Kurdistan Region: A Strategic Partner in a Changing Middle East

Feb. 8, 2025

ERBIL (Kurdistan24) - In an interview with Kurdistan24 English, Adriaan IJsselstein, Consul General of the Kingdom of the Netherlands in Erbil, emphasized the Kurdistan Region’s strategic positioning and its potential to enhance regional connectivity. He highlighted the region’s ability to foster stability and economic growth while underscoring the importance of political stability within the Kurdistan Region and in its relations with Baghdad. Additionally, he detailed the Netherlands’ ongoing investments in agriculture and trade, stressing the need for a strong investment climate to attract Dutch businesses.

Kurdistan Region’s Role in Geopolitical Stability

When asked about the Kurdistan Region’s role in the rapidly changing geopolitical environment of the Middle East, IJsselstein acknowledged its unique strategic position and strong relationships with various regional actors. He noted that the Kurdistan Region has the potential to play a constructive role in fostering regional connectivity. However, he also stressed that an effective role in regional diplomacy requires political stability both within the Kurdistan Region and in its relations with Baghdad.

The Consul General’s remarks align with assessments from international policymakers who view the Kurdistan Region as a stabilizing force in Iraq and the broader region. His comments underscore the Netherlands’ interest in supporting stability, economic development, and institutional progress in the Kurdistan Region.

Strengthening Bilateral Ties

Consul General IJsselstein described the Netherlands' relationship with the Kurdistan Regional Government (KRG) as diverse and strong, with high-level political engagements playing a key role. He referenced recent meetings between Prime Minister Masrour Barzani and Dutch Prime Minister Dick Schoof, as well as the Dutch Minister of Defense’s visit to Erbil, as examples of deepening ties.

Beyond political engagement, the Consul General emphasized the strong people-to-people connections between the Netherlands and the Kurdistan Region, particularly in business, entrepreneurship, and governance. According to him, these human connections serve as the foundation of bilateral relations and are crucial in driving long-term cooperation.

Dutch Investments and Economic Collaboration

The Netherlands has been actively investing in the Kurdistan Region, particularly in agriculture. IJsselstein highlighted the Netherlands’ significant contribution to the development of the potato sub-sector, supporting farmers with seed potatoes and post-harvesting processing facilities. This initiative has created hundreds of jobs and increased farmers’ revenues in the Kurdistan Region.

Looking ahead, the Consul General sees potential for expanding similar projects in other agricultural sub-sectors, such as dairy, poultry, and vegetable production. He emphasized that public-private partnerships will be key to unlocking further economic opportunities.

Boosting Dutch Trade and Investment

The Netherlands is committed to enhancing trade and investment ties with the Kurdistan Region, and the Consul General outlined several strategies to achieve this. These include:

• Raising awareness among Dutch investors about the opportunities in the Kurdistan Region.
• Organizing trade missions and business-to-business (B2B) events.
• Providing market assessments to Dutch companies considering investments in the region.

While precise trade figures for the Kurdistan Region were unavailable, IJsselstein noted that a substantial portion of Dutch-Iraqi trade passes through the Kurdistan Region. In 2023, total trade between the Netherlands and Iraq amounted to €4.7 billion in imports and €1.3 billion in exports, and similar figures are expected for 2024.

To sustain this momentum, the Netherlands aims to further develop mechanisms to connect Dutch and Kurdish businesses. This includes the annual Dutch-Iraqi Kurdish business gathering, which remains a key event for fostering economic collaboration.

Conclusion

The interview with Consul General Adriaan IJsselstein reinforced the Netherlands’ commitment to deepening political, economic, and cultural ties with the Kurdistan Region. His insights highlighted both the opportunities and challenges in the region, particularly regarding geopolitical stability, economic growth, and investment climate. As the Kurdistan Region continues to navigate an evolving Middle East, the Netherlands stands as a reliable partner in fostering sustainable development and regional cooperation.

Full Transcript of the Interview:

Q: How has your experience been since arriving in Erbil, and what are your impressions of the city so far?

A: Let me start by saying how incredible my start in Erbil has been so far. I was lucky enough to already see many parts of Erbil and some of the beautiful landscape outside the city. I had the opportunity to taste the amazing food, but most of all I met so many inspiring people in my first couple of weeks. And in all my encounters, one element truly stood out for me: the great hospitality of the people of the Kurdistan Region of Iraq 

Q: How would you describe the current bilateral ties between Netherlands and the Kurdistan Regional Government (KRG), and what are your aspirations for enhancing this relationship in 2025?

A: Well, the relations between the Netherlands and the Kurdistan Region of Iraq are very diverse and strong. Obviously, there are political contacts, including at the highest level. For example: this January, we had a successful meeting between prime minister Masrour Barzani and Dutch prime minister Schoof. And one month ago, our minister of Defense visited Erbil. But besides that, the people-to-people ties are very strong. There are many people in the Kurdistan Region with strong links to the Netherlands: business owners and entrepreneurs, but also people in government. And in the end, the links between people are the foundation of our relations. 

Q: How would you characterize the Kurdistan Region's role in the rapidly changing geopolitical landscape of the Middle East? Do you agree with the assertion by some foreign officials that the Kurdistan Region is a stabilizing force for Iraq and the wider region? 

A: I believe the Kurdistan Region is strategically well-placed and maintains good relations with different actors in the region. The Kurdistan Region has the potential to play a positive role in enhancing the regional connections. At the same time, an effective role also requires political stability at home. Both within the Kurdistan Region and in the relations between Bagdad and Erbil. 

Q: Can you highlight some significant investments or projects of the Netherlands in the Kurdistan Region that you find particularly noteworthy?

A: A notable example of the Netherlands investment in the Kurdistan Region is its contribution to the development of the potato sub-sector, by supplying seed potatoes but also introducing the post-harvesting and processing facilities. The Netherlands has played an important role in developing the sector’s value chain (from seed potato to chips or fries) through promoting public private partnership. This has created hundreds of jobs in the Kurdistan Region, and increased potato farmers revenue. 

I strongly believe this approach can be replicated in other sub-sectors such as dairy production, poultry, or the production, packaging and cooling for vegetables and fruits.

Q: What plans do you have to boost Dutch investments in Kurdistan, particularly in the agriculture sector where the Netherlands has demonstrated leadership?

A: I think one of our key tasks is to show Dutch companies what the investment opportunities in the Kurdistan Region are. To show them the great potential of this region, and the willingness of people in this region to invest together and do business. We will do so in many ways: digital outreach through short movies, direct discussions with companies in the Netherlands, and sharing market assessments or concrete opportunities with Dutch companies such as trade missions, B2B events, you name it. 

Obviously, to attract investors and create sustainable growth, you need to maintain a good investment climate. That requires a healthy financial sector, security, political stability, and a strong rule of law. I believe the KRG is well aware that these important elements always require attention. 

Q: Could you please provide details on the size of trade exchange between the Netherlands and Kurdistan Region for 2024?

A: Looking at the numbers for 2023 for the whole of Iraq, the Netherlands imported € 4.7 billion from Iraq and exported € 1.3 to Iraq. For 2024, we expect the trade volume to be more or less the same.  We do not have specific figures for the trade between the Netherlands and the Kurdistan Region of Iraq, but it is well known that a lot of trade between the Netherlands and Iraq is through the Kurdistan Region. 

Q: What strategies are in place to expand the trade exchange between the Netherlands and the Kurdistan Region in 2025?

A: As mentioned before, one of our key tasks is to raise awareness among Dutch investors and companies. Strategically, we work on enabling the environment between Dutch and Iraqi Kurdish businessmen, through various ways. 

We have our daily work of communicating with both sides to inform them of the opportunities, encourage them work together, and solve their issues. Every year, we have a Dutch trade mission to the Kurdistan Region and we sometimes facilitate Iraqi Kurdistan businessmen in the Netherlands. 

Traditionally, we have had an annual gathering for the Dutch and Iraqi Kurdish businessmen. We hope this to continue this year as well, but the mechanism might change. The strategy for this year is still work in progress, but if you want to learn the latest, do follow us on social media!