The importance of foreign direct investment in the development of the Iraqi economy

Mahmoud al-Issawi Nassif

Friday , 30th September 0.201

Increased importance of foreign direct investment and its role in the economic development process in all developing country because of its obvious advantages, as it is not subject to indebtedness and is not subject to the other terms and is a recipe for political sources. As for the Iraqi economy, the importance of foreign direct investment stems which offer this type of investment of the advantages of Castkdam money, expertise and operation of labor capital, as the Iraqi economy needs to these advantages due to the fact that most of Iraq 's productivity and economic institutions , including the service was suffering from backwardness and low productivity and high costs and it is hard to address these problems by relying on the potential of self - country alone , hence the need for foreign investment to fix some of these institutions, modernization and creation of new institutions based advanced technology in management and production show.

It provides foreign investment for the Iraqi economy funding sources and modern technology as well as provided opportunities to run hands Iraqi working, and also provides for state resources from the sale of the assets of enterprises and taxes and profits paid by these companies in addition to what is provided from the goods and services of high quality specifications in the market, in addition to foreign investment and an important means to achieve rapid economic development, as demonstrated by experiments in many countries around the world.

The growing importance of foreign direct investment for the Iraqi economy, because of the exceptional circumstances that Iraq is going through, and is Iraq 's need for foreign direct investment in:

1. Stimulate domestic investment: where FDI stimulates domestic investment by 80%, while loans they contribute to stimulate domestic investment increased by only 40%.

2. Increase economic growth rates: contributing to foreign investment in the economic growth of two ways: the first creates an additional asset of the share capital of the host countries, and is added to the savings of this state or foreign exchange reserves, and the second provides knowledge technology required for the successful completion of the project investment and thus increases the absorptive capacity of the host country.

3. The transfer of advanced levels of technology and technical expertise to the host country, where he is a foreign investment of the best tools for the transfer of production technology and management skills.

In addition to many other benefits such as the provision of goods and services to the market local and hiring local labor and investment in human resources is the employee and to improve the balance of payments by increasing production and increase national income.

We would like to make it clear that the host countries for foreign investment government agencies is limited to its primary mission in the planning, organizing and directing those investments and promotion of projects available for investment and the definition of the market at home and abroad, in addition , they are to choose the level and type of technology that are consistent with the requirements of development and changes of cultural and social state, these devices in Iraq represented in the national investment Commission.

This body formed under the investment Law No. 13 of 2006, and charged with the responsibility of national policies for investment fee, and enjoy this Commission legal personality, and this body drawing national policies for investment and prepare a map for investment in Iraq in the light of information obtained from the bodies of investment in the regional and provincial projects, and according to a law body is not the granting of leave, but will fall by the many duties of which boost confidence in the investment environment, providing investment opportunities, simplify registration procedures, and follow - up projects and assist in coordination with government departments in matters that require administrative approvals from the relevant departments to grant investment licenses, and open branches in areas under its control, particularly in the provinces, where the body procuring approval of the cabinet in the case of whether the investment project worth more than 250 million US dollars.

In order to facilitate investment in Iraq called for the investment law to create the window circle one, where she is a single point of all procedures related to investors who are seeking to bring their business to Iraq.

Which mentioned above shows that foreign direct investment if they are directed in the right way , it is liable to get up to the Iraqi economy and pulled him out of the current financial crisis.