According to Shada, the Iranian Investment and Economic and Technical Assistance Organization officially announced for the first time the "Protocol on the Establishment, Operation, and Supervision of the Performance of Foreign Investment Attraction Agencies."
Based on the protocol or procedure that was finalized nearly a month ago, the Investment Organization first issues a six-month establishment license (renewable up to two times) and then grants a two-year operating license, the extension of which is subject to a detailed performance evaluation by the organization.
Under the new rules, agencies must:
- Launch professional websites in Persian, English, and Arabic.
- Produce high-quality promotional content in English, Arabic, and Chinese.
- Provide comprehensive advisory services before, during, and after investment.
- Prepare credible feasibility studies for projects.
The directive is designed to end fragmented and unprofessional practices of the past, establish international standards, and build trust among foreign investors. It also paves the way for the creation of licensed private agencies with recognized credibility.
Learning from Global Experiences
The regulation draws inspiration from successful international models. Countries such as Ireland, Singapore, the Netherlands, Rwanda, and Costa Rica have demonstrated that strict adherence to similar requirements can dramatically boost FDI inflows.
Reports from the World Bank, UNCTAD, and OECD highlight that investment promotion agencies (IPAs) not only attract capital but also contribute to sustainable development, job creation, and technology transfer.
Globally, the number of IPAs has grown from 112 in 2010 to 170 in 2024. More than 91 agencies studied by the World Bank show notable success in small and developing countries, where national‑regional coordination has reduced bureaucratic barriers and supported economic growth.
Case Studies of Successful Agencies
- Ireland’s Industrial Development Agency (IDA): Since the 1960s, IDA has focused on technology and finance, attracting over 430 global financial services companies, including 20 of the world’s top firms. In 2019, FDI accounted for 3.5% of GDP and created 250,000 tech jobs. Tax incentives (such as the 12.5% corporate rate) and advanced aftercare services have made Ireland one of Europe’s top ten investment destinations.
- Singapore Economic Development Board (EDB): Established in 1961, Singapore’s Economic Development Board has pursued a “flexible development” strategy. It has attracted more than 7,000 foreign companies, raising GDP from $500 million in 1965 to $400 billion in 2023. Success lies in multilingual content, feasibility studies, digital targeting, and integration of investment promotion with workforce skill development.
- Netherlands Foreign Investment Agency (NFIA ): Through its Invest in Holland network, NFIA provides aftercare services to over 2,500 foreign firms. In 2023 alone, it attracted 1,000 new projects. Its multilingual website, which adapts content based on visitor IP, and training programs have helped achieve a 90% investor retention rate.
- Rwanda’s Development Board (RDB): Since 2009, RDB has focused on innovation and special economic zones. FDI rose from $100 million to $1.5 billion in 2022, creating over 12,000 jobs. Streamlined licensing, cutting approval times to just six hours, has been key to success.
- Costa Rican Investment Promotion Agency (CINDE): Since 1984, CINDE has targeted technology firms such as Intel, attracting over 300 foreign companies and creating 100,000 jobs. Studies show facilitation activities increase the likelihood of multinational investment by up to 50%.
Best Practices Identified by UNCTAD
UNCTAD outlines several global best practices for IPAs:
- Multi-year strategies prioritizing sectors with high economic potential.
- Digital marketing through multilingual websites and targeted content.
- National‑regional coordination, as seen in Spain, which boosted FDI by 25%.
- Aftercare programs that doubled reinvestment rates in the Netherlands.
- Real-time performance monitoring, exemplified by Dubai, is now the world’s second-largest FDI destination.
A Strategic Opportunity for Iran
Global experience shows that professionalized, sustainability-focused agencies can attract FDI while advancing development goals such as employment and technology transfer. For Iran, the newly issued directive, combined with multilingual websites, comprehensive advisory services, and feasibility studies, offers a pathway to elevate FDI inflows to competitive regional levels and strengthen the country’s position in the global investment market.