By Hewa Abdlukhaleq Ahmed
The Kurdistan Region’s economic development prospects and its impact on domestic stability are important issues related to the political future of the Kurdistan Region. The KRI has abundant natural resources, especially large oil and natural gas reserves estimated at more than 45 billion barrels of oil, despite a large amount of gas that has not yet been fully utilized. Following agreements with major U.S. companies in recent months, the regions’ total revenue is expected to reach $110 billion, raising the ceiling on energy projects that support economic growth and energy independence opportunities in the region.
At the economic level, the petroleum energy sector dominates other sources, accounting for about 80% of the region’s revenue, but efforts are still being made to expand and diversify the economy through a range of robust mechanisms and plans such as the development of the agricultural, industrial and tourism sectors.
The government has also established a special economic zone that will help create more jobs and promote industrial activity. Despite these rapid developments, the region’s economy is not free from a number of challenges that affect effective economic decision-making, perhaps the most prominent of which is related to the lack of financial support from the federal government and the delay in the payment of salaries of government employees, if not resolved quickly, poses problems for the regional government, and in the long run In fact, the disputes between Erbil and Baghdad are often obstacles to financing reconstruction and development projects and ensuring the financial stability necessary to promote political and social stability in the Kurdistan Region. Therefore, more efforts are needed to coordinate financial and administrative relations with Baghdad to ensure Continued stability.
Although these challenges exist, due to the strong security and stability situation in the Kurdistan Region, it has created a positive environment to attract foreign investment and can be considered as an effort by the Kurdistan Regional Government to maintain the balance of the economic situation, it is evident that this will be achieved through the continued use of natural resources as well as the strategic location of the Kurdistan Region The Middle East can play an active role in strengthening trade and regional relations that open up wider horizons for economic and political growth , which will ultimately have a positive impact on domestic stability.
In summary, the development of the Kurdistan Region’s economy depends on maintaining a balance between the exploitation of natural resources and the development of various sectors of the economy and strengthening financial and political relations with the federal government, as well as strengthening a legal and administrative framework to support the attraction of foreign investors because, the economic structure becomes stronger This is reflected in the local context.
The region’ s wealth in amulti- revenue sources is expected to increase significant in the coming years, especially after signing contracts with major global companies in 2025. It will be a strong support for energy independence and economic development.
In general, it can be said that the success of economic development in the Kurdistan Region depends on the effective management of resources, the development of the non-oil sector and the strengthening of financial and political cooperation with the federal government, which is an important factor in supporting the internal political and social stability of the region in the coming stages, especially in light of the rapid changes that are likely to occur after the withdrawal of US forces from Baghdad, especially at the same time, this may be an opportunity for the KRI to take advantage of these Possible changes.