Italy considers Iraq, Kurdistan safe for Italian investors, eyes deeper economic ties

ERBIL, Kurdistan Region - Italy is pushing to expand its business footprint in Iraq and the Kurdistan Region beyond oil and energy, the country’s ambassador to Iraq told Rudaw in an exclusive interview on Tuesday, as Baghdad and Erbil’s growing stability and developments across all sectors draw renewed interests from European investors. 

 

“We started our cooperation decades ago, and the two main sectors were infrastructure, construction, and energy sector, so oil and gas mainly,” Italy’s Ambassador to Iraq Niccolo Fontana told Rudaw, adding Rome’s diplomatic missions in Iraq are currently focused on diversifying cooperation into non-oil fields.

 

Rome and Erbil enjoy good ties and last year Italy upgraded its consulate in Erbil to a consulate general.

 

Italy is a member of the global coalition against the Islamic State (ISIS) that was formed by the United States in 2014 when the terror group seized control of a swath of Iraqi and Syrian land. Italian forces have had a key role in training Kurdish Peshmerga forces.

 

A year into office in Iraq, the Italian ambassador said he had witnessed clear signs of transformation and economic momentum. 

 

“I saw a transformed city for the better, notably in terms of infrastructure. But I see a lot of construction works going on, both in Baghdad and Erbil,” he said, adding that “We say in Italy that when there is construction going on, it means there's a push towards social economic development.”

 

“What we as an embassy and with the consulate general in Erbil, are trying to do right now is to attract more companies in non-oil sectors,” the ambassador said, adding Rome is encouraging companies to work in the “agro industrial sector” to work in Kurdistan, underscoring the safety and security in the Region. 

 

Fontana described “stability” as “the right word to describe what's going on now in the country,” crediting both Baghdad and Erbil for playing “a role as a stabilizing factor in the region.”

 

The ambassador noted that his country is “committed to working alongside Iraq and Kurdistan to enhance furthermore this development,” highlighting a shared interest in stability and economic diversification. 

 

“Together with the Kurdish government, we organized a mission to Rome last July, and apparently we succeeded in convincing an important Italian group to come here,” the ambassador revealed, adding that “they are coming in mid-October here to check, really in person, if those opportunities are real, and how to cooperate with local partners.”

 

As Iraq and Kurdistan seek to attract broader foreign investment, Italy’s strategy aligns with their vision of diversifying the economy, strengthening local industries and deepening regional ties. 

 

 

 

Niccolo Fontana: Thank you. It's a pleasure to be here. 

 

 

First of all, I think that having regular elections in this country is a good testimony to the democratic flourishing in Iraq. As for the outcome, I have nothing to say, but I do hope that everything will take place peacefully, there will be a new government shortly, and that the country will follow the path that has been undertaken by the current government in the last two years. So I'm really hopeful, and I think that Iraq will eventually stabilize more and more and will establish itself as a factor of stability in the whole Middle Eastern region.

 

 

This is my first electoral campaign in Iraq, so I'm still kind of fresh to express any proper judgment. But as for the mood of campaigning and the electoral posters and signings all around, I don't feel much difference with my own country. Yesterday, I had the chance of traveling around a little bit, you know, around Kurdistan. I saw many, many electoral signings around, and it's almost the same in Italy. 

 

 

Look, what I can say, I got here to Baghdad last November, so it's almost one year. But I saw a transformed city for the better, notably in terms of infrastructure. But I see a lot of construction works going on, both in Baghdad and Erbil, a city that I visited several times. We say in Italy that when there is construction going on, it means there's a push towards social economic development. So that is a good sign that we have to take into consideration. I think, as I mentioned earlier, that the path towards development is the right one, and Italy is committed to working alongside Iraq and Kurdistan to enhance further more this development. 

 

 

In my view, stability is the right word to describe what's going on now in the country. And if we look a little bit wider at the situation in the whole region, Iraq was stable even during the troubling days at the end of June, and it was not involved in what happened. And eventually the Iraqi government, and I would say also the Kurdish government, tried to play a role to create bridges between different actors and to play a role as a stabilizing factor in the region. On top of that, I feel that safety in this country as a whole is getting better and better, and that is a very important sign too.

 

 

A very positive trend. That is what we are trying to emphasize with the Italian business community, since they would decide not to come if they feel unsafe, of course. But we are really underscoring the fact that the situation specifically in Baghdad and in Kurdistan has gotten better a lot, and there are several business opportunities that might be suitable and attractive for Italian companies. 

 

 

You know, what would be important is for the Iraqi government, since we are close to the elections, let's say the new Iraqi government, to have the monopoly of the use of force. How? It is up to the Iraqi government to decide. But coming from Italy, that is our understanding of how the security situation should work. So the state has the monopoly of force.

 

 

Okay, we started our cooperation decades ago,  and the two main sectors were infrastructure, construction, and energy sector, so oil and gas mainly. We still have a good footprint in the energy sector, specifically in the southern part of Iraq, with some Italian large companies. But what, as an embassy and with the consulate general in Erbil, are trying to do right now is to attract more companies in non-oil sectors.

For instance, let's talk about Kurdistan. We want to have Italian companies in the agro-industrial sector to work here. Together with the Kurdish government, we organized a mission to Rome last July, and apparently we succeeded in convincing an important Italian group to come here.

We spoke with them a couple of days ago, and they are coming in mid-October here to check, really in person, if those opportunities are real, and how to cooperate with local partners. 

 

 

An Italian company. 

 

 

Yes.

 

 

Yeah, mid-October, yes. 

 

 

Yeah, they are coming first to Erbil. I don't know if they are going somewhere else, but definitely they are coming here, and the consulate general will help them.

 

 

Yes, agro-industrial. 

 

 

Yes.

 

 

It's not up to me to express any judgment on that, but I can report to you the general opinion that, at least in my country, does exist on topics like these. So, as I said, referring to the incoming Iraqi elections, it's always better not to have too much gap between the election date and the formation of a new government. So, hopefully a new Kurdish government will be formed soon, but it's quite a long time, one year. 

 

 

It would be a concern if we didn't cooperate well, but I wouldn't be honest saying that since our relations are excellent and we're always in touch. We had visits to Italy. We had our minister of defense here some months ago. So, no, it's not a concern, but it's a friendly suggestion. 

 

 

Yeah, of course. I mean, we've been discussing about that, but always on a positive note since we want the better for this region. So, as a friend, you're summoned to say what you think.  

 

 

It would be great, but so far we didn't have many expressions of interest. Actually, we had one Iraqi pharmaceutical company investing in Italy, and that was very interesting and it was a very positive development, but not so many. You have to consider also our trade exchange. So, we import roughly, let's say, $2.5 billion from Iraq, and mostly related to oil and oil derivatives. And we only export towards Iraq roughly $1 billion. So, there is a trade imbalance there. 

 

 

Yes. So, we would like to increase, of course, our exports towards Iraq since we know that a demand of Italian products does exist in Baghdad and, of course, here in Erbil.

 

 

You know, 2023 to 2024, we've already experienced roughly a 30% increase. So, if we were able to keep up that trend, it would be great. 

 

 

You know, that is one of the main topics of discussion with authorities, both in Baghdad and in Erbil. And I'm always asking to them since they are the experts on the field. A threat still exists, even though it's relatively reduced compared to the past. But that is why we're cooperating with Iraqi defense forces and Peshmerga here in Kurdistan with our military contingents. You know, we have an important presence here in Erbil, in Sulaymaniyah and, of course, in Baghdad upon the request of the Iraqi government and here in cooperation with the Kurdish government.

And as long as we are welcomed, we are really committed to working alongside you and to try to help the fight against the remnants of Daesh.  

 

 

There are ongoing discussions with the Iraqi government and we are working on a new security agreement, bilateral agreement, but I cannot dwell more on that. I think that we are two friendly countries and if a friend asks for your help, Italy is ready to give it.

 

 

It's still too early to talk about that, but our priority here is to train, to enable, and to assist. And that is what we would like to carry on doing. 

 

 

Of course, we are working very well here in Suli and we do hope that this process will finish up soon. That would be another good sign of stability for Kurdistan, in our view. 

 

 

I'm not there on the field, but listening to what our soldiers, instructors tell us, it's still an ongoing process, but progress has been achieved.

It might take a little more time, but I think we will reach the final goal. 

 

 

I can't recall that, but I trust what you say.

 

 

I'm not an expert, so I don't know. I don't have very specific information about that, but I do hope that that is the case. 

 

 

I got your point. First of all, a couple of years ago, we've decided to, let's say, upgrade the consulate here in Erbil from consulate to consulate general due to the special relationship that we have with Kurdistan, but also due to the number of visa applications that we kept receiving. I'm receiving this question quite often, and my answer is always the same.So, look, for visa applications, that is not so difficult to get a visa, provided that you present alongside the application itself the documents required. We've experienced an increase of roughly 30% of applications in the last two years each year, and we have a refusal rate between 20% to 30%,  but 99.9% of those refusals are because the application lacks the proper documents. I mean, if the application is correct, there is no point and certainly no intention not to grant a visa either to students, businessmen or tourists from this country. So, my suggestion to whomever is interested to visit Italy for whatever reason is please check the embassy and the consulate general's websites and follow whatever is stated there regarding documents. 

 

 

You're welcome.