Iran is not the only country that welcomes inexpensive capital and monetary reserves for the development of its projects and the increase of domestic production. Similar trends are witnessed in the most advanced economies of the world.

Head of the Ministry of Finance and Economic Affair’s Department of Commerce and Monetary Policies, Ali Khorsandian, said that the studies undertaken by the credit assessment institutions have indicated the level of investment risk in Iran has declined and circumstances are favorable for attraction of foreign investment. The most important factors that influence attracting foreign investment are the country’s potential capacities and areas in which investments are needed, a sound economic structure, government transparency in relation to foreign investors and political stability. The economic reforms seen in the recent years such as revision of the tax law, substituting non-tariff obstacles with tariffs in the country’s foreign trade sector, the unification of customs bill, the uniform currency rate and reforming the banking network have all been of great significance in attracting foreign investment.

With surplus currency revenues earned from oil exports in the last two years, the entry of foreign investors to the country is considered an added bonus. When investment means profit for international investment firms and results in development and production benefits for the target country, attracting foreign investment becomes logical and justifiable. When the country lacks adequate resources for its construction projects, it must inevitably turn to foreign resources to fill the void. Foreign investment must be channeled toward profitable projects, so it results not only in superior production, but it also motivates the investors by achieving a healthy profit margin.

Maintaining ownership over the investment and the guarantee of its return are regarded as the common ground between the old and new investment law, but the new law is believed to have many more benefits for the investor. Iran’s first ever legislation for attracting investment was passed in 1955.