Page 23 - IRANRptFeb19

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
Iran offers residence ‘$250K’ investors
EU provides €18mn in aid to Iran to offset the impact of US sanctions
Foreign investors who invest a minimum of $250,000 in Iran are to be offered a five-year residence permit, Mehr News Agency has reported. The threat of renewed US sanctions has seen many foreign investors in Iran make for the exit in recent months, with even EU efforts made so far in fighting back against Washington’s policy failing to dissuade a slew of big European companies from leaving the country. Air France and British Airways are among the latest big companies to announce they are ending their Iran operations . Turkey, which like Iran is fighting economic turmoil, recently made a similar offer to foreign business people. Qatar and the United Arab Emirates, meanwhile, have lately stepped up their efforts to woo those who can bring foreign investment.
The Iranian announcement was made following a meeting of the Supreme Council of Economic Coordination, chaired by President Hassan Rouhani. The Council’s composition includes senior cabinet members, as well as the heads of the judiciary and parliament.
The European Union on August 23 decided to provide €18mn in aid to Iran to offset the impact of US sanctions. “This is a package that will help both sides have communication with each other and it doesn’t have anything to do with the nuclear agreement and other hype,” Iranian Foreign Minister Mohammad Javad Zarif said, according to ISNA.
The recently-appointed top US envoy on Iran, Brian Hook, criticised the EU aid to Tehran on August 24. It sent “the wrong message at the wrong time”, he said. “Foreign aid from European taxpayers perpetuates the regime’s ability to neglect the needs of its people and stifles meaningful policy changes,” Hook said in a statement.
The European funding is part of a wider package of €50mn earmarked in the EU budget for Iran. The aid will be split between Iran’s private sector, environmental projects and fighting harm caused by drugs. About $9.26mn will support Iranian small and medium sized enterprises as well as Iran’s Trade Promotion Organization. Another $9.26mn will support environmental efforts and $2.3mn will counter the effects of drug use.
23 IRAN Country Report February 2019 www.intellinews.com