August 16, The Iran Project – Head of the Industries Commission of Tehran Chamber of Commerce has stressed the achievements of foreign investments in Iran’s economy, referring to French automaker Renault’s signing a joint venture deal with Iran worth €660 million ($779 million) to build up to 300,000 cars per year.

After French energy giant Total’s signing of a $5 billion contract to develop phase 11 of Iran's South Pars offshore gas field, France’s Renault also signed an agreement with Iran's Negin Khodro and the Industrial Development and Renovation Organization (IDRO), in defiance of US efforts to target Tehran with new sanctions.

Mehdi Pourqazi expressed hope that Renault’s investment in Iran’s automotive industry encourages other world's biggest carmakers, like Peugeot, Citroen and Volkswagen, to invest in joint ventures in Iran.

Renault’s landmark auto deal in Iran will revolutionize the country’s automotive industry due to the formation of new management and the transfer of knowledge and technology, Pourqazi added.

Touching upon the shortcomings of Iran’s automotive industry, he reiterated that Tehran’s joint venture with a world-famous carmaker company can improve these deficiencies by creating competition.

Emphasizing the positive role of foreign investors’ presence in Iran’s economy, the Iranian official said we should appreciate the investments of French oil giant Total and French car firm Renault and provide the ground for other investors.

Following the lifting of the U.N. and European Union sanctions after Iran's 2015 nuclear agreement with world powers, European companies have raced for a share of Iran's market.

Just last month, France Total SA and a Chinese Oil Company signed a $5 billion agreement with Iran to develop the country's massive offshore natural gas field in the first such deal since the landmark nuclear deal was struck.

Also, Airbus and Boeing have signed deals worth tens of billions of dollars to supply Iran's national carrier with new aircraft.