At a Glance

• Kurdistan Region Deputy PM said the Slemani Summit united regional and federal officials, private investors, and academics to establish a new stage of economic development.
• Talabani urged comprehensive banking reforms and closer coordination with the Central Bank of Iraq to address structural weaknesses.
• He noted that Iraq's banking sector faces a substantial deficit in public trust due to historical financial shocks.

Qubad Talabani, the Deputy Prime Minister of the caretaker Kurdistan Regional Government (KRG), lauded the Slemani Summit as a vital platform for cross-sector collaboration while urging structural banking reforms and closer coordination with the Central Bank of Iraq to drive regional development.

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Key Statements and Focus Area

• The Deputy Prime Minister stated that the Slemani Summit “offers a platform for us, as political and government figures, to listen to real experts.”
• Talabani emphasized that the banking sector across Iraq remains structurally “weak,” suffering from a profound deficit in public trust due to historical financial shocks.
• “The stability present in Slemani and Kurdistan creates opportunities for foreign investors to invest here,” he added.

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In an interview with Channel8 on the sidelines of the Slemani Summit's inaugural day, Deputy Prime Minister Qubad Talabani underscored the significance of the forum in uniting regional and federal officials, private investors, industrial leaders, and academic experts.

Talabani stated that the forum enables officials to engage with expert proposals aimed at achieving "a new stage of development" across the Kurdistan Region broadly, and within Slemani specifically.

He underscored his optimism for the city’s next decade, noting that Slemani has experienced significant growth and a substantial increase in development projects over the past five years.

Talabani stressed that he is particularly pleased with the "type and diversity" of these initiatives, adding that alongside residential developments, a strategic focus is being directed toward tourism, industrial, and agricultural projects.

He stated that industrializing agriculture is crucial in this era, requiring young entrepreneurs with innovative ideas and capital to help diversify the economy of Kurdistan.

The Deputy Prime Minister also addressed the banking system in Slemani and the systemic vulnerabilities of the Iraqi financial sector, adding that, “There is much that can be done regarding the banking system in Slemani.”

Talabani highlighted that improving the financial system requires direct coordination with the Central Bank, noting that the banking sector across Iraq remains structurally underdeveloped and faces a substantial deficit in public trust due to numerous historical factors.

He noted that recurring financial shocks over time have severely undermined public “confidence” in the banking sector.

He further underlined that despite these challenges, a number of solid banks operate properly, comply with the Central Bank of Iraq's regulations, and have not been blacklisted by the United States.

According to him, these institutions can merge to support one another and the government, thereby strengthening the economic sector and addressing a critical vulnerability in both the Kurdistan Region and Iraq: the lack of a robust banking infrastructure.

FYI

The banking sector in Iraq and the Kurdistan Region faces structural underdevelopment and a profound public trust deficit, with over 85% of cash circulating outside formal financial institutions due to historical financial shocks.

In economic hubs like Slemani, the absence of a robust commercial credit network restricts entrepreneurial financing, prompting officials to advocate for regulatory coordination and strategic bank consolidations.

 Meanwhile, Deputy Prime Minister Talabani met with number of investors and businessmen from the Slemani, urging them to branch into cultural, scientific, and intellectual fields to ensure balanced national growth alongside economic development. 

He also  referred to the banking system in the Kurdistan Region, stressing that “some efforts have been made recently, and there are plans to build an advanced banking system that earns the trust of the citizens.”