A proposal to establish a local holding companies
08/8/2016 12:00 am
Baghdad – joy of pumice.
In line with Government plans to promote the private sector and achieve a partnership between him and General, financial expert suggested the establishment of holding companies to compete with foreign companies invested, whether inside or outside Iraq.
THAMER Azzawi said in a statement to» morning»: «most local businesses are its investments in small size and inability to compete with Arabic or foreign counterparts, so they need to establish holding companies is necessary for its development.
The holding company is intended «the company or organization that owns the shares traded for other companies, and often the term refers to the form the basis to the company that produces goods or services, but only intended to have other companies, usually holding company owns majority shares in subsidiaries.
A distinction can be made between two types of holding companies: only exist for this purpose are called pure holding company (pure), a company involved in business (on their own) are called operational holding company.
Azzawi pointed out that the Iraqi market is promising, and ready to receive investment companies, expecting dozens of companies once military operations aimed at the full disposal of the Islamic State to terrorist bands»».
And access to local companies in partnership with foreign companies to establish such holding companies.
Economists possibility that controlled the holding company in the State to subsidiaries in other countries, and may subject a national company in a foreign holding company controlled by contributing to the company's capital by the foreign national holding company, the two modes that is called a multinational company.
With regard to the difference between the concepts of parent company and holding company, experts say the lack of substantial differences between the parent company and the holding company, but different legal consequences for the company in General, as the holding company is not active (operational concept), except for the purpose of owning other companies, while the parent company usually private commercial projects, as well as its influence and ownership of affiliates for investment purposes or to support and expand its operations.
Turn between host good competent economic Abdulkarim holding companies role in overcoming a lot of parameters that face the implementation of development projects of their financial and administrative efficiency are often required, as well as to create an international reputation represent attraction for its capabilities in more than one country.
He pointed out that holding companies although Iraq lacking elements of success are available in the country and in particular the size of the field work great in all disciplines without exception which requires to initiate such private sector companies during the coming period to carry significant cost to the country.
Abdul Karim said that Iraq has significant operational capabilities and companies of great quality projects, pointing out that the country is in dire need of concerted efforts to create the country's advantageous economic blocs and address the economic problems.