Empire World Showcases the Boom in Real-Estate and Investment in Iraqi Kurdistan

The “Empire World Project” is a prime example of the new Kurdistan; a combination of business and leisure, and showcases the promising increase in investment and business confidence. Empire World is a project developed by a Kurdistan-born entrepreneur, Mr. Peshraw Majid Agha.

Mr. Peshraw Majid Agha is also the owner the Falcon Group, one of the leading conglomerates in Kurdistan with vested interests in security, agriculture, oil and gas, and construction among others. The enormity of the project will help to transform Erbil into one of the most developed cities in Iraq.

The Project includes a business district and various levels of residential options, from the Royal Villas to the Pearl Tower/Diamond Tower apartments. The Marriot Hotel chain will be opening a luxury branch within the Empire World complex with over 200 hotel rooms and 75 Marriott Executive Apartments, along with restaurants, lounges, expo halls and conference rooms.

In addition to the residential options, hotels, and business amenities, Empire World will offer other services, entertainment and lifestyle facilities such as a 5-star restaurants, spa, gym, shopping areas and the Speed Center (restaurant and race track).

The estimated cost of the project is US$ 2.3 billion and the 88 towers, 300 villas, greenery and infrastructure of Empire World will span a total construction area of 1,250,000 m2. This grand project perfectly symbolizes the potential for economic growth found in Kurdistan and has attracted foreign and domestic interest, despite the often-negative perception of the current affairs in Kurdistan and Iraq.

Benefits of the “Empire World” Project and the Presence of Foreign and Domestic Investment in Kurdistan

Possibly the most beneficial aspect of the Empire World Project is its reflection of the confidence of foreign and domestic investors in Kurdistan’s growing economy. For the last six years, foreign and domestic investment in Kurdistan has been on the rise and a total of $7 billion is expected to be invested into the Iraqi Kurdistan economy by foreign and Kurdish companies by the end of 2013.

Kurdistan is a particularly attractive investment option to neighboring nations with aligning economic interests or similar economic circumstances, such as Kuwait, Lebanon, Turkey, and Egypt, which in the first five months of 2012 invested $497 million in some of the approximately 450 major projects operating in Kurdistan.

Previously Kurdistan experienced low foreign investment from the Western world, but because of projects like Empire World, American and European companies are beginning to take note, as illustrated by the Marriot’s investment in the Project.

Empire World’s state-of-the-art business facilities will offer the best business facilities in Kurdistan, making it both a business hub and a residence for the most demanding and important foreign companies operating in Kurdistan; DNO International ASA, a Norwegian oil company, has already secured its residence in Empire World and other oil and gas companies have followed.

Investment and Real Estate Challenges facing The “Empire”

There are however, some setbacks to projects like Empire World. The price of living in Erbil has increased dramatically and many Kurds on the lower end of the economic scale are unable to afford rent in cities like Erbil and Sulaymaniyah, where rent can be as high as rent for prime California real estate in some areas of the cities.

These factors serve as a warning that the real estate bubble created by rapid growth in the region could cause potential problems in the future if not properly managed.

However, unlike in Ireland and the United States where people with no money down could take out mortgages, the real estate market consists of mostly cash purchases or family loans by local investors.

Furthermore, Kurdistan is experiencing a positive demographic growth of 3% and an increasing amount immigrants from Iraq and the neighboring countries have migrated to Kurdistan seeking security and economic prosperity.

These factors, combined with the large influx of investment funds from the oil and gas industry, will most likely cushion the real estate sector from hard landing. Already there are signs that the sector is maturing and establishing an equilibrium, bringing more balance to the sector and allowing a greater focus on quality and location.

Empire World symbolizes the potential of the emerging Kurdistan economy and is an excellent example of promising investment in the region. Above all, Empire World ushers in a new era for the Kurdistan Region, making the area a legitimate, yet small, contender in the global economy.

Chairman of Empire World and Falcon Group, Mr. Peshraw Majid Agha, reflects on the impact Empire World Project will have on Kurdistan:

“Falcon Group and Empire World remain committed to helping Kurdistan grow and prosper through continuing to contribute to its development through investing in both the economy and its people.”