Printer-friendly VersionBy Aiyob Mawloodi
Major sectors of Kurdistan Region will be the focus of a new agreement that will most likely carry political as well as business benefits.
Kurdistan Regional Government's (KRG) Minister of Trade, Mohammed Ra'uf Mohammed, and Stephen F. DeAngelis, president and CEO of Enterra Solutions, who was also present on behalf of Paul A. Brinkley, Deputy Under-Secretary of Defense for Business Transformation, signed an agreement on Wednesday, January 16, to establish the Kurdistan Business Center (KBC) in Kurdistan Region's capital city of Erbil.
The agreement was signed during a joint press conference held by the two parties at Erbil International Hotel.
The contract is to establish a business center in Erbil through which giant international investors are to be attracted to the region. According to the contract, Enterra is to target six major sectors in the region: agriculture, energy, telecommunications, banking and insurance, health, and education.
According to DeAngelis, they have already discussed the issue with the World Bank and OPEC, and have asked for their collaboration in facilitating investment in Kurdistan Region.
DeAngelis said that both had very positive initial reactions to their request.
Minister Mohammed said the agreement will have more than just business benefits; it will have political benefits as well.
"They have promised to bring giant companies with their capital and equipment," said Mohammed in a speech to reporters at the press conference, prior to signing the agreement. "I would like to thank Enterra because it has brought its staff to Iraq and implemented several projects that are in the benefit of the Iraqis eventually."
The Trade Minister expressed his optimism at the company's success in realizing its promises since, according to him, the company enjoys the U.S. government's support, which established a good reputation for the company, as well as the considerable trust it has among American and European companies.
The company is planning to implement some first-priority projects in Kurdistan Region as the beginning of their activities.
One of the most important projects Enterra has promised to implement, according to Mohammed, is to reactivate an efficient banking system and insurance for companies, which is a vital factor in attracting business people and investors to the region.
Lack of a promising banking and insurance system in the region and in the country as a whole has been a major drawback for the economy and forced many foreign investors to retract from bringing their capital to the region.
DeAngelis said it is very difficult to bring companies without having a banking system.
"We are working very hard to establish a banking system in Kurdistan," he said.
DeAngelis said KBC will have a branch in Washington, D.C., and will have cooperation with the Capitol City's Business Center. He also added that they are looking forward to having other branches of the KBC, including one in Europe, one in Asia, and elsewhere in the world.
The representative of Enterra said one obstacle is that not all investors understand that Kurdistan is different from other parts of Iraq and that it enjoys good security and stability and is open to foreign investors. But he promised to try to convince American and European investors to come and open businesses in the region.
Also, a rebuilding delegation from the U.S. Ministry of Defense, including a number of American investors, visited Kurdistan Region. They brought with them a number of experts in the fields of banking, insurance, agriculture, and industry to learn about the current economic situation of the region. The delegation aims to invest in the region and rebuild factories that ceased operations, such as the Hareer Tomato Paste Factory, and they seek to build new factories, like an advanced marble production factory.
The delegation visited the KRG Ministry of Trade on Sunday, January 20. During their meeting with Minister Mohammed, they said that they are thinking of ways to solve the banking and insurance problems of the region and Iraq.