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.