Ayal Frank, the founder of the US-Kurdistan Business Council, explains that the aim of the USKBC is to promote opportunities in Kurdistan for American companies. He says that the USKBC, which began in 2012, tries to help American firms navigate and understand the business landscape in Kurdistan. Here is an edited transcript of his interview with Rudaw:
Rudaw: What is it that USKBC is trying to achieve?
Ayal Frank: The goal of the US-Kurdistan Business Council is to strengthen, increase and further develop US business opportunities and investments in the Kurdistan Region. Also, to provide the US business community with assistance in managing and succeeding in their work and making certain that the investment they put in the region and the return on that investment meets their goals. We do a lot of things. We assist companies when they require assistance, facilitate dialogue for the companies with KRG and with private businesses in Kurdistan. We try to identify opportunities for the US business community in Kurdistan and we serve as a resource to the US business community as it enters and establishes itself in Kurdistan.
Rudaw: Which types of opportunities are available for US companies in Kurdistan?
Ayal Frank: There are a lot of opportunities. I mean, the market is competitive, but that is why USKBC exists. As you know, there is interest in the business marketplace in Kurdistan from all over the world, so the American companies have to compete. They are not guaranteed agreements and contracts because they are American, while I think there are many in Kurdistan who would like to see more American companies and certainly value the standards and capacity that American companies bring to the table. US companies, certainly those newer companies, require organizations like USKBC to help them navigate the market place.
Rudaw: What makes Kurdistan attractive to foreign commerce and investment?
Ayal Frank: Kurdistan is in the heart of the Middle East, it’s rather stable and secure, the people in Kurdistan like the West, and they believe in America. That is true for everyone, from the president of Kurdistan all the way down through society. The level of comfort that Kurds in general show for Americans and for US business lends itself to it being an attractive market to US businesses. What makes Kurdistan attractive is more liberal investment laws, rules, regulations and business models as it pertains to exploration and development of natural resources. The types of agreements that KRG signs with international oil companies are Western-leaning, making the Kurdistan Region as attractive as it is, a place of business in that sector.
Rudaw: What steps has the council taken to attract US businesses to Kurdistan?
Ayal Frank: We have done a lot. The USKBC has organized the largest-ever US trade mission to Kurdistan. It was 25 companies and a 50-person delegation. We have hosted here in Washington top Kurdistan Regional Government officials from President Barzani and others, prime minsters, senior advisors and ministers to meet with the US business community, so the US business community can hear directly from the government and its top officials, to learn more about Kurdistan. So there is an educational component to it, not just from the man on the street but from the government. We have arranged for USKBC members to meet KRG officials as well as US government officials there to here -- from those who are on the ground -- and get the US government perspective about doing business in Kurdistan. As part of this mission we organized this conference in Erbil in October 2012, where we had American and Kurdish companies come out and hear from experts about how to do business in Kurdistan. There was a US consulate representative speaking about how to do business in Kurdistan. There were KRG officials and American companies who are already operating in Kurdistan, saying this is what we recommend and suggest you do in order to successfully do business in Kurdistan. So it was a resource to companies going over to learn from experts in and out of government how to do business there. Also USKBC hosted 10 congressional staffers who were in Erbil, Kurdistan in late April 2012. During that visit I made a point and thought it was important that congressional staffers meet with American companies doing business there in order to learn and see for themselves how US investment is at work in Kurdistan.
Rudaw: How do you describe the security situation in Kurdistan to your potential clients who are interested in investing in the region?
Ayal Frank: I describe the security situation in Kurdistan as very good. Sometimes there are challenges, but those challenges are anomalies and they are infrequent. The Kurdistan Region is a safe place to do business and encourages American people and businesses to do business there. Based on my experience, on what I have seen and what I have done, the region continues to develop in tremendous ways. The opportunity is great and I see no reason today to say that security challenges of any kind are hinderers to development and business opportunity there.
Rudaw: Are there any obstacles that US businesses may face in Kurdistan?
Ayal Frank: There are no red flags per say, but the obstacle I face, to be honest with you, is Kurdistan sometimes being lumped with the rest of Iraq. There is a perception sometimes in certain circles of the US business community that because the Kurdistan Region is in Iraq and since Iraq faces certain challenges people are apprehensive about even going to Erbil because its in the boundaries of Iraq. One of the goals and efforts of USKBC is to explain to US businesses that Kurdistan, while in Iraq, offers business and investment opportunities in a safe and secure area of the country.
Rudaw: Do you only encourage American businesses into Kurdistan or do you also try to bring potential Kurdish investors into the US?
Ayal Frank: USKBC support for Kurdistan-based companies wanting to do business in the US has been less than I would’ve hoped. We have Kurdistan-based companies that are members of USKBC, so its not just American companies who can join USKBC, and we hope more will join. As the USKBC becomes stronger, hopefully we will soon be opening offices in Kurdistan and will have representatives there.
Rudaw: Are there any specific areas in which the KRG would like to see American investment?
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