The Role of Foreign Direct Investment in the kurdistan Region

17 June 2025

Researcher : Dr.Swpa Salam

Foreign investment is a type of investment that includes projects involving ownership, management, and continuous operations, commonly referred to as direct foreign investment. In this case, full ownership of the project may belong entirely to the investor or be structured as a partnership. This is achieved through the transfer of capital whether financial, scientific, technical, or experiential. Sometimes, direct investment may take the form of a branch, an ongoing operation, or a newly established section of a company. The primary goal of this process is to promote future economic development in the host country

The research reached several conclusions, among which is the finding that the number of direct foreign investment projects in Sulaymaniyah Governorate remains very low. In terms of the participation rate, Sulaymaniyah’s share of direct foreign investment projects constitutes only about 5.3% of all foreign projects in the Region. Moreover, its share of foreign investment capital is merely 0.5%, compared to nearly 99.4% in Erbil Governorate These findings reflect several underlying issues: the weak role of banks, low market demand in Sulaymaniyah, the absence of legal standardization in investment regulations, instability in economic policy, administrative bureaucracy, and a volatile political climate. Together, these factors form significant obstacles and are among the main reasons behind the lack of direct foreign investment in Sulaymaniyah Governorate