Solution to the Problem of Local and Foreign Investment

Summary of the Problem: The simplest definition of investment is using all or some of the production factors (such as capital) for buying and selling things (such as real estate or shares) or providing services (such as banking services) or establishing projects (such as textile factory) in order to make profit for the investor in particular and provide employment opportunities and increase the income for the society and government in general. There are many investment types such as commercial, agricultural, industrial, educational investments ……etc. The biggest investment problems which prevent foreign investors from coming to the country or force the local investors to run away from the country are: (1) non-availability of political, security and social settlement (2) existence of many contradictory investment policies which hinder investment (3) existence of many administrative windows for issuing licenses to individuals, big companies , medium and small companies (4) existence of many contradictory commercial and investment laws (5) non-existence of an effective arbitration system for resolving commercial and investment disputes quickly (6) non-existence of excellent transportation infrastructure (7) Non-availability of advanced communication and internet network (8) non-existence of banking facilities that encourage commercial investment (9) non-availability of companies that specialize in issuing feasibility study and investment risk management and companies that provide accounting services (10) non-existence of institutes that specialize in training workers , employees and managers

Summary of the Solution: we can simply encourage local investment and foreign investment and achieve the biggest global economic success through implementing the following ten practical investment requirements: (1) achieving political, security and social settlement in the state, no investment without settlement (2) Unifying the investment policies in one , simple and clear investment policy which does not contradict with the applicable investment law and which directly encourages investment through customs and tax exemptions and deductions , no investment attraction without customs and tax exemptions and deductions (3) Establishing one administrative window for issuing various licenses in order to facilitate transactions of obtaining licenses, no administrative facilities without one administrative window (4) Issuing one simple , clear and non-contradictory investment law which deals with all important investment matters, including but not limited to , providing energy sources , clarifying the practical enforcement of the best environment-friendly procedures and detailing the effective recycling process , no successful investment without one and unified investment law (5) Establishing an effective arbitration system for the purpose of settling possible commercial and investment disputes within the shortest period of time , no quick solution to investment problems without arbitration (6) establishing an advanced transportation infrastructure ( roads and bridges) in order to facilitate transportation of imports and exports, no economic development without fast transportation (7) making available an advanced communication network and fast internet services to facilitate provision of electronic trade services in a record time, no fast development in modern investment without fast internet (8) making available banking facilities to investors from banks operating in the state, no investment encouragement without banking facilities (9) encouraging the establishment of companies that specialize in providing financial consultative services such as issuing feasibility study and investment risk management and companies that provide financial accounting services , no guarantee for investment success without specialized financial services and (10) encouraging the establishment of institutes that provide specialized training to workers, employees and managers, no excellent working force without excellent training

In the end , we confirm , with confidence, that making available all the above-mentioned investment requirements will definitely leads to achieving the biggest global investment success in the state through achieving the most important strategic investment targets requested by any modern state and advanced nation which are attracting big, medium and small local and foreign investments and enabling them to achieve the biggest and fastest development in the local economy , making the biggest profits for the local and foreign investors in particular, and making the biggest increase in the employment opportunities and income for the society and state in general .

Faisal Ali Addabi\Advocate

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