FDI into Iran witnesses a 3-year upward trend

June 6, 2016 - 19:57

The lifting of sanctions and Tehran’s continued strength have put Iran on a three-year upward trend.

Greenfield investment monitor fDi Markets has observed a steady increase in global investment into Iran between January 2013 and March 2016. During 2013 the country attracted three FDI projects, a figure that increased to eight during 2014 and again to nine during 2015. During 2016’s first quarter Iran has won 22 FDI projects, the highest rate of investments per quarter since fDi Markets began recording data in 2003. 
Job numbers and capital expenditure also rose between 2013 and 2016. Some 352 jobs were created in 2013 with capital expenditure of $79 million, which rose in 2014 to 2732 new jobs and capital expenditure of $1.67 billion. Although 2015 showed a 48.08% increase in capital expenditure overall, the first quarter was notable in failing to attract any FDI projects. In contrast the first quarter of 2016 showed 22 FDI projects, creating 5376 jobs, with a capex of $3.49 billion.
This increased investment in Iran between quarter one of 2015 and quarter one of 2016 is in line with overall investment in the Middle East during this period, which increased by 15.24%. During 2015’s first quarter, Iran was ranked joint last with Syria for inward FDI in the Middle East. However, as a result of increased investment during 2016 it is currently ranked third out of 12, after the United Arab Emirates and Saudi Arabia. Capital Tehran has attracted 36.36% of the investment during quarter one of 2016, and 40.47% of all FDI into Iran since January 2013. 
International sanctions on Iran which were lifted in January 2016 have reopened the country’s economy to a stream of investments across a range of industries including financial services, consumer electronics and renewable energy. The primary investing countries in Iran during this period were South Korea and Germany, which together have a capital expenditure of $2.15 billion. The upward trend recorded by fDi Markets indicates that the economic rebound Iran is experiencing is set to continue, with several companies signalling their interest in future investments in the country. 

(Source: fdiintelligence.com)

 

 

 

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