Erbil, Kurdistan Region – Canada has launched a new business council aimed at strengthening economic cooperation with both Iraq and the Kurdistan Region, serving as a "catalyst" for enhanced bilateral trade and investment, the Canadian ambassador to Iraq announced on Monday.

The Canada-Kurdistan-Iraq Business Council was inaugurated in Erbil, with officials highlighting its potential to unlock commercial opportunities and deepen long-standing partnerships between the regions.

"We see the creation of this council as incredibly important. Canada, Kurdistan, and Iraq have a long and excellent relationship. We believe this will further strengthen that relationship, and we are very happy about it," Canadian Ambassador Christopher Boehm told Rudaw on the sidelines of the event.

Boehm emphasized that the council will act as a key driver for economic collaboration, noting that the full commercial potential between Canada and the Kurdistan Region has yet to be realized.

The Kurdistan Regional Government (KRG) has been actively working to diversify its economy by bolstering the private sector, improving infrastructure, and supporting small and medium-sized enterprises (SMEs).

Mohammed Shukri, Chairman of the Kurdistan Region’s Board of Investment, revealed that foreign investment currently accounts for 20% of the Region’s total $73 billion in investments, with active participation in health, education, technology, industry, agriculture, and tourism. However, oil and gas remain the dominant sector.

"Foreign investors are now looking beyond their own countries, and this is a great opportunity for the Kurdistan Region, where investment prospects are abundant," Shukri said. "We aim to showcase these opportunities and foster greater coordination."

The newly formed council is expected to facilitate smoother commercial exchanges and investment flows between Canadian businesses and their counterparts in Iraq and the Kurdistan Region.

Canada, a member of the U.S.-led global coalition against the Islamic State (ISIS), has been engaged in Iraq since 2014. Earlier this year, Canada closed its military office in Erbil, citing improved security conditions and the defeat of ISIS. The establishment of the business council signals a shift toward strengthening economic ties in the post-conflict era.

With the Kurdistan Region actively seeking foreign investment, the council is poised to play a pivotal role in expanding economic collaboration and unlocking new opportunities for growth.