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The concept of investment and its most important components

The concept of investment and its most important components

The concept of investment, The term investment is spread in various economic and political forums, and all countries of the contemporary capitalist world depend on investing in economic and social development and progress. Investments of countries provide opportunities for domestic and foreign capital to invest in various infrastructure sectors such as roads, electricity, gas for urban communities, housing, construction, energy extraction and conversion, in addition to Service sectors such as education, health, communications, media, culture, industrial sectors, and the ability of each country to link different services for each sector. investment.

The concept of investment

1) Investment factors
2) encourage investment
3) The importance of investment
4) Investment Restrictions
5) Investment motives
6) Factors that encourage investment

investment factors

The investment decision regarding investment or not depends on several factors, the most important of which is the real desire to invest and the search for real opportunities for profitable investment at all levels. Surrounding every investment in terms of the state’s economic and financial policies towards it, the extent of interest of financing agencies from banks or major economic institutions in all kinds of investments, interest rates on loans, and other economic factors that surround investments locally and globally, as well as political and financial stability, which is one of the things The task that attracts investors to secure their revenue.

investment promotion

The investment factors in the country are taken into consideration by ensuring that the state is encouraged to attract investments by providing an appropriate environment. The objective factors for investment and the ways to encourage investments are the main factors on which the investor depends in making investment decisions. Countries are encouraged to invest through transparency in their policies towards investors. Laws that allow the freedom to import and export, expand projects, transfer funds to finance projects, help the state encourage investment by facilitating the state to provide investors with the appropriate level, improve the climate for public security work, develop basic infrastructure such as roads, power lines and land for the establishment of various projects, and establish special concessions Investors can use these infrastructure structures by granting concessions for free use of land for a specified number of years or calculating low-cost energy consumption.

The importance of investing

  • Raising production and productivity levels to contribute to the development of national income to create a better standard of living for individuals.
  • Providing better services to individuals and investors.
  • Creating job opportunities for the unemployed and thus reducing the unemployment rate.
  • Development of state capital formation.
  • Manpower training and provision in all disciplines, and skilled technicians and administrators to work.
  • Fulfilling the needs of individuals and filling the needs of the market by producing goods and services, and exporting the surplus of the need abroad.

Investment Restrictions

  • Circumstances surrounding the investment The destabilization of the environment in the environment targeted by the investment projects may lead to fear of starting work and sometimes regression.
  • The high rate of interest charged on investment projects.
  • The difficulty and severity of economic policies, the uncertainty of the investment project will result from expectations and results.

Investment Motives

  • It is an urgent desire to make a profit.
  • There are indicators ranging from optimism to pessimism.
  • Desire to meet the increasing demand and the increase in demand.
  • Keeping abreast of scientific and technological developments.
  • political and economic stability.
  • Availability of specialized manpower in all fields.
  • Desire to invest in pursuit of economic development.
  • Establishing social capital.

Factors that encourage investment

  • Abundant infrastructure needed for investment.
  • The existence of an administrative structure free of routine and imitation of departments in society.
  • The need for coherence between the laws of project and harmony.

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