Sanctions removal key to boosting foreign direct investment: Hemmati
Iran’s economy minister said that without lifting sanctions, exiting the FATF blacklist, and facilitating smooth financial and banking transactions regionally and globally, the country’s ability to attract foreign direct investment (FDI) will remain severely limited.
According to IRNA, Abdolnasser Hemmati, in a note following his participation in the annual World Investment Conference of the World Association of Investment Promotion Agencies (WAIPA) in Riyadh on November 25-27, highlighted the importance of Iran’s presence at the event.
He described the conference as a valuable opportunity to gain insights into global investment trends and dynamics.
Hemmati wrote that the paradigm shift in the relationship between industrial policy and investment promotion strategies not only shapes the future of the global economy but also determines the trajectory of international cooperation and the quality of life worldwide.
He cited a report by the United Nations Conference on Trade and Development (UNCTAD), noting that global FDI in 2023 totaled $1.3 trillion, while Iran’s share accounted for less than one-thousandth of that figure.
The minister stressed the critical role of FDI in global value chains urging policymakers in developing countries, including Iran, to consider multinational corporations’ commercial strategies and explore ways to create an attractive environment for both international and domestic firms.
Despite Iran’s vast potential in energy, mineral resources, and a skilled workforce, Hemmati reiterated that the lack of sanctions relief and the FATF issue are significant obstacles to fully leveraging these advantages.
Hemmati affirmed that the Ministry of Economy and the Organization for Investment and Economic and Technical Assistance of Iran (OIETAI) are committed to intensifying efforts to attract more investment despite the restrictions imposed by sanctions
He highlighted productive discussions with the CEO of the WAIPA during his visit to Riyadh, emphasizing plans to strengthen cooperation.
Hemmati announced plans to strengthen relations with the Islamic Development Bank (IsDB) and the OPEC Fund for International Development during his visit to the Saudi Arabia capital as he also met Saudi Finance Minister Mohammed Al-Jadaan and Saudi Minister of Investment Khalid Al-Falih.