Private Sector Cleared to Participate in Attracting Foreign Investment

TEHRAN (Iran News) Mehdi Heydari said the recently issued guidelines for the establishment, operation, and oversight of Foreign Investment Promotion Agencies (FIPAs) aim to create a specialized, professional network dedicated to attracting foreign investment into the country.

Under Article 30 of the Law on Financing Production and Infrastructure, the organization is obligated to design a framework for the establishment of such agencies.

Heydari explained that the guideline provides the necessary prerequisites to clarify how these agencies will be formed, along with the standards for their establishment, operations, supervision, and accountability.

“Believing that Iran’s private sector has reached a level of maturity and dynamism that enables it to identify and showcase the country’s economic capacities—turning them into negotiable opportunities and facilitating the international engagements necessary for attracting investment and financing—we are working to ensure that these efforts take place through the genuine economic infrastructure of the country,” he said.

The deputy minister noted that in most countries, investment promotion is a fully professional, competitive, and specialized field, relying on the expertise of investment consulting firms.

“In Iran, these agencies will play three main roles: promoting and shaping Iran’s foreign investment image, producing relevant content, presenting opportunities, and participating in global events with targeted marketing strategies,” he said.

He added that the agencies will also provide comprehensive advisory and operational services to foreign investors—from initial project familiarization to company registration, licensing, inter-agency coordination, commencement of operations, post-investment support, problem resolution, licensing follow-up, and investment development.

“This model will enhance agility, specialization, and the private sector’s capacity in attracting foreign investment,” he said.

Heydari emphasized that beyond their services, the agencies are expected to act as trustworthy and professional advisors, helping improve the investment climate, identify obstacles, and propose practical solutions.

Explaining the criteria for receiving a license, Heydari said Iran’s economic landscape, combined with the private sector’s capabilities, requires forming credible and reliable institutions capable of professional international engagement and smooth information exchange.

For this reason, he outlined several strict, competency-based requirements for applicants, including:

A minimum capital of 20 billion tomans; Capability to conduct feasibility analyses; Content production abilities in three languages; and experienced management with no history of financial misconduct.

“These criteria ensure that both foreign investors and domestic partners can build accurate trust in these agencies, and that the market remains protected from unprofessional activity,” Heydari noted.

He explained that the establishment license is issued after document review by the Secretariat and the Evaluation Board and is valid for six months. To obtain an operating license, the agency must demonstrate sufficient capital, an appropriate office, an updated statute, and fully developed analytical and content production infrastructure. After evaluation, a two-year operational license is granted.

Heydari highlighted that the guideline establishes strong and multi-layered supervisory mechanisms, including periodic evaluations, continuous reporting, audits of financial statements, field inspections, and case-specific inquiries.

In the event of violations, the Evaluation Board can recommend renewal, suspension, warning, or revocation of a license.

“These evaluations are among the most important criteria for license renewal and ensure that service quality and professional conduct are consistently maintained,” he said.

Asked what services foreign investors will receive, Heydari stated that investors typically need clarity on three questions before entering a country:

Which projects are ready and credible? How will administrative processes proceed, and who will guide them? Which institution is responsible if challenges arise?

“These agencies are designed specifically to answer those questions,” he said, noting that they will analyze opportunities, prepare professional investment packages, conduct legal and administrative follow-ups, and accompany investors at every stage.

“In essence, we have created a specialized, single point of contact in the private sector for facilitating foreign investment.”

The official noted that with the Investment Organization’s approval, agencies may establish domestic or overseas branches—a significant advantage, as these offices will introduce Iran’s economic capacities directly and professionally in target countries.

“Having professional promotion agencies is one of the key indicators in international investment evaluations. Building this network improves the quality of project promotion, facilitates investor engagement, and enhances Iran’s ranking,” he said.

He added that high-quality service provision can also strengthen the agencies’ reputation inside and outside the country, turning them into powerful engines for foreign capital attraction.

Heydari stated that holding economic and educational events, participating in domestic and international exhibitions, and offering policy recommendations are all essential parts of the agencies’ role.

As agile, intelligent advisors to policymakers, their input can accelerate improvements in Iran’s investment environment.

The Investment Organization will introduce these agencies as official, accredited service providers to foreign investors and domestic beneficiaries, incorporating them into ongoing international and domestic engagements whenever possible.

Heydari concluded by stressing that priority will be given to venture investment agencies, which—through structural reforms pursued by the Ministry of Economy and the Investment Organization—will be able to mobilize financial resources and execute high-risk, high-potential investment projects.