The Kurdistan Regional Government (KRG) is undertaking a significant overhaul of its investment licensing process in a bid to attract more foreign direct investment (FDI) and foster economic growth.

In a meeting held in Erbil and chaired by Dr. Mohammad Shukri, Chairman of the KRG Investment Board, representatives from the International Finance Corporation (IFC), the Ministry of Agriculture, the Ministry of Municipalities, the Environmental Protection and Improvement Board, and other stakeholders discussed measures to simplify and expedite the investment process.

Cutting Bureaucratic Red Tape

Dr. Shukri highlighted the challenges of the current system, explaining that securing an investment license requires navigating around 300 steps, with timelines ranging from one to three years. Such delays, he acknowledged, can discourage potential investors.

“Our goal is to restructure and accelerate the licensing process by reducing bureaucratic hurdles and creating a more welcoming environment for investors, particularly Arabs and foreigners,” said Dr. Shukri.

To achieve this, the investment board has partnered with the IFC to enhance the regulatory framework. An advisory unit has also been established to provide comprehensive support to investors, ensuring they have the guidance and confidence needed to navigate the process.

Strong 2024 Investment Performance

In 2024, the Kurdistan Investment Board issued 179 investment licenses, amounting to $3.41 billion in investment. These projects covered 8,804 hectares of land and created over 12,000 jobs. The board now aims to surpass these figures by streamlining procedures and positioning the Kurdistan Region as an attractive destination for international capital.

A Vision for Growth

This initiative aligns with the KRG’s broader strategy to diversify its economy and reduce dependency on oil revenues. By making the Kurdistan Region more investor-friendly, the government hopes to stimulate sustainable economic development and boost employment opportunities for its citizens.

As the investment board embarks on this comprehensive reform, both local and international stakeholders are watching closely, anticipating an improved and efficient system that could set a new standard for the region.