Iran’s Special Commercial and Geographic Capacities for Attracting Foreign Investors

Middle Eastern and Commonwealth countries (which were members of Ex-Soviet Union) have potential capacities for attracting foreign capitals. The need for developing substructures and big development plans in these countries have made them an excellent place for foreign investing. Since Iran has the largest oil and gas sources in the region, and considering this fact that Iranian's per capita income has increased noticeably during the recent years, we can conclude that investing in Iran's oil and gas and their lateral industries, also industries such as steel, aluminum, cement, foodstuffs, and general commodities industries, have provided the foreign investors a unique opportunity for investment.

The geographic situation and the secure and stable atmosphere in addition to the relatively low expenditure of production in Iran have made this country a better opportunity from other Middle Eastern countries for foreign investments. Moreover, Iran is a country which has access to the markets of the north, south, east and west parts of the Middle East. It has good human resources with various specialty and skills, good roadways facilities, warehouses, lands, waters and a proper transit situation.

Iran has the widest border with Persian Gulf, a sea which is one of the most important geopolitical places of the world. Iran is relatively near to China and India and Indian Ocean. It also has a great political and cultural influence on the regional countries.

Taking these special privileges in to account and comparing them to those of other countries of the region, international producers and merchants consider Iran as a better place for investment.

Structural economic reforms have brought Iran economy positive changes which have helped the economic state of the country evolve and grow better than before. Economic growth of the country during ۲۰۰۴-۲۰۰۸(۱۳۸۳-۱۳۸۷) was ۵-۷ percent. This shows the stable state of foreign investment in Iran. This country has earned ۹۰۰ Billion dollars from selling oil during the past ۳۰ years and this income has helped it fortify its economy.

Privatization and ceding the governmental companies to private sector have been accelerated during the past four years. The number of the ceded companies during these four years has been ۳ times more than the past ۱۰ years. Iran's stock market has done well even during the world economic crisis.

The rates of foreign investments in Iran's economy during ۲۰۰۴- ۲۰۰۸(۱۳۸۳-۸۷) were sequentially ۷, ۸.۷, ۳, ۶.۶, ۸ percent. The amount of foreign investments in the country in ۱۳۸۶ was ۱۸ thousand billion Tomans (almost ۱۸ billion dollars).

Investing in private sector has also been grown during the past five years. Governmental investments have grown too. The rates of governmental investments during the past five years were sequentially ۵.۲, ۲۰, ۶, ۱ and ۱.۵.

The increase of oil income, growth in saving and money and foreign exchange circulation, importing merchandise which have capital values, establishment of private and foreign banks, reforming the taxation laws and stimulating the stock market and other measures have encouraged the growth of foreign investment in the country during the third and fourth development program in Iran. In the fifth program-which is to be performed in the coming five years- various measures have been taken for attracting foreign investments too.

In every part of Iran we can see substructures and foundational facilities for foreign investments. Having access to Europe, Asia and even Africa has made Iran a unique country for investing.

To be brief, Iran has noticeable capacities to attract foreign investments.