New Opportunities

Faryal Mostofi

In a conference entitled "New Opportunities in the Middle East" held by Hong Kong General Chamber of Commerce on 26 March, Mrs. Mostofi represented the Organization for Investment, Economic and Technical Assistance of Iran to elaborate on the unique opportunities which are open to foreign investors. Having introduced Iran, its economic and political situation, as well as its investment environment, she pinpointed the investment advantages in Iran. What follows is her presentation in that conference.

Introduction
Your Excellencies, Ladies and Gentlemen,
It is my pleasure to present you a brief review of my country's economy and investment prospective in different fields. Firstly I would like to thank Hong Kong General Chamber of Commerce for providing this opportunity and hope this presentation provides useful information. I also hope this occasion leads to the real promotion in Direct Investment in Iran.
Today I would like to speak about 4 main points:
1- Introduction of Iran
2- Economic & Political Situation
3- Investment Environment
4- Investment Advantages in Iran.
The first issue is "Where does Iran stand according to Economic and Political situation?"
In 2012, The GDP of Iran was about 514 billion USD. The trend of GDP shows the growth during last 2 decades. Also Iran has adopted a comprehensive strategy envisioning market-based reform in the Government's 20-year Vision Document. From the political point of view, Iran is one of the most stable countries in the Middle East and Central Asia representing a democratic system. Government policy on improving regional and international relationships during recent months has been successful and a good capacity of mutual cooperation has already been achieved for developing relationships with other countries especially with European Union.
Iran has overcome numerous obstacles in the past three decades but simultaneously has made good efforts to develop the country and achieved considerable reformations in different fields.
Especially during sanction period, valuable accomplishments were gained which all make Iran a prosperous market for investment. It is our belief that the difficult stages of the development of the country have been surpassed and we are confidently walking towards a new environment and success will surely follow.
The following economic and social reforms together with rapid deregulation of most sectors by the government have created a more favorable environment for investment and business.

Investment Environment:
In the year 2002 legislations have been enacted to simplify participation of foreign investors in various fields of Mining, Industry, Agriculture, Transportation, Truism, as well as other sectors of developments. At the same time, Government has considered some policies in order to improve this environment mainly focusing on Guaranteeing Investors' capital.
It should be mentioned that there are two important factors for the development of each country; "TALENT" and "ENERGY".
"TALENT"
After 33 years since the Islamic Revolution, Iran has made great advances in economic and social development, successfully transiting from a plan economy into a market economy and has explored and found a development path fit for its national conditions.
The first 20 years of this century are an important strategic period for construction of a society with a relatively comfortable living standard. Talent is a major element for the realization of economic development. At the same time economic development has also put forward new requirement for talent and its cultivation.
Therefore, the government has initiated the strategy of strengthening the country through talent, cultivating qualified labourers, specialized personnel and a large pool of talented individuals.
"ENERGY"
Energy is an important material basis for survival and development of the human society. The history of human society development and progressing of human civilization always goes with energy improvement and replacement.
The development and utilization of energy have greatly promoted the development of the global economy and human society. In the world today, the green development of energy industry has become an important basis for sustainable development of the modern industry system. Iran is a country with vast reserves of Oil, Gas and Mineral Resources contributing the prosperity of the world economy.
Ideas and thinking must be transformed to develop the expansion of economic relationship. We should be free from the thinking of the means of traditional economic system and set up market principles and standards and development of new ideas in various fields. Therefore, we must overcome the idea to depend on the government to avoid waiting, dependence, and claim and should stick to self-reliance, support, discipline and improvement.

Investment Advantages:
- Foreign Investors equally enjoy all Rights, Protections and Facilities available for Local Investors
- Iran Strategic Location
- Climatic Characteristics
- Abundant Natural Resources
- Educated Labor Force
- Inexpensive Energy
- Low Production Costs
- Developed Infrastructure
- Removing non-tariff barrier in foreign trade
- Taxing: Maximum rate of Direct Taxation is 25% and Tax Relief in some areas of up to 10 years.
- Supporting Foreign Direct and Private Sector investment
- No restriction in the percentage of Foreign Shareholding
- The Principals and Dividends of foreign capital can be repatriated in foreign currency
- Privatization Plan: The Government envisioned a large Privatization Plan by decreasing its own role in the economy by privatizing 20% of State-Owned Enterprises.
- Membership of International Organizations/Groups

Conclusion
As the speech comes to the end, I sincerely wish to further strengthen communication, friendship and business cooperation and bring both sides into full play in the economic construction and social development of Iran.
Hong Kong Investors are warmly welcomed to have Direct Investment or Financing in different ventures through the establishment of joint ventures with Iranian companies for the current and upcoming projects in Iran.