Since the fall of the Saddam, foreign investors have flocked to Kurdistan and Iraq’s northern provinces thanks to the north’s relative safety - but business development even in these relatively safe parts of the country is fraught with problems.
Like other parts of the country, foreign and Iraqi investors alike are plagued by power outages. State energy plants only provide electricity for a few hours per day - even in Kurdistan’s capital, Erbil - and shortages force business to buy expensive fuel-powered generators. Some investors warn they will lose profits and be forced to leave Kurdistan if power cuts persist and fuel prices continue to rise.
Escalating energy prices have affected the local economy in myriad ways - one of the main causes of concern is that it drives inflation, which in turn impacts on the cost of living, even the price for basic goods like flour is affected.