According to Morteza Lotfi, managing director of the Social Security Investment Company (Shasta), Turkey, the UAE and Saudi Arabia were ranked first to third in the region in terms of attracting foreign capital in the past years.
The economic sanctions imposed on Iran under the pretext of the country’s nuclear program halted the process of foreign investment absorption. Following the implementation of Iran nuclear deal, under which the unilateral sanctions were lifted, countries across the world, particularly Italy, France and Germany, have become more active in taking part in various Iranian projects.
“The 8 percent growth envisioned in Iran’s sixth development plan depends on a 10.1 percent increase in investment,” he said.
According to him, 30 percent of the country’s economy is in the hands of the private sector.
The highest amount of foreign investment absorption for Iran was reported by the United Nations Trade and Development to be $4.2 billion in 2012. The following years, there was a considerable drop in foreing investment due to sanctions.
“In a study conducted by the World Bank on countries’ business principles in 2017, Iran dropped down four steps and is now ranked 127th among 191 countries,” Lotfi said, stressing that a growth in business could create the necessary capacities for absorption of foreign investment.
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