The Islamic Republic of Iran has attracted a total of USD 3 billion in foreign direct investment (FDI) during the first quarter of the current Iranian calendar year (started March 21, 2015).
According to a new report by the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI), the investment has been made possible through Foreign Investment Promotion and Protection Act (FIPPA) despite continuation of illegal sanctions imposed on the Islamic Republic on account of its peaceful nuclear program.
Sanctions were imposed on Iran by the US and European Union at the beginning of 2012, alleging that there was diversion in Iran's nuclear program toward military objectives; an allegation that Iran categorically rejected.
The Islamic Republic and the P5+1 group of countries – the US, the UK, France, Germany, Russia and China – reached a mutual understanding on April 2 in the Swiss city of Lausanne, which is considered a prelude to the achievement of a comprehensive deal on Tehran’s nuclear program before a self-designated deadline at the end of June. A key point of Lausanne statement is a promise to lift a series of economic sanctions on Iran.
OIETAI’s report added that the investment figure for the first quarter of this year shows a three-fold increase compared to total FDI attracted during the corresponding period of the preceding year.
According to OIETAI, quoting a report by the United Nations Conference on Trade and Development (UNCTAD), the Islamic Republic attracted more than USD 2.105 billion in foreign direct investment in 2014.
The report noted that the increase in foreign investment in Iran has been a direct result of improvement in Iran's relations with the world, which has encouraged investors from various countries to take advantage of investment opportunities in Iran.
As a result of the facilitation of interactions with other countries under the new Iranian administration, the report said, a number of foreign delegations have so far traveled to Iran to discuss investment possibilities with Iranian officials.
According to the UNCTAD’s report, remarkable increase in foreign investment in Iran came despite the fact that overall foreign investment in the world plummeted by 16.4 percent in 2014 compared to a year before due to a host of reasons, including instability of global economy and various political risks.
Iran also managed to attract more foreign capital at a time that foreign direct investment in West Asia has been falling for the sixth straight year as a result of rising insecurity across the region.