Business: Capital for Iran

After eight months and 14 days of deliberation, Iran’s Parliament last week passed a law to attract foreign capital and to help develop its unexploited resources. Although the specific details have not been drafted, the new law will offer foreign investors all the protection given domestic capital. Foreign businessmen will be allowed to transfer their net profit home without currency restrictions. If they liquidate their business, they can send both profits and capital home on a three-month notice, must keep only 10% of the total in Iran for six months to meet any possible claims. Finally, in case of nationalization, “fair and adequate” compensation will be given to foreign investors, and they will be allowed to take out the bulk of their investment.

Said Iran’s Finance Minister Ali Amini: “If we want to attract foreign investments, we must give foreign investors better opportunities and secure them more profit. Otherwise, no one will care to invest in Iran.”