Chinese Demands for Investment in Iran Rise by 80%
IRAN NEWS ECONOMIC DESK
TEHRA – Head of Iranian and Foreign Joint Venture Investments Association (IFJIA) says the demands by the Chinese for investment in Iran have soared by 80 percent this year and they are ready to invest in some projects that were never expected.
Speaking to ILNA, Hossein Seyed Hossein Salimi said that in the past years, the demands from Chinese for investment in Iran have been few but this year they has increased by 80 percent and they have shown more interests for investment in some projects that were never expected which were welcomed by the Chinese and these projects have profits to us, too.
On the effects of election of Joe Biden as the U.S. President, he said election of Biden has its impacts on the world and its impact has not been seen on Iran yet while the stock market indexes have grown in Europe and the U.S. but its impact on Iran’s stock market has been negative.
Salimi said that Bidn’es election impact on Iran and its economy was transient as the dollar rate fell just for two days and it soared again.
He further said that since the outgoing U.S. President has imposed the maximum sanctions on Iran, it is expected after Democrat’s taking power in the U.S., the sanctions are decreased and the business climate and market moves towards improvement.
Touching upon the decline in foreign investment in Iran, he said sanctions are the main reason because the companies both had obstacle in way of investment in Iran and had problem in transfer of money. He noted that since the big companies simultaneously had invested in the U.S. was unable to invest in Iran, too. He expressed hope by rejoining of the. Biden Administration to the JCPOA and decreasing the sanctions, foreign investment would increase.
He then pointed to the sanctions of 28 Iranian banks which will come into effect from November 22 and said this will make complicated the transfer of money and will increase the cost of money transfer because it has to be transferred through the channel like forex shops instead of banks.
Salimi admitted that Trump is still in the office and he will continue till early January and in case the Democrats fail to win the majority in the Senate, Biden will face problems in approving bills and dealing with Iran.
On the amount of applications for foreign investment in the country, he said since the beginning of the year and due to the outbreak of the Coronavirus, application for investment has declined but since June, the demands have soared and it has almost been doubled comparing to the same period last year. He admitted that the number of licenses for investment has been doubled and they may fall when they come to the implementation phase.
Salimi added that in the past, applications for investment in mining sector have been few but this year Iran has received good bids for four and five mega mining projects and some of them have started and the Chinese are involved in them.
On the solar energy sector, the number of applications for investment has increased and they are mostly by Germans who are eager to invest in solar energy sector. He reiterated that Iran welcomes investment in solar energy projects.
Salimi noted that cooperation between Iran and China has opened the way for investment in Iran as the Chinese are hopeful for more investment in the country. He added that Coronavirus weakened Iran and China but they are currently recovering and the route for cooperation is opening.