Foreign Investors May Receive Financial Facilities from Iran’s Development Fund
Nourlaw.com- Tehran- 16 November 2016- According to the Official Gazette published today, financial facilities may be granted to foreign investors by the Iranian government. The gazette identified different provisions of the National Development Fund of Iran related to various areas of the economy.
The state-run fund was established in line with Article 84 of the Fifth Development Plan of the Islamic Republic of Iran. It is designed to turn a portion of the revenue originated from selling oil, gas, gas condensates and oil products into durable wealth and productive economic investments. It also insures preservation of the financial interests of future generations from oil and gas resources and products .
According to Resolution 6 of the aforesaid decisions of the Fund’s Board of Trustees, the management of the Fund is allowed: to embark on direct investment (by the Fund itself) or indirect investment (by outsourcing) through assets management companies, to enter into partnership agreements with foreign financial establishments for financing private sector projects, cooperatives and non-governmental public entities and to engage in joint investment with sovereign wealth funds of other countries for investing in joint plans and projects.
The Note of Resolution 6 stipulates that when granting financial facilities to foreign investors is necessary, Part 5 of Section T of Article 84 must be observed. According to which, “Extending facilities to foreign investors should be undertaken with due consideration of competitive conditions, an equitable economic return and with observance of Principle 80 of the Constitution Law”. The said principle states that taking and giving of loans or grants-in-aid, domestic and foreign, by the government, must be approved by the Islamic Consultative Assembly (parliament).