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| Iran- Favorable
and Promising Prospects for Foreign Investors |
| Foreign investors
can repatriate the principal and profits on their investments
in any manner they like. |
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| Irans 1st International
Construction, Building and Infrastructure Investment Forum
that was held in October 2000 in Tehran, presented a positive
and promising outlook for investments in Iran. This forum
not only provided an opportunity for Iranian and foreign
investors to get acquainted with investment potentials
in housing, urban construction and infrastructure sectors,
but also paved the way for the review and reconsideration
of legal facilities for augmentation of foreign investment. |
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| During this
forum, the Foreign Exchange Deputy of the Central Bank
of the Islamic Republic of Iran stated The risk factor
for investment in Iran has decreased from six to five
and it is expected that it would soon be reduced to 4.
In a different section of his speech, he stated, For
the attraction and protection of foreign investment, as
per the law, foreign investors can repatriate the principal
and profits on their investment in any manner they like.
He further added, As per the approval of the High Council
for Investment, foreign investors can invest up to 100
percent in development, industrial and oil projects.
Similarly, at the forum the Deputy Minister for Housing
and Urban Development declared, Various projects with
an estimated financial value of approximately eight billion
dollars and classified into different fields have been
placed on international tender, the results of which shall
be declared after the performance of legal formalities.
The existence of vast oil and gas resources in Iran and
the presence of regulations restraining their price increase
have resulted in low fuel prices. Inexpensive fuel, besides
its adverse effect on increase in consumption and environment,
has caused investment in Iran to be very economical and
lucrative. |
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| The other important
factor is the abundance of a skilled labor force comprising
of experts, university graduates, technicians and workers
with a comparative low salary and wage level. The availability
of resources and raw materials in large quantities and
different varieties and a vast scope for production, development
and service activities, have created a bright outlook
for Iran, illustrating a high scope for investments in
the country. The ecological, geographical and climatic
conditions and the varied flora and fauna of Iran is such
that during any time of the year, all the four seasons
can be found in this expansive country. This phenomenon
can also be considered an added advantage for planning
production and commercial activities. Irans access to
free international waterways, its vast facilities for
transit and its location on the crossroad of civilizations,
have brought about the necessary grounds for worldwide
commerce and widespread marketing research activities.
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| This, in itself, can be a
positive and promising factor for foreign investors. Easy
access to the markets in the Middle-East and Central Asian
(CIS) countries, the ever expanding political and commercial
relations with these countries, marketing research facilities
in these countries for the products manufactured in Iran,
herald the wide-spread opportunities for investments in
fields which have the capability to attract consumers
and buyers in Iran as well as other countries. The number
of free trade zones and the scope of their activity have
been increased substantially during the first and second
plan for social, economic and cultural development. This
increase has been given an added boost on the basis of
the general policies adopted during the third economic
plan. By providing special facilities and privileges,
the free trade zones have brought about appropriate conditions
for transit, processing, production and export of goods
and products. |
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