SURVEY REPORT ERBIL, IRAQ

JANUARY 2012
Associates For International Research, Inc. | www.air-inc.com
SURVEY REPORT ERBIL, IRAQ
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AIRINC SURVEY REPORT ERBIL, IRAQ
AIRINC completed its first onsite survey of Erbil in November, 2011. Erbil is located in the center
of Iraqi Kurdistan, which the Constitution of Iraq defines as an autonomous entity within the
federal Republic of Iraq, governed by the Kurdistan Regional Government (KRG). Largely spared
the violence witnessed by the rest of the country since the 2003 U.S.-led invasion of Iraq, Iraqi
Kurdistan has capitalized on its stability and has attracted commercial investment from around
the globe. Most of this investment has been concentrated in Erbil.
Along 100m Street, outer ring of Erbil and site of many
housing compounds and commercial activity
Introduction to Erbil
With a population of approximately 1.7 million people, Erbil is a large and rapidly expanding city,
although it remains relatively compact compared to other cities of similar size in Europe and
North America. Erbil is laid out in a pattern of concentric rings surrounding the old citadel in the
city’s center. The distance from the center to the outermost ring (100m Street) is approximately
2.5 miles. However, there is little need for expatriates to venture into the center of town, since
most expatriate shopping outlets and housing compounds are located along or near 100m
Street, or the outer ring. The Ainkawa neighborhood, or Christian quarter, is located in the north
of the city. It is home to some services and shops, as well as a few independent residences
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Survey Report: Erbil, Iraq
occupied by expatriates, but it is much less popular than the 100m Street area. The International
School of Choueifat (kindergarten through grade 11) is located about 30 minutes by car northeast of the city near the American Village housing compound.
The Erbil International Airport is located to the northwest of the city, approximately 15 minutes by
car from hotels and housing compounds. There are frequent flights to Erbil via major international airlines. Direct flights from major hubs in Europe, such as Frankfurt, take approximately 4
hours. Ten day visas can be obtained upon arrival at the airport free of charge for many nationalities, including those who possess E.U. and U.S. passports. A residence visa for a longer stay
must be obtained from local authorities for a small fee.
Currently, the Rotana Hotel is the most popular option for business travellers due to its high
quality and good security. Other options include the Noble Hotel and the Erbil International Hotel.
Security at the Noble Hotel is less robust than at the Erbil International, which maintains a security
perimeter (a fenced area with a security checkpoint). There are several hotels under construction,
including a Marriott, but opening dates are not yet available.
The climate in Erbil varies widely between seasons: summer is characterized by hot temperatures
and little rainfall, and winter is very cold with rain and occasional snowfall. Pollution levels are
relatively low, as heavy industry is not present in the region, but an increasing number of cars on
the road creates pockets of low air quality during peak periods. Sanitation is not present in all
areas; while expatriate compounds are generally clean, open trash pits and littered gutters are
present throughout Erbil. Much of this waste can be associated with the high levels of construction throughout the city.
Security
Although largely unaffected by the ongoing threats to personal security that plague Baghdad
and other cities in Iraq, security is nonetheless taken very seriously in Erbil, and Kurdish security
forces maintain a strong presence in the city. Travel outside Erbil is not recommended without
an armed convoy, but within the city limits of Erbil, unrestricted movement is possible via prearranged taxi or dedicated driver. Local taxis are available, but since taxis are independently
operated by private citizens, many international companies currently restrict employee use due to
safety and security concerns. Language is also an obstacle, since most taxi drivers speak only
Kurdish and Arabic.
At all major expatriate establishments (hotels, malls, and even some restaurants), security consists of armed checkpoints, electronic and manual baggage screening, metal detectors, and/or
pat-downs. Access to the airport is protected by concrete barriers, a separate security building,
and three different screening stations. Housing compounds also have checkpoints at entrances,
and guards may be posted at individual properties within the compounds.
With respect to personal security, some western firms do not allow their expatriates to move
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Survey Report: Erbil, Iraq
about unaccompanied outside secure areas such as housing compounds and malls. However, the risk of kidnapping or violent crime
is relatively low, and the presence of a driver is considered sufficient
security on trips to and from housing compounds, malls, and offices. During the course of the survey, AIRINC surveyors did not
experience any hostility or feel threatened by Kurdish citizens, though
interactions were complicated by the lack of a common language.
In addition, the surveyors were advised that some companies are in
the process of reevaluating their security policies to potentially loosen
restrictions on staff movement.
Currently, the U.S. government designates Erbil as a non-family
post, and work arrangements for most western expatriates are on an
“unaccompanied” or non-family basis.
GOODS AND SERVICES
Produce at City Centre
Erbil is a cash only economy. Credit cards are currently accepted
only at the Rotana Hotel and the City Centre Supermarket. The only
ATM found by surveyors was at the Rotana Hotel. Most prices are
marked in Iraqi dinars, but dinars and U.S. dollars are used interchangeably at almost all establishments at a fixed rate of 1200. It
is common for change to be given in dinars in return for payment in
dollars. There are no major international banks in Erbil, but the Kurdistan International Bank’s website indicates that it offers individual
bank accounts in euro and U.S. dollars, as well as international
money transfers.
Erbil is in a state of flux, characterized by high levels of construction
throughout the city. This has notably altered the commercial landscape, sharply increasing the availability of goods and services over
a relatively short period of time. This trend is expected to continue in
the coming years. As detailed below, availability is currently fair to
good for most surveyed goods and services categories. There are
no sales taxes. Service charges of 10% are added to the final bill for
all services and purchases at hotels and most restaurants frequented
by expatriates.
FOOD, BEVERAGES, AND TOBACCO
Dry goods at City Centre
There are only a few food markets where expatriates shop, and
only one, City Centre, that is comparable to markets found in more
developed locations. Located at Majidi Mall in the east of the city,
City Centre boasts an excellent range of most food items, including
small meat and produce sections. It is also the only food market that
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Survey Report: Erbil, Iraq
Majidi Mall, one of two secure and
enclosed malls with international brands
provides security, with the exception of small, local markets located
within housing compounds. In general, shelf-stable goods and most
pantry basics (flour, sugar, etc.) are widely available in international
brands. Local fresh meats, fish, and produce are available in limited
selection. Specialty meat markets are common, as are produce vendors alongside the road, but expatriates mostly frequent City Centre
and small markets within the compounds due to quality concerns.
A Carrefour market is currently under construction in the Family Mall.
Tap water is not potable, even in housing compounds, so the use of
large bottles of water is common for drinking and cooking. Alcohol,
tobacco, and small snacks are available at small shops along the
road to Ainkawa. The selection of beers and liquors is good, but
wines are limited. Expatriates are able to purchase alcohol without
restriction. Tobacco can also be found in supermarkets and specialized tobacco shops within the malls.
PERSONAL CARE, HOUSEHOLD SUPPLIES AND SERVICES
Personal care and household supplies are widely available in international brands. There are few hair salons, and they are located only
in the malls. There is a barber in the Noble Hotel. Except for a dry
cleaner near the Italian City housing complex, laundry and dry cleaning services are generally only available in hotels.
CLOTHING
Erbil has two large, fully enclosed shopping malls in the east of the
city: Majidi Mall and Family Mall. These are the top quality malls,
although numerous, much smaller malls are scattered throughout
the city. Majidi Mall and Family Mall both have security checkpoints
at their entrances. International brand shops, such as Pierre Cardin
and Levi’s, abound in both malls. Although it is common for most
expatriates to bring most of their clothing, the supply of these goods
is sufficient to satisfy most shopping needs and tastes for men,
women, and children. Stores have the feel of their counterparts in
Europe and North America.
MEDICAL CARE
DentCare exam room,
featuring new equipment
Erbil does not yet have medical infrastructure comparable to that
found in developed locations, and routine medical care is generally
saved for home visits. NMS Nordic Medical Services, located in the
Italian City, provides the expatriate population with a host of services
through its English-speaking staff, including doctor visits, access
to high quality medications, emergency services, and assistance
with medivac procedures. The facilities are new and clean, and
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Survey Report: Erbil, Iraq
the level of service is comparable to that found in Sweden. NMS
works closely with the local Cardiac Hospital in emergency cases.
DentCare is a dentistry outlet located within the Italian City; it is
recommended by NMS and provides good quality dental services.
Pharmacy items can be found via NMS or at Raz Pharmacy in the
Family Mall. Although there are numerous local pharmacies located
in the city, expatriates do not use them due to language difficulties
and quality concerns. Expatriates requiring care from specialists or
in-hospital procedures such as surgery must obtain services outside
Kurdistan.
COMMUNICATIONS SERVICES
Street in Ainkawa, or Christian district,
and home to some expatriate
stores and services
Erbil lacks a uniform telecommunications grid. Landline phones are
available from a variety of small telecom businesses that provide
service only in select areas. These services are not comparable to
those found in Europe or North America. Mobile service, however,
is of good quality, with a number of providers available in the market.
Reliable data and voice services are widely used. There is only one
post office, located in Ainkawa. It functions more like a courier service and did not seem reliable to the surveyors. Businesses generally send a weekly DHL back to the home office, and from there the
local post is used. Home internet is available but is very expensive.
HOME FURNISHINGS AND EQUIPMENT
Since houses in Erbil are typically unfurnished, renters are responsible for providing all furnishings and nearly all electronic goods. There
is a mattress and home goods store in the Family Mall, but there
are only a few local furniture outlets. Furniture must therefore be
shipped in or ordered from abroad. International brands of electronics, such as Sony and Samsung, are widely available at specialized
stores at both malls, as well as at City Centre Supermarket.
DOMESTIC HELP
Health Room at Rotana, one of the
few gym options in Erbil
There is not a fully developed market for domestic help. It is common for western expatriates to employ a service, such as Falcon Full
Service, to provide security, cleaning, and landscaping services for
a bundled monthly fee. Alternatively, full-time help is available and
often contracted from abroad via a staffing company. A fee is paid to
the company, which then arranges for the maid, who is provided with
food, housing, and a monthly wage by the employer. The company
fee and monthly wage vary as a function of the home country of the
maid. It is common to pay a 13th month bonus at Eid. Part-time
help is not widely available outside a bundled service.
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Survey Report: Erbil, Iraq
TRANSPORTATION
Expatriates do not generally drive themselves. Drivers can either be
employed directly at a monthly wage or included in the rental price
from a company, such as the Falcon Group. Car insurance is not
available. Individual expatriates are not responsible for the maintenance of cars if they rent from a service, although services and parts
are available through dealerships. New cars are widely available
from the west to south quadrants of 100m Street from a variety of
dealerships, including Mitsubishi, VW, Nissan, Audi, BMW, and Ford.
Other new cars are available through non-franchise dealers. There
is no public transportation, with the exception of shared mini-buses,
which expatriates do not use.
RECREATION, ENTERTAINMENT, & DINING OUT
Houses in Royal City
Type A villa, Italian City
Few options exist for either supplies or services. There is a small
gym in the Rotana Hotel, and the Erbil Sports Center has a number
of facilities, including a large weight room and an indoor swimming pool. Although a few expatriates were spotted at the latter,
it should be noted that it does not have security such as guards
or a checkpoint. Satellite TV and internet provide the only access
to international media. Internet sites are not censored. There is a
small bookstore in the Family Mall, but it has a very limited selection
of English-language books. Since there are no social clubs available,
most socializing is done at home or at secure restaurants. Expatriates tend to frequent restaurants located behind security perimeters.
Good quality restaurants can be found at the Rotana Hotel and the
Noble Hotel. There is a scattering of other restaurants along the
northern crescent of 100m Street, including the Erbil Speed Center,
which is very popular amongst expatriates, and in Ainkawa, at the
Deutcher Hof German restaurant. Next to the Rotana there is a
Costa Rica Coffee outlet, and within the malls there are fast food and
small café options comparable to those found in North America and
Europe, although the emphasis is on local foods such as shwarma
and kebabs. Alcohol is served at higher end establishments, including hotels and expatriate restaurants.
HOUSING
Erbil has a burgeoning housing market characterized by high demand
and very little supply. Due to security concerns as well as concerns
over the lack of protection under housing contracts, expatriates tend
to live in new compounds that have sprung up near the airport, such
as Royal City (the most popular), English Village, Italian City, Naz City,
and Dream City. Villas in the American Village compound are of very
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Survey Report: Erbil, Iraq
good quality, but it is far away from town. Expatriates tend to value proximity to the airport and
commercial activities on 100m Street, so American Village ranks lower in popularity and houses a
small population, despite its proximity to the international school. Compounds offer few amenities
beyond security and small mini-marts (no pools, gyms, parks, etc). Royal City is the only compound that is residential only; other compounds allow villas to be converted into commercial space.
Housing stock within the expatriate compounds is primarily comprised of free-standing houses
on small plots of land, with narrow passages between the houses. Italian City also has attached
and semi-detached units. There are very few apartments in the current market, and expatriates
rarely choose to live in them. Due to limited availability, expatriates may share houses in secured
compounds, such as two assignees sharing a four-bedroom house. The Rotana Hotel is also host
to a number of assignees who are waiting to secure a unit in one of the compounds. Small units,
such as two- and even three-bedroom villas, are less common than four- and five-bedroom units.
Houses are rarely furnished and are often rented without light fixtures, cabinets, and appliances.
These items, in addition to furniture, must be purchased by either the company or the individual.
Houses in English Village
Common area utilities for the compounds are paid on top of rent. English Village includes all utilities
and common space maintenance in an overall service charge, which varies with usage.
Compounds charge their own variable rates for electricity and water. These are higher than city
rates, as each also provides a generator for the compound, which is used during frequent electrical outages. Individual homes do not require separate generators.
High rent escalations are becoming commonplace as landlords and management companies
take advantage of the high demand and insufficient supply. In the short run the compound rental
market is expected to continue to be volatile as expatriate populations grow. However, supply is
growing rapidly via expansion within existing compounds and development of new compounds,
and there are predictions that within a couple of years the market may be flooded by up to
100,000 new units.
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