Legal Mechanisms for Improving the Business Environment in Light of Sustainable Investment

Abstract

Legal mechanisms are among the main factors relied upon to improve the business environment. When an investor decides how to allocate their funds, the legal framework applicable to their investment becomes the most important element. Economic laws and regulations significantly influence corporate strategies by guiding the market, regulating competition, and protecting investors' rights. Under the new generation of investment policies, sustainable development lies at the heart of efforts to attract foreign investment, encompassing economic, social, and environmental dimensions. At the level of national investment legislation and regulations, as well as international agreements, social and environmental dimensions are elevated to the same level as economic dimensions in the development process. Therefore, sustainable investment requires that investors not only focus on maximizing profits but also consider environmental, social, and human rights aspects. Within this framework, Iraq strives The Kurdistan Region is working to develop its business environment to attract foreign investment through a package of laws and regulations that aim to balance economic interests with social and environmental considerations. This study recommends adopting national and international legal mechanisms to improve the business environment in Iraq and the Kurdistan Region in order to activate sustainable investment. This can be achieved by incorporating a sustainable development clause into a unified model for international contracts and agreements, along with the necessity of establishing specialized economic courts for investment.