ERBIL, Kurdistan Region - To accommodate a growing economy and more than 2,600 foreign companies in the Kurdistan Region, the Erbil Chamber of Commerce is building new facilities in the outskirts of town, says Soran Aziz, vice president of the chamber.
“Our chamber of commerce has expanded in the last years,” he says. “We have a piece of land on the outskirts of the city, and we’re in the process of making it a business center. This project is planned to hold business gatherings and we have already built a social and cultural center.”
Aziz says the new facility, expected to be complete by the end of this year, will be a “center of communication” and a bridge between local and foreign businesses. He says that unlike the Investment Board, the chamber of commerce is an independent body, but still maintains cooperation to smoothen the work of all companies.
“There is vital cooperation and coordination between the investment board and other government agencies, such as the ministry of trade and industry,” he says. “The registration of companies goes through a two-step process between the chamber and the investment board.”
According to Aziz, there is a clear competition between local and foreign businesses in Kurdistan, but that the chamber needs both sides in order to function.
“The main people we depend on are local businessmen, because they have enough qualifications and experience. But some technical knowhow, or awareness, we don’t have enough of that, and foreign investors have more than we have,” he explains.
Aziz says that among the duties of the chamber is to connect Kurdish businessmen with the outside world and assist them when in trouble.
“We ask some businessmen to join the delegations abroad and if Kurdish businessmen face a problem outside Kurdistan, we have signed many memorandums of understanding with chambers of commerce all over the world. We go to these chambers to help these businessmen solve their problems, whether they’re financial or some other problem,” he says.
The Kurdistan Region has fared well so far in opening up to the outside world. But Aziz points out that old laws still need to be amended in order to match today’s business reality. He said one of the biggest challenges the chamber is currently facing is with outdated legislation from 20 or 30 years ago.
“They have taken them already to parliament to be adjusted, to meet the prevailing business situation going on in Kurdistan, especially that business activity in Kurdistan goes through the free market. The legislation needs to be updated to be parallel with the current business situation,” he said.
Companies from Arab countries such as Lebanon, Kuwait, the United Arab Emirates and Egypt are involved in the Kurdistan market, particularly in the oil and gas sectors, says Aziz. But he explains that Turkish companies beat everyone else on investment.
“To differentiate why Turkey comes first in investment, it is our neighbor, we share borders with Turkey,” says Aziz. “They have good quality products and they were the first to enter the Kurdistan market. Turkey is also the gateway to Europe from Kurdistan.”
Last year, officials from the Iranian consulate in Erbil complained that Iranian companies are not enjoying the same investment privileges in Kurdistan as other foreign companies. But Aziz says that the fault may lie with Iranian companies themselves which cannot compete with others in terms of quality.
“In the competition between one company and another, the output of Iranian companies is not as good as others, that’s why they (local businessmen) avoided some of them,” says Aziz. “But in spite of this point, Iranian companies are number two for commercial activity in Kurdistan.”
Aziz says that the chamber of commerce in Erbil is often a steppingstone for foreign companies interested in working in Kurdistan.
“We encourage all foreign companies who wish to work in Kurdistan by inviting them here,” he explains. “Coming here, they begin at the chamber of commerce and we give them the right guidance. We invite them to visit and they become acquainted with the general business activity here. From there, they plan to establish a local branch of their company.”
Comments
3 1 Bakir Lashkari | yesterday at 03:06
The last six years I have been working with the Kurdistan Business Region communities and its the Chamber of Commerce in the cities of Arbil, Suli and Duhok extensively. However it is very ambigius to hear from the Arbil Chamber of Commerce Mr Aziz that they are primarerly working with the Turkish companies, that have best qualified and best qualified, secondly the other neighbouring country Iran! It seems that the mentality of the Chamber of Commerce as well as some of the local companies are still 20 to 30 years behind if you compare with real the Foreign companies in the west! I am really flabbergausterd they KRG commercial activities are mainly concentrating on the neighbouring countries, which they generally speaking also depending on the outside western technologiesector and qualities! Why is the Kurdistan companies and the business institutions are playing the second violen, while Kurdistan has the best access to the west, like flying everyday and are in the position to make the best deals? I have my great doubt about this narrow minded idea's, mentalities and non qualified standard of doing first class business. We do all know that the quality of the Turkish and Iranian producten and services are very poor, not sustainable and very cheap. We do all know that Cheap is Expensive! Kurdistan is now a rich emeriging market, promising alot of developments and exapnding the wide range of business possibilities, thanks to the natural resources. If we in Kurdistan wants to build up a State of the national and International importancy, we do need to diversify the business and long term plan to a broader vision and mission, which helps Kurdistan to part of the World economy, as it has been indicated that the Natural Resources of Kurdistan will be doubled every year and for the coming 50 years, it has the Oil reserve, as well as Kurdistan could be in the top of between 5 to 10 number of countries in the World which has the best Natural resources for the coming 50 years! On the other hand we do realize that Kurdistan is depending on the import of most of products coming from the abraod and mainly again and again from the neighbouring countries, for example the import of vegtables and fruits reached to the highest level between 68% to 75% in comparison with the local products and productions! The Kurdish scoeciety needs a masterplan for the coming 5 to 25 years from now, changing from the consuming to the production nation. If you the plan is to make Kurdistan, a second Dubai, I will assure you that, most of the people of Kurdistan would not work, the Foreign labours from India, srilanka and other asian countries will take a great deal of labour shortages in Kurdistan! This is a very bad strategy which effects the Health, Education and Economoy of Kurdistan dramaticly as well as the stagnation of Economic growth, as it is depending on the outside labour offers! It is the most important issue now to educate the young people in Kurdistan for technical, hand craft and factory oriented labours, which means that the education should be in line what is needed within the society for the upcoming 10 to 50 years from now, rather than having a diploma which has no value for the labour market! I suggest that all these issues and plans should be taken by the social partners ( employers 'and workers' organizations as well as the Government) into a consideration and set up a taskforce for discussions, negotiating, planning and outlined agreement how to deal with the labour market. In this respect, the Chamber of commerce are primarerly meant to register the companies and facilitating the local and Foreign regsisterd companies and not to be engaged and decide to which direction the nationa and international interest of Kurdistan is to be going to ! It is Nice that some of the board memebers of the Chamber of Commerce have its own business activities and prioriteit, but it should not be mixed up with the inetersts of the society and iTS majority of Kurdistan labours and employers. I strongly disadvice the KRG and the social partners, to keep an eye on the Chamber of Commerces in Kurdsiat, as most of Board memebers have its own business agenda's, inetersts and prefered countries! The bridge for the the Chamber of Commerce, to my view is too far to be able to build up a solid and meangingfull of mutual business interests between the local and Foreign firms. This is due to the fact that most of the Board Memebrs do not represent the Total picture of Kurdistan, not qualified and have no International skills, knowledge and business experiences except with the surrounding cheap products and low profile countries. Foregive for saying the Truth, most of them does not speak a word of Foreign languages, that Why the role of the Business diaspora and its business communities and business clubs should deplyed and engaged in the masterplan of the KRG.and take part of the business development taskforce immediately !
Report
0 0 h.bextyar | 15 hours ago
Kak Lashkari, could you proofread your comments, prior to posting them. I'm sure that your points will be much more effective. Thank you sir!
