This research study analyses the impact of a shortage of local skilled labor force on foreign investment in the private sector of the region and risk appetite toward this risk factor. The aim of this study is to examine the effect of the shortage or absence of local skilled labor force as a risk factor for foreign private sector's investment in Kurdistan region and set a strategy to minimize the negative consequences of such shortage. This work also evaluates how foreign investors are affected by the shortage of the local skilled labor force concerning their investment in the region whilst it explores how companies assess and manage the risks they face in Kurdistan.