- Hotels, restaurants, and land - three investment options for the typical Kurdish investor. A thriving economy of Kurdistan has been matched with an undeveloped banking system creating a run on investments that are in reality long-term cash deposits.
In early April 2012, President Barzani met with the US Chamber of Commerce after meeting with President Obama and Vice President Biden and encouraged American businesses and investors to move into Kurdistan as a new and high-potential market. As the Kurdish Regional Government continues to look outside for foreign direct investment, other Kurdish citizens are helping out the cause by building relationships with these same important contacts abroad in their personal private investments.

More and more Kurds are looking outside of Kurdistan to help diversify their portfolio with their new found wealth and freedom. Europe and the United States have become attractive destinations for business travel. I have personally seen an exponential growth in business and investment visas to the United States by Kurds in the last year alone.

Kurdistan is in the middle of rapid development like past oil-boom cities. An exciting time, but many are learning from investors within the Gulf States by diversifying their earnings into the West. Investors can now enter into the beaten down United States economic market and take advantage of bottom prices.

Kurdish investors have an edge with their cash in hand compared to the leveraged investors typically found within the United States. As they say in America, cash is king. Though these investments are lower yield compared to some local projects, there is usually less risk and more predictability which makes this option more appealing to conservative investors.

A number of non-immigrant and immigrant visas are now being issued by the US Embassy for purposes of business. Currently these visa applications are accepted in Baghdad and embassies outside Iraq, such as Jordan or Turkey. The US Consulate office in Erbil is expected to start accepting applications in fall 2012. This will undoubtedly increase the number of applicants making it more and more difficult and competitive for Kurds to apply. Both non-immigrant and immigrant business visas usually require the aid of experienced and legal professionals.

Investment by Kurdish nationals locally is doing very well. There is more than 100 times the number of millionaires in cities across Kurdistan than there were since 2003. But these wealthy Kurds are not ignoring the fact that there is saturation in Kurdish cities, with land prices skyrocketing and hotels and restaurants becoming plentiful. Even where there are promising investments, risks of the falling Iraqi dinar, inflation, legal obstacles and other bureaucratic red tape continue to be a challenge.

Nasir Pasha is an international business attorney of Top Floor Legal, Professional Corporation in California, United States and has provided legal services for Kurdish investors and visa travelers. Contact information and more can be found at his firm’s website at www.topfloorlegal.com. Kurdish and English communication is available.





AKnews