Page 26 - investment-map-En-2021

Iraq Investment Map2020-2021
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reversely with the present value of the future income streamline, as a result the increase
in interest rates leads to (I) lowering the present value and if it is higher than costs means
that the investment is profitable before raising the interest rates but in raising market
interest rates present value shall become lower than costs and the investment is
unprofitable.
Likewise, the market interest rate affects the investment by its effect on the marginal
sufficiency of the capital. After calculating the marginal sufficiency of the investment, it
is compared with the market interest rate and thus the increase (or decrease) of the market
interest rate may make the marginal sufficiency of the investment less (or greater) than
the price. Market interest and thus the investment is unprofitable (or profitable). This is
because the market interest rate represents the opportunity cost of investing. The higher it
is, the higher the opportunity cost. Whereas the higher the marginal sufficiency of the
investment, the higher the investment.

Third: Infrastructure Reality: infrastructure is defined as the concrete capital invested in
public utilities and services, and it is an indispensable economic factor that is critically
important for production, trade and investment inside and outside the country, and it can
be divided into two types: tangible and intangible infrastructure.
Tangible infrastructure includes quality of roads, irrigation systems, airports and seaports,
bridges and so on. While intangible infrastructure includes power supply,
telecommunications, technology and others.
In Iraq, all infrastructure had been subject to devastation beside a tremendous lack of
finance capacity and the most important part of devastated infrastructure is electricity
which represents a decisive factor in investment and production process and a vital nerve
in the modern life the matter that leads to giving it special attention by planners and
economic policy drawers embodied by the annual enormous financial allocations, for this
sector front and back connections with other economic sectors in Iraq and the back
connections can be represented by activating the oil sector and products derived out of it
and other big industries, while front connections includes activating agriculture, industry
in all its branches, trade and other economic sectors.

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