Best Iranian businesses, an opportunity for attracting foreign investors

Best Iranian businesses, an opportunity for attracting foreign investors

In different documents it is shown that Iran goal in economic development is to become the first power in the region. This goal has faced obstacles in recent years due to sanctions. According to Unctad annual report, in 2014 Iran was among five countries which have most changes in the field of direct foreign investment in south of Asia. Net foreign direct investment for Iran in 2014 faced 31% reduction and foreign direct investment stream output in this year had 315% growth.

In different documents it is shown that Iran goal in economic development is to become the first power in the region. This goal has faced obstacles in recent years due to sanctions. According to Unctad annual report, in 2014 Iran was among five countries which have most changes in the field of direct foreign investment in south of Asia. Net foreign direct investment for Iran in 2014 faced 31% reduction and foreign direct investment stream output in this year had 315% growth.

Countries like Turkey and Saudi Arabia passed through Iran in attracting sources for economic growth. Considering this trend, until 2050 Iran will be the fourth country in the region and it shows that Iran can not achieve its goal.

After Joint Comprehensive Plan of Action, there is an opportunity for attracting foreign investors in Iran. In this situation, Iranian businesses can have market outside borders and foreign investors can come to Iran. The important thing is the way we look at raising funds. The current prevailing view in the country is attracting large capital from multi-national companies in the form of oil and gas projects or big plans. These plans have long term return periods and often come with buying technical equipment and knowledge. These types of investments after Joint Comprehensive Plan of Action, due to the effects of political trends on big and multi-national companies and these companies’ need of financial approval and big guaranties, are faced with problems and it will take many years for these investments to return to the situation before sanctions.

But we can look at this topic from another aspect. In fact a new opportunity can be created from these threats. Currently, there are many young experts who have potential abilities for starting businesses and in recent years the culture of launching best companies in Iran can be easily seen.

There are signs of small and big foreign investments in recent months; in this case, Iran would face two positive events: one is that big investments in Iran would become common and second, Iranian best companies which have technology and human workforce would be financially supported.

According to the willingness of foreign investors to invest in new Iranian businesses, it is recommended that fundamental and economic investors create required conditions and infrastructures. There are four recommendations in this regard in order to develop and facilitate investment.

Developing a single, comprehensive law for small and medium foreign investment in Iran knowledge-based market so that there will be a win-win relationship in this type of investments.

Facilitating the entry and exit of investors and capital.

Clarifying foreign investment process in the nascent knowledge-based businesses.

Creating intermediary financial institutions for preparing financial reports and precise assessments in order to gain the trust of investors and marketing investment for best knowledge-based companies.

 

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