The Kurdish administration that was formed in 1992 split into two administrations following the outbreak of the civil war in 1994. This war was between the two ruling parties and lasted until 1998, when the leaders of these two parties, Barzani and Talabani, reconciled at the initiative of the American administration at the time. However, the region remained under the management of two administrations until 2005.
Kurdish oil, gas, and energy investments were not included in accordance with the region’s Oil and Gas Law.
Article 2, Section 2 of the regional Investment Law stipulates all fields of investment except for oil and energy, as it is not included in this law.
In a declaration, Minister of Natural Resources (i.e. the Ministry of Oil) in the Kurdistan Regional government Ashti Hawarmi said that there are around 50 foreign companies working in the oil and gas sector, which sees investments up until now of $15-$20 billion.
The Kurdistan Regional Government has thus far focused primarily on housing projects, which have expanded to reach 8,500 units. Oil and health projects have also been initiated, local hospitals and 5-star hotels have been built, and small projects have been funded through grants in the agricultural, industrial and banking sectors.
The government’s interest in housing projects and in building hotels reflects its desire to restore the region's destroyed infrastructure that was damaged by difficult economic conditions in the 1990s.
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