Foreign Investment and New Hopes

At last, after years of debate over the foreign investment issue, the Law of Promotion and Protection of Foreign Investment in Iran was passed by the Iranian Parliament (Majless), and following the ratification of the Council of Expedients, it was conveyed to the Government.

For years we were witness to this fact that some, or most of, the foreign and domestic investors, as well as the respective officials; especially some of our responsible economic authorities, pointed to the previous law as the only obstacle to the attraction of foreign capital and investment for our production sector, calling it outdated and bewildering, mostly based on opinions of some advisors unknowledgeable to scientific and practical national economic principles. The previous law was in use for around 50 years, and except several items, it was advanced and efficient enough to promote and support foreign investment in Iran. But instead it was continually stated - incorrectly - that the main reason behind the lack of success in attraction of foreign investment, had been "the lack of an efficient law in consistence with the existing requirements and conditions of our economic activities."

Nevertheless, it seems that while the ratification of the Law of Promotion and Protection of Foreign Investment has satisfied its promoters, we should be witness, in the near future, to a noticeable successes in attracting foreign investment, especially as some recent positive comments by foreign investors suggest so. Success in this regard can only be reached by initiating a determined drive forward by, at least, British investors and our economic entrepreneurs.

Clearly, accomplishment of this drive requires establishing various production projects by investors, and Iranian producers as a whole, as well as more direct contacts between the members of IBCCIM in Iran, and BICC in London.

No doubt, another success factor could be preparing the necessary grounds from one side, and provision of facilities by the British investors from the other.

Dr. Amir Houshang Amini