The Characteristics and Advantages of Iran’s Economy
• Eighteenth economy of the world,
• Positive growth, despite the global financial crisis,
• Young and educated population,
• Rich in natural resources,
• Widespread and sound infrastructure.
Natural and mining Advantages
• Diversity in economic sectors and rich in oil and hydrocarbon resources,
• The fourth producer of oil in the world,
• Second in the world with regard to gas resources,
• The tenth rank in tourism industry and standing as the fifth in ecotourism,
• Having the largest and most diversified industries in the Middle east and North Africa Region,
• Standing as the fourth and the tenth in the world with regard to zinc and cobalt production, respectively,
• Having superior rankings in Aluminum, manganese and copper reserves in the world,
• Standing as the fourth in the world with regard to diversity in agricultural products.
Economic Transformation based on the fifth Development Plan
• 20 billion dollars of investment by the private sector and foreign investors in oil and gas industry,
• Reducing unemployment from the current 13% to 7% through creation of one million jobs in the country per annum,
• Improving the country’s health system,
• Expanding international relations,
• A twofold increase of the size of GDP of the country.
Vast privatization
• 80% of State- owned assets should transfer to the private sector,
• 40% of the transfer shall be made through the Justice Shares,
• 40% of privatization shall be made through Tehran Stock Exchange,
• The Government maintains the ownership of 20% of the assets and property,
• The aggregate amount of assets and properties of the government was 120 billion dollars,
• 63 billion dollars of the above went private in the course of last 5 years,
• Having finished the privatization process, the role of the government shall shrink from 80% to 40% of Growth Domestic Product,
The advantages of the Law on Promotion and protection of Foreign Investment
Protection and Guarantee coverage:
• Foreign investment is compensated, if expropriated or nationalized (Article 9 of the Law,
• The losses incurred due to prohibition or interruption of financial agreements for foreign investments made through contractual arrangements, as a result of enactment of legislation or Cabinet decrees, shall be provided and compensated (Article 17 of the Law and clause 26 of the Implementing Regulation of which),
• When the government is the exclusive purchaser of the goods and/or services produced by the investment project as well as the cases where the government agency supplies the goods and services at subsidized prices, the government guarantees the purchase of the above (Clause 11 of the Implementing Regulation),
Rights and Facilities
• The foreign investors equally enjoy the same rights, protection and facilities that the domestic investors are entitled to (Article 8 of the Law),
• The principal derived from investment made in the country and profits there from may be freely transferred either through foreign currency or non-cash (Articles 13-18 of the Law),
• The foreign investment may contribute up to 100 percent in the investment projects (Clause 4 of the Implementing Regulation),
• Admission of foreign investment is permitted in all manufacturing and industrial sectors, agriculture, transportation, telecommunication, services and providing utilities; water, gas, electricity and energy,
• Investment disputes may be referred to international bodies (Article 19 of the Law),
• In joint investments, the ownership of the land in the name of the company, if registered in Iran, is permitted (Clause 34 the Implementing Regulation),
• Visa issuance and three-year residence permits in Iran for the foreign investors, directors, experts and their immediate family, with the possibility of extending them (Article 20 of the law and Clause 35 of the Implementing Regulation),
• Decision making with regard to foreign investment applications shall be fulfilled in not later than 45 days (Article 6 of the Law),
• The investment methods for the foreign investment projects, either through foreign direct investment or through contractual arrangements, BOT, Buy-Back or Civil Participation categories remain at the discretion of the investor (Article 3 of the Law),
• The natural or judicial Iranians using capital from foreign origin to invest in the country, are entitled to the facilities and protections of the Law on Promotion and Protection of Foreign Investment (Article 1 of the Law)
Recognition and Identifying foreign investment opportunities in Iran
• The facilities are presented through Investment Opportunities portal at: www.iio.ir which includes:
- Having access to investment opportunities in Iran in different economic sectors with advance search capabilities,
- Having access to the Law on Promotion and protection of Foreign Investment as well as the Implementing Regulation of which in various languages,
- Presenting foreign investment statistics and figures as well as the projects which are being carried out by foreign investors in the country,
- The possibility of making application for foreign investment in the investment opportunities presented at the website,
- Possibility of filling out the “Summary Sheet” at the “New Project” section of the investment Opportunities Portal at www.iio.ir for collecting data on investment projects of the country,
- Examining the data on opportunies and incuding them in the data bank and introducing the opportunities to prospective foreign investors through the portal,
- Participation in international forums, along with the project owners,
- Possibility of holding meetings with the project owners and prospective foreign investors.
General Investment Environment in Iran
• The body in charge: the Organization for Investment, Economic and Technical Assistance of Iran,
• Legal frame work: the Law on Promotion and Protection of Foreign Investment as well as its implementing regulations.
Foreign Investment Services Center
Provides information and offers consultancy services to foreign investors through:
• Convening meetings and having negotiations with the applicants,
• Sending e-mails,
• Call contact