Domestic Economy

Diplomats Mobilize to Promote Foreign Investment

Diplomats Mobilize to Promote Foreign InvestmentDiplomats Mobilize to Promote Foreign Investment

The responsibility of forging an open economy in the post-sanctions era rests largely on the shoulders of Iranian ambassadors and heads of Iran’s diplomatic missions, said First Vice President Es’haq Jahangiri.

Addressing the gathering of the heads of Iran’s diplomatic missions on Tuesday, Jahangiri pointed to the July 14 nuclear accord reached with six world powers in Vienna and said, “All minds must be set on making the best possible use of the opportunities provided by the lifting of sanctions.”

The accord is aimed at curbing Iran’s nuclear program in exchange for lifting western economic sanctions imposed on the country, IRNA reported.

“In order to achieve the 8% economic growth envisioned in the sixth five-year socioeconomic development plan, annually $150 billion worth of investment are required in the country,” he said, adding that the failure to achieve this figure will “double the country’s current economic woes”.

According to Jahangiri, the mission of Iranian diplomats and ambassadors in the post-sanctions era is to attract foreign investments and firms to enter the country, as relying solely on the current capacity of the country’s private sector, banking potential and petroleum revenues is not adequate for achieving the intended post-sanctions economic growth.

“Investments must be made in the industries that can enhance Iran’s standing in exports,” he said, adding that Iran’s first priority for goods and services exports are the neighboring countries’ markets.

The vice president also highlighted the need for domestic industries to broaden their horizons beyond the country’s borders.

“The construction and auto manufacturing sectors, which constitute a large portion of domestic industries, have so far only sought to meet domestic demand. Hence, they have a meager share in international markets. The petroleum, gas and petrochemical sectors’ competitiveness is also based on the low energy costs in Iran,” he said.

Based on the 20-Year National Vision Plan (ending 2025), Iran is set to become the top economy in the region, said Jahangiri, emphasizing that moving away from overreliance on oil revenues is the only way to achieve this ambition.

Minister of Economic Affairs and Finance Ali Tayyebnia echoed the same sentiments at the Tuesday gathering and said the country “must not repeat past mistakes.”

“In order to achieve sustainable economic growth, foreign investment is indispensible,” Tayyebnia said, adding that Iranian ambassadors are expected to introduce Iran’s investment opportunities to foreigners.

Governor of the Central Bank of Iran Valiollah Seif, who was also present at the event, said Iranian banks have prepared themselves to make the best of opportunities in the post-sanctions era and that they welcome the presence of international banks in the country.