First International Center for Finance and Trade opens in Sulaimani

First International Center for Finance and Trade ICFT opens in Sulaimani — Ali Mohsen Al-Alaq, the Governor of the Central Bank of Iraq CBI, at the opening ceremony of Iraqi Kurdistan’s first International Center for Finance and Trade (ICFT) in Sulaimani, Iraqi Kurdistan, on February 20, 2025. Photo: Sulaimani Governor’s Press Office/via iKurd.net

SULAIMANI,— The International Financial and Commercial Center, the first international finance center in Iraqi Kurdistan, was officially inaugurated on Thursday, in Sulaimani city, marking a significant milestone in the region’s financial and economic landscape.

Despite earlier speculation that the center would facilitate the direct distribution of public sector salaries through Rafidain and Rasheed bank branches, Sulaimani’s governorate confirmed that the establishment is designed for international financial and commercial operations rather than salary settlements.

On the day of the opening, Haval Abubakir, the Governor of Sulaimani, told Voice of America that the new center aims to be a central hub for financial and commercial activities. He emphasized that this is the first institution of its kind in the Kurdistan Region, providing a state-of-the-art environment for banks, financial institutions, and investment opportunities.

“This center is the first of its kind in the Kurdistan Region, serving as a hub for banking, investment, and financial growth. It provides opportunities for local and international financial institutions to operate in a modern and structured environment,” he stated.

The center, strategically located in the heart of Sulaimani, will host branches of foreign and local banks, financial stock companies, and a stock exchange. These institutions will be permitted to operate within the center, provided they comply with both federal and regional regulations.

Political and Economic Implications

The opening of the center comes at a time of ongoing debate regarding the distribution of public sector salaries in the Kurdistan Region. Many public employees, particularly those in areas controlled by the Patriotic Union of Kurdistan (PUK), have advocated for their salaries to be paid directly by Baghdad rather than through the Kurdistan Regional Government (KRG). Some had anticipated the inclusion of Rafidain and Rasheed bank branches as part of this initiative, but the governorate has not confirmed such plans.

On February 18, 2025, the Iraqi Federal Court reaffirmed its February 21, 2024 ruling mandating that Kurdistan Region employees’ salaries be settled through Baghdad, granting employees the ability to “choose their own banks.” The court urged both the Iraqi government and the KRG to coordinate on implementing the decision.

Additionally, on February 9, 2025, the Iraqi Presidency announced that President Abdul Latif Rashid had submitted a legal complaint to the Federal Court against Prime Minister Mohammed Shia’ Al-Sudani and Finance Minister Taif Sami, demanding that the Iraqi government ensure the timely payment of salaries for Kurdistan Region employees.

While the International Financial and Commercial Center is now operational, it remains uncertain whether it will play a direct role in salary distribution or if the ongoing dispute between the KRG and Baghdad will persist.

Economic Impact and Future Prospects

Dr. Narmin Maarouf, a member of the Parliamentary Finance Committee, highlighted the center’s potential to transform the region’s financial and commercial landscape. Speaking to PUKmedia, she stated, “This center will help develop commercial and financial activity, fostering trade exchanges both within and outside the region. In the future, it will become an important stock exchange in Sulaimani.”

The opening ceremony of Iraqi Kurdistan's first International Center for Finance and Trade (ICFT) in Sulaimani, Iraqi Kurdistan — The opening ceremony of Iraqi Kurdistan’s first International Center for Finance and Trade (ICFT) in Sulaimani, Iraqi Kurdistan, on February 20, 2025. Photo: Sulaimani Governor’s Press Office/via iKurd.net

She further emphasized that the center will play a pivotal role in enhancing infrastructure, improving economic conditions, and attracting foreign investment. “This initiative will create job opportunities, attract foreign investors, and contribute to reducing the unemployment rate,” she added.

Maarouf also pointed out that the financial and commercial center is the first of its kind in the Kurdistan Region and the second in Iraq, following the Baghdad Stock Exchange.

She concluded by noting that the center is expected to host a range of companies and banks, ultimately contributing to the growth of the economic and financial sectors in the Kurdistan Region. By strengthening financial stability and addressing the financial service needs of citizens, the center is poised to play a crucial role in the region’s economic future.

Shad Fikrat, the director of public relations at the International Center for Finance and Trade, announced at a press conference: “This center will be the first of its kind in Iraq and the Kurdistan Region, and it is being established with the aim of consolidating the financial, economic, and trade sectors within a modern financial hub.”

He further elaborated: “The center comprises local, global, and international banks, currency exchange companies, investment and brokerage firms. Additionally, it will serve as a hub for financial research, training, and artificial intelligence applications.”

Fikrat also revealed that representatives from Al-Rasheed and Al-Rafidain banks, which operate under the central government, have visited the center to evaluate their prospective locations. “Although their locations have been allocated, the necessary measures for their operation have not been completed yet, and the approval of the Iraqi Minister of Finance is required,” he added.

Ali Mohsen Al-Alaq, the governor of the Central Bank of Iraq, highlighted the significance of the center at the opening ceremony. “The establishment of this center is of great importance to Sulaimani, the Kurdistan Region, and Iraq, as it will greatly benefit investors and businessmen. The Kurdistan Region provides exceptional opportunities for investment, production, and trade.”

He further noted: “Geographically, Sulaimani Governorate is a key economic and trade hub in Iraq. We hope that the opening of this center will further stimulate these sectors within the governorate.”

Al-Alaq concluded by stressing the need for Iraq to keep pace with technological advancements in the financial sector.

“Iraq must embrace new technological developments and integrate artificial intelligence into financial operations. At the same time, we must work towards transforming banks into electronic platforms. Our aspiration is for this center to become a gathering point for traders at both local and international levels, fostering greater trade exchange.” Al-Alaq said.

(With files from VOA | PUKmedia )