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Five-year residences in Iran offered to foreigners who bring $250,000 investment
FDI in Iran fell 30% in 2018 UN report suggests
Iran’s Interior Ministry has announced that with a $250,000 investment in the economy a foreigner can be granted a five-year residency, Tasnim News Agency reported on July 31.
Like other regional countries including Turkey and Azerbaijan, Iran is attempting to increase its income from foreign direct investment (FDI), but transferring money from abroad to an Iranian bank account is presently a perilous activity given the heavy US sanctions aimed at Iran, which can trigger secondary sanctions against foreigners in such cases. Thus, a foreigner looking to take advantage of the offer would likely have to bring cash.
Interior Minister Abdolreza Rahmani Fazli said the plan was aimed at boosting investment into several sectors of the Iranian economy, which has plunged back into recession since the new US sanctions regime started taking effect last year.
“According to a plan approved by the administration, any foreigner who invests or deposits $250,000 [in a bank account] in the country is granted a five-year residence permit,” Rahmani Fazli specified to reporters in Tehran at a press conference.
Iran extended a visa-waiver programme for Chinese tourists from 15 days to 21 days on July 29 in a move to boost and ease trade amid the US sanctions pressure. In reality it can also be used by Chinese businesspersons travelling to Iran to examine potential commercial opportunities.
The volume of foreign direct investment (FDI) placed in Iran declined more than 30% in 2018, dropping to $3.48bn from more than $5bn in 2017, according to the United Nations’ World Investment Report.
The harsh sanctions regime directed at Iran by the Trump administration since May last year has prompted a great many foreign companies to shutter their operations in Iran.
During the latter half of the Obama administration, FDI in Iran jumped from around $2bn in 2015 to $3.37bn in 2016, at the end of which the nuclear deal was signed by Iran and six major powers including the US. Donald Trump unilaterally pulled the US out of the multilateral accord but the other signatories remain signed up.
The upward FDI trend continued in 2017 with a figure of $5.01bn, up 48% y/y. Overall, the world’s FDI volume stood at $1,297bn in 2018, meaning Iran had a share of 0.26%
21 IRAN Country Report May 2020 www.intellinews.com
