During a recent visit to Iraq with an Assyrian-American delegation, we met with members of the Kurdistan Regional Government (KRG), including the Minister of Investment, Dr. Mohammad Shukri. Our discussions focused on the Kurdistan Region’s forward-looking investment laws and the immense potential for diaspora-led economic engagement. We explored strategies to expand opportunities for Christian communities—particularly Assyrians, Chaldeans, and Syriacs—to build sustainable ventures that preserve our presence and prosperity in the land of our ancestors.
A Call to Rebuild from Within
Across the global Assyrian diaspora, one urgent question echoes: How can we empower our people to remain in their ancestral lands and prosper? For decades, emigration has drained our villages of their youth and innovation, leaving behind communities struggling to sustain their cultural and economic vitality. Yet, the foundations of our civilization—in the plains of Nineveh, the valleys of Duhok, and the historic hills of Ankawa and Alqosh—still stand, waiting to be strengthened through vision, unity, and strategic investment.
Those lands—the cradle of our identity—carry both economic and spiritual promise. The path forward lies not only in aid or advocacy but in bold, sustainable investment that transforms heritage into opportunity, empowering our communities to thrive where they belong.
The Kurdistan Region of Iraq (KRI), home to many of our historic towns, has emerged as one of the Middle East’s most investor-friendly environments. Unlike federal Iraqi law, which requires local ownership of at least 51 percent of capital, the Kurdistan Region allows 100 percent foreign ownership—granting complete control and protection for diaspora investors, especially those from the United States and Europe. This framework presents a historic opening for Assyrian entrepreneurs to reclaim their role as builders in their homeland, free from restrictive ownership barriers.
THE LEGAL FOUNDATION: KURDISTAN’S INVESTMENT LAW
The Kurdistan Region’s Investment Law No. 4 of 2006 is the cornerstone for business formation and foreign investment. It attracts both domestic and international capital and operates independently of Baghdad’s framework. The law guarantees equality between local and foreign investors, including ownership rights, profit repatriation, and long-term land-use privileges.
Key Investor Protections and Incentives
- 100 percent Foreign Ownership – Diaspora Assyrians may own their businesses outright, through local entities, or foreign branches.
- Tax Exemptions – Projects licensed under the investment law receive up to 10 years of tax holidays, including corporate income tax and customs exemptions on machinery, tools, and raw materials.
- Land Use Rights – Investors can secure long-term leases (up to 50 years, renewable) or land allocations for significant projects such as manufacturing, housing, or tourism. Land may be offered at a promotional rate or even at no cost.
- Capital Repatriation – Investors retain the unrestricted right to repatriate profits and initial capital abroad in freely convertible currency.
- Simplified Licensing for Larger Projects – Investments exceeding approximately $2.5 million qualify for expedited approval and additional incentives, including priority land allocation, infrastructure support, and customs privileges.
- Equal Treatment Clause – The law ensures that foreign investors receive treatment equal to that of local Kurdish investors.
These measures, combined with regional stability and the growth of financial infrastructure, make Kurdistan an optimal destination for diaspora-driven development in Northern Iraq.
STRUCTURING THE INVESTMENT: FROM THE U.S. TO KURDISTAN
To establish a legally secure transnational presence, investors should adopt a two-tier structure: a U.S. holding entity and a Kurdistan operating company. This approach safeguards international enforceability while ensuring compliance with local investment laws.
Step 1: Form a U.S. LLC
A U.S. Limited Liability Company (LLC) serves as the parent entity, holding shares of the Kurdistan subsidiary and providing liability protection under U.S. law.
Key components:
- Articles of Organization filed in a U.S. state (e.g., Michigan, Delaware, Illinois)
- Operating Agreement defining governance, profit distribution, and dispute resolution
- U.S. bank account and EIN for transparent capital transfer
- Arbitration clauses specifying neutral jurisdictions (e.g., London, Geneva)
Step 2: Register the Kurdistan Entity (Form 1)
The Kurdistan Regional Government (KRG) utilizes Form 1 for company registration, which includes:
- Company name in English, Arabic, and Kurdish
- Description of activity (e.g., manufacturing, agriculture, construction, tourism)
- Ownership structure (U.S. LLC may hold 100 percent)
- Registered address in Erbil, Duhok, or Sulaymaniyah
- Objectives and duration of the company
After approval, the KRG Companies Registrar issues a certificate of incorporation. The company may then apply for a Board of Investment license to access land, tax incentives, and infrastructure support.
ASSET PROTECTION STRATEGIES IN KURDISTAN
Investors must employ legal and operational safeguards to mitigate political, financial, and commercial risks.
- Use of Local Entities with Limited Liability – Kurdistan LLCs protect shareholders from personal liability beyond their capital contributions.
- Bilateral Investment Treaties and Legal Jurisdiction – Iraq’s BITs provide recourse through international arbitration (e.g., ICSID). Contracts should explicitly reference these protections.
- Arbitration Clauses in All Contracts – Include neutral arbitration forums such as AAA, LCIA, or ICC Paris.
- Asset Segregation by Project – Create separate entities for distinct ventures to isolate risks.
- Land Leases and Title Protections – Register all leases, include renewal and succession rights, and maintain insurance against expropriation.
- Insurance and Local Partnerships – Maintain political risk insurance (e.g., OPIC, MIGA).
INDUSTRIES VITAL TO OUR PEOPLE’S LONGEVITY
Long-term cultural and economic sustainability requires investment in sectors that create employment, education, and infrastructure within Assyrian communities:
- Agriculture and Food Security – Modern irrigation, grain mills, olive oil processing, and local markets.
- Education and Technology – Vocational schools, digital learning, and bilingual institutions (Sureth/Arabic and English).
- Healthcare and Pharmaceuticals – Clinics, laboratories, telemedicine, and drug distribution.
- Construction and Real Estate – Affordable housing, community centers, and infrastructure renewal.
- Cultural Tourism – Heritage restoration, monasteries, and museums to attract international visitors.
- Finance and Micro-Lending – Diaspora-backed credit unions and small business lending programs.
Each sector strengthens local livelihoods and ensures the Assyrian presence endures in our ancestral lands.
A Vision Rooted in Purpose
Economic revival is not just a business endeavor—it is an act of cultural preservation. Every enterprise established by Assyrian investors fortifies identity and inspires hope for future generations.
Through the Kurdistan legal framework, we can invest with confidence, dignity, and purpose—building institutions that empower our people to stand resilient in the land of their ancestors.
For more information on investing in the Kurdistan Region or structuring a compliant, secure business entity, please contact:
Alexander R. Karana, Esq.
Cummings, McClorey, Davis & Acho, PLC
17436 College Parkway, Livonia, Michigan 48152
Email: [email protected]
Tel: (734) 261-2400
About the Author
Alexander R. Karana is an Intellectual Property Attorney at Cummings, McClorey, Davis & Acho, PLC. He is admitted to practice in Michigan and Illinois and is a registered U.S. Patent Attorney. His practice focuses on intellectual property, business formation, entertainment law, and international investment strategies. Mr. Karana is currently recognized by Best Lawyers: Ones to Watch® (2024–2026) for Intellectual Property Law, Entertainment & Sports Law, and Patent Law. He is the former President of the Assyrian American Bar Association and the current President of the Chaldean American Bar Association.
Legal Disclaimer:
This article is intended for general informational purposes only and does not constitute legal advice. The laws and regulations discussed may change over time and may vary depending on specific circumstances. Readers should consult qualified legal counsel licensed in their jurisdiction and in the Kurdistan Region before making any investment or business decision. No attorney–client relationship is formed by reading this article or contacting the author.
