Erbil Chamber of Commerce, a Bridge Between Local and Foreign Firms

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 He said one of the biggest challenges the chamber is currently facing is with outdated legislation from 20 or 30 years ago.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.”