TEHRAN- As of the implementation of Iran’s nuclear deal, known as JCPOA, in January 2016, five trillion rials (about $128 million) of foreign investments have been attracted by Iran’s over-the-counter (OTC) market, known also as Iran Fara Bourse (IFB), CEO of IFB Amir Hamooni told IRNA on Monday.

Highlighting the ever-increasing trend of foreign investors’ presence in IFB after nuclear deal implementation, Hamooni added that during the past months investors from Asia and Europe have entered IFB and purchased shares of Iranian companies, with which they used to cooperate during the sanction era.

The foreign investors are mainly from Germany, Persian Gulf littoral states and countries from eastern Asia, he added.

The announced amount of attracted foreign investment is not huge, IFB CEO underscored, so to increase the figure, it is vital to improve Iran’s banking infrastructure, information technology, and regularly present transparent reports of Iranian companies’ financial statements and data.

According to Iranian regulations, foreign applicants are allowed to start activities in Iranian equity market including IFB after getting trading codes. 

To reach an average eight percent economic growth during the next five-year period, according to decree of the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei, and following withdrawal of the financial embargo in January, the Iranian administration is shifting from a bank-based financial system into a more market-based one (i.e. switching the trend of financing away from banks towards securities market). This would create great plenty of opportunities and special incentives to entice overseas investments into the country in a bid to finance economic projects.

HJ/MA