The Role of Foreign Direct Investment in the Oil Industry of Iraq

Abstract

Foreign Direct Investment funding is vital for fiscal growth. It boosts the GDP of a country,
consequently contributing to the country's economic growth. FDI is acknowledged as the net
inflows of investment to receive a long-lasting administrationinterest in a business performing in an
economy besides that of the venture capitalist. It generally occurs when a venture capitalist
develops overseas business operations or obtains foreign enterprise assets in a foreign firm. Besides,
FDI entails more than just one capital underwriting since it may encompass the provisions of
management or automation. The primary feature of FDI is that it creates either efficacious
administration of or at least considerable impact over the resolution-making of an overseas
enterprise. Moreover, FDI often brings in many benefits to the country. Some of the benefits include
but are not limited to bringing financial resources for development, generating more employment
opportunities, alongside bringing in a more competitive business environment. FDI is essential for
financial growth, particularly overseas capital inflows, which are key for the monetary
improvement of developing international relations. Iraq has long-term potential for foreign
investments since it has various sectors that offer opportunities for foreign investment. Some of
these sectors include the oil industry, cement industry production alongside the construction and
public works. FDI plays a crucial role in various Iraq's sectors to promote the economy's growth
and foster its sustainability. Therefore, this literature review offers literature on the role of FDI in Iraq's
oil industry to give insight into the benefits of FDI and its contributions to the country's overall
economic growth.