أثر سوق الأوراق المالية في الدول النامية على الاستثمار

Abstract EN

The securities market has known a big progress in activating and promoting the efforts of investment activities in developing countries.

It has been one of the main occupations of the policy makers.

And this is due to, that the financial market tools become an important way to finance the economy.

With the globalization process, and the free capital mobility, especially, when it has been accompanied with a big jump in the communication technology, the securities market is getting more important.

Also the securities market is becoming larger due to: the guarantee of free market mechanism, the attraction of the capital flows through the saving motivations, the adoption of an attractive investment climate and achievement of investment return.

Moreover, to the reduction of the rate of risks, to the building of a clear financial, fiscal, and exchange rate policies, to setting up a low inflation rate, to the availability of liquidity in the securities market, and finally, to the creation of stabilization measures.

An increase in the investment portfolio has been, usually, accompanied by a financial crisis.

Therefore, the repetition of financial crisis has created a major panic among many policy makers in low developing countries which leads to reduce the speed of developing the securities market mechanism, consequently their role remained weak.

Therefore, this paper concludes that a profound reform package must be carried on in the securities market in order to reduce the extent of the following obstacles, the reform and development can be an entry point for the recovery of investments in developing countries.