The Kurdistan Region of Iraq presents an investment story distinct from the rest of the wider region. Over the last two decades, it has pursued a deliberate path of institutional development, economic openness, and private-sector growth. Today, the Kurdistan Region has moved beyond post-conflict recovery and is positioning itself as a secure destination for capital and an emerging center for regional trade.

To advance this objective, the Kurdistan Regional Government (KRG) established the Board of Investment in 2006. The Board was mandated to lead post-conflict reconstruction, rebuild critical infrastructure, and create a robust legal framework that both encourages and protects investment. Under the leadership of KRG Prime Minister Masrour Barzani and the Ninth Cabinet of the KRG, this foundation has been strengthened through reforms aimed at building a diversified economy centered on industry, agriculture, and tourism.

Sustained growth amid global economic disruption

The past five years have tested economies worldwide. Despite global shocks and regional uncertainty, the investment climate in the Kurdistan Region has remained strong, maintaining steady growth momentum. Since 2020, the Kurdistan Board of Investment has continued to license hundreds of new projects, reflecting sustained investor confidence.

Importantly, the composition of investment has evolved. Capital is increasingly directed toward productive sectors such as manufacturing, food processing, and tourism, rather than being concentrated primarily in real estate. 

According to official statistics, a total of 575 investment projects were licensed between 2020 and 2024, representing capital commitments of approximately $20.5 billion. Preliminary data for 2025 indicates continued growth in both project numbers and sectoral diversity. 

Strengthening the foreign direct investment framework

Foreign investors have different needs than local companies. They require clear information, a firm legal framework, and a partner to guide them. Recognizing this, the Kurdistan Board of Investment launched a dedicated Foreign Direct Investment (FDI) Unit in 2022 to serve as a single point of contact for international companies.

Alongside this initiative, the “Invest Kurdistan” platform was introduced to enhance transparency and service delivery. Through its dedicated website and advisory services, the platform provides investors with accurate data, regulatory guidance, and direct access to government counterparts and local partners. The FDI Unit acts as a bridge between international investors and public institutions, ensuring efficient project facilitation from initial inquiry through implementation.

Why investors choose Kurdistan

Investor interest in the Kurdistan Region is underpinned by a combination of security, political stability, and a competitive legal framework. The region offers a level of safety and predictability that remains rare in the broader region.

Investment Law No. 4 of 2006 guarantees national treatment for foreign investors and provides a comprehensive package of incentives. These include full foreign ownership of projects, a 10-year corporate tax exemption from the commencement of production, and a five-year exemption from customs duties on imported machinery and raw materials. Crucially, investors are guaranteed the unrestricted repatriation of capital and profits.

This legal framework has been instrumental in building long-term investor confidence and supporting sustained private-sector growth.

Unlocking high-value investment opportunities

Since 2006, the Kurdistan Board of Investment has licensed billions of dollars in projects. In the early years, the focus was heavily on developing housing to meet the needs of our growing population, but the current strategy prioritizes diversification into high-value, job-creating sectors that reduce dependence on imports.

Four sectors have been identified as strategic priorities for foreign direct investment: agrifood, manufacturing, tourism, and renewable energy.

In the agrifood sector, the region offers strong fundamentals, including fertile land, abundant water resources, and a large domestic market that currently imports more than $2 billion in food products annually. Investment opportunities are particularly attractive in food processing, value-added fruit and vegetable production, and large-scale meat and dairy processing.

The manufacturing sector is experiencing rising demand, driven by a region-wide expansion of infrastructure. Opportunities exist for the local production of construction materials such as steel products, aluminum, and finishing materials, providing competitive alternatives to imports and strengthening domestic supply chains.

In tourism, the KRG is implementing a comprehensive master plan to develop resorts and hospitality infrastructure across the region’s mountain landscapes and natural attractions. Investors benefit from access to prime land, infrastructure support, and a growing tourism market that attracts millions of visitors annually.

Renewable energy represents a forward-looking pillar of the region’s economic strategy. With more than 300 sunny days per year, the Kurdistan Region offers ideal conditions for solar power generation, supporting both energy diversification and long-term sustainability goals.

A clear vision for the future

Looking ahead, the Board’s vision is clear. We want to bring more foreign companies to the region to share their technology and expertise. Central to this vision is the development of special economic zones and industrial areas that offer ready infrastructure, streamlined procedures, and integrated services to accelerate project implementation.

The Kurdistan Region is open for business. We have the resources, the laws, and the will to support your venture. We invite you to visit us, see the stability for yourself, and explore the opportunities in this growing market.