Investing in the Kurdistan Region's Agrifood Industry: Opportunities and Growth

The global food system is shifting—and regions that can produce high-quality food while offering access to growing markets are becoming increasingly valuable. One such region is the Kurdistan Region of Iraq (KRI), a rising destination for agrifood investment in the heart of the Middle East.

Kurdistan Region’s potential is built on solid fundamentals: over four million hectares of arable land, a strategic location near major consumer markets, and a government actively supporting the private sector. From large-scale farming to food processing and livestock production, the agrifood sector offers investors strong prospects for both local sales and export.

Despite its natural endowments, much of Kurdistan’s agricultural land remains underutilized—presenting a clear opportunity for investors to unlock productivity and modernize the sector. And with Iraq still importing a significant share of its food, there is both an economic and strategic imperative to grow more at home.

This article explores why the Kurdistan Region is gaining attention from agrifood investors—and how businesses can take part in the industry’s next phase of growth.

A Regional Hub at the Crossroads of Major Markets

Located in northern Iraq, the Kurdistan Region is uniquely positioned as a gateway to over 46 million consumers in Iraq and beyond. With strong road and trade connections to Turkey, Iran, and the Gulf, the Region offers easy access to both growing urban centers and export markets across the Middle East.

For agrifood businesses, this means faster market entry, reduced logistics costs, and opportunities to serve multiple markets from a single base of operations.

Over 4 Million Hectares of Arable Land Ready for Cultivation

Kurdistan Region’s agricultural landscape is one of its strongest assets. With more than four million hectares of arable land—1.5 million of which are irrigated—the Region is well-suited for everything from grains and vegetables to orchards and specialty crops.

The land is fertile, the climate is varied, and the demand for local production is growing. This makes the Region ideal for investors seeking to establish or expand farming operations, especially those focused on import substitution or organic produce.

Agriculture also holds deep cultural roots in Kurdistan, where farming communities have cultivated the land for generations. With the right investment, this local knowledge can be paired with modern techniques to boost yields and quality.

Demand Is Rising for Processed and Packaged Foods

Consumer preferences in Kurdistan, Iraq and the wider Region are shifting. As urbanization increases and retail channels expand, there is growing demand for processed, packaged, and ready-to-eat foods.

Key drivers of this trend include:

• The growth of supermarket chains and modern retail

• Younger consumer demographics

• Increasing interest in food safety and quality
  
  

High-potential categories include processed fruits and vegetables, dairy products, frozen foods, and grain-based snacks. Globally, the processed and frozen fruit market alone is expected to reach $70 billion in 2024—indicating the scale of demand in this segment.

Opportunities Across the Entire Agrifood Value Chain

The Kurdistan Region offers multiple investment opportunities, from farm-level production to value-added manufacturing:

Large-Scale and High-Value Farming
Invest in commercial farming of wheat, corn, vegetables, or high-value crops like herbs and essential oils. The Region also offers strong potential for greenhouse farming and organic certification.

Food Processing and Manufacturing
There is increasing demand for food processing facilities to supply both local markets and exports. Investment opportunities include fruit and vegetable processing, dairy production, frozen foods, and snack manufacturing.

Expanding Livestock and Poultry Capacity
The Region needs approximately 1.7 billion USD of meat and 82 liters of milk per person annually. Investments in feed production, modern slaughterhouses, and poultry farms are essential to meeting this demand and reducing reliance on imports.

Billions Already Invested and Rising

The private sector has been actively engaged in the agrifood industry. Over the past two decades, the Board of Investment has licensed more than 100 projects in the agriculture and food processing sectors, with a total capital investment of $2.9 billion USD. Additionally, the Ministry of Trade and Industry has issued more than 700 licenses to small and medium-sized enterprises operating in the food industry.

Yet this is just the beginning—there is still significant room for growth, innovation, and diversification within the industry.

A Government that Welcomes Agrifood Investment

The Kurdistan Regional Government continues to prioritize agriculture and food security as part of its economic diversification agenda. Through land allocation, tax breaks, and logistical support, it actively encourages both local and foreign investors to enter the agrifood sector and scale their operations.

The Time to Invest in Kurdistan’s Agrifood Sector Is Now

With strong market fundamentals, abundant natural resources, and a government committed to private-sector growth, the Kurdistan Region presents a rare combination of stability and opportunity in the agrifood industry.

Whether you're a regional agribusiness or an international investor seeking new markets, Kurdistan offers the right environment to grow and scale your operations. The Region’s food sector is not only vital for its own economic future—it’s ready to help feed the wider Middle East.

Sources

• Ministry of Agriculture and Water Resources, KRG

• Ministry of Trade and Industry, KRG

• Kurdistan Board of Investment