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Oil Sector Absorbs Iran's Foreign Investments

Tehran, 2 October 2005 (CHN) - Despite Iran's eagerness to expand investment in different sectors, reviving its economy and therefore help its development, investment is not justified in the country, due to high economic and political risks, making Iran an unattractive destination for investors, except for those in petrochemical fields.

Seyyed Mehdi Taghavi, economist, explained to CHN that a large sum of Iranian capitals are right now invested in Dubai and the United States, because investors can not trust the conditions in Iran. "The investment risk in Iran is higher than many other countries of the world, therefore, instead of capitals arriving in the country, even those inside Iran are looking for ways to get out," added Taghavi.

According to Taghavi, most capitals being invested in Iran are in oil, gas, and petrochemical fields, which are justified with regard to capital return despite the risks existing.

"Investing knows no motherland or parental bonds," Taghavi expressed, adding that "capitals move where there is less risk and more security."

Iran, despite its great potentials, is among the last ten countries on a list of 140 provided by UNCTAD (United Nations Conference on Trade and Development) considering attracting foreign capitals to the country.

"Expecting an increase of foreign investment in Iran is unjustified unless political and economic risks are decreased," concluded Taghavi, referring to political stability, campaign against trafficking, and revisions in laws and regulations such as the labor law as possible attempts to reconsider the situation.

... Payvand News - 10/7/05 ... --

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