Page 19 - IRANRptJul18

5.2 FTAs
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.
Sarkissian made his remarks after meeting Iran's Ambassador to Armenia Kazem Sajjadi in Yerevan. Iran has a substantial Armenian community and Armenia is home to a good deal of Iranian expatriates, helping to smooth commercial and political relations between the two countries.
Tehran and Yerevan signed four agreements in the fields of economy, customs and sports in February. They were inked at the closing ceremony of the 15th Iran-Armenia Joint Economic Commission meeting.
At the time, Iran's Energy Minister Reza Ardakanian said special efforts should be made to steer the public and private sectors into backing joint investments conducted by the two countries.
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.”
19 IRAN Country Report July 2018 www.intellinews.com