Shafaq News – Al-Sulaymaniyah

The Kurdistan Region launched a three-phase strategy to restructure its import and export sectors in 2025, shifting from market supply toward expanded exports after years of focusing on domestic coverage, according to the head of the Kurdish Importers and Exporters Union.

In a statement, Sheikh Mustafa Sheikh Abdulrahman said that the plan, developed in coordination with the Kurdistan Regional Government and relevant authorities, began with securing imports to ensure the steady availability of essential goods—an approach the union has followed since its establishment.

The second phase focused on strengthening domestic production. Since 2010, authorities have issued licenses for 4,863 factories across the Region, though only 2,539 are currently operating. Erbil accounts for the largest share with 3,243 licenses, while further expansion depends on clearer policies and improved coordination with sectoral ministries, Abdulrahman said.

The third phase, now underway, centers on exports after local markets reached relative self-sufficiency in several products. Industrial activity remains concentrated in construction materials, paper packaging, tissue products, and cardboard, while electricity generation and textiles represent a smaller share of manufacturing.

Under market protection rules, locally produced goods that cover at least 25% of domestic demand qualify for higher customs duties and taxes on competing imports. More than 150 products now meet between 50% and 100% of local demand, including dairy, poultry, detergents, seasonal crops, and construction materials. Between 65% and 70% of factory output is exported to central and southern Iraq.

Agriculture has also expanded, with 2,175 projects launched over the past five years. Potato exports exceeded 100,000 tons to Gulf markets, while apples, rice, honey, and other products have been supplied domestically and abroad, though output has fluctuated due to rainfall conditions.

Manufactured exports have reached international markets, including drinking water from Al-Sulaymaniyah sold in Dubai and Europe, olive oil shipped to the UK and Germany, and tomato paste exported to the United States and several European and Arab countries. Pharmaceutical, motor oil, and cement producers have also expanded exports to Iraq and neighboring markets.

The Kurdistan Region currently hosts 37,456 local companies, 3,662 foreign firms, and 1,304 branches of Baghdad-registered businesses. Vehicle imports reached 183,537 cars under 922 licenses, mostly through the Haji Omran and Ibrahim Khalil crossings.

Exports in 2025 were carried out under 115 licenses, covering nearly 100,000 tons of goods, alongside hundreds of thousands of cartons and individual items, Abdulrahman said.