400 Foreign Investment Projects Active in Iran

TEHRAN (Iran News) Salimi explained that, within Iran’s Foreign Investment Promotion Organization, representatives from the Ministry of Economy and Finance, the Central Bank, the Planning and Budget Organization, the Ministry of Foreign Affairs, and the Iranian Chamber of Commerce jointly approve all foreign investment entry and exit permits. He added that for the past two decades, between 600 and 700 foreign investment projects have been approved and operated in Iran. Every year, one to two companies request to exit, either selling their share of operations to another foreign company or withdrawing their entire investment. This, he noted, is a regular process, with no significant change in the departure pattern compared to previous years.

Salimi further clarified that some international media outlets have linked these exits to political events, such as the potential re-election of Donald Trump or energy and raw material supply challenges faced by industries worldwide. For instance, it was claimed that Savola’s departure led to a shortage of cooking oil in Iran. However, Savola’s contribution to oil production in the country accounted for only 25%, and other local producers continue to supply the market.

According to Salimi, Savola had filed for the withdrawal of its investment over a year ago, and its exit, which was officially approved several weeks ago, took longer due to procedural delays. Similarly, while Majid Al Futtaim’s exit request has been approved, the company has not yet completed the transfer processes, which are expected to take about two months.

Salimi emphasized that the movement of foreign investors in and out of Iran is a positive sign, as it shows that foreign companies have the freedom to enter and exit the market as they choose. He further explained that when a foreign company leaves, another usually takes its place, which would not happen if the investment climate in Iran were unfavorable. If conditions were poor, investments would become “locked” in the country, which would be detrimental to all parties.

He also pointed out that over 40 foreign companies currently have entry permits for investment in Iran, with approvals being reviewed each month by the relevant authorities. While the granting of permits does not guarantee the immediate arrival of foreign investments, it signals interest from companies in investing in Iran, provided the initial conditions are satisfactory.

Salimi added that the term “foreign investor” is used for any entity bringing capital from outside Iran. This includes Iranians residing abroad who invest in the country, as well as foreign nationals from countries like Afghanistan, who are required to invest at least $100,000 in Iran to obtain a five-year residency permit.

Currently, approximately 400 foreign investment projects are active in Iran, with investors from countries such as the UK, Australia, and Canada involved. However, the UAE stands out as the leading investor in Iran due to its geographical proximity and ease of financial transactions.

Salimi noted that foreign investors can repatriate their annual profits from Iran in accordance with the law. The primary issue in the process of capital movement is financial transactions, as Iran is not a member of the Financial Action Task Force (FATF). Consequently, financial transfers must be conducted through currency exchange offices, and transactions are made in conventional currencies such as euros and dollars. Additionally, any technology, machinery, equipment, and raw materials brought into Iran by foreign investors are also recognized as part of foreign investment, and investors are allowed to export goods from Iran equal to the profits earned.