Queues which had formed at many polling stations across Iraqi Kurdistan even before polls opened at 8.00 am (0500 GMT) lengthened during the day, as the entrance into the fray of a new opposition party added interest to the contest.

Incumbent regional president Massud Barzani is widely tipped to be re-elected while his Kurdistan Democratic Party (KDP) and Iraqi President Jalal Talabani's Patriotic Union of Kurdistan (PUK) are expected to sweep the parliamentary poll.

However, Nusherwan Mustafa, a wealthy entrepreneur and former PUK deputy leader who is bidding to break the PUK-KDP monopoly, as well as a raft of smaller parties appeared to be drawing an enthusiastic cross-section of voters.

"This is the first time in my life I feel that I'm actually participating in elections that offer choice and real competition," said Zeez Ahmad Hassan, a 44-year-old engineer in Sulaimaniyah, the region's second city after Arbil.

Hassan said that the dominance of the PUK and the KDP "did not give voters any choice," adding that he would be voting for a smaller party because "Kurdistan badly needs change and renewal."

Talabani, former deputy prime minister Barham Salih and opposition party leader Mustafa -- head of the Change party -- cast their votes in Sulaimaniyah, while Barzani voted at a summer resort north of regional capital Arbil.

"This election is a victory for the Kurdish people and the people of Iraq," Barzani told reporters after voting.

"We hope that these elections will be a first step to solving issues with Baghdad. ... I will work to get back the disputed areas."

Tensions heightened in the run-up to the vote between Barzani and the central government of Prime Minister Nuri al-Maliki over Kurdish claims to 16 disputed areas along Kurdistan's border with the rest of Iraq.

Barzani had during campaigning also insisted he will not "compromise" on the Kurds' longstanding claims to the oil-rich city of Kirkuk.

Kurdish peshmerga rebels who had fought the regime of ousted dictator Saddam Hussein are now deployed alongside Iraqi army soldiers, triggering a tense face-off that has raised the prospect of armed conflict.

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

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

During a visit to Washington on Thursday, Maliki acknowledged that these tensions were among "the most dangerous issues" facing his government, but said he expected to resolve the standoff.

Neshirvan Barzani, Kurdistan's prime minister and nephew of the regional president, said while he was casting his ballot on Saturday that "after the elections, we will work hard" on resolving the disputes with Baghdad.

Saturday's vote is being held six months after the rest of Iraq held provincial elections.

More than 2.5 million Kurds are eligible to vote, with polling stations due to close at 6:00 pm (1500 GMT).

Final results are not expected for several days, however, as ballots must be collected in the regional capital Arbil before being transported to Baghdad for the count.

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

For the first time the regional president will be elected by popular vote in Iraqi Kurdistan, which covers the provinces of Arbil, Dohuk and Sulaimaniyah and has its own flag, national anthem and national day.