KRG Launches Second Phase of Project Bloom

ERBIL (Kurdistan24) - The Kurdistan Regional Government's Media and Information Office, together with the Ministry of Labor and Social Affairs, announced on Sunday the official launch of the second phase of Project Bloom, known in Kurdish as Geshanewe, a program designed to support small and medium enterprises through easy loans of up to 150 million dinars, with the goal of reviving the local economy and creating jobs.

Kwestan Mohammed, Minister of Labor and Social Affairs of the Kurdistan Region, said Project Bloom is one of the KRG's important projects, run jointly between the Prime Minister's Office and the Ministry of Labor and Social Affairs.

The minister said the scale of financial support has been significantly expanded in this new phase. Loan amounts for domestic projects now range from 1 million dinars up to 150 million dinars per project, with 100 small and medium projects in the agriculture and industry sectors set to benefit.

Mohammed pointed to the achievements of the project's first phase with optimism, stating: "In the first phase, we financially supported 25 small and medium projects, and happily, by that measure, 24 projects were 100 percent successful, so now we step toward the second phase with much greater confidence."

According to the ministry, the main goals of Project Bloom in this new phase include reviving the agriculture and industry sectors in the Kurdistan Region, increasing domestic production and reaching a more advanced stage of development, and providing job opportunities for young people.

Officials said that as a fundamental and legal condition of the project, business owners must increase their number of workers and employees in exchange for receiving financial assistance.

Project Bloom is described as one of the strategic and important initiatives of the ninth cabinet of the Kurdistan Regional Government, aimed at diversifying revenue sources and reducing dependence on the public sector by fostering an environment suited to innovators and project owners across the region.

Project Bloom was first introduced on Sept. 25, 2023, by Prime Minister Masrour Barzani, in a ceremony attended by high-ranking KRG officials and foreign diplomats stationed in Erbil, along with Minister Mohammed.

Prime Minister Barzani said he was pleased to present the initiative, emphasizing its role in disbursing commercial loans to SMEs through private banking institutions.

Prime Minister Barzani underscored the importance of SMEs to the regional economy, noting that they account for approximately 50 percent of all economic transactions and workforce participation in the Kurdistan Region, a figure he said was supported by research data.

Since the formation of the KRG's Ninth Cabinet, officials said, there has been a sustained effort to support both the banking sector and SMEs as part of a broader push toward economic diversification.

Oversight of Project Bloom rests with the Ministry of Labor and Social Affairs. In its initial stage, the government allocated a budget of 2.5 US dollars, with eligible applicants able to secure loans of up to 150 million Iraqi dinars, or approximately 113 US dollars, to support their enterprises. Business owners can apply through a dedicated digital portal.

Prime Minister Barzani called the initiative historic, marking the first time the KRG has extended loans to business owners through partnerships between the government, entrepreneurs and private banks, allowing them to expand their operations on a more professional footing. He also thanked the Ministry of Labor and Social Affairs and the participating private banks for their role in bringing the project to fruition.