The GIRM was persuaded that private enterprise would be the engine for future development and growth. To this end, the GIRM promulgated a new investment code in January 1989 and started to privatize parastatals in 1993. The GIRM encourages foreign investment and has made changes in previous investment legislation in order to improve the investment climate.
Foreign investment is permitted in all sectors of the economy.
The recommendation of the Commission is then forwarded for approval to the Council of Ministers, chaired weekly by the President of the Republic. In addition, prior to the Council's approval, the Central Bank must be informed of all foreign direct investment in Mauritania in the form of a declaration. After receiving this declaration, the Central Bank has 15 days to accept or refuse the project. The Investment Code identifies twenty priority areas in which certain advantages, such as duty or tax incentives, can be provided to investors. Establishing enterprises outside of Nouakchott and Nouadhibou can result in a temporary reduction of the tax due on industrial and commercial profits.