Investment fields vary according to their objectives, including real estate investments, tourism investments, industrial investments, and agricultural investments. Local and foreign investment, according to the capital
at the level of the economy relates to capital spending on new projects in the sectors of public utilities and infrastructure, such as projects for paving main and secondary roads, projects for water and sewage extensions, prepared by urban plans, construction and housing projects, electricity and power generation, as well as social development projects in the fields of education, health and communications, in addition to To projects related to economic activity for the production of goods and services in the productive and service sectors such as industry, agriculture, housing, health, education and tourism .It can also be defined as adding new production energies to the existing productive assets in society by establishing new projects or expanding existing ones, or replacing or renewing projects whose life span has expired, as well as buying issued securities to establish new projects .
Factors Encouraging Investment
First – the appropriate economic policy, it must be characterized by clarity and stability, and the laws and legislation must be in harmony with it and there is a possibility of applying this policy, as the policy must be compatible with a set of laws that help in its implementation, and the laws must be within a specific framework of the comprehensive policy. Investment needs an appropriate policy that gives freedom, within the framework of general objectives, to the private sector in importing, exporting, transferring funds and expanding projects, and it must be stable, specific and comprehensive. This means that the encouragement of investment is not achieved in a law, even if it contains many advantages, exemptions and exceptions, but is achieved as a result of a number of compatible economic policies that provide production requirements at competitive prices on the one hand, and secure the market and effective demand for the sale of products on the other hand. This may depend on :
Redistribution of income and increase the share of salaries and wages . Encourage export and remove all obstacles in front of it .Developing credit procedures, activating the industrial bank, and reducing the interest rate on loans provided to industrialists, in a way that helps reduce production costs and allows products to compete with foreign countries .>It is also worth noting that external economic conditions have a role to play in domestic investment, such as global interest rates, profit rates, * and investment conditions in terms of freedom of capital exit and transfer of ownership in other countries .
Secondly, the necessary infrastructure for investment, especially suitable industrial areas in terms of the availability of electricity, water, transportation, and communications, to a degree that is better, if not equal to most countries in the world. The theory of economic development indicates the necessity of providing a minimum level of this structure and placing it at the disposal of investors at moderate prices so that productive investments can directly produce at competitive costs. Included within the infrastructure is the need for competencies, technical elements, private banks, and stock and securities markets. It is important that the prices of production factors such as electricity, water, communications, rents, and land value are low, so as to encourage investors and save investment costs.
TFourth: The need for laws to be interdependent and harmonious with each other, and not to be contradictory and clear, and not to differ with different decisions and policies, and the need not to ramify them and their successive amendments, such as investment, trade, finance, and customs laws. And the need to simplify these laws and end the possibility of ijtihad in interpreting their texts
Third – An appropriate administrative structure that is far from the routine of incorporation and licensing procedures and the methods of obtaining various services, so that the suffering of investors who obtain the approval of the Investment Office will end from the cycle of obtaining various licenses from the Ministry of Electricity, Industry, Supply and Municipalities. There is a need to help investors and relieve them of the hardship of following up on these procedures by providing a single window within the investment office that completes for investors all procedures related to other ministries .
Increasing production and productivity, which leads to an increase in national income and an increase in the average per capita share of it, and thus improving the standard of living of citizens
- Providing services to citizens and investors
- Providing job opportunities and reducing unemployment
- Increasing the state's capital formation rates
- Providing various specializations of technicians, administrators and skilled workers
- Producing goods and services that satisfy the needs of citizens and exporting the surplus abroad, which provides the foreign currency needed to purchase machinery and equipment and increase capital formation.