A proposal for the establishment of a local holding companies

8/8/2016 0:00

BAGHDAD - The joy of pumice in

line with government plans to promote the private sector and achieve a partnership between him and the public, the establishment of a local holding companies financial expert suggested to compete with foreign companies invested, whether inside or outside Iraq.

The expert said Thamer al - Azzawi in a statement »Sabah»: The «most companies local characterized by its investments by its small size and inability to compete with Arab counterparts or foreign, so the need for the establishment of holding companies has become necessary to develop its work ». the majority of shares is intended Holding company is« the company or institution that has traded shares of other companies, and often the term is based refers to the company , which does not produce goods or services itself, but rather the purpose of which only owns shares of other companies, the holding company has usually a majority of shares in subsidiaries ».

it can distinguish between two types of holding companies: Company existed only for this purpose is called a holding company purely (pure), company participation in the business (on its own) is called a holding company operating.

He said al - Azzawi said the Iraqi market and promising, and is ready to receive investment companies, expecting the arrival of dozens of companies immediately after the end of military operations , which aims to get rid completely of gangs »Daash» terrorist. company national and the possibility of entering the local companies in partnership with foreign companies for the establishment of such holding companies.

in the opinion economists the possibility that the holding company controlled by the state to subsidiaries in other countries, as a national company in a country controlled by a foreign holding company may be subject by contributing to the the national capital of the company by a foreign holding company, it follows from the two situations do the so - called multinational company.

regarding the difference between the concepts of the parent company and the holding company, confirms experts absence of significant differences between the parent company and the holding company, but the legal implications are different for the development of the company in general, as the holding company is not active ( in the sense operational), but for the purpose of owning other companies, while the parent company has the usually private commercial projects, as well as its influence and possession to its subsidiaries for investment purposes or to support and expand its operations.

international reputation turn between competent economic affairs Hasan Ali Abdul Karim role of holding companies to overcome many of the limitations faced by the operations of the implementation of development projects because of its financial and administrative efficiency required in many cases, as well as to be able to create an international reputation represents a magnet for its capabilities in more than one country.

He noted that the holding companies lacked her Iraq , although the elements of success are available in the country, particularly the large size of the field of employment and in all disciplines , without exception , which requires that the private sector begins to establish such companies during the coming period because they carry a large economic feasibility of the country.

Abdul Karim said that Iraq has the companies have significant operational capabilities, including the completion of great quality projects, pointing out that the country is in dire need of concerted local efforts to establish economic blocs check benefit of the country and address the economic problems.