Joint summit to address Kurdish-Turkish business ties, trade, investments

ERBIL, Kurdistan Region— A joint economic summit will be held in the near future to help boost business collaboration between Turkish and Kurdish financial sectors including private corporations, a Kurdish official told Rudaw Sunday. 

The summit will address improving economic ties between Turkish and Kurdish private and state-run corporations in a move to further accelerate cross border trade and investments between the two countries. 

Head of the Kurdistan Regional Government’s (KRG) Foreign Relations Office said the summit was decided after the top meetings between Kurdish officials and the visiting Turkish Prime Minister Binali Yidirim on Sunday.

“The Turkish government wants to develop its relations with the Kurdistan Region and that is also the wish of the KRG,” Falah Mustafa told Rudaw. 

“A joint committee, which was established in the past, will resume its work and help improve collaboration in areas that have the potential,” Mustafa said. 

The state-sponsored collaboration will in particular focus on energy, health care and higher education sectors which Mustafa said have been singled out as the areas of interest by both governments where Turkey could assist and have long term investments. 

The two governments have also agreed to speed up cross border trade and movement of travellers including the labor force between Turkey and Kurdistan Region through the border gates by “eliminating technical obstacles.”

The Ibrahim Khalil border gate is currently the major ground route between Kurdistan Region and its large northern neighbor, although a second gate has been partly open for cross border movement. 

Mustafa said the KRG intends to facilitate better cooperation among Kurdish private businesses and their counterparts in Turkey by holding a series of meetings between the Kurdish government and business leaders in Kurdistan Region. 

With a population of nearly 5,5 million and rapidly increasing, the Kurdistan Region has struggled to provide better higher education including vocational training to its vast young population many of whom remain outside of the labor market even after graduation, relying on KRG financial support. 

Turkish officials have previously expressed interest in investing in the Kurdish higher education to prepare students as a work force in a rapidly changing labor environment in the region.

Turkey has long also been eying Kurdish energy sector, including its vast lucrative natural gas, which could employee many on both sides of the border. 

The KRG has a 50-year energy deal with Turkey, which also includes its growing oil production, and should start exporting gas to Turkey in 2017, according to previous plans. 

Turkey is Kurdistan Region’s largest trading partner with Turkish companies dominating several sectors including its much needed construction branch. 

The volume of trade between Erbil and Ankara was estimated at around $8 billion in 2013 before the financial crisis hit the region.