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Strategic Position:

Iran with an area of 1،648،196 and nearly 76.03 million populations has been located in South- West Asia. The country neighbors with Turkey and Iraq in west, Afghanistan and Pakistan in East, Armenia, Azerbaijan, Russia, Kazakhstan and Turkmenistan in North and Kuwait, Saudi Arabia, Qatar, Bahrain, United Arab Emirates and Oman in South through Persian Gulf and Oman Sea. Therefore, Iran, as a strategic country, has got common borders with states of ESCWA in South and West, SAARC in East and CIS and Caucasus as well as UNECE in North. The country is regarded as one of the richest countries in hydrocarbure reserves, so that it ranks the second for gas reserve and its export as well as the second for exporting crude oil in the world. According to the reports of the international institutions like the World Bank, Islamic Republic of Iran, with having more than 700 billion dollars GDP, scores the eighteenth out of twentieth outstanding economies, eighteenth and sixteenth for population and area respectively.

Investment Incentives and Advantages in Free and Special Economic Zones:

  • Tax exemption for 20 years from the date of operation for all economic activities
  • Foreign investment and nearly a hundred percent of the amount invested.
  • Freedom of entry and exit of capital and profits
  • Protection and guarantees for foreign investments.
  • Abolition of entry visas and easily issue of residence permits for foreigners.
  • Facilitated regulation on labor relations, employment and social security.
  • Transfer of part manufactured goods to the mainland without paying customs duties.
  • Elimination of pay customs duties on imports from outside to the region and vice versa.
  • Employing trained and skilled manpower in all different skill levels and professions.
  • Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities.

Supportive Government Policies

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:

  • Broader fields for involvement by foreign investors including in major infrastructure.
  • 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.
  • Streamlined and fast track investment licensing application and approval process.
  • 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.
  • 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.
  • Resource-rich economy
  • Labor-rich economy
  • Young and educated population
  • 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.

Tax Holidays:

  • Exemption
  • Deduction
  • Depreciation
  • Tax-refund
  • Avoidance of Double Taxation

Human Capabilities:

  • Labor-rich
  • Young and educated population
  • The average salary in Iran is 7,900,000 Rials ($330)