25 May 2017
AsiaNews.it Twitter AsiaNews.it Facebook
Geographic areas




  • > Africa
  • > Central Asia
  • > Europe
  • > Middle East
  •    - Bahrain
  •    - Iran
  •    - Iraq
  •    - Israel
  •    - Jordan
  •    - Kuwait
  •    - Lebanon
  •    - Oman
  •    - Palestine
  •    - Qatar
  •    - Saudi Arabia
  •    - Syria
  •    - Turkey
  •    - United Arab Emirates
  •    - Yemen
  • > Nord America
  • > North Asia
  • > South Asia
  • > South East Asia
  • > South West Asia
  • > Sud America
  • > East Asia


  • » 06/27/2016, 22.08

    IRAN

    As sanctions ease, foreign investment to pour billions of dollars into Iran



    In terms of greenfield investments, Iran was ranked 12th of 14 between 2003 and 2015 with a 1.6 per cent market share. This year, the Islamic Republic jumped to third place, behind the United Arab Emirates and Saudi Arabia with an 11 per cent share. Jobs and capital spending are also up. South Korea and Germany are the main investors.

    Tehran (AsiaNews/Agencies) – The partial lifting of sanctions has jumpstarted economic growth in Iran and raised its investment potential in the region. This is leading the Islamic Republic to reopen its doors to foreign investors, creating an inflow of fresh capital.

    Data from fDi Markets, an FT service, which monitors cross-border green field investments*, shows that before the lifting of sanctions, Iran was ranked 12th out of the 14 Middle East nations for Foreign Direct Investment between January 2003 and December 2015, equal to a market share of 1.62 per cent.

    Since sanctions were lifted this year, Iran has climbed to number three with a market share of 11.11 per cent, behind regional powerhouses United Arab Emirates and Saudi Arabia.

    The agreement to lift sanctions in exchange for a significant reduction in Iran’s nuclear programme was initially inked in July 2015. But implementation did not occur until last January.

    As sanctions fall away, billions of dollars of overseas assets will unfreeze and oil will be sold internationally.

    Since 2012, sanctions had cost Iran more than US$ 160 billion in oil revenues. Despite holding the second largest gas and fourth largest crude oil reserves globally, Iran has flagged behind other emerging Middle Eastern countries.

    The election of a moderate as president, Hassan Rouhani, in 2013 and the easing of Western economic sanctions in January 2016, following the nuclear deal reached in July 2015, are the two key factors of change. This is reflected in various areas, from the economy to architecture.

    Still, the United States has kept in place a range of sanctions because of Tehran missile programme and its military support for Shia movements in the Middle East.

    Recently, Washington also blocked the use of the dollar in bank transactions, stopping new deals despite the nuclear agreement. This in turn has helped Iran’s hardliners against the president’s reform programme.

    These obstacles have not however prevented Iran from attracting more and more foreign investors and capital. Iran won 22 FDI projects, the highest rate of investment since fDi Markets began recording data in 2003.

    Job creation and capital expenditure also rose between 2013 and 2016. Whilst some 352 jobs were created in 2013 with capital expenditure of US$ 79m, this jumped to 2,732 new jobs and capital expenditure of .67bn in 2014.

    Since sanctions were lifted. Iran attracted investments for its automotive sector, business services, consumer electronics and textiles, among others.

    The principal countries investing in Iran were South Korea and Germany, which together committed to capital expenditure of .15bn.

    For fDi Markets, the upward trend is expected to continue. So far at least 19 foreign investors have shown interest in the country, 90 per cent more than last year.

    * A green field investment is a form of foreign direct investment in which a parent company builds its operations in a foreign country from the ground up.

    e-mail this to a friend Printable version










    See also

    04/01/2008 BANGLADESH
    Bangladesh needs rice
    According to army Chief General Moeen U Ahmed the country is facing a real crisis as a result of higher rice prices. Half a million tonnes are needed right away, but donor countries have responded with scepticism, urging the Bangladesh government to use its foreign currency reserves to buy wheat.

    20/08/2013 INDIA
    New Delhi says yes to low-cost food for 800 million people
    The government is set to launch a food security programme that would provide 5-kg of grain per person per month at fixed prices, as part of its Food Security Bill. However, many view the plan as "dangerous" for India's budget, a concern that has delayed the bill's approval by parliament.

    20/07/2005 JAPAN – NORTH KOREA
    Tokyo to demand total nuclear power ban on Pyongyang
    Government sources say Japan will ask for a total freeze on North Korea's nuclear energy programme during six-nation talks.

    30/09/2005 middle east
    Foreign investments grow 51 per cent in Mideast


    07/12/2012 INDIA
    India: Government opens up the retail market to direct foreign investment
    The upper house (Raja Sabha) has approved the historic economic reform, with a majority of 123 votes against 109. Support of the 'minor' parties essential. Hindu nationalist party defeated. The opening to foreign capital should restart the country's growth.



    Editor's choices

    VATICAN
    Pope: together with the faithful in China on 24 May to celebrate Our Lady of Sheshan



    During the Regina Caeli, Pope Francis speaks about the World Day of Prayer for the Church in China, instituted by Benedict XVI. Chinese Catholics must make a “personal contribution to communion among believers and to harmony in the whole society." AsiaNews Symposium on the Church in China is set for this week. Francis appeals for peace in the Central African Republic, and for loving “one another following the example of the Lord”. For him, “Sometimes conflicts, pride, envy, and divisions leave a blotch on the beautiful face of the Church.” Five new cardinals will be named, including a bishop from Laos.


    VATICAN-CHINA
    May 24, 2017: 'China, the Cross is Red', AsiaNews Symposium

    Bernardo Cervellera

    The event will be held to mark the World Day of Prayer for the Church in China. A title with many meanings: the Cross is red from the blood of the martyrs; From attempts to suffocate the faith with state control; Bceause of the contribution of hope that Christianity gives to a population tired of materialism and consumerism that is seeking new moral criteria. The theme is also about the great and unexpected religious rebirth in the country. Guests to include: Card. Pietro Parolin, Msgr. Savio Hon, the sociologist of religions Richard Madsen, the testimonies of Chinese priests and laity.


    AsiaNews IS ALSO A MONTHLY!

    AsiaNews monthly magazine (in Italian) is free.
     

    SUBSCRIBE NOW

    News feed

    Canale RSScanale RSS 

    Add to Google









     

    IRAN 2016 Banner

    2003 © All rights reserved - AsiaNews C.F. e P.Iva: 00889190153 - GLACOM®