BANKING - Turkish businesses expand in northern Iraq (Albaraka Turk and Kuveyt Turk follow)

TODAYS ZAMAN - The number of Turkish-owned businesses in the northern part of neighboring Iraq has increased significantly in the past few years, with more companies eager to take a share in the region's growing business potential, figures show. (source)

More than two-thirds of the 2,000 foreign companies in the northern Iraq are Turkish, and the number of Turkish employees in the region recently reached 20,000. The majority of these Turkish businesses operate in the construction sector. Data shows that a total of 35,000 Turkish nationals hold permanent residence permits in Iraq's north. In line with the increasing Turkish business presence in the region, the majority of products used also come from the neighboring country. Turkish-labeled products make up 75 percent of all the products marketed in the north of Iraq. These products vary from personal care items to food and electronics. Most Iraqis say they prefer Turkish goods because they are relatively higher- quality. Turkey's bilateral trade with the region had increased to $6 billion last year from $940 million in 2003. Representatives from Turkish NGOs, business unions and government are meeting with Iraqi officials with increased frequency, to improve trade and political relations. Prime Minister Recep Tayyip Erdoğan has officially opened a Turkish consulate in Arbil. He also attended a ceremony to mark the opening of the first two Turkish banks in Arbil, and announced that Turkish Airlines (THY) would begin offering direct flights to Arbil. Transportation between Turkey and northern Iraq has improved dramatically, as thousands of small, medium and large Turkish enterprises have flocked to perform market research for possible investments in the region in the past few months, and dozens of Turkish companies attend trade fairs and exhibitions there. Turkey's Atlasjet commenced offering flights to Arbil and Sulaymaniyah from İstanbul every day of the week. Iraq Airlines also flies to İstanbul from Arbil 4 days a week. Land transportation is also key in the region, with the number of Turkish workers in northern Iraq reaching 30,000, if we include the truck drivers who enter the region from Turkey on a weekly basis. Iraq had earlier demanded the opening of a new border gate with Turkey in order to reduce the traffic at the Turkish-Iraqi border crossing point. Leading players from the Turkish finance sector are also active in the region. Many banks believe that the growing volume of business between Turkey and Iraq makes it necessary to have a branch in the region. Following Ziraat Bankası, İş Bankası and Kuveyt Türk, leading Turkish participation bank Albaraka Türk also plans to open a branch in Arbil. Source ; http://www.todayszaman.com/news-254662-turkish-businesses-expand-in-northern-iraq.html  - Aug 23, 2011