National Statistics Center

Investment

It refers to spending on capital assets during a certain period of time. Thus, it is considered the net increase in the real capital of the society. The investment shall be either individual or corporate Investment, as investment may be a government Investment financed by the government from the budget surplus or by borrowing through issuing bonds within the country, the international financial market, from foreign entities and governments, or international organizations (for example, the World Bank). Government Investment shall establish fresh, genuine capital, as building roads, bridges, hospitals, etc. The Investment may be internal when establishing fresh; genuine capital is formed within the country or foreign Investment. Whereas the country's savings are directed to establishing fresh, genuine capital in a foreign country.

Direct Investment

It is based on the establishment of branches of foreign companies within the country. As the establishment of branches shall require capital. Whereas these branches produce goods that are previously imported. Therefore, such measures may relieve pressure on the balance of payments of the country that the capital transferred thereto. Meanwhile, the expansion of reliance on this transfer of foreign capital eventually causes the country's economy dependent on this foreign money. Whereas foreign companies act under their benefit without considering the countries' interests to which foreign companies establish their branches.

Foreign Investment

The ownership of an institution or an individual in a country for assets and institutions operating in another country, as this investment includes two types:
1. foreign Direct Investment.
2. Inbound Foreign Direct Investment.
3. Outbound Foreign Direct Investment.
4. Portfolio investment (possession of shares and bonds).
5. Other foreign investments (trade credit and others.).

Foreign Direct Investment

Foreign Direct Investment reflects a long-term relationship and a permanent interest in an entity residing in an economy other than the investor's economy, as the direct investor's purpose shall be concluded in exerting some influence on the management of the residing institution in the other economy. A rate of 10% or more of the ownership rights (i.e., ordinary shares or voting power in the corporation) shall be applied. Therefore, the Investment may be described as a foreign direct investment.

Inbound foreign direct investment;

Internal investment involves an external or foreign entity that either invests in domestic investment in local commodities or purchases them; there is a common type of internal investment is foreign direct investment, this investment occurs when a company buys another commercial activity or establishes new operations for an existing company in a country. Different from the origin of the investing company.

Outbound Foreign direct investment;

It is the expansion of foreign investment companies in their economic activities to another foreign country.

Foreign Portfolio Investment (FPI);

It is defined as an investment that reflects the interest of the entity residing in an economy other than the investor's economy in owning inactive administrative, financial instruments and other assets that include the right of active management and control of the issuer the bonds. A percentage of less than (12%) of ownership of rights is applied to describe an investment is defined as a foreign portfolio investment.

Foreign Direct Investment Project - Enterprise Investment Direct Foreign

A project with a legal personality in which an investor residing in another economy owns 12% or more of the ordinary shares or voting rights concerning the project with legal personality and direct investment projects include entities defined as a subsidiary or participatory entities or projects that do not have legal personality wholly owned by the investor.

Foreign Direct Investor

;Foreign direct investment can be a person, a limited or unlimited public or private company, a government, a group of interconnected individuals, or a group of limited or unlimited interconnected companies who have a direct investment project - a branch, a subsidiary, or a partner institution - operating in a country. Other than the country of residence of the foreign direct investor or the countries of foreign direct investors, and foreign direct investors own 12% or more of the ordinary shares or the voting power in this corporation.

Direct Investment Corporation;

Includes a subsidiary (wholly-owned, majority-owned, or minority-owned) or a branch or partner institution; the term “affiliate” refers to all these institutions' forms.

Shapes of Foreign Direct Investment Corporations;

Affiliated company:

: defined as a limited company in which the foreign direct investor owns more than 52% of the voting shares. The foreign investor has the right to appoint or dismiss most of the board of directors or the supervisory authority, and the limited subsidiaries are sometimes fully owned by their shares.
(When the foreign direct investor owns 122 % of the shares (or is owned by the majority of its shares) when the direct investor owns more than 52 % of the shares). If the foreign direct investors own between 12- 52% of the shares, the institution is not called a subsidiary company. Rather, it is referred to as a partner institution.