The low cost airline Flydubai has launched its first flight to Iraq by flying to the city of Erbil, the capital of the Kurdish region, the company announced Saturday.

The FZ201 aircraft completed a three-hour journey to Erbil Friday after it took off from the Dubai International Airport.

Flydubai's chief commercial officer Hamad Obaidalla said: 'Stability is returning to Iraq and particularly to the Kurdistan region, and this makes Erbil an important gateway into the country.

'Our new direct service will further strengthen the growth of the city by offering affordable and quality air links between the UAE and Iraq,' he added.

Iraq's GDP was estimated at $112 billion in 2009 and the country's economy was expected to grow by about seven percent in 2010. This is above the average projected growth for the Middle East.