"The biggest burden, they (investors) consider in this regard, is the unpredictable law and order situation in the state," Omar said during an interaction with students of Amar Singh College here.
He said shutdowns and incidents like Gool firing, which marred peace and tranquillity, made investors apprehensive about launching business projects in the state, particularly in Kashmir Valley.
Omar said import of raw materials from outside the state and exporting the finished goods from the state to the outside markets also made businessmen hesitant to invest.
"When media magnifies even minor law and order problems and smaller disturbances, which otherwise exist in every part of the world, out of proportion, the image of the state progressing towards peace and development gets tarnished," he said.
Omar said his government, however, is making all out efforts to provide secure, productive and beneficial environment for outside investors to be partners in the economic development of the state.
"At the end of the day, businessmen count profits and this is the only objective they have to make investment in any part of the world," he said, adding that for this, they require calm and peaceful atmosphere which has received severe jolt during the 25 years of disturbance.