Some people are afraid to enter the investment field, either for fear of heavy financial losses or lack of information about suitable investment options. Some prefer the safety of saving over the opportunity to profit that is fraught with risks and market fluctuations, and I am here not to convince you of the importance of investment, but to share with you an important question raised by:
How many people do you know get rich by investing in savings accounts?
Factors encouraging investment
Investment is a win-win for everyone. On the one hand, it helps in reviving the economy of societies, and on the other hand, it helps increase the investor’s capital. Despite the risks surrounding the investment sector in general, one profit from it can offset many other losses. Therefore, you find countries are racing to create their investment climate in various ways, and you see business people competing to win such opportunities.
The political climate plays a vital role in encouraging business people to invest. The more the political environment is characterized by stability, commitment to implementing the law, and the lower its indicators in the corruption lists, the more this promises a free economic climate capable of growth and prosperity.
Administrative procedures are another essential factor in influencing the emergence of a favourable investment climate.
- Facilitate the export process
- The length of time it takes for passes to exit
- The interest rate on loans
- Procedures for transferring ownership and exit of money to other countries
All this together has a significant role in whether the money owners decide to invest in that country.
Besides political and administrative factors, the infrastructure is the cornerstone of any project. Who is the investor who will burn his money in an environment that does not meet the minimum living requirements, such as electricity, water, means of communication, and transportation?
The availability of these previous elements does not mean the need to provide the climate for investment immediately. Instead, the state must give reasonable prices corresponding to the value given by these services in the beginning. It also provides the markets, banks, and the human resources that the investor will need to operate and manage his project.
One of the most important factors that should be met in countries that encourage investment is legal stability. The investor cannot feel comfortable in light of continuous changes in the laws governing investment, or the presence of some clashing and conflicting regulations with each other.
The legal environment for investment must be characterized by harmony and interdependence, so that standard procedures are easy to take at any time.
Countries that encourage investment most
The World Bank recently issued a report that included the countries most encouraging investment, as the information based its findings on the factors above that these countries succeeded in implementing, to obtain an ideal investment climate as follows:
The Philippines is the first in the world to encourage investment, as it’s very high economy characterized the economy of its citizens, due to the sending of a lot of money homeward from Filipinos abroad.
Its tax system is also characterized by many facilities that help business people start their projects there quickly.
Besides its beautiful landscapes, Indonesia is famous for its favourable investment climate, where business people can benefit from a considerable population market of 216 million people.
Along with easy tax procedures and a skilled manufacturing workforce, Indonesia is known as a great source of oil, cocoa and natural gas.
Poland has a population of 37.9 million, and its economy is the largest in Central Europe, with a per capita purchasing power parity of $ 27,690.
Residents of Malaysia’s states are distinguished by their higher than average income, with a per capita GDP of $ 27,292, allowing business people to quickly create many projects that suit the citizen’s purchasing power.
The state of Singapore is considered a low-population country, with a population of 6.5 million. This number has transformed Singapore into a point of strength in its favour. The community’s skill in manufacturing and their production efficiency helped it reduce unemployment rates and increase per capita income rates. High.
With a population of 24 million and a gross domestic product of $ 1.2 trillion, Australia ranked sixth in a pro-investment country.
Spain has a population of 46.4 million people, where the population’s employment combines with easy tax procedures and an important tourist site to form, together, distinctive attractions for every business person.
Thailand is not only a massive market of 68.9 million people, but it also accommodates many different nationalities and cultures from all countries of the world as an attractive tourist destination.
India is the second-largest country in the world in terms of population, with a population of 1.28 billion people. India was able to exploit this human resources in a strict economic system that helped it become one of the fastest-growing countries globally, with a GDP The state has $ 2.3 trillion.
Sultanate of Oman
The World Bank list was not without the presence of an Arab country, as the Sultanate was able to reserve a place for itself among the countries that encourage investment.
The Sultanate diversified its commercial activities without total dependence on oil, which helped it reach a 66.3 billion dollar GDP.
If you had the opportunity to invest abroad, what countries would you prefer to invest in?