As Iran eyes an investment boom following July’s nuclear agreement which is expected to remove the economic sanctions imposed by the US, EU and the UN Security Council over Tehran’s nuclear energy program, devising suitable policies for proper management and protection of investment resources is high on the agenda of the government.
To this effect, a new strategy for attracting foreign investments is due to be prepared in cooperation between the government and private sector representatives, Mohsen Jalalpour, head of Iran Chamber of Commerce, Industries, Mines and Agriculture, announced on Monday.
“Mismanagement and improper utilization of foreign investments in the past have stoked concern among businesspeople that a possible increase in the inflow of foreign investments will not lead to a reduction of the government’s share in the economy but will help quasi-governmental companies strengthen their foothold in the economy through foreign partnership,” Jalalpour was quoted by IRNA as saying.
“If foreign investments are not absorbed by the private sector, sustainable development will not be possible.”
World Bank, in its latest quarterly brief published by the bank’s Middle East and North Africa division, predicted that annual foreign investment in Iran would climb to as much as $3.5 billion in a couple of years, double this year’s level but still below the peak in 2003.
“With the lifting of sanctions, the government of Iran gets the opportunity to put in place a policy framework that will enable the economy to make maximum use of this windfall and put the economy on a path of sustained economic growth,” the report said.
It said Iran would have to “avoid the temptation to spend large parts of the windfall on consumption” and avoid spending on wasteful projects.
Tehran Int’l Investment Conference
Deputy economy minister and head of the Organization for Investment, Economic and Technical Assistance of Iran, Mohammad Khazaei believes Tehran Province has the potential to absorb major domestic and international investments.
“Tehran Province is home to 17% of the country’s total population, with 10% of the population living in Tehran city alone. Availability of such large and active workforce in the province makes it a suitable hub for investment in various economic activities,” he said in a Monday meeting focused on investment opportunities in Tehran Province.
Meanwhile, Tehran’s governor general, Seyyed Hossein Hashemi, said the First International Conference on Economic Development and Investment Opportunities in Tehran Province will be held in Tehran on November 16-17.
The conference will focus on Tehran’s capacities for absorbing investments in various economic sectors.
“To this end, as many as 300 major economic projects will be introduced to both Iranian and foreign investors in the conference,” said Hashemi.
Foreign ambassadors and commercial attaches as well as Iranian and foreign investors and businesspeople are expected to attend the conference and interact with each other on various topics, including investment opportunities in Tehran, projects financing and improvement of business environment in the province.
