Al-Hikmah University Journal

Economy is an integral aspect of global politics. Such economy dictates the direction and complexity of state’s foreign policy. As economic capability of state gives lucid account of the strength it hasvis-à-visother states within the global political economy, economic interactions between and among states further enhances the state’s economic capability. It is based on this position that states strife to have economic capability to enrich themselves. Kurdistan region is an integral part of Iraq statehood but the region endeavours to interact with other states globally in order to promote its economic activities. It is a region with rich deposit of crude oil. The Kurds in Iraq believes that the financial capacity of Iraq is based primarily on the extraction of oil from the Kurdistan region and such position further intensify the manner with which the leadership of the region keeps demanding for sovereign nation. Thus, this article examines the economic dimension in the para-diplomacy of KRG. It addresses the role oil and other economic activities have played in the KRG relationship with other entities within the international system. As economy is an integral aspect of diplomatic relation, the research concludes that the KRG government should be proactive in intensifying economic growth for development and global competition. The research employs the use of hermeneutic to mine data from internet sources, library, and personal observation.