What does investment mean

Investment at the level of the national economy relates to capital spending on new projects in the public utilities and infrastructure sectors, such as projects to build main and secondary roads, water and sewage extension projects, preparing urban plans, building and housing projects, electricity installations and power generation, as well as social development projects in the fields of education, health and communications, in addition 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 capacities to the existing productive assets in society by establishing new projects or expanding existing ones, or replacing or renewing projects that have expired, as well as purchasing issued securities to establish new projects.

The importance of investing:

  1. 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
  2. Providing services to citizens and investors
  3. Providing job opportunities and reducing unemployment
  4. Increasing the state’s capital formation rates
  5. Providing various specializations of technicians, administrators and skilled labor
  6. 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.

Investment types:
• National Investment
• foreign investment
• direct investment
•Indirect investment
• real investment
• Financial investment: It is the purchase of existing or built projects
• Human investment: which is to improve the characteristics of the human element
• short term investment
• Long-term investment
•Fast Return Investment
•Low-return investment
• Private Investment
• Public Investment
• Development investment
• Strategic investment
• Social Investment

Investment motives:
These are the factors that encourage investors to invest, the most important of which are
• Desire to profit
• Optimism and pessimism
• Facing the prospects of increasing demand and expanding markets
• Scientific and technological progress
• Building social capital
• Investing for Economic Development
• Availability of specialized human resources
• Political and economic stability
• Facing the prospect of increased demand

Investment determinants:
• Desire to invest
• Investment Outlook
• Circumstances surrounding the investment
• Economic Policies
• Interest rate
• Instability

Factors encouraging investment:-
I. Appropriate Economic Policy
Secondly, the infrastructure needed for investment
Third, an appropriate administrative structure.
Fourth – the necessity of coherence and harmony of laws with each other, and their non-contradiction and clarity, and their non-contradiction with different decisions and policies.


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