Financial and banking reforms, attract investment

6/1/2016 0:00

BAGHDAD - Imad emirate

economist said the academic from the Faculty of Administration and Economics at the University of Mustansiriya Dr. Sattar Jaber: to attract foreign investment and boost his chances and increase in Iraq and the Arab countries of non - oil requires reform of the financial and banking sector and the removal of restrictions on money entering the movement into the country.

According to Jaber in an interview «morning» that Arab oil exporting countries have a surplus of resources in terms of savings greater than the investment, while some Arab states have a deficit in terms of savings less investment, since economic growth is highly dependent on investment and the adequacy of domestic savings and investment, and the adequacy of local resources for the Arab States , it is possible to make up the shortfall , or the difference through internal capital flows.

The accumulation of financial surpluses of the countries of Arab petroleum exporting has led to increased investment outside the Arab region, and that the continuation of the balance of payments of non - oil deficit has led to the accumulation of foreign debts , indicating that Maymana investment of Arab States, the surplus part of the revenues in the deficit of Arab States, is the weakness and inability of the Arab countries is of Petroleum exporting to attract foreign investment , both of surplus Arab states or countries and overseas markets.

he said if we want to be more precise in identifying the reasons for this, we can say that the reason behind the inability or the inability of these countries to attract investments respect to climate and investment environment in the Arab states (surplus countries and deficit countries), as regards energy absorption of Arab economies for each existing investments abroad , or part of it.

He stressed that building economic relations enhances climate investment in the international economic environment, and the increasing integration with the global economic and predominance of the market economy and the increasing role of the private sector making considerations of return, risk and cost more pronounced in investment decisions, and thus became the world in the competition to attract the money, according to offer every region of the advantages and incentives for investment .

Jabir that drew Arab countries non - oil (deficit countries) is still far from providing a climate for investors among them Arabs, but that the climate has become affect the national investment and Pat local investors prefer to invest part of their money outside the borders of their own countries because of the investment climate prevailing.

and the importance of absorb the financial and banking sectors , the fiscal surplus partial than that of the oil - exporting Arab countries through deepening and expansion of the financial sector because of Arab funds invested abroad exceeds the size of the assets of the Arab financial sector, and therefore it is difficult for the financial sector that accommodates both the Arab fiscal surplus.

He stressed Jaber on the need to several measures reforms , the most important financial sector liberalization and the removal of restrictions on interest rates and the granting of financial institutions greater autonomy, which requires the restructuring of public banks and privatization and to encourage competition in the financial sector and the establishment and development of cash markets and securities markets and the development of monetary policy and the removal of restrictions on investment flows include.