The Kurdistan Regional Government is planning to establish 16 industrial zones across the region and propose switching rental and installment payments for residential and commercial projects from US dollars to Iraqi dinars, according to Dr. Mohammed Shukri, head of the Kurdistan Region Investment Board.
Shukri said the proposal to use Iraqi dinars for financial transactions would be submitted to the Council of Ministers for approval. The move aims to protect citizens, whose salaries are paid in dinars, from the effects of fluctuations in the dollar exchange rate and ensure that investors share the financial burden.
He said the proposal could extend beyond investment projects to cover financial transactions, rents and installment payments between citizens and business owners across the Kurdistan Region.
16 industrial zones planned across the region
Shukri said the Ninth Cabinet, led by Prime Minister Masrour Barzani, is focused on using local raw materials to produce industrial goods rather than allowing them to go to waste.
The government is working to establish 16 industrial zones to promote industrial development and create a more balanced distribution of economic activity among the region’s governorates.
Plans include major cement plant projects in Zakho and Erbil, the development of steel rebar factories in Garmiyan and Sulaymaniyah, and food industry zones in Duhok, Halabja, Raparin, Soran, Akre and Bardarash.
Shukri also said official guidelines require at least 75 percent of the workforce in each project to be local residents. He cited a smart mobile phone factory in Erbil, where, according to him, 97 percent of employees are young people from the Kurdistan Region.
Despite ongoing economic challenges, investment activity has continued, Shukri said, adding that projects across the region have created more than 161,000 job opportunities.
He also reported that five major exhibitions had been organized over the previous two months, attracting more than 800 foreign companies.
In agriculture, Shukri said processing plants had received more than 250,000 tons of wheat from local farmers during the current year.
Housing safety inspections underway
Addressing concerns over the safety of residential projects, Shukri said a high-level ministerial committee had been formed on the prime minister’s orders to inspect projects across the Kurdistan Region.
He said many deficiencies in fire-suppression systems and other safety measures had been addressed. Companies that fail to meet safety requirements and protect residents would face strict legal measures, he added.