In a report on Iraq’s investment climate released Friday, the U.S. State Department said that the Kurdistan Region continues to seek U.S. investment, is a place where U.S. brands remain popular, and has fewer security risks compared to federal Iraq.
The report also noted that the Kurdistan Regional Government (KRG) has completed the construction of a gas pipeline linking Erbil and Duhok designed to deliver larger gas volumes to a major power plant in Duhok while supplying industries along the route between the two governorates.
It added that this pipeline, together with possible upgrades to gas infrastructure between Sulaymaniyah and Erbil, could help attract further foreign investment in the Kurdistan Region’s gas sector.
The U.S. State Department report added that the Kurdistan Region’s natural gas reserves – estimated at 25 trillion standard cubic feet – offer significant investment potential, but stressed that clarity on the legal framework is needed following the Iraqi Federal Supreme Court’s 2022 ruling that declared the Kurdistan Region’s 2007 Oil and Gas Law unconstitutional and clarified that oil exports fall under federal government control.
The report also mentions that companies have reported improvements in the initial registration process for companies, “among which the KRG reportedly plans to reduce company registration fees from current costs of $3,000 to $6,000.”
Read More: KRG Eases Business Registration Process: Report
In May 2022, the KRG announced that registering a business name would take 24 hours, and the fee was reduced by 90%. Also, business registration fees were reduced by 60%.
A report by start-up incubator Five One Labs in July noted that the KRG has made it easier to start businesses in the Kurdistan Region.
Read More: AmCham Hosts U.S. Companies to Expand Partnerships in Kurdistan
Earlier this month, the KRG welcomed a delegation from the U.S. Chamber of Commerce, led by Steve Lutes, Executive Director of Middle East Affairs, and including representatives of 30 U.S. companies – a sign of U.S. companies’ commercial interest in the Kurdistan Region.
