Foreign investment should be digested in national economySunday, Mar 06, 2016
Irans economy, which has the capacity of creating wealth, should be able to attract foreign investment.
When foreign investment is digested within the national economy, it will serve the prosperity of production, be dependent on it and be subject to internal production factors.
In that case, financial crises such as East Asia, Malaysia or Argentina will not be repeated with compulsory withdrawal of foreign capital.
On the other hand, revenue is divided into two parts; one part is consumed and the other is saved for investment so that production can grow more and better.
National savings are often not enough for all investment needs; in this case, it either must borrow from abroad or allow foreign investors to be imported in exchange for reasonable benefits.
In the sixth development plan, achieving a growth rate of 8% within a few years is considered as the intended target.
The removal of international sanctions has made Iran an attractive country for foreign investment.
Iran has huge resources of oil reserves, population and good geographic location; therefore it should be able to attract fifty billion dollars of foreign capital per year.
According to the UNCTAD report, from 2009 to 2014 Iran attracted an average of three billion and five hundred million dollars of foreign capital each year, and if this figure is supposed to reach fifty billion dollars, legal and economic arrangements must also be provided.
With the implementation of JCPOA, Iran is expected to attract between 45 to 50 billion dollars of foreign financing in 2016.
Attraction of investment from abroad is usually better than debts, because foreign investors not only bring money to the host country but also technology, experience and knowledge. Moreover, it creates employment opportunities.
Iran has great potential for investment. Investors must be assured that the security of their investment would not be jeopardized and they get good benefits too.
Iran's economic security, which is not comparable with any other country's in the region, is the most valuable advantage for foreign investors.
Foreigners need invest in Iran to get out of recession and we need them too.
One of the most effective ways for foreign investors in Iran is to create a single window.
The government should make efforts to attract and digest foreign investment. Of course, a prerequisite for effectively attracting foreign investment is the optimal use of all domestic capacities.