Iran FDI: Set For Takeoff?

Iran’s inward foreign direct investment has grown only slowly since the January 2016 lifting of key international sanctions.

Though a slew of provisional agreements with foreign firms have been signed during the current 2016-17 Iranian year ending 20 March, few of these have so far translated into actual investment – a key reason Tehran has spent less than 30% of the year’s infrastructure budget ( see left ).

But the IMF, in its end-February report on Iran forecasts that FDI will more than double to $5bn in the new Iranian year, from $2bn for 2016-17 and less than $100mn for 2013-14. The IMF reckons $9.15bn-worth of firm FDI projects have been announced during the about-to-end financial year (see chart). Of these around $1bn relate to the oil, gas and coal sector, a figure that looks conservative compared to deals tracked by MEES (see p5 ). (CONTINUED - 354 WORDS)


chart Iran’s Fdi Inflows Set To Soar ($Bn)