Iran introduces 12 sectors to investors
More positive signs on the prospects of Iran’s post-sanctions business environment are emerging as experts say the country has taken measures to encourage foreign investors to target 12 special sectors.
KPMG, the giant global company that provides audit, tax and advisory services, has been quoted by the media as indicating in a report that the target sectors include oil, natural gas, mining and electronics.
The KPMG report has estimated the value of potential investments in the 12 sectors at $250 billion.
Iran is already working on a new format of contracts for its oil and gas projects that includes serious incentives to better attract international investors. Officials in Tehran said earlier this week that the new format of the contracts have been finalized and sent to the cabinet for approval.
The country’s mining industry also saw a growing interest by investors after the removal of the sanctions in January. Italy’s Danieli and South Korea’s Pohang Iron and Steel (POSCO) have already pledged to make major investments in the country’s mining industry.
The Financial Times said in June that the latest figures show that the volume of Foreign Direct Investment (FDI) in Iran has reached the highest level in years following the removal of sanctions against the country in January.
The FT has emphasized in its report that figures show Iran was ranked 12th out of the 14 Middle East nations for FDI between January 2003 and December 2015, equating to a market share of 1.62 per cent.
Global investment into Iran has been steadily increasing since 2013, a year in which the country attracted just three FDI projects. This increased to eight in 2014 and nine in 2015.
Since the sanctions were lifted the leading sector for investment into Iran has been financial services, which has attracted four investments from separate companies with capital expenditure of $60m, FT’s report said.
The country has also attracted investments from the automotive sector, business services, consumer electronics and textiles, among others, it added.