Investment concept

Investment concept


Contents

  • 1 investment
    • 1.1 The importance of investment
    • 1.2 Types of investment
    • 1.3 The drivers of investment
    • 1.4 Investment determinants
    • 1.5 areas of investment
    • 1.6 Factors that Encourage Investment


Investment

Investment is a newly emerging economic term, and refers to the use of capital to stimulate a specific economic project that benefits materially to project owners and has a positive impact on the national economy.

The term also indicates that it is an economic variable that seeks to optimize the use of the capital possessed by a certain entity that seeks from this exploitation to achieve a benefit with a material return and a large profit by relying on unprecedented modern economic methods and methods.

The importance of investment

  • Raising levels of production, thus influencing positively the national income and increasing the average percentage of each person’s share.
  • Achieving welfare for individuals and raising their standard of living.
  • Providing the basic services needed by the citizen and the investor.
  • Opening the horizons for the unemployed to get involved in the labor market, thereby reducing unemployment levels.
  • Increasing the state’s capital formation ratio.
  • Providing the labor market with skilled manpower, technicians, and administrators in various specialties.
  • Satisfy the needs of citizens by placing locally produced goods and services that are in line with their desires.
  • Opening doors for exporting goods abroad and thus providing necessary foreign currencies to be used in purchasing machinery and equipment.


Types of investment

The types of investment vary according to the goal for which they were found, the most prominent of which are the following:
  • National investment.
  • Investments are long and short term.
  • Foreign investment.
  • Strategic investment.
  • Social investment.
  • Development investment.

Motivation for investment

Behind the investment are a number of factors:
  • The pursuit of material profit.
  • The criteria for optimism and pessimism.
  • The desire to meet the market's need for what it requires of goods and services, and this stems from the desire to stand up to the possibilities that may arise on the market such as the expansion of the market and the high rates of demand in it.
  • The high levels of scientific and technological development and the desire to keep pace with them.
  • The pursuit of economic development.
  • Abundance of specialized manpower.
  • The existence of the political and economic stability factor together.

Investment determinants

Despite the benefits that the investment brings, there are some limitations that sometimes stand in the way of its development, namely:
  • A passion for investment.
  • Investment possibilities.
  • The political, economic and security conditions surrounding the facility.
  • The nature of economic policies in the investment area.
  • Interest rate mismatch.
  • Lack of stability.

Investment areas

The fields of investment vary and diversify according to the sector that they will serve. Among these are:
  • Real estate investments.
  • Tourism Investments.
  • Industrial investments.
  • Agricultural investments.
  • Domestic and foreign investment is classified according to the source of capital.

Investment factors

  • Provides appropriate economic policy.
  • The presence of the infrastructure to be available for investment.
  • Have a good management structure.
  • It provides an element of harmony between laws and their interconnections

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