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IS jihadists advance threatens foreign
investment in Iraqi Kurdistan
28.8.2014 |
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August 28, 2014
ERBIL-Hewlêr,
Kurdistan region 'Iraq',— The Islamic State
organization (IS) is threatening Kurdish dreams of
attracting more Arab and foreign investments to the
Iraqi Kurdistan Region. The extremist organization's
militants took over Kurdish areas south and west of
the Kurdistan Region, whose security situation had
been stable for years.
The new security situation in the disputed areas
embarrassed the Kurdistan Regional Government (KRG)
in front of Arab and foreign companies. Nawroz Amin,
vice chairman of the Kurdistan Investment Board,
said, “The investment in the Kurdistan Region
amounted to $33 billion with a growth rate of 7%,
which is high compared to some neighboring
countries. There are 2,724 foreign companies
[operating in the] Kurdistan Region.”
Haval Amir Saleh, president of the Kurdistan
Businessmen Union, warned of the consequences of
foreign investment companies continuing to evacuate
their nationals from the region. “This will give
negative signs to senior investors [whom] we already
coordinated and managed to attract.”
For the second week in a row, shares in a number of
energy companies operating in the Kurdistan Region
of Iraq sharply declined due to the escalation of
violence in the adjacent areas. Fierce battles are
taking place between the Kurdish Peshmerga forces
and IS factions.
Fifty-two oil companies operate in the Kurdistan
Region and have signed contracts without the
knowledge of the Ministry of Oil, thus raising the
ministry's ire.
Moreover, the shares of Afren oil company dropped by
4.6%, leading the company to suspend its output at
its Barda Rash oil field in Kurdistan. This was the
first oil field to close following the advance of IS
militants near the Kurdistan Region.
The company decided, as a precautionary step, to
withdraw all its non-essential staff from the field.
Genel Energy followed Afren's lead, but maintained
production at the Taq Taqwww.Ekurd.net
and Tawke oil fields. Chevron stated that it was
evacuating its workers from the Kurdistan Region
because of the security situation. ExxonMobil and
other crude-oil production companies in the region
took measures similar to Chevron's in anticipation
of a deterioration of the situation.
Sources said, “The oil pipeline of the KRG of Iraq
is working normally and pumping 120,000 barrels of
crude oil per day, despite the advance of IS
fighters in northern Iraq.” Moreover, Abu Dhabi
National Energy Company PJSC (TAQA) issued a
statement indicating the suspension of its
activities in the Atrush oil field in Iraqi
Kurdistan was a result of the region’s instability.
Saleh told Al-Hayat that the ongoing evacuation of
foreign companies, in particular investment
companies operating in the region, “is very
dangerous to our economy.”
He said the move “will send negative messages to
foreign investors and Arabs who had already been
talked into bringing their investments to our cities
during the last period, which must be described as
successful on the economic and investment levels.”
He attributed the migration of investments to
“military operations, which broke out with the
beginning of the IS occupation of Mosul and
Salahuddin.”
He said, “The suffocating crisis in the region, as a
result of the [failure] to pay employees’ salaries
for months, completely crippled the economic
sectors. Moreover, big local companies lost their
capital after having invested in governmental
projects that remained suspended because the budget
was not approved.”
Kurdistan Alliance leader Najiba Najib told Al-Hayat
that the effect of these events on the economic
situation of the region, especially on investments,
was insignificant. She said, “Most investments are
local, despite the importance of the foreign ones.”
She also said that the Iraqi Kurdistan Region’s
government and the Peshmerga forces “are the ones
ensuring the life and funds of investors,” pointing
out that the investment law is “a definite guarantee
for their investments that terrorism cannot touch.”
By Nassir al Hassoun, Alhayat, Pan Arab
newspaper - London. Translated by Pascale el Khoury
Al-Monitor
Copyright ©, respective author or news agency,
alhayat.com | al-monitor.com
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