Gov’t Intervention Drives Capital Away
Gov’t Intervention Drives Capital Away
TEHRAN - The Vice President of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) emphasized that investment is a crucial and reliable indicator of economic development, and that countries around the world are in strong competition to attract capital.

Gov’t Intervention Drives Capital Away

TEHRAN (Iran News) Speaking at the National Conference on Investment Opportunities in North Khorasan, Payam Bagheri said: “As of 2024, the United States remains by far the leading country in attracting global investment, followed by other nations, with China ranking fourth. This shows the strategic importance of attracting capital.”

Bagheri highlighted that investment leads to substantial benefits such as increased production, job creation, improved public welfare, stronger household economies, and the development of energy infrastructure.

“Unfortunately, Iran ranks fourth in the region after the UAE, Saudi Arabia, and Turkey in attracting investment. Given the country’s vast potential, this gap is significant,” he noted.

He explained that successful investment requires a “three-pillar foundation: investment security, investment attractiveness, and transparency.”

“Investment security guarantees the protection of capital and the return on profits. To make Iran more attractive to investors, we must adopt predictable economic models, recognize the principle of transparency, and respect property rights,” Bagheri said.

Addressing the barriers to investment in Iran, Bagheri pointed to political, economic, and legal factors:

“We are witnessing volatility in key economic indicators, which deters investors. International restrictions and sanctions, lengthy and costly bureaucratic procedures, frequent changes in regulations and economic policies, and weaknesses in energy, transportation, and communication infrastructure all hinder our ability to attract capital.”

The ICCIMA vice president stressed the importance of empowering the private sector:

“To advance investment processes, we must rely on the private sector. More than ever, it is essential for the government to step back from direct intervention in the economy. Government interference creates an uneven playing field that discourages investors. The state should act as a regulator, not as a market participant.”

Bagheri added that while the private sector has become relatively resilient to sanctions, it still suffers from domestic self-imposed restrictions (‘self-sanctioning’).

“Unless these issues are resolved, we will not be able to move forward in developing investment.”

  • source : IRAN NEWS ECONOMIC DESK