Tourism investment in Iraq, its types, principles, and obstacles

Ahmed Majed Badawi Hamza
Supervisor: Prof. Dr. Abdul Ali Kazim Al-Fatlawi

Investment is classified into several types, including local investment and foreign investment (direct and indirect). Regional investment is the sum of national investments, which include state and private sector investments. In contrast, foreign direct investment deals with physical assets (tangible) such as machines, equipment, and buildings that support investment operations (Hermes, 2006: 76). Therefore, it does not include (and this type of investment is characterized by a period) financial assets, but instead focuses on long-term physical assets such as investment in hospitality institutions and international airports. Indirect foreign investment is an investment in securities, and this type of investment is primarily short-term, depending on the price movement of stocks and bonds in the financial markets; some investment companies have limited policies, so they work to hold short-term investment portfolios, such as papers traded in the money market, although investment in securities faces financial challenges that are considered financial problems that may lead the company to resort to external financing.
(Al-Arishi, 2004: 333)
The investment includes a set of general investment principles, with many things varying, such as the level of environmental impact, the nature of the system in which these investments live, the type and size of investments, etc. However, the principles of investments can be referred to here as follows:
First). The principle of multiple options or investment opportunities: The comparison between investment projects is subject to several steps based on the difference in the degree of risk from one project to another, in addition to looking at the costs and what is saved. Here, the investor aims to make a rational decision in light of what was mentioned above, relying on experts in the field of investment and financial analysis if he lacks experience, taking into account the following:
– Limiting alternatives: The investor here limits, diagnoses, and identifies all available options.
– Evaluating alternatives: After identifying the most significant number of other options and specifying the advantages and risks of each alternative, evaluate all alternatives logically, in light of several criteria, including costs, applicability, degree of risk, investor desires, and others.
– Choosing the best alternative: This is done by reconciling the criteria through which the other options were evaluated, focusing on the current and future priorities of the investment project. (Ramadan, 1998: 228)
Second) The principle of suitability: After choosing between the investment fields and their tools and what suits the desires and inclinations of the investor, as well as his income and social status, this principle is applied based on these desires and inclinations, as the investor has a preference pattern that determines the degree of his interest in the essential elements of his decision, which are revealed by the fundamental analysis, which are as follows:
– The rate of return on investment.
– The degree of risks associated with the investment.
– The level of liquidity enjoyed by both the investor and the investment tools.
Third) The principle of comparison: Here, the investor compares the available investment alternatives to make the appropriate choice. This comparison is made with the desires and the material and human capabilities available to the investor, in addition to taking into account the element of technological progress, which plays a major role in costs and returns.
Fourth) The principle of diversification or distribution of investment risks: Here, investors resort to diversifying their investments to achieve a trade-off, such as between return and risk, to limit and reduce the degree of investment risks to which they are exposed, such as loan risks, exchange rate risks, risks of missing alternative