Speaking at a meeting on financing and investment for Iran's priority projects, with a focus on Private Equity (PE) Funds, Seyed Ali Madanizadeh said that while containing inflation remains the country's foremost economic priority, investment is the key driver of production growth and the most critical challenge facing Iran's macroeconomy.
The meeting, hosted by the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI) and attended by representatives of the banking and insurance sectors, explored financing mechanisms for strategic investment projects.
Madanizadeh said promoting investment has been one of the Ministry of Economy's principal priorities since last year, with responsibility for investment policy and coordination entrusted to OIETAI.
He noted that investment faces both external and domestic challenges. While sanctions and geopolitical uncertainties have affected investor confidence, he said a significant share of the obstacles stems from institutional and regulatory barriers that OIETAI has been tasked with identifying and removing.
The minister also highlighted the underdevelopment of investment instruments as a major constraint, noting that despite more than two decades of efforts to expand investment institutions, further structural reforms are required. Lengthy licensing procedures and administrative coordination, he added, continue to reduce investment returns and undermine project attractiveness.
Emphasizing the country's need for large-scale capital formation to modernize and rebuild the economy, Madanizadeh described Private Equity (PE) Funds as an effective financing vehicle capable of channeling capital toward high-return and priority projects.
He said the ministry's strategy is based on expanding the private sector's role in economic activities, arguing that private institutions generally deliver projects more efficiently and with higher quality than government entities. Under the new framework, he added, the private sector will also take the lead in attracting foreign investment, allowing international investors to engage directly with private partners rather than government agencies.
The meeting also reviewed financing arrangements for nine projects selected from the country's 20 priority investment projects and examined the establishment of Private Equity Funds as the primary instrument for facilitating project financing, alongside an assessment of the factors limiting the development of Iran's private equity market.