São Paulo – The next stop of the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, is Erbil, the capital of Iraqi Kurdistan. The region, located in northern Iraq, is considered a tourist area, with over 1,300 archaeological sites, museums, mountains and resorts. "It is a beautiful tourist region, full of mountains, open to investment in several sectors, mainly infrastructure and public works," said Alaby, who should travel to the region for the third time in October.
The objective of the trip is to participate in the 6th Erbil International Fair, to take place from October 18th to 21st. The event will include a Brazilian stand covering 18 square meters organized by the Brazilian embassy to Iraq with the support of the Arab Brazilian Chamber. Up to the moment, three companies are enrolled for export: Fiasini Móveis and Móveis Vila Rica, both in the furniture sector, and Fanem, a maker of medical and hospital equipment. This is the first time that the Itamaraty and Arab Brazilian Chamber participate in the event.
With a population of 4.7 million people, Kurdistan has three main cities: Erbil, with 1.7 million people, Suleimaniah, with 1.8 million, and Dohuk, with 1.17 million. In the past, most of the families in the region lived off animal raising, mainly sheep and goats, but, currently, with economic development, a large part works for the government, in the building industry or in trade.
According to figures disclosed on the site of the government of Kurdistan, with a young and growing population, composed 36% of children aged 0 to 14 and just 4% aged 63 years of age or over, the region needs investment. For this, in 2006, Kurdistan approved a law and the creation of an investment council to manage and promote foreign investment. The law, according to the site, is one of the most receptive to foreign investors in the Middle East.
The most attractive sectors are the transformation industry, electricity, agriculture, tourism, health, environment, science and technology, telecommunications, infrastructure and education.
According to Alaby, the fair in Erbil is an opportunity for diversification of Brazilian exports to Iraq and also for companies to learn about the needs of the country. “Iraq is currently a traditional buyer of beef, chicken and sugar [from Brazil],” said the secretary general.
According to Alaby, it is important to take companies from several different sectors to the fair. "Erbil is completely different from Baghdad, it is a safe place that companies can visit," he said. Alaby, who has already participated in two business events in Suleimaniah over the last two years, said that Kurdistan depends much on products coming from Iran and Turkey.
According to figures on the fair site, the government of Iraq has an investment plan of US$ 70 billion for several sectors. Funds to be turned to the construction of housing should reach US$ 25 billion, agriculture, US$ 17.8 billion, and transportation, US$ 8 billion. The event, which is multi-sectorial, attracts companies from several countries.
Autonomy
Kurdistan is an autonomous region in Iraq, bordering Syria, Iran and Turkey. The Iraqi constitution democratically recognises the government and parliament of the region. Over the last three years, Kurdistan attracted over US$ 12 billion in local and foreign investment in the non-oil sector, like agriculture, banking and housing, according to figures disclosed on the site of the regional government.
From August 2006 to this year, foreign companies invested around US$ 3 billion in Kurdistan, being the largest volume of foreign funds from Kuwait and Lebanon. Iraqi company investment totalled US$ 8.7 billion in recent years.
In the oil sector, Kurdistan currently produces 100,000 barrels of oil a day and, according to the minister of Natural Resources, Ashti Hawrami, speaking at a conference in London, in June, production may double to 200,000 barrels a day in 2011, in case agreements in the oil sector between Kurdistan and Baghdad come through.
According to the site, there are 1,200 foreign companies working in Kurdistan, among them bank Byblos, from Lebanon, National Real Estate, from Kuwait, Coca-Cola and Pepsi Cola and Rotana hotels, from Abu Dhabi, among others.
*Translated by Mark Ament