Why are the MNC keen to invest in Iran

Why MNC’s are keen to invest in Iran?

Iran is the second largest economy in the Middle East and North Africa region after the kingdom of Saudi Arabia. Iran is also the second largest populated region after Egypt. Iranian government adopted an extensive strategy surrounding the market-based reforms as reflected in the government’s 20-year vision and the sixth five-year improvement plan for the 2016-2021 periods.

The present Iranian government directly operates numerous enterprises and indirectly controls many companies attached with the security controls. Now, the threat to political stability has been declining in comparison to earlier years and the current government takes the initiatives for reconstructing the economy. Iran is now viewed as a promising business opportunity for the multinationals for their strong structural reforms.

Reasons for investing in Iran;

  • A unique geographical location at the heart of a crossroad connecting the Middle East, Asia and Europe, coupled with many inter- and Trans-regional trade, customs, tax and investment arrangements.

 

  • Market Potentials and Proximity: Vast domestic market growing steadily as well as quick access to neighboring markets.
  • Labor allowances: a large number of trained and efficient manpower at a very competitive cost in a diversified economy with an extensive industrial base and service sector.

 

  • Developed Infrastructure: Territory developed networking in the area of telecommunication, power, water, roads, and railways across the country.

 

  • Low Utility and Production Cost: Diversified range of energy, telecommunication, transportation, as well as public utilities.

 

  • Abundant Natural Resources: Varied and plentiful reserves of natural resources ranging from oil and gas to metallic and non-metallic species reflecting the country’s accessibility to readily available raw materials.

 

  • Climatic Characteristics: A four-season climatic endowment as a privilege to agricultural activities throughout the country and throughout all seasons.

 

  • Political Stability: Representative system of government based on the friendly relationship with other nations.

 

  • New Investment Legislation: Enactment of the new

Foreign Investment Promotion and Protection Act to substitute the former Law Concerning

Attraction and Protection of Foreign Investments in

Iran by providing full security and legal protection to foreign investments based on transparency and international standards.

Oil & Gas are the most attractive sectors for investment for every multinational.

Other sectors are also attracting investors;

  • Tourism
  • Manufacturing
  • Retail
  • Healthcare
  • Mining
  • Infrastructure
  • Transportation
  • Information and Communications Technology

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