Kurdistan seeks more investment from Gulf countries

Dubai: Iraq’s Kurdistan Region is seeking to attract greater investment from the UAE, Saudi Arabia and other Gulf countries as President Nechirvan Barzani steps up diplomatic engagement to position the region as a major trade and economic gateway connecting the Gulf, Iraq, Türkiye and Europe.

With approximately $80 billion in licensed investment projects recorded since 2006, the region is looking to expand beyond its traditional economic sectors and attract international capital into infrastructure, renewable energy, agriculture, logistics and tourism.

President Barzani’s participation in the Antalya Leaders’ Summit during COP31, at the invitation of Turkish President Recep Tayyip Erdogan has brought renewed attention to the Kurdistan Region’s economic ambitions and its efforts to strengthen partnerships with regional and international players.

His meetings with senior European, Turkish, Syrian and United Nations officials focused on regional cooperation, stability and economic relationships that could help create new opportunities for international investors.

$80 billion investment portfolio

According to the Kurdistan Region’s Board of Investment, more than 1,650 projects worth approximately $80 billion in licensed capital have been recorded since 2006.

Foreign investment and joint ventures account for around $14 billion, with investors from the UAE, Saudi Arabia, Türkiye, Europe and the United States participating in sectors including manufacturing, real estate, tourism, trade and agriculture.

For Gulf businesses, the region’s strategic location offers potential access to Iraq’s domestic market while providing commercial links to Türkiye and European markets.

The Kurdistan Region is particularly keen to attract investment into sectors that support long-term economic diversification, including agricultural technology, sustainable infrastructure and renewable energy.

New opportunities

Water security and agricultural development are emerging as important investment areas.

Two major dam projects, Gomaspan and Dwin, have planned storage capacities of approximately 97.5 million and 100 million cubic metres respectively.

These projects are intended to improve water management and strengthen agricultural production, potentially creating opportunities for Gulf companies specialising in irrigation systems, food processing and agricultural technology.

Renewable energy and environmental infrastructure are also gaining attention.

During his meeting with European Commission President Ursula von der Leyen, President Barzani discussed cooperation on climate change and environmental protection.

Economic cooperation with Turkiye remains central to the Kurdistan Region’s ambitions because of its importance as a trading partner and transport link to European markets.

During discussions with Ibrahim Kalın, head of Turkiye’s National Intelligence Organisation, Barzani addressed relations between Ankara, Baghdad and Erbil, including security coordination and regional stability.

Such cooperation has implications for cross-border trade, energy infrastructure and transport connectivity.

Barzani also met Syrian President Ahmed al-Sharaa to discuss opportunities for closer cooperation between Syria, Iraq and the Kurdistan Region.

He invited the Syrian leader to visit Erbil and Baghdad, potentially opening further discussions on regional trade links and future reconstruction opportunities.

Stability key to investment growth

The relationship between the Kurdistan Regional Government and Iraq’s federal government remains an important consideration for international investors.

During his meeting with UN Secretary-General António Guterres, Barzani discussed regional stability and relations between Erbil and Baghdad.

A predictable regulatory environment, stronger infrastructure and effective coordination between the two governments will be important in attracting sustained foreign investment.