ERBIL, Kurdistan Region - The Kurdistan Region’s market has experienced a drastic decline since Iraq held its early elections in October, Kurdish business owners told Rudaw on Sunday as the political instability caused by the country’s new government formation stalemate continues.
Delay in the formation of a new government and the election of a new Iraqi president has severely impacted different sectors of the Region’s market, as people choose to be conservative with their money due to the political instability.
The Kurdistan Region’s real estate sector in particular has taken a major hit.
Mohammed Abdullah, owner of real estate agency in Erbil, told Rudaw’s Dilnia Rahman that before the political deadlock a new project had entered the market, bringing in “more than 15 to 20 million dollars in sales and purchases in one night,” noting that those numbers have massively declined since.
For months following October’s election, the Kurds preached to present a united front in Baghdad with the Kurdistan Democratic Party (KDP) engaging in intense talks with other Kurdish parties.
However, the Kurdish front has largely failed to materialize after the KDP made agreements with the Sadrists and the Sunni Sovereignty Alliance, which the PUK considers to be a disadvantage for Kurds. Both parties fielded different candidates for the presidency post, with the KDP declaring the Region’s Interior Minister Reber Ahmed as their nominee to compete against PUK’s Barham Salih, who currently serves the post.
Earlier this week, Iraq failed to elect a new president over lack of quorum in a session that was adjourned to Wednesday.
Aziz Abdulrahman, an Erbil merchant, expressed his doubts that Wednesday’s session would lead to any changes, stating “even if the parliament meets next week, if the Kurds do not unify their voice, things will stay the same.”
“The [Kurdish] political parties should have put aside their parties’ interests, and concentrated more on the rights of the people of Kurdistan,” said lawyer Srood Shakhistani.
The Russia-Ukraine war and the increase of oil prices have also contributed to the current market instability. However, store owners believe the failure to elect a new president to be the main catalyst.
“It has had a great impact. There’s currently an increase in prices. If the Iraqi parliament convenes and sorts this issue out, the prices will decline,” said Rizgar Qassab, a local butcher.
With the Kurds failing to reach an agreement, the Shiite factions are also fractured, largely affecting the political process as they are yet to reach a joint agreement on the Iraqi premiership.
Saturday’s parliamentary session was attended by 202 MPs, according to the legislature’s media office, which falls short of the two-thirds minimum needed to carry out the procedure. The meeting was boycotted by several Kurdish parties, including the PUK, the Kurdistan Islamic Union (KIU), and the Kurdistan Justice Group (Komal).
By Chenar Chalak
Comments
Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.
To be approved for publication, however, your comments must meet our community guidelines.
We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.
Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.
Post a comment