Iran urges Kurdish, Iraqi investment in border industrial zone

ERBIL, Kurdistan Region — Iran on Tuesday called on Iraq and the Kurdistan Region to support the development of an industrial zone in Kurdistan province, on the border with Sulaimani.

"The central government of Iraq and the Kurdistan Region must work together to develop and support the infrastructure surrounding Siranband's border and encourage investors to invest here,” Khalid Jafari, deputy governor for economic affairs and resource development in Iran’s Kurdistan province, said in a conference about the Baneh economic zone.

The event was attended by Sulaimani Governor Haval Abubakir.

Iran approved establishment of the Baneh industrial zone in 2010 and the project was launched in 2016. According to Iranian state media, about 85 hectares of land has been allocated to the zone, located 15 kilometers from the border city of Baneh.

Sulaimani also wanted to build an industrial zone on its side of the border, but plans have stalled because of the economic crisis.

Land was provided, but nothing else, according to Abubakir. "Even after land was provided near Arbat in Sulaimani province, the project was once again delayed due to a lack of electricity and gas in the region, as well as the high cost of production,” he said.

A contract for the zone stipulated that the Kurdistan Regional Government (KRG) would provide infrastructure and electricity, “but the government couldn’t implement it due to the financial crisis, and the companies couldn’t shoulder the responsibility,” Sirwan Mohammed, head of Sulaimani's Chamber of Commerce and Industry, told Rudaw on Sunday.

A 50 billion Iraqi dinars budget for the industrial zone was suspended because of a financial crisis caused by low oil prices and budget disputes with Baghdad, according to Mohammed.

The uncertain financial environment in the Kurdistan Region is driving investors to look elsewhere, to the detriment of the Region, according to Mustafa Sheikh Abdulrahman, head of the Kurdistan Region’s Union of Importers and Exporters.

"If those industrial zones were constructed in our region, they would have had an important role, turning us from users to producers,” he said.

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