Private Sector Emerges as Key Job Engine in Kurdistan Region, Officials Say

ERBIL (Kurdistan24) – The private sector in the Kurdistan Region has generated 161,000 direct employment opportunities, a figure that officials cite as evidence of a successful pivot toward a government-supported, private-sector-led economic model.

Dr. Mohammed Shukri, the Chairman of the Kurdistan Board of Investment, announced the data on Monday during a press conference in Erbil, outlining a year defined by aggressive international engagement and the groundbreaking of major industrial infrastructure projects.

Speaking on Monday, Shukri detailed the administration’s broader economic strategy, which prioritizes the transformation of the private sector into a "true partner" of the government. This policy approach is aimed at fostering sustainable investment and driving the overall economic development of the Region.

According to Shukri, the KRG has moved to operationalize this partnership by implementing significant facilitations regarding the granting of licenses and the general operation of private enterprises, measures designed to reduce bureaucratic friction and accelerate capital deployment.

"So far, the private sector has created 161,000 job opportunities for the people of Kurdistan in a direct manner, and thousands of other opportunities are available indirectly," Shukri told reporters.

The emphasis on direct job creation underscores the government's effort to quantify the tangible benefits of its pro-investment regulatory framework, which seeks to absorb the region’s workforce into non-governmental roles.

International Outreach and "Kurdistan House"

A significant portion of the Board of Investment’s activities in 2025 focused on integrating the Kurdistan Region into the global economic conversation. Shukri highlighted the Board’s "active and effective" participation in the World Economic Forum in Davos, Switzerland. 

A centerpiece of this diplomatic and economic outreach was the establishment of the "Kurdistan House" at the forum, a venue dedicated to facilitating high-level dialogue with global investors and policymakers.

Beyond the high-altitude networking of Davos, the Board of Investment pursued specific bilateral agreements aimed at technology transfer and sectoral development.

Shukri noted that, in cooperation with the Region's Office of Foreign Relations, the Board successfully signed contracts for several agricultural projects with Dutch producers. These agreements are expected to bring advanced European agricultural techniques to the Kurdistan Region, boosting productivity in a sector vital for food security.

In the tourism and infrastructure sector, Shukri announced the signing of a contract with Italian companies for a major redevelopment project. This initiative focuses on the reorganization and development of Gali Ali Bag, a prominent natural landmark, and includes the construction of a cable car system.

Shukri confirmed that these projects are not merely on paper but are "currently in the implementation phase," signaling a shift from planning to execution in the region's tourism strategy.

Global Exhibitions and Trade Delegations

The year 2025 also marked a series of "firsts" for the region's agricultural exporters.

Shukri reported that the Board of Investment participated for the first time in the largest global agricultural exhibition in Paris. This platform allowed Kurdistan’s agricultural companies to display their local products to a European audience, a critical step in diversifying the region's export markets.

Additionally, the Board maintained an active presence at the agricultural exhibition in Istanbul, reinforcing trade ties with neighboring economies.

The investment drive extended to the Gulf region, a key source of capital and commercial partnership.

Shukri highlighted the Board's "active and effective" participation in the Investment Forum in Abu Dhabi and the Gulf Exhibition in Dubai.

These engagements were part of a reciprocal dynamic; the Chairman of the Kurdistan Board of Investment emphasized that throughout the year, the Kurdistan Region received "hundreds of foreign trade and global economic delegations" seeking to benefit from production opportunities within the region.

Industrial and Strategic Projects

Domestically, the Board of Investment oversaw the commencement of several large-scale industrial projects aimed at reducing reliance on imports and bolstering local manufacturing capacity.

Shukri pointed to the laying of the foundation stone for what is described as the "largest brick factory in Iraq." This facility represents a major expansion in the production of essential building materials.

In parallel, the region is advancing its heavy industry capabilities with the construction of an iron roll manufacturing factory.

Shukri stated that this facility is decided to go into operation in a "short period." The factory’s output is projected to meet domestic demand while also generating surplus inventory to be exported abroad, aligning with the government’s goal of creating an export-oriented industrial base.

Further cementing the focus on construction self-sufficiency, Shukri announced the establishment of the "largest factory for manufacturing construction materials." He characterized this project as "very important and necessary," reflecting the ongoing demand for infrastructure development materials within the region and federal Iraq.

Focus on Food Security

The press conference also addressed the strategic priority of food security.

Shukri cited the "Megal" project as a prime example of the Board’s work in this sector. The project, which focuses on providing meat and dairy products, was described as an "important strategic project."

Beyond its contribution to the food supply chain, the Megal project has had an immediate impact on the labor market, having already provided job opportunities for 500 people.

Shukri’s remarks on Monday portrayed an investment landscape characterized by a dual focus: expanding the region’s diplomatic economic footprint through high-profile international engagements in Davos, Paris, and the Gulf, while simultaneously driving the construction of foundational industrial and agricultural infrastructure at home.

The reported creation of 161,000 jobs serves as the primary metric of success for these initiatives as the KRG continues to position the private sector as the engine of Kurdistan’s economic future.