Prerequisite to attract foreign capital
While inviting Iranians abroad to invest in Iran, prerequisites need to be highlighted. Political, economic, social and legal measures must be taken. There must be plans to reform the legal system. On economy; measures taken by the government resulted in curbing inflation surge and stabilization of the currency exchange rate. Economic growth rate has slightly improved and is expected to return to a positive rate.
While inviting Iranians abroad to invest in Iran, prerequisites need to be highlighted. Political, economic, social and legal measures must be taken. There must be plans to reform the legal system.
On economy; measures taken by the government resulted in curbing inflation surge and stabilization of the currency exchange rate. Economic growth rate has slightly improved and is expected to return to a positive rate. On politics; nuclear talks with 5+1 eased the pressure of some of the imposed sanctions. These are all considered as prerequisites for return of capital. There are still major steps to be taken by Iranian authorities. One of the major economic reforms to be carried out would be revising policies towards a unified currency exchange regime. Generally, the exchange rate is of crucial importance for foreign investors and a downward trend is not in their favor.
Privatization and trade liberalization need to be properly addressed by macroeconomic policy makers. We had a bitter experience during the past eight years. On the other hand, it is important for Iranian investors to choose their investment options (stock market etc.) wisely with peace of mind. The question is whether or not the quasi-governmental entities will be present in Iran's economy; unequal competition is a matter of concern for investors. Moreover, domestic political tensions give out the wrong signal to investors. Therefore, as the Iranian government invites Iranians abroad to return home, it needs to address all these issues in order to accomplish its goals.
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