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Finance is a sector in the region, which has seen development in recent years, but further reforms are still needed to enhance this sector. Foreign Direct Investment along with local investment is key to the development of the regional banking system as key to continuing growth and expansion of the regions economy.

The ability to build the physical infrastructure helps to strengthen economic infrastructure to enable the private sector to flourish and our society to develop, the emergence of big multinational banks in the region enables the region to learn and have available to them International Banking Services in the country.

Due to the healthy investment climate and the cutting of red tape in the region had made banking in the region much easier, 16.67% of capital investment is dedicated to investment in the Banking sector this is around $2.3 Bl in investment projects in the region.

Kurdistan is rapidly becoming the ideal place to expand commercial and retail banking sector with over 15 banking headquarters in the region. The region consists of two state owned central banks with around 14 state owned banks and 30 privately owned banks which have branches across the region, joint venture between local banking institution and foreign have also taken place like the merger between the Trade Bank of Iraq with JP Morgan, the US company is advising and helping to manage to invest in the company. 

An insurance market has also started to emerge in the Kurdistan region, the market has been active since 2005 but is yet to of had that investment drive needed to enhance growth in the sector. The sector has immense potential to develop rapidly, Insurance sector will further enhance the investment in the region as investors can minimize risks of their investment through appropriately designed projects. The private sector needs development in this sector to enhance their own business potential

The emergence of the insurance sector has helped to professionalize investment in the region, it leads to investors having to oblige with insurance requirements set out by the insurance companies onto commercial companies. In other market economies insurance has played a pivotal role in their development, with the right legislation and regulation insurance has the potential to thrive in the region, the combination of a healthy investment and banking law has led the way to an efficient banking regime in the region.

The soon to be established Erbil Stock Exchange (ESX) will offer greater flexibility for foreign investors and links Kurdistan to the international business community.