Masrour Barzani has been the Prime Minister of Iraq's Kurdistan Regional Government since 2019. AFP
Masrour Barzani has been the Prime Minister of Iraq's Kurdistan Regional Government since 2019. AFP
Masrour Barzani has been the Prime Minister of Iraq's Kurdistan Regional Government since 2019. AFP
Masrour Barzani has been the Prime Minister of Iraq's Kurdistan Regional Government since 2019. AFP


Kurdistan's ongoing pursuit of stability in Iraq


Hemin Lihony
Hemin Lihony
  • English
  • Arabic

September 23, 2023

Prime Minister Masrour Barzani of Iraq's Kurdistan Region has consistently prioritised peaceful dialogue to resolve disputes straining the relationship between Erbil and Baghdad since taking office in 2019.

His recent visit to the Iraqi capital, accompanied by a cross-party Kurdish delegation, underscores his unwavering commitment to negotiations and the belief that equal treatment of all citizens, from Zakho to Basra, is essential for a stable and democratic Iraq.

During his visit, Mr Barzani presented a comprehensive proposal for amending existing laws and offered both long-term solutions and immediate measures to address the monthly payment of civil servants in the Kurdistan Region.

In a letter dated September 18, 2023, addressed to US President Joe Biden, Congressmen Michael Waltz, Michael McCaul and Joe Wilson urged the President to take action to halt Iraq's budgetary cuts and economic pressure on the Kurdistan Region. Subsequently, the White House welcomed a breakthrough in securing salaries for civil servants in the Kurdistan Region, emphasising Washington's ongoing commitment to promoting stability in Iraq and finding lasting solutions.

Erbil has adhered to an earlier agreement to handle its oil through Iraq's State Organisation for the Marketing of Oil (SOMO) since March this year, providing a basis for recent and future understandings on unresolved issues.

Shortly after Mr Barzani’s recent visit, the Iraqi Council of Ministers approved a monthly loan of 700 billion Iraqi dinars for the Kurdistan Region. Mr Barzani expressed gratitude to his Iraqi counterpart Mohamed Shia Al Sudani for his support, with both leaders agreeing that this loan could serve as a stepping stone for resolving other disputes between Erbil and Baghdad through the constitution. The recent meetings hold promise for positive outcomes and numerous opportunities ahead.

While the Kurdistan Region is often lauded as a safe haven in a turbulent region, it has faced financial uncertainties due to budget cuts from Baghdad, which Erbil considers unconstitutional. This issue, if left unaddressed, not only jeopardises the region's stability but also undermines its critical role in combating ISIS alongside its allies and providing support to over a million refugees and displaced people, including ancient Christian communities.

Kurdistan Region is often lauded as a safe haven in a turbulent region

The quest for common ground often emerges as an opportunity amidst the turbulent waters of international relations. In the context of Kurdistan's ongoing pursuit of stability within Iraq, a remarkable window of opportunity has arisen. Mr Barzani and Mr Al Sudani share strikingly similar visions for reform and progress. Both leaders are committed to fostering stability, economic growth and improved living standards for their constituents. This alignment of objectives offers a unique opportunity for cooperation and understanding, bridging historical divides and fostering a more cohesive Iraq. By capitalising on their common goals, Iraq and the Kurdistan Region can make significant strides towards lasting stability and prosperity within the nation.

Under Mr Barzani's leadership, the Kurdistan Region has embarked on a robust reform process. Despite financial constraints, it has achieved numerous infrastructure projects, economic diversification and digital and agricultural transformation. This demonstrates the region's determination to preserve stability, security, and co-existence – essential elements for both the Region itself and Iraq as a whole. Mr Al Sudani shares this commitment, aiming to unite Iraq through equitable development and political inclusivity. Their congruent visions provide a unique platform for collaboration, fostering a more harmonious Iraq and securing Kurdistan's continued pursuit of stability.

The Kurdistan Region's stable environment and abundant economic opportunities have positioned it as a key player in Middle East geopolitics. It has stood as a formidable force against the ISIS threat, securing its territory and contributing significantly to the wider fight against terrorism. Moreover, it has aided over a million displaced individuals, an impressive effort that comes with an annual cost of $867 million, all while maintaining a local population of merely around six million. The international community must acknowledge and support the substantial financial burden borne by the Kurdistan Region since 2012 in hosting displaced persons.

It is imperative for international stakeholders to stand in solidarity with the region as it seeks economic stability, security, and equity in its relationship with Iraq's federal government. While the country should be addressing pressing issues like climate change and regional geopolitical shifts, it is disheartening that we find ourselves mired in conversations about the very basics – issues that should have been resolved long ago.

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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Estijaba – 8001717 –  number to call to request coronavirus testing

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Updated: September 23, 2023, 3:20 PM