Prime Minister Barzani Calls for Local Consortiums to Lead Strategic Economic Projects
Prime Minister Masrour Barzani urged local investors to form powerful business consortiums capable of executing major industrial and infrastructure projects, as the Kurdistan Regional Government pushes to expand domestic manufacturing and reduce reliance on imports and oil revenues.
ERBIL (Kurdistan24) - Kurdistan Region Prime Minister Masrour Barzani has called on local investors to increase their participation in large-scale economic projects, urging domestic business leaders to form collaborative groups to execute strategic government initiatives.
The request was made during recent meetings aimed at bolstering the region's industrial capacity and reducing reliance on foreign imports.
Mohammed Shukri, the Chairman of the Kurdistan Board of Investment, detailed the Prime Minister's appeal in remarks provided to Kurdistan24 on Sunday.
According to the KRG official, the government is actively seeking to leverage local capital to build large factories across various sectors.
The focus on domestic investment highlights an ongoing effort by the regional administration to diversify the economy and build a resilient, locally sustained industrial base amid broader regional economic fluctuations.
The current economic environment centers on the KRG's push to balance foreign capital with robust domestic enterprise.
While international investors continue to enter the market, local investors represent the backbone of the region's ongoing development.
According to the Investment Board, integrating these local business leaders into large-scale government projects is critical for creating sustainable employment, reducing the outflow of capital, and establishing the infrastructure necessary for long-term economic diversification away from traditional hydrocarbon dependency.
Prime Minister Appeals to Investors
During his meetings over the past few days, the Prime Minister emphasized the government's continued support for the private sector while laying out expectations for its growth.
According to the statement from Mohammed Shukri, Prime Minister Barzani specifically requested that local investors consolidate their resources.
"The Prime Minister... requested them to form strong groups among themselves to execute work on the government's large projects across all sectors, particularly large factories," Shukri told Kurdistan24.
The strategy behind this request is to pool domestic financial and technical capabilities, enabling local consortiums to undertake complex industrial projects that might otherwise require heavy foreign intervention.
Investment and Diversification
The economic environment in the Kurdistan Region currently leans heavily on the activities of domestic businesses.
According to the Chairman of the Investment Board, local participants drive the majority of investment activity in the region.
"The work and products of local investors continue; nearly 83% of investors are local, and we continue to support the investors," Shukri stated.
The KRG has actively facilitated this growth through administrative measures.
The report said that from mid-2019 through the first quarter of the current year, the Investment Board granted 754 investment licenses, representing a total capital commitment of $22 billion from both local and foreign investors.
Officials noted that the relative stability of the Kurdistan Region and the favorable terms provided by the Investment Law have combined to create an attractive climate for capital deployment.
Private Sector and Growth
While the Prime Minister's focus remains on empowering local consortiums, foreign direct investment continues to play a significant role in the region's modernization efforts.
According to the Investment Board, Chinese investors have secured a substantial portion of recent foreign capital commitments, investing more than four billion dollars in various initiatives.
Shukri noted that final agreements have been reached with Chinese entities to establish three large factories in Erbil dedicated to production and automotive parts assembly.
The report said these projects are expected to generate significant job opportunities and supply a large portion of the regional market's industrial needs.
Furthermore, Pishtivan Hama Saeed, Director General of Industrial Zones in the Region, told Kurdistan24 that Chinese investors are in the detailed study phase for an advanced electric vehicle production facility in Erbil.
Saeed anticipated that these specific industrial units could begin their activities within the next six months.
Focus on Economic Development
The broad reception by both domestic and foreign investors is attributed to the strategic facilitations embedded within the region's regulatory framework.
According to the Director General of Industrial Zones, the business environment supported by the Kurdistan Region's Investment Law has been a primary catalyst for growth.
The official pointed out that currently, 54 large-scale investment projects, valued at approximately $11 billion, are under active implementation across the region.
The Prime Minister's request to local investors indicates a clear policy direction: the government aims to ensure that domestic businesses capture a significant share of this ongoing industrial expansion.
By encouraging the formation of strong local investment groups, the KRG is attempting to build domestic industrial champions capable of executing major manufacturing and infrastructure projects independently.