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Investment growth rate in Iran reaches 7.1 percent

Trend | September 14, 2017
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

Investment in Iran became positive in winter and spring of 2017 and during spring investment growth reached 7.1 percent (first quarter of the current fiscal year, since March 21), according to the government spokesman Mohammad Baqer Nobakht.

He said the government last fiscal year handed out 179 trillion rials (over $5 billion as each USD around 32,000 rials) to small and mid-sized companies.

The Iran Statistics Center recently put the first quarter of year’s economic growth rate at 5.6 percent (including oil), and 7 percent (excluding oil).

After Iran’s nuclear agreement, the Joint Comprehensive Plan of Action with six world powers (China, France, Germany, Russia, the United States and the United Kingdom), many outside businesses are enthusiastic to enter the Iranian market.

Meanwhile, to boost Iran’s collapsed economy, the country’s moderate forces—a coalition of progressive politicians, intellectuals and pragmatic conservatives headed by President Hassan Rouhani, who advocates reintegrating Iran into the global market—are encouraging foreign partners and businessmen to invest in Iran.

Iran’s parliament passed a five-year economic development plan in January that includes a sharp rise in foreign investment, though Tehran may not achieve that while U.S. president-elect Donald Trump is in office, as he continues to pose serious challenges to how Iran takes advantage of the nuclear deal.

The plan lets the government arrange up to an average of $30 billion of foreign financing each year, in addition to $15 billion of annual direct foreign investment in Iran, and up to $20 billion of foreign investment conducted with local partners.