Iraqi Kurdistan says it’s open for business

Michael E. Ross Reporter • Profile • E-mail

While other parts of Iraq remain mired in unrest, the northern region known as Kurdistan is touting itself as an oasis and aggressively courting businesses and tourists.

The push for development includes a Western-style advertising strategy with ads on cable TV, in radio and magazines, and a new investment law approved by the region's National Assembly to attract money from foreign investors. The region's economy already is one of the strongest in the Middle East.

But the semi-autonomous ethnic enclave — the ads call it “the other Iraq,” — is faced with realities that could undermine its aspirations.

Kurdish terrorist groups with separatist goals and a deadly history have taken responsibility for recent bombings. That fact, tied to the violence in greater Iraq and a government with a reputation for corruption, has dampened investment enthusiasm.

Full-court press
The U.S. ad campaign, which has a counterpart in Europe, is underwritten by the Kurdistan Development Corporation, with offices in London, Berlin and Arbil, in Iraqi Kurdistan. It emphasizes a region ready for economic development.

NBC VIDEO Kurdistan trumpets 'the other Iraq’ Nov. 12: An ad campaign by Kurdistan takes a page from Madison Avenue's playbook to generate business and tourism. MSNBC

In a television commercial, people of all ages are seen building a community — planting trees, driving bulldozers, working in a laboratory — in images meant to convey a model of modernity, an area bustling with industry.

“See the promise,” intones the ad's narrator. “Share the dream,” says a young girl, who walks toward the viewer bearing a bright, glowing globe.

On a companion Web site, investors and tourists are invited to “a place where the universities, markets, cafes and fair grounds buzz with progress and prosperity.”

Bayan Rahman, chairwoman of the corporation, said the ad campaign's purpose was “to raise awareness of the Kurdistan region among the grassroots of America, to make people aware that the Kurdistan region exists — some people still mix us up with Kyrgyzstan and Kazahkstan — and that the region is peaceful and stable, and we are rebuilding.”

“There’s a misperception of what northern Iraq is,” said Sal Russo, president of the Russo, Marsh & Rogers ad agency, which created the ads. “This is going to be a long-term project, to educate Americans to the realities of the region.”

Business and tourism
Under the new investment law, foreign investors have the same rights as Iraqi investors, with full ownership of their projects. Companies may transfer profits or income abroad without having to pay taxes or customs.

The law also gives foreign investors major incentives, including exemptions from all noncustoms taxes and duties for 10 years. Imported equipment, machinery, tools, parts and other expenses are now largely exempt from taxes.

Iraqi Kurdistan also hopes to increase tourism to its historical attractions — museums, castles, mosques and other architectural sites, some dating to the 12th century.

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