8 May 2024
Wednesday 12 August 2015 - 10:13
Story Code : 175620

Iran prepares for foreign investment onslaught after sanctions subside

At the crossroads of both political and economic influence, Iran is preparing for a surge in foreign investment after sanctions against the country are lifted.

International investment is likely tosurge toIran asthe country is a key strategic player inthe Middle East and is economically placed atthe crossroads ofAsia and Europe, Vladimir Sazhin, a political scientist atthe Russian Academy ofSciences' Oriental Institute told Sputnik.

Prospects are high forIran, which could see a re-rating ofits assets that could create a massive windfall forinvestors who get inon the ground floor, according to CNBC. According toForbes contributor Kenneth Rapoza, "Iran might become the United Arab Emirates onsteroids. New, futuristic towers incities friendly tofrolicking Westerners who kiss inpublic and wear bikinis tothe beach."

"The competition forIran is amping up. Iran is a regional power both politically and economically. Iran is an important regional power both politically and economically. This country is connected bymany lines withthe entire region. Iran's influence ofvarying intensity onkey processes inthe Middle East is indisputable," Sazhin told Sputnik.

While the country still faces hurdles inthe lifting ofsanctions, it has already offered tosell state assets toforeign investors, asit expects torejoin the SWIFT electronic payments system.

European Investment

Iran aims toattract $185 billion intoits industries by2020, nearly twice asmuch asthe capitalization ofits $100 billion stock market. Iran recently held talks withItaly, Germany and France regarding investment and technology transfers.

"This is an incentive forinternational diplomacy towork withTehran afterthe nuclear talks are complete. But international business received even more powerful incentives," Sazhin said.

Iran also wants private sector investment partnerships withEurope forthe development ofindustrial equipment and technology not only meant forinternal use, butalso exports. The plan could also improve Iran's regional standing asa potential economic powerhouse.

Russian Partnership

As withEurope, Iran seeks Russian technologies, inaddition toits developing trade ties and current deals onnuclear power plant construction. Russia and Iran remained important partners duringthe nuclear talks and it is intheir mutual interest toestablish long-term ties not culpable toexternal influence.

"Iran is interested inutilizing Russian potential insuch field asaviation, space, renewable energy, communications and so on," Iranian vice-president forscience and technology Sorna Sattari said last year.

Iran is also interested incooperation withRussia onmedicine, biotechnologies, information technology, and other scientific and industrial fields. Cooperation onoil and gas extraction aswell asmilitary cooperation are also expected toplay a major role inIran's relationship withRussia.

Asian Connections

Asian countries, particularly India and Japan have also expressed interest inworking withIran. The head ofIran's central bank Valliollah Seif recently conducted talks with10 Japanese companies and 18 Japanese banks.

The talks involved shipments ofautomobile parts toIran, aswell asmedical equipment and construction equipment forbuilding railways and power plants. Iran would inturn provide Japan withan additional source ofoil and gas, which Japan is also interested indeveloping.

India meanwhile eyes investment inIran's infrastructure, including its transportation. India's neighbor Pakistan has also expressed interest, mainly inthe fields ofoil extraction and energy cooperation.

By Sputnik
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