Why Iran
Iran is a country in Western Asia. Comprising a land area of 1,648,195 km2 (636,372 sq mi), it is the second largest country in the Middle East and the 17th largest in the world. With an attractive business environment for investment, and having considerable potentials and advantages such as strategic geopolitical situation, climate diversity, economic advantages, energy security and domestic and regional markets, Iran is one of the best choices for your investment.
Geopolitical Situation
Iran with unique geographical location at the heart of a cross-road linking the Middle East, Asia and Europe, empowered by inter and trans-regional trade, customs, tax and investment arrangements.
Having common border on the north by the Caspian Sea and on the south by the Persian Gulf and the Oman Sea, has allowed Iran to access more than 5,800 km of coastal strip. Iran has a privileged position in transit, since having access to the Eurasian countries from the north, east to the Central Asian countries and from the West with a land border with Turkey and thus using a part of the Silk Road.
The geographic location over the transatlantic crossroads has turned the country to the transit axis on the North-South and East-West corridors and so it plays an important role in international economy.
Climatic Characteristics
Iran is one of the world’s most unique countries, in terms of climate with four desirable seasons. There are many climate varieties in Iran and from the word 14 climate, Iran favors 11 climates. This climate diversity has led to a variety of natural landscapes, which can hardly be seen in other countries. Iran has varied nature and climate contains abundant plants and animals which are amazing in both number and variety in comparison with other parts of the world. Iranian Vegetation diversity is more than twice the size of Europe continent and nearly equals the Indian subcontinent.
Energy Security
Compared to the oil and gas producing countries, Iran is ranked 2nd in total proven oil and gas reserves after Russia. This global position allows maximizing national security by providing appropriate strategies for energy security.
Young Educated Human Resources
With its young population and significant part of which are educated and knowledge-based, Iran has specific labor force conditions that are rarely seen in other countries.
Domestic and Regional Market
Iran ranks the world 18th with over 80 mn population and is the second most populous country in the Middle East. There are large middle classes with increased income distribution equality and changing consumption patterns, with annual household net expenditure increasing rapidly.
Surrounded by the consuming countries, which lack the sufficient infrastructures for industrial development, Iran can hold the main part in importing required goods. Additionally, Iran plays a key role since being as a linking chain of North to South and East to West for the transit of goods, swaps (oil swap) and connectivity to international electricity transmission networks.
Iran Economic Advantages
The 18th largest Economy in the World by Purchasing Power Parity (PPP).
The Diversified Economy and Broad Industrial Base directly involved in Tehran Stock Exchange (TES) and Iran Fara Bourse (IFB) are the Largest Industrial Base in the MENA region.
Rich in Natural Resources.
Labor-Rich Economy
Young and Educated Population
Large Domestic Market
The Middle East market as a Prime Market Opportunity for Iran’s Non-Oil Exports
Developed Infrastructure in Transportation, Telecommunications and Energy
Strategic Location, surrounded by 15 Land and Sea Neighbors, Serve as a Lucrative Trade and Transit Route in Both North-South and East-west Directions
Tax Exemptions and Incentives
Diversified hydrocarbon-rich economy
4th Oil Producer in the World
2nd Gas Reserves in the World
One of the Top Producers of Zinc, Lead, Cobalt, Aluminum, Manganese and Copper in the World.
Ranks amongst the Top 7 Countries in Producing 22 Important Agricultural Products
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Infrastructure and Population
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Sector
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Capacity
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Population
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82820766
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Telephones-main lines in use
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30944169
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Telephones-mobile cellular
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88341723
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Airports
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319
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Railways
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13437 km
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Roadways
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232535 km
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Electricity-production
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304.4 billion kwh
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New fields of Investment Opportunities & Priorities
Setting up the rating agencies
Establishing foreign financial institutions
Establishing Clusters for Export, Trademarks in agricultural products
Development of at least 54 Rural Business Clusters.
Construction and Operation of 98 Rural Industrial Area
Development of modern irrigation methods
Development of fisheries and fish farming in cages.
Water desalination and Sewage.
Urban wastewater system network, recycling and management of waste and sewage.
New petrochemical products.
Construction of power plants with efficiency of 55% to 60%.
Bunkering.
PPP Projects.
Renewable Energy.
Electronic trading.
ICT infrastructure development in rural area.
Knowledge-based companies (start-up’s).
Urban and suburban rail transport.
New small ports.
Exploration, production and utilization of oil and gas fields.
Appropriate Investment legislation
The legal framework of foreign investment regime in Iran is defined under the Foreign Investment Promotion & Protection Act (FIPPA).
FIPPA, is ratified in 2002 and replaced its predecessor LAPFI (which was in effect since 1955) to further improve the legal framework for foreign investments in Iran.
Some features of investment under FIPPA:
No Limitation on:
Equity Percentage,
Volume of Investments,
Profit Transfer,
Capital Repatriation
Types of Capital Imported
Types of investment (Direct Investment (Equity Participation) in All Areas Open to Iranian Private Sector in Greenfield & Brownfield Projects & Investment through Contractual Arrangements)
No Import / Export Restriction
Equal Treatment towards Foreign Investors as accorded to Local Investors
International Treaties
Bilateral Investment Treaties (BITs) with 70 Countries.
Double Taxation Treaties (DTTs) with 42 Countries.
Full Government Support & Services
Providing:
Free of charge before and after care
Services to foreign investor
3 years’ multi-entry Visa.
3 years’ residence permit.
Work permit.
Covering political risks for foreign investments.
To facilitate the Foreign Investment procedures in Iran, OIETAI provides investment services with a One-Stop-Shop approach in its “Foreign Investment Services Centre” (FISC) at the national level and in 31 provincial Investment Service Center.
Investment Promotion Agency (IPA)
The Organization for Investment, Economic & Technical Assistance of Iran (OIETAI) founded in June 1975 and is the sole official authority for the promotion and protection of foreign investments in Iran.
As the main investment authority, OIETAI is responsible for receiving and processing foreign investment applications.
OIETAI also presents investment opportunities to potential foreign investors and supports them by assisting, coordinating and facilitating all issues pertaining to their investments throughout the licensing process and ever after and other issues related to Foreign Investment in the country such as:
Admission, Importation, Utilization, Repatriation
Performing and conducting foreign investment promotion activities
Introducing legal grounds and investment opportunities,
Carrying out studies and applied researches,
Organizing conferences and seminars,
Cooperating with the relevant international organizations and institutions,
Establishing relations and coordination with other agencies in gathering, compiling and providing information related to Foreign Investment
Appropriate Tax Regime
Highlights of Tax Holidays
(Cooperate tax %25)
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Income Tax with 0.0% Rate
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Duration of Exemption
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Industry, Mining & Services (Hospital & Hotels)
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5 Years
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Industry, Mining & Services (Hospital & Hotels) in Industrial Parks and Special Economic Zones
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7 Years
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Industry, Mining & Services (Hospital & Hotels) in Less Developed Areas
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10 Years
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Industry, Mining & Services (Hospital & Hotels) in Less Developed Areas located at Industrial Parks and Special Economic Zones
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13 Years
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All economic activities in Free Trade Zones
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20 Years
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100% of Income derived from Agricultural Activities
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Perpetual
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100 % of Income derived from Export of Services ,Non-oil goods, Agricultural Products and 20% of Income derived from Export of Non – Processed goods
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Perpetual
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