Iran's Government Seeks to Attract Billions of Dollars in the U.S.

Bloomberg reports on the Iranian government's efforts to attract billions of dollars from the United States, stating that Hamid Biglari, a former official at the major bank Citigroup, has been tasked with this mission. The article notes that the Islamic Republic has announced that to repair the damages caused by years of international isolation, Iran will need $150 billion in annual investment for a long time, an impossible ambition for a country that will remain a land of ambiguity and fear for foreign investors even after sanctions are lifted. However, 57-year-old Hamid Biglari, an Iranian-American educated at the prestigious Cornell University and a former senior manager at Citigroup, is the chosen individual by Hassan Rouhani to carry out this task. Mr. Biglari is a well-known and respected figure in the New York financial and banking community, having left his homeland two years before the Islamic Revolution and never returned after the revolution until Hassan Rouhani was elected president. With Rouhani's increasing influence in Tehran, he has been receiving invitations to join the Central Bank of Iran. In an interview, Hamid Biglari acknowledges the enormity of the challenge ahead, stating, 'Iran missed the golden era of globalization from the 1990s until 2008, a period when many shipwrecked individuals reached the shores of safety, and Iran can no longer afford to miss the next wave.' Foreign investment is a vital necessity. During the period when Iran's nuclear talks with major world powers were ongoing, especially after the JCPOA agreement, Iranian government and business officials frequently spoke of the unique advantages of foreign investment in Iran. In recent weeks, from Hassan Rouhani to his cabinet ministers and non-governmental individuals in Iran's industry and commerce, there has been a strong emphasis on the readiness to attract American and European investors. - Mr. Rouhani has stated that there are no restrictions for American investors in Iran. - Hossein Zamani Nia, Deputy Minister of Oil of the Islamic Republic, emphasized the potential of Iran's oil and gas fields for a $185 billion investment at a recent economic conference in Vienna, Austria. - Mohsen Jalalpour, head of the Iranian Chamber of Commerce, announced earlier this month the readiness for foreign billion-dollar investments. Iranian officials and economic experts also stress Iran's excessive need for injecting billions of dollars into various industries, which require capital and modern technology as fresh blood to thrive and create jobs for the countless unemployed. According to Hamid Biglari, this prominent Iranian-American banker, Iran's marginalized economy is actually a sensitive attraction for investors, as Iran is a country with eighty million consumers who have been deprived of quality goods and adequate services. However, Bloomberg reminds us that even with the implementation of the JCPOA, which is expected to take effect around the next Persian New Year, there are several deterrent factors in Iran that discourage foreign investors. Shadowy state institutions control a significant part of the country's economy, and the Islamic Republic's judicial system exhibits a one-sided, asymmetric, and deviant behavior towards foreigners. Additionally, the World Bank report states that in terms of ease of doing business among 189 countries, Iran ranks 130, far below its neighbor Saudi Arabia at 49 and the United Arab Emirates at 22. Moreover, there is no guarantee of the full implementation of the nuclear agreement, and elements within the Islamic Republic may disrupt it, leading to the reimposition of sanctions. Bloomberg also notes that when the U.S. Congress opposed the nuclear agreement, Hamid Biglari organized an effective lobby in favor of the nuclear deal and helped draft a letter supporting the agreement from prominent Iranian-American executives. The article continues by addressing Iranians living abroad, adding that Mr. Biglari has sought to attract them and played a significant role in organizing a conference called 'iBridge' in Berlin last summer. [The goal of this conference was to create a bridge between Iranian entrepreneurs inside Iran and Iranian and non-Iranian investors in Europe and the U.S.] The Iranian government estimates that seven million Iranians living abroad possess significant assets of about $2 trillion. However, Bloomberg adds that many of them are disillusioned with the conditions created by the Islamic Republic after the revolution and are unwilling to invest in Iran. Iranian government leaders have also labeled these expatriates as traitors on various occasions. However, Rouhani may be a different figure. During his recent trip to New York [to attend the 70th United Nations General Assembly], he reached out to Iranians. Vahid Alavand, an Iranian businessman residing in London with business ties to Iran, told Bloomberg that Iranian rulers need to learn to coexist with expatriate Iranians. Hamid Biglari himself is one of the successful examples of Iranians abroad. He came to Cornell University in 1977 [two years before the Islamic Revolution] to study mathematics and physics, chose not to return to Iran after the fall of the Shah, instead teaching at Princeton University in the field of astrophysics, and then working at the plasma physics laboratory. However, in 1990 [25 years ago], he changed his profession and joined the renowned 'Citigroup' bank in 2000 [15 years ago] at the invitation of the bank's senior manager, and during the financial-economic crisis of 2008 [seven years ago], he was at the forefront of managers working to address the crisis. The lengthy Bloomberg article also mentions how Biglari became acquainted with Rouhani and his first trip back to his homeland after 37 years of absence, and then addresses the fact that domestic critics continue to target Rouhani, and they have also noticed Biglari's presence [in Rouhani's inner circle]. Bloomberg adds that Biglari, like many Western-educated graduates, has been ridiculed by conservative Iranian media as a 'spy.' However, at the end of the article, it is stated that alongside oil resources, Iran has the fourth-largest gas reserves in the world, and Biglari considers the petrochemical industry, tourism infrastructure, and consumer goods as three sectors ready for investment, stating that the Iranian government must sell off its controlled assets, grant more independence to the central bank, and thoroughly review and revise the laws and regulations related to foreign investment. According to Mr. Biglari, accomplishing these tasks will not be easy, but whatever is done in this regard will yield abundant productivity.