Iran has achieved a new milestone in foreign investment, attracting $11.6 billion across various sectors in just two years since 2021.
Of the total foreign investment, the oil and gas sector emerged as a dominant player, securing $4.8 billion, or 41%, of the country’s total foreign investment during the two-year period. Following closely, the industrial sector attracted over $4.1 billion, accounting for 35.3% of the total inflow.
Ali Fekri, Iran’s deputy minister of economy and head of the Organisation of Investment, Economic, and Technical Assistant of Iran (OIETAI), highlighted that each year under President Ebrahim Raisi’s administration, Iran has seen nearly $4.0 billion in foreign investment. He pointed out that, despite sanctions, Iran’s economic ties with many countries continue to grow.
Recent data from the Ministry of Industry, Mining, and Trade sheds light on the specifics of these investments. In the first half of the previous Iranian calendar year (March 21-September 22, 2023), 73 foreign investment projects worth approximately $382.4 million were approved. The industrial sector dominated with a 93.8% share, followed by mining at 2.2%, and trade-related projects at 4%.
These approved investments encompass a range of applications, from creating new projects to purchasing shares in existing companies, as well as contractual arrangements. The breakdown of the 73 approved foreign investment cases reveals that 24 were 100% foreign-owned, 34 were joint ventures, and 15 took the form of civil partnerships, mutual sales, or build-operate-transfer (BOT) agreements.
The industry, mining, and trade sectors saw the highest volume of approved foreign investment, particularly in wood and wood products, mineral extraction, chemical manufacturing, and basic metals.
Leading the pack in terms of investment volume by country were Afghanistan, China, Turkey, India, and the United Arab Emirates. On a provincial level, Fars, South Khorasan, Khorasan Razavi, Hormozgan, and Tehran emerged as the top five regions attracting foreign investment.
In a proactive move to further boost foreign investment, the Iranian government implemented a resolution in April 2023 aimed at facilitating investment, particularly from neighbouring countries. This initiative underscores Iran’s commitment to fostering a conducive environment for international investors.
