economic freedom and partnership.

In his speech at the launch, he emphasized that commitment to a country should be based on "mutual respect, equality, and justice," and that "a prosperous and harmonious nation can only be built on these principles."

By empowering its citizens to build their own businesses and create their own prosperity, the KRG is putting these principles into practice, fostering a sense of ownership and shared investment in the nation's future

As the Gashanawa project prepares to launch its second, even larger phase, the success of entrepreneurs like Chia Ali serves as a powerful and inspiring example of what is possible.

His factory, once a dream, is now a thriving reality, producing high-quality local products, employing dozens of people, and contributing to the economic fabric of the Kurdistan Region.

It is a story that the KRG hopes to replicate a hundred times over, as it continues to invest in its greatest asset: the talent, ambition, and entrepreneurial spirit of its people.

https://www.kurdistan24.net/en/story/87 ... businesses

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Stability Driving Kurdistan’s
Economic Revival: KDP Member

Kurdistan Democratic Party (KDP) Central Committee member Reber Ahmed praised the Kurdistan Regional Government’s ninth cabinet for resolving many public service issues despite facing financial and political challenges, while calling on citizens to actively participate in the upcoming Iraqi parliamentary elections

Speaking on Wednesday at a large public meeting attended by party members and cadres in Erbil, Ahmed emphasized that the KDP remains the strongest political force defending the constitutional rights of the Kurdish people in Baghdad.

He said the next session of the Iraqi parliament would be crucial in ensuring the implementation of constitutional articles related to the Kurdistan Region, particularly Article 140, which addresses the status of disputed territories.

Referring to President Barzani’s guidance to KDP candidates, Ahmed said the party’s representatives must serve the interests of the deprived and defend the rights of all citizens. “President Barzani has made it clear that every candidate should represent the people with integrity and commitment,” Ahmed said, stressing that public service and justice remain central to the KDP’s political mission.

Turning to the achievements of the Kurdistan Regional Government’s ninth cabinet, led by Prime Minister Masrour Barzani, Ahmed highlighted major service projects in areas such as electricity, water, and roads. He said despite limited budgets and external pressures, “a significant portion of citizens’ problems have been solved.” He cited ongoing efforts to mitigate the effects of climate change, including the construction of dams and flood-protection systems to safeguard communities and strengthen agriculture.

Ahmed also praised the government’s success in maintaining security and stability across the Kurdistan Region. “The peace and security we enjoy today are the result of the cooperation between our security forces, the Peshmerga, and vigilant citizens,” he noted. According to him, this stability has boosted investor confidence, encouraged economic growth, and strengthened citizens’ trust in state institutions.

In addition, he called on voters to turn out enthusiastically on November 11 and support the KDP’s electoral list number 275. He said a strong showing for the KDP would reinforce the Kurdistan Region’s position in Baghdad and ensure continued progress toward a more stable and prosperous Iraq.

The Kurdistan Democratic Party, founded in 1946 by Mulla Mustafa Barzani, remains one of the dominant political forces in the Kurdistan Region. The party has played a key role in shaping the autonomous region’s governance since 1992, promoting federalism, and maintaining strong ties with international partners including the United States and Western Europe

Over the past years, the KRG’s ninth cabinet has navigated financial crises caused by disputes with Baghdad over oil revenues and budget allocations, as well as broader economic disruptions linked to regional instability. Yet, according to Ahmed, the government has continued to implement strategic reforms in administration, energy, and infrastructure, reflecting what he described as “the resilience and determination of the Kurdish leadership.”

https://www.basnews.com/en/babat/898476