FDI Incentives 

Some specific enhancements introduced by FIPPA “Foreign Investment Promotion and Protection Act”

The Law on foreign investment in Iran under the name of “Foreign Investment Promotion and Protection Act” (FIPPA) was ratified by the parliament in 2002.Some specific enhancements introduced by FIPPA for foreign investment in Iran can be outlined as follows:

1-Broader fields for involvement by foreign investors including in major infrastructure.

2-Broader definition given to foreign investment, covering all types of investments from FDI to different types of project financing methods including: Civil Participation, Buy –Back arrangements, Counter trade and various BOT schemes.

3-Streamlined and fast track investment licensing application and approval process.

4-Creation of a one stop shop called the “Center for foreign investment Services” at the organization for investment for focused and efficient support for foreign investment undertaking in Iran.

5-More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purpose.

Economic advantages

• The 18h largest economy in the world by purchasing power parity (ppp) Consumption and the government plans billions of dollars worth of further investment to increase this share.

• The diversified economy and broad industrial base with over 40 industries directly involved in the Tehran stock Exchange is the industrial base in the MENA region.

• A Resource-rich and Labor-rich economy with Young and educated population.

• A Large domestic market.

• The Middle East market is a prime market opportunity for Iran’s non-oil exports.

• An increasingly sophisticated infrastructure and human capital base providing the foundation for an emerging knowledge –based economy.

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