The Impact of Financial Problems Related to Investment Projects in Iraq

Abstract

This paper investigates the problems that face the process of investment financially in Iraq. The decision to finance and search for the appropriate sources of funding for the project is one of the most important topics facing the path of projects and investors in light of the limited alternatives available and this decision will ultimately affect the success of the project in the future and continuity. The investment process in Iraq in the current time suffers from a list of problems (Lack of specialized investment banks to finance investment projects, the Weak role of financial institutions in providing banking facilities, Suspension of funding of projects by their financiers, Austerity due to the financial crisis has adversely affected the financial allocations of bodies, Lack of stability in the price of construction materials; and government delays in paying dues to private sector companies). It has been found that (37%) of the investment projects in Iraq have been stopped in the period from (2008-2017). The accumulation of financial benefits on loans taken by the private sector and its companies from banks and public and financial institutions due to delay in repaying these loans (4.6), and government delays in paying dues to private sector companies (4.5), which means that these two problems are affecting highly and negatively on the investment process. Several solutions are discussed to be benefit in solving the investment financial problems in Iraq.