The rapidly growing e-commerce industry in Kurdistan has become a catalyst for job creation, providing numerous employment opportunities for thousands of individuals including University students, new graduatees. With the increasing popularity of online shopping among the locals, the demand for e-commerce services has soared.
In a time when the people of Kurdistan Region are grappling with a lack of job opportunities and economic uncertainty, the emergence of the e-commerce industry and online shopping has brought a ray of hope. This transformative sector has brought forth thousands of job opportunities, offering a lifeline to the locals who are desperate for employment
The e-commerce industry in Kurdistan traces its origins back to 2010s when the region witnessed the growing popularity of Facebook and other social media platforms. This led to people utilizing Facebook shopping groups to sell their products. As time passed, the e-commerce trend expanded to include Instagram as well. However, the true turning point for online shopping came during the outbreak of the COVID-19 pandemic. With physical stores facing restrictions, businesses in the Kurdistan Region swiftly transitioned to selling products online. Surprisingly, even after the pandemic, the e-commerce momentum persisted and continued to gain popularity among both businesses and consumers.
Initially, e-commerce in Kurdistan primarily revolved around transactions among Kurdish cities. However, Kurdish online shoppers took a significant leap forward by expanding their business reach to customers in southern and central Iraq. According to a survey conducted by the Kurdaily team, a remarkable 90% of online businesses in Kurdistan now engage in trade with Iraqi customers. This demonstrates the expanding market and cross-border trade opportunities that have emerged within the region. The ability to connect with a broader customer base beyond Kurdish borders has fueled the growth and success of e-commerce ventures in Kurdistan.
Barzan Qasim Barzani, a 17-year-old student hailing from Erbil, ventured into the world of online business in 2021. As the proud owner of “Barzan Group,” one of the most prosperous online shopping platforms in Kurdistan, he specializes in trading shoes and various men’s products. Barzan’s remarkable success story exemplifies the entrepreneurial spirit and drive for innovation among young individuals in Kurdistan.
“When I started the business at first, I was very doubtful about whether it’s going to be successful or not, I started it with only 1000$ which I borrowed from my brother” Barzan said
“Later, Thanks To God , I began selling my products to local customers in Erbil, starting with a modest inventory sourced from local shops,” Barzan recounted. “As my business started to grow, I expanded my operations by importing shoes and men’s products from China and other countries. This allowed me to engage in trade with customers across Iraq, extending my reach to various provinces.” Barzan expressed his gratitude for the success and growth of his business, drawing attention to the diverse customer base he has cultivated throughout Iraq.
“As of now, I have hired ten people to work for my business. Looking ahead, we have a visionary plan to not only sell items made in Kurdistan, but also to export them to nearby countries” Barzan Group owner proudly said.
Muhammad Mzuri is the proud owner of a cosmetics shop located in a village near Erbil. While he maintains a physical store, Muhammad has also ventured into the realm of online sales. He attests that selling his products online has proven to be more profitable and less risky compared to traditional methods. Each day, he sends a minimum of twenty parcels containing his cosmetics to various cities across Iraq from his village. To support his growing online business, Muhammad has two of his friends and a driver. Mzuri told Kurdaily team that eCommerce is growing even in rural areas.
According to a source from the Kurdistan Region Ministry of Labour and Social Affairs, there are over 40,000 individuals who primarily work in the field of e-commerce. Additionally, a staggering 80% of shops and businesses have embraced online platforms as a means to market and sell their products.
Ministry of Labour and Social Affairs affirms that the proliferation of online jobs and businesses has alleviated pressure on the government. Recognizing the significance of this digital shift, the government is now in the process of formulating a comprehensive law that aims to enhance and support online businesses, fostering an environment that is conducive to their success and customer satisfaction.
According to statistics, Iraq including Kurdistan Region is ranked as the 73rd largest eCommerce market, with an estimated revenue of US$1,314.9 million by 2023, surpassing Luxembourg. The market is projected to experience a compound annual growth rate (CAGR 2023-2027) of 6.1%, resulting in a market volume of US$1,667.2 million by 2027. The expected growth rate of 3.6% in 2023 in the Iraqi eCommerce market contributes to the global growth rate of 8.7% in the same year. This aligns with the global trend of rising eCommerce sales, indicating promising opportunities for businesses both in Iraq and worldwide.
Kurdaily has learned that the Iraqi eCommerce market[including Kurdistan] consists of seven key sectors, as classified by ECDB. Among these sectors, Hobby & Leisure emerges as the largest market, contributing to 25.3% of the overall revenue in Iraqi eCommerce. Electronics follows closely behind, accounting for 21.9% of the revenue, while Fashion captures 17.7%. Furniture & Homeware sector holds an 11.5% share, followed by Care Products with 8.9%. The remaining sectors of DIY and Grocery make up 8.4% and 6.2% respectively.
