Page 21 - IRANRptAug18

Armenia and Iran explore business potential in wake of EEU breakthrough
Armenian President Armen Sarkissian has underscored his country's willingness to do all it can to boost business and other ties with Iran, Fars News Agency reported on June 18.
In mid-May the Moscow-led Eurasian Economic Union (EEU), the members of which include Armenia, and Iran signed an interim free trade agreement (FTA). This has encouraged Armenian and Iranian officials to accelerate efforts to explore additional bilateral trade and investment potential. However, the small and impoverished nation of Armenia’s need to give priority to maintaining good relations with its major backer Russia sometimes means it must tread carefully when considering cooperation with Iran. For instance, behind the scenes it is evident that Russia has had a big, and typically obstructive, say when it came to any Iranian ambitions to establish pipelines through Armenia and Georgia to potential export terminals on the Black Sea.
5.3 FDI
Iran FDI 2010 2011 2012 2013 2014 2015 2016
FDI net inflows (BoP) (USD bn)
3.649 4.277 4.662 3.05 2.105 2.05 3.37
FDI net inflows (% of GDP)
0.749 0.733 0.778 0.653 0.485 0.531 0.805
FDI net outflows (% of GDP)
0.049 0.044 0.226 0.04 0.001 0.031 0.025
source: World Bank
Iranian central bank chief urges more action to facilitate FDI
Central Bank of Iran (CBI) governor Valiollah Seif has urged government officials to provide clear access to foreign investors looking to enter the Iranian capital markets, Mehr News Agency reported on April 3.
Seif, a proponent of foreign direct investment (FDI), has repeatedly taken the Rouhani administration to task over the vagueness of current regulations supposed to allow foreign investors some access to the country’s capital markets.
The facilitation of the business environment amounts to a leading strategy in attracting FDI to Iran, the central bank chief said, adding: “Iran should act properly in this respect and must provide suitable ground for foreign investors that is more attractive than that of rival countries.”
He also said: “It is obvious that various legal capacities should be used for the development of the country’s economy and in this way, which, moreover, backs domestic investors, FDI should be taken into serious consideration.”
Seif observed that the more the local business environment was geared towards FDI, the more money would flow into the country, but he also noted that “competition in the region is rife”. Regional actors like arch-rival to Iran Saudi Arabia, currently on a campaign to gain support and investment for its NEOM transnational city and economic zone project, which has an estimated cost of $500bn, is wasting no time in going after foreign capital.
Seif lamented that the business environment has not lived up to even standard expectations since the introduction of the nuclear deal at the start of 2016, with all parties in and outside Iran making foreign investment difficult.
21 IRAN Country Report August 2018 www.intellinews.com