This chapter explores the relationship between income growth and the stability of the peace settlement in the KRI, focusing on the post-civil war period between the KDP and the PUK. It analyzes three distinct economic phases: the recovery period (1997–2003), the expansion phase following the fall of Saddam Hussein (2003–2014), and the financial crisis era (2014–2023). The chapter demonstrates that economic stability played a crucial role in reinforcing political reconciliation, facilitating power-sharing and power-dividing arrangements between the two parties. Conversely, economic downturns exacerbated tensions and unrest. The findings suggest that while economic prosperity helped sustain peace by masking governance deficiencies and satisfying the economic interests of both parties, financial crises exposed institutional weaknesses—particularly in public service delivery—and reignited disputes over resource allocation.