Iran Guaranteed $12b of FDI in 2016

As the capital from unstable countries in the region is flowing into Iran, a deputy economy minister said the government guaranteed foreign investments worth $12 billion in 2016.

“Despite the fact that the volume of foreign investments in Iran is not as big as the economy needs, the figure has significantly improved compared to the past,” Mohammad Khazaei also said in Iran Petrochemical Value Chain Summit themed “Investment and Development”, Mehr News Agency reported.

The summit was held in Vienna, Austria, with its focus on exploring ways and means of promoting a comprehensive development of Iranian sectors via joint ventures, attraction of international investors, technology transfer, active presence in international markets and addressing the main challenges.

Khazaei, who is also director of the Organization for Investment, Economic and Technical Assistance of Iran, affiliated with the Ministry of Economic Affairs and Finance, said Iran is eager to expand ties with international companies to purchase new machineries and technologies, and engage in joint projects.

According to a report published by OIETAI in early April, after the implementation of the nuclear accord with world powers, Iran has negotiated to receive $50 billion worth of foreign finance expected to flow into the country soon. “It is important to notice that active credit lines are necessary to expand economic relations with European countries, especially Austria, which has taken important steps toward establishing new credit lines for Iran to increase the volume of bilateral trade,” Khazaei said.

The deputy minister noted that in addition to Austria, there have been negotiations with other European countries like Italy, Denmark, England, Germany and Asian countries such as China, South Korea and Japan to finance projects in Iran.

“These countries will consider notable credit lines for Iran in the foreseeable future,” he said.

Iran’s Economy Ministry has reportedly signed bilateral agreements to incentivize and mutually support investments with Japan, Russia, Singapore, Iraq, Slovakia and Luxembourg with the goal of attracting more foreign investments, undertaking risk coverage and lowering the risk of investment in the country.