Attracting Investment from Iranians Abroad: Dream or Reality?

Masoud Khansari, head of the Tehran Chamber of Commerce, recently stated at a meeting on 'Enhancing Iran's Economic Freedom Index' that 'we have been under economic sanctions for many years, and Iran's relations with other countries, especially in the economic field, have been severed.' He added, 'In the past two years, due to the nuclear agreement and JCPOA, we have entered global markets, and 200 foreign delegations have come to the country.' The head of the Tehran Chamber of Commerce believes that 'we need to attract over $50 billion in Iran, so companies looking to enter and invest in Iran must gather good information about Iran's economic situation.' He claimed, 'In the past two years, we have not been able to attract foreign investors because the banking system has faced problems due to sanctions, and businesses have not been able to adapt to international conditions.' However, it seems that the issues are more complex and primarily stem from internal sources. According to Iran Economy News, at this meeting, Michael Walker, one of the speakers and founder of the Fraser Institute, a research institute that examines international economic issues and ranks countries based on the Economic Freedom Index, asked, 'While you should first worry about investing Iranian capital within Iran, why are you interested in attracting foreign investment?' Walker further noted, 'Many Iranian investors are leaving the country; it is very important to attract foreign investment, but more importantly, we must not let domestic investors leave the country.' He stated that '500,000 Iranians live in western Canada,' adding, 'Many of these individuals resist returning to Iran and investing in their country; it depends on the Iranian government what actions it takes to increase the willingness of Iranians to invest in the country.' The founder of the Fraser Institute continued, 'Iran's rank in terms of the Economic Freedom Index is 150 out of 156 countries, and this index is not due to sanctions, economic policies, or employment laws but rather stems from incorrect economic laws.' The dream of attracting investment from Iranians abroad is becoming a priority for the government due to the loss of financial and economic resources in Iran due to corruption, looting, and mismanagement, leading to insufficient resources for the survival of the regime. For this reason, attracting foreign investment, especially from Iranians, has become a priority for the government. Abolhassan Firouzabadi, deputy minister of labor, recently stated, 'This ministry is working on attracting $30 billion in investment from Iranians abroad for economic projects and investments in various regions of the country.' However, the regime's aspirations are much greater and exaggerated. For instance, Seyyed Majid Halajzadeh, advisor to the Secretary-General of the Supreme Council of Iranians Abroad, claims, 'The capital of Iranians abroad is between $20 to $25 trillion... and it can be said that 10% of the world's wealth is in the hands of Iranians, but we have not utilized this potential and have missed opportunities.' But is it really true that 10% of the world's wealth is owned by Iranians abroad? It seems there is no credible estimate available regarding 'the world's wealth' and 'the capital of Iranians abroad,' or such figures may not even be calculable. Therefore, the source of these estimates is more about wishes and delusions, which may also be a basis for rent-seeking by higher officials. Furthermore, considering the capital flight from Iran to neighboring countries such as Armenia, Turkey, and Azerbaijan, who would be inclined to bring their capital back to Iran? The changing perception of Iranians in the eyes of the regime has evolved over the decades. In the 1980s, there was little mention of 'Iranians abroad.' Terms like 'counter-revolutionaries abroad,' 'fugitives,' and 'mercenaries of imperialism' were commonly used to refer to Iranians outside the country. However, now Iranian state media do not use these terms. Although there are still factions and individuals within the Iranian regime who consider Iranians as counter-revolutionaries abroad, fugitives, and mercenaries of imperialism, they refrain from using these titles for pragmatic reasons. This duality is particularly felt in the relationship between security institutions and Iranians. Thus, 'dear Iranians abroad' can be seen as esteemed investors or even counter-revolutionaries, fugitives, and mercenaries of imperialism, depending on which individual or institution they encounter. The regime's changing perception of Iranians abroad is not coincidental. Gradually, with the increasing number of Iranians abroad and their influence in political, economic, and international media institutions, as well as their rising social status and becoming a power factor, the regime has opportunistically changed its outward view of them. Evidence of this duality is seen in the arrests of Iranians such as Reza Taghavi, Reza Shahini, Siamak Namazi, Baqer Namazi, Nazanin Zaghari, and Amir Mirzazadeh Hikmati on various pretexts. The founder of the Fraser Institute believes that Iran's inability to attract investment 'stems from incorrect economic laws.' Although laws in Iran are not up-to-date and effective, based on an 'anti-imperialist' and 'isolationist' perspective, this is not the whole problem. The interpretation and implementation of laws in Iran can vary significantly depending on which political faction is in power. The authoritarian faction interprets the laws in a way that effectively creates a barrier to foreign business activities, while the government team has a different interpretation of the law. However, the Guardian Council and the judiciary, which are ultimately the interpreters and enforcers of the laws, are composed of a tendency that aligns with the authoritarian faction. An example of laws that the founder of the Fraser Institute refers to is the policies of 'resistance economy.' While the government claims to implement these policies, the opposition accuses it of negligence in their execution. This duality not only fails to attract foreign investment but, according to the founder of the Fraser Institute, even drives domestic investment away.