General stability stimulates the entry of foreign investment
Baghdad: Iraq has tried to create an appropriate investment environment to bypass the determinants of entering foreign direct investment into its economic sectors, and as it is known that foreign capital moves according to the determinants of the country’s general stability, so the expansion of Iraq’s economic and commercial relations, and the degree of its integration with its regional and international surroundings, and joining international organizations, especially In the economic field, it would provide a suitable environment for investment that must be supported by legal legislation, and effective mechanisms for its implementation.
On the role of the political determinant in entering foreign investment, the academic Dr. Abdul Karim Al-Issawi said, “This is an influential factor in the country in directing the movement of foreign investment, given that the politically unstable state does not encourage the entry of foreign investments due to the various risks that may be inflicted on the foreign investor.”
He added that «there is a set of political determinants that the foreign investor sees as signs of the political stability of the host country, such as the expansion of economic and trade relations, and the degree of integration of the host country with the regional and international surroundings, and joining the multilateral international organizations».
economic stability.
Al-Issawi indicated that “there are economic determinants related to the appropriate monetary, financial and accounting policies in the host country, in addition to the size of the market,” stressing that “we can say that these determinants can be avoided through the promising investment of the natural resources owned by Iraq, with a banking system that has succeeded in performance and transparency is what establishes A banking system suitable for foreign investments to enter the country.
Economic Relations
As for the economic researcher, Dr. Shawkat Al-Talqani, he saw that “in order to help and stimulate the entry of foreign investments, it is necessary to adapt to the radical transformations in global economic and political relations, as competitiveness became the main factor in attracting foreign investments,” stressing that “Iraq has worked on issuing special legislation and laws. Investing through laws such as Investment Law No. 13 of 2006 and its amendments.
Al-Talqani continued, “Foreign direct investment is cross-border funds that countries have resorted to as a type of funding through which they tried to overcome their economic failures, and foreign direct investment in the productive fields represented by agricultural institutions and projects for the exploitation of natural resources and the establishment of anchor projects, and also includes the establishment of new projects or the expansion of projects.”