It is not just about oil and gas. I am delighted to say that some 70 UK companies will be taking part in the Erbil Trade Fair later this month – a significant increase on last year. Many of the companies come from Northern Ireland a region of the UK which has developed significant commercial links with the Kurdistan Region.
Many of the companies interested in Iraqi Kurdistan are involved in construction. Various experts tell me that some of the buildings that have sprouted up in northern Iraqi cities are of mediocre quality. There is a great Russian saying: “I am not rich enough to afford poor quality goods”; meaning that buildings put up without attention to quality or goods of low quality end up costing more in the long run. So, it often makes sense to invest in quality and paying more upfront.
UK companies tend to work to high international standards and deliver quality services and that is more cost effective in the long run.
London is the financial centre of the world and UK companies tend to be leaders in financial services. When asked, we in the British Consulate give a very upbeat message about business in Kurdistan and the degree to which markets are open and accessible. That said, one of the biggest impediments to doing business here is Kurdistan is still mostly a cash economy.
Cash limits and restricts commerce. It makes cross border commerce difficult at a time when Kurdish companies want to engage and reach out. Fortunately, two UK companies, B Plan and Testlink, have submitted a proposal to the KRG to install automated cash tellers that would enable the government to pay civil servants electronically; in short far more efficiently. Kurdistan needs to start putting together the basic building blocks to create a modern financial services sector before the lack of infrastructure really starts to impact on the next stage of economic development. UK companies are ready to help, and that includes global banking giants HSBC and Standard Chartered.
As Kurdish companies look overseas, many will find that they need to have internationally accepted accounting. Inevitably, that will mean that they need the help of the UK-based worldwide accountancy companies, each of which have an office in the KR.
If the Kurdistan Region is a gateway to Iraq, then London is the gateway for Kurdish companies to trade internationally.
Comments are closed.