In The Shadows Of Iraq: Qubad Talabani (Part 7)
Check other articles in the series...Investing in a conflict area is risky business, but there are resources in Kurdistan which will draw in Oil producing companies. Microfinance structures could also benefit the agricultural region. However, in order for a “boom” to be sustainable, there will need to be a significant investor confidence in security – particularly for the finance industry (which will also have to offer financing programs which conform to religious mandates, and there are plenty of those programs out there).
The trend will likely see multi-national corporations demonstrate interest in the oil industry (and China has also been demonstrating interest of late), followed by regional development.
SM: Outside investors are going to have security as one of their principle concerns. Right now, when people think of Iraq they do not think of stability. How do you convey the differences between the Kurdish region and the remainder of Iraq to those who are not familiar with the country? QT: To differentiate between the Kurdish region and the remainder of Iraq, I would draw attention to several facts.
First, the fact that on May 30, the KRG signed a security cooperation accord with the U.S.-led coalition, which stipulated the handover of coalition security responsibility to the KRG in the provinces of Dohuk, Irbil and Suleimani. The accord was signed by KRG Prime Minister Nechirvan Barzani, MNF-I North Major General Benjamin Mixon of the US Army, and MNF-I Northeast Major General Yoon Young-Bum of the Korean Army. The agreement marked the largest security handover by the U.S.-led coalition to Iraq in 2007.
Very few US forces were stationed in Kurdistan since operation Iraqi Freedom ended. The Kurdistan Region, has been secured, with a high degree of success I might add, by Kurdistan’s own defense forces.
A second fact is that there have been no U.S. or coalition force casualties in Kurdistan. There are many other aspects to point to as well, such as the altering of travel advisories reflecting northern Iraq as a safe region for travel by Austria, Germany, the UK, Japan, and other countries. There are two operational international airports in the region with over 100 flights a week coming into and leaving Kurdistan.
There is the construction of new universities, one being an American university scheduled to open in 2008. Add all that to what I already mentioned about the passing of the Kurdistan Regional Government Investment Law in 2006 and the recent launching of the U.S. -Iraq Business Dialogue and the Iraq Gateways Initiative by U.S. Under-Secretary of Commerce Frank Lavin.
There is a vibrancy and energy present in Iraqi Kurdistan that cannot be denied. Investors should be encouraged to take a look at the opportunity for themselves.
This segment is part 7 in a 9 part series Segment 8 →
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