Baghdad  - The Kurdistan Regional Government (KRG) announced Tuesday the establishment of a "Gas City" in northern Iraq, aiming to attract direct foreign investments of over 40 million US dollars.

A KRG statement said construction of the 50 square-kilometre industrial complex was scheduled to start September 21, with Kurdish Regional Premier Nechirvan Barzani to attend the ground-breaking ceremony.

Gas City is a joint enterprise by two United Arab Emirates partner gas and oil companies, Dana Gas PJSC and Crescent Petroleum, which say they want to optimize exploitation of the oil-rich Kurdistan region.

The complex is to include 20 large-scale petrochemical and heavy manufacturing plants, in addition to hundreds of small and medium enterprises.

Its planners say it will open up career opportunities for over 200,000 Iraqis, both directly and indirectly.

"The Kurdistan Gas City is an enormous step as we work towards strengthening the Iraqi economy and bettering the livelihoods of the Iraqi people," said Hamid Jafar, the executive chairman of Dana Gas, in the statement.

Kurdistan's economy is dominated by oil, agriculture as well as tourism, with the region considered safer than other areas in Iraq.

After the US-led invasion in 2003, the US military declared the three KRG-controlled provinces of Arbil, Sulaymanyah and Dohuh as secure. (dpa)