Jahangiri: $11.6 Billion in Foreign Direct Investment Attracted

Eshaq Jahangiri, the First Vice President of Iran, stated that from the beginning of the 11th government’s term in September 2013 until September of this year, $19.377 billion worth of foreign direct investment projects have been approved by the Ministry of Economic Affairs and Finance under the support of the country's foreign investment law. According to him, more than $11.66 billion of this amount has been attracted and has effectively turned into factories and industries in Iran. Foreign direct investment refers to real capital that foreign companies invest in Iran, with ownership, control, and management of the assets being held by those companies. Jahangiri added that approximately $14 billion in foreign direct investment has been attracted since the implementation of the JCPOA. This post-JCPOA figure is higher than the total investment made during the 11th government until September (which was $11.66 billion), likely referring to 'approved investment projects' rather than 'capital attracted' in the past 20 months since the JCPOA began. Nonetheless, according to international statistics, the amount of foreign direct investment in Iran has increased over the past year, but it is still less than the period before sanctions. According to the United Nations Conference on Trade and Development (UNCTAD), the amount of foreign direct investment attracted in Iran's economy in 2016 was about $3.372 billion, which represents an increase of over 64% compared to the previous year. This figure was approximately $3.05 billion in 2013. Although the World Bank has not published the amount of foreign direct investment in Iran for the past year, its statistics align with UNCTAD's reports for the years 2013 to 2015. According to the World Bank, the amount of foreign direct investment in Iran increased gradually from about $2 billion to $4.662 billion from 2008 to 2012, but showed a consecutive decline from 2013 to 2015. In any case, UNCTAD statistics indicate that from 2013 to the end of 2016, a total of $10.662 billion in foreign direct investment was attracted to Iran's economy. The World Bank reported that the total amount of foreign direct investment worldwide reached $1.757 trillion last year, showing a 25% decrease compared to 2015.