Incumbent president Massud Barzani is widely expected to be returned to office while his Kurdistan Democratic Party (KDP) and Iraqi President Jalal Talabani's Patriotic Union of Kurdistan (PUK) are likely to sweep the legislative poll, in which more than 2.5 million Kurds are eligible to vote.

The two parties, which have dominated the region's politics for decades, have presented a joint list, made up mostly of new candidates in a bid to present an image of renewal, but face a number of challengers seeking to break their stranglehold.

Campaigning wrapped up early on Thursday for Saturday's vote, being held six months after the rest of the country went to the polls in provincial elections and as the US military is planning its pullout from the country in 2011.

In the election run-up, tensions between Barzani and the central government of Prime Minister Nuri al-Maliki heightened over Kurdish claims 16 disputed areas including oil-rich Kirkuk and parts of three other historically Kurdish-populated provinces -- Diyala, Nineveh and Salaheddin.

During the US-led invasion of 2003, Kurdish peshmerga rebels who had fought the regime of ousted dictator Saddam Hussein occupied many of the disputed areas.

The former rebels are now deployed alongside soldiers of the Iraqi national army, triggering a tense face-off that has raised the prospect of armed conflict between the two sides.

Barzani insisted in a campaign speech on Sunday he will not "compromise" on the longstanding claims to Kirkuk and repeated his demand that the issue be settled by a referendum called for under the Iraqi constitution, despite opposition from Arab and Turkmen communities.

"The next government will have major challenges to face," said former Kurdish culture minister Sammy Shourash.

"The most pressing of those is resolution of the territorial and constitutional conflict with the central government in Baghdad."

Dyandar Zebari, who is responsible for coordinating the Kurdish government's relations with the United Nations, said the next administration will also have to reach a deal with Baghdad to share energy resources from northern Iraq's many oil fields.

On June 1, the Kurdish administration began exporting oil for the first time in its history, but Baghdad is contesting the right of the region to sign contracts without central government approval.

Disagreements over oil rights have hamstrung exploitation of much of Iraq's massive proven reserves and long-delayed hydrocarbons law, prompting fierce criticism by the Kurds.

Kurds are also increasingly concerned with levels of corruption, with many voicing support for change after decades of dominance by the PUK and the KDP.

"It is very important that changes occur in Kurdistan," said Mustafa Khalil, a 34-year-old shopkeeper in Arbil. "Government institutions must be reformed to eliminate administrative and financial corruption."

Street vendor Karwan Ahmed, 27, added: "All the electoral programmes are similar, and contain the same old promises."

"We need an opposition that can put pressure on the government until it provides better services for its citizens."

Independent candidates like Nusherwan Mustafa, a wealthy entrepreneur and former PUK deputy leader, are working to break the PUK-KDP dominance.

"We think that Kurdish society, after a political stabilisation, now needs economic, social and cultural reforms," said Mustafa, head of the Change List.

"We are a political force with real popular support," he insisted. "We did not buy the people's loyalty by distributing money."

Five candidates have registered for the presidential race, including Barzani, while 24 political lists have registered to contest the 111 seats in the assembly which first sat in 1992.

It is the first time the regional president will be elected by popular vote.

In 2005, Barzani was elected by parliament in Iraqi Kurdistan, which covers the provinces of Arbil, Dohuk and Sulaimaniyah and has its own flag, national anthem and national day.