Construction, the Kurdistan Region of Iraq’s most rapidly developing sector, has seen important advancements in both quality and capacity over the last decade. Now, new laws and projects are set to increase strength and competitiveness.
As a central driver of the growth in foreign and domestic investment in the Kurdistan Region of Iraq (KRI), housing has drawn a huge amount of resources to the KRI. Some $16.5 billion in Board of Investment-licensed housing projects (not including commercial or industrial space) have been invested alone since 2006.
02. Government initiatives
The KRI has been experiencing an infrastructure boom that is reshaping its future. The KRI’s commitment to boosting infrastructure development will transform the region’s economic landscape. Transportation networks, silos, electricity lines, and water pipelines have been prioritized for infrastructure investment, and the regional government is directing significant levels of funding towards these projects. The allocation of $420 million for infrastructure development was announced in 2020.
03. Commercial and residential projects
The construction industry has developed dynamically, spanning the residential, commercial, and retail segments. High-profile commercial projects are coming together quickly, while ongoing, large-scale residential developments are set to greatly expand supply in the years to come. Trends that have gained steam recently and will persist in coming years include a move towards increasingly high-quality builds, as well as the standardization and enforcement of construction and development standards.