Mohammad-Mehdi
Navab, Ph.D., is no longer in charge of the Organization for Investment, Economic &
Technical Assistance of Iran (OIETAI). Serving in the post that he kept for 16 years, the
former Deputy Minister of Economic Affairs & Finance was the source of several
initiatives that helped Iran attract foreign investments despite being regarded mainly as
a high-risk country.
It seemed that Dr. Navab’s fate was somehow associated with challenging jobs. His
five-year term as the Islamic Republic ambassador to the then West Germany was perhaps the
hardest time for an Iranian ambassador in West Europe. Afterwards, all along his 16 years
as OIETAI president, Dr. Navab had to withstand some external efforts for economic
isolation of Iran and the suspicions of potential foreign investors about security of the
post-Revolution Iran involved in an 8-year war.
When Iran was promoted from the 6th to the 5th level of international ranking for investment risk, we
automatically remembered Dr. Navab’s statements in his 1999 interview with Iran
International saying, “To me, what matters most is Iran’s distancing from that
state of emergency which used to keep foreign investors off. Fortunately, this improvement
is well in place. Today, the world looks at Iran as an indispensable partner. I’m
sure that the established infrastructure and the newly-built image will, in the coming
years, lead to promotion of foreign investment in Iran.”
What follows is one of the last reports presented by Dr.
Navab as OIETAI president on the improving status of foreign investment in Iran.
Exclusive of the oil and gas sectors,
Iran has been able to attract $470 million of foreign investment between March to October
2000. This figure stood at $415 million for the same period in 1999. Processing of wool
and herbal extracts, steel and compressor production are some of the fields in which
Iranians have been able to attract foreign investment this year.
Since 1994, OIETAI has registered 110 cases of foreign investment in Iran, the amount of
which reaches about $2.7 billion. These investments have been made in the sectors of
agriculture, food industry, leather processing, textile, chemicals, electronics,
transport, and telecommunications.
Considering national interests, governments of developing countries must devise their
policies in a way that would enable them to take advantage of foreign investments. Due to
the large amounts of capital needed, the government or the private sector in Iran cannot
afford to invest in various sectors and that is why effort must be exerted for attraction
of foreign investment.
Access to advanced technology, gaining market share and improvement of management
capabilities are some advantages of attracting foreign investment. Today, if we aim to
present our products on the international market, we have to establish partnerships with
those who have a share in the global market.
The Law for Attraction and Protection of Foreign Investment is not enough for absorbing
foreign capitals in Iran. Therefore, it is essential that this law be supported by tax
regulations, the Labor Code and anti-monopoly rules.
