Investment in Iraq, between the complexity of laws and procedures and lack of confidence in the investor
Nothing attracts the investor, just as the reassuring environment attracts him (because capital is always cowardly) and reassurance comes through the laws that attract investment and capital to reserve capital as well as the profits earned from investment.
Foreign investment is mostly a speculative operation in the local stock market of the country where it is invested, as it is a short-term operation and foreign direct investment;
it is the construction of residential, commercial, Industrial) in the host country.
Foreign investment is also expressed as "the net inflow of investment to obtain a permanent share of the management (equivalent to 10% or more of the voting shares in an institution operating in an economy other than the investor's economy) which is the sum of the capital of the equity and the reinvested proceeds and From long-term and short-term capital, as shown in the balance of payments."
The investment on the equity basis is divided into:
• Fully owned foreign investment:
This is the ownership of the economic project in full to the foreign investor, and this type is supported by foreign investors "because it will control the management and control of the economic project alone;
it is harassed by the incubator investment because it links the economies of those countries with the capital-exporting countries,
It is the best type of investment, as it transfers modern technology and provides great job opportunities for the large investment projects implemented in the incubator countries.
Joint foreign investment:
Here ownership is more than one party (the public sector and the private sector alongside the foreign party; often a multinational company owns the local technology needed by the local party and high technical expertise).
This type of investment is widely accepted by the host countries because it provides the advantages of foreign direct investment without giving up its right to control the projects on its land.
However, the only obstacle to this type of investment is the lack of efficiency on the local side to participate effectively in such investments, Which leads to the small projects established and few. ·
Foreign investment in the assembly process:
Here is the establishment of assembly plants in the incubator for investment, provided that the investor provides the components of the agreed product, noting that the investor in addition to providing expertise and knowledge of the project; will provide advice and advice on marketing the product in the global markets.
The Iraqi investment market is not attractive to investment and the environment of Iraq repellent to domestic and international investor due to lack of good laws and attractive to the investor.
Protect it and give it enough space to work and guarantee its capital in investment projects.
The reason is that the investment law is legislated by the government but is not well implemented by the executive authorities.
The environment of Iraq an attractive environment for foreign investment and the need for large investment projects to improve their service and economic status.
Iraq suffered an economic siege and an international boycott for many years in the days of the former regime has made it an environment hungry for foreign investment to keep up with the progress of civilization and economic world.
The destruction of Iraq as a result of past wars and neglect of service projects after 2003 made Iraq a fertile environment for attracting foreign investment.
All these elements need investment laws that make the investor able to enter Iraq without retreat and fear of losing his money.
"The project of reconstruction of infrastructure and payment of time will contribute to attracting international companies if it was legislated and will serve the service of the cultural features of Iraq, that all international companies are waiting to initiate investment services to exploit and achieve profits guaranteed."
Most of the investment laws are not attractive to foreign investment and must be reviewed to attract the largest number of international companies to build a new service reality."