Page 21 - IRANRptNov18

In a parliamentary session, 127 MPs voted in favour of the plan and 51 others against, while 10 abstained.
The new free trade zones include Inche Borun on the border of Turkmenistan and Ardebil on the border of Azerbaijan. Also, Baneh, Qasr Shirin and Mehran on the border of Iraq will be formalised as trade centres, while, in the south and east, Bushire and Jask on the Persian Gulf are included in the progamme, and Sistan on the edge of Afghanistan has been named as a tax-free zone.
In addition, a dozen special economic zones in remote areas inside the country have been designated including Fasa and Lar in Fars province, Abarkuh and Meybod in Yazd province, Zanjan in Zanjan province, Gachsaran in Kohgilouyeh-Boyerahmad province, Serow-Urmia in West Azarbaijan province, Khaf and Quchan in Razavi Khorasan province, Khorramabad in Lorestan province, Takestan in Qazvin province and Shahin Shahr in Isfahan province. Also, an SEZ for pharmaceutical products will be established in Savojbolagh, in Alborz province.
The term SEZ is used to refer to an area of land where business is promoted and tax and import laws are relaxed. Free Trade Zones, have a more discretion to relax their rules, with housing and automotive purchases have no import duties.
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
UK private equity firm signs memorandum on investing in Iran
British private equity firm Red Arrow Investment Group has signed a memorandum with Iranian counterpart Farda Roshan Group to invest in Iran, Asli Khabar reported on August 25.
Since the US announced its new sanctions campaign against the Iranian economy and any foreign companies that remain in business with Iran, the trend has been for the big European companies to pull out of the Islamic Republic but for small and medium sized players to either announce they are staying or to arrive in the country with the intention of forming trade or investment relationships. The former can typically be easily sanctioned given their clear links to the US financial system or even to US assets, while the latter may prove elusive to US sanctions officials given their lack of such links.
Air France and British Airways are among the latest big companies t o announce they are ending their Iran operations . Among smaller players to have committed to staying in Iran recently is Spanish oil and gas equipment and services firm Esproenko International.
Red Arrow Investment Group representative and business consultant David Whitefoot signed the memorandum with Farda Roshan’s Farzane Salimiyan on
21 IRAN Country Report November 2018 www.intellinews.com