WANA (Nov 28) – Iran’s presence on the FATF blacklist and ongoing sanctions have severely restricted its ability to attract foreign direct investment (FDI), stated Minister of Economic Affairs and Finance Abdolnaser Hemmati.

 

Reflecting on his participation in the 28th Global Investment Conference in Riyadh, Hemmati stressed that without resolving these issues and ensuring smoother financial and banking transactions, Iran’s integration into global value chains will remain limited.

 

According to the United Nations Conference on Trade and Development (UNCTAD), global FDI in 2023 totaled $1.3 trillion, yet Iran’s share was less than one-thousandth of this figure. Despite its significant energy and mineral reserves and a highly skilled workforce, Iran’s potential remains untapped due to financial isolation and sanctions.

 

Hemmati highlighted the critical role of FDI in global value chains and emphasized the need for policies that foster an attractive environment for multinational corporations and local businesses alike. He warned that, despite Iran’s inherent strengths, its financial and banking limitations undermine its ability to capitalize on investment opportunities.

 

The Ministry of Economy and the Iranian Investment Organization are working to counter these challenges, with Hemmati citing productive talks with the CEO of the World Association of Investment Promotion Agencies (WAIPA) during the Riyadh event.

 

He outlined plans to enhance collaboration with WAIPA, showcase Iran’s investment opportunities, and strengthen the expertise of Iranian public and private sectors in attracting FDI.

 

Hemmati concluded by reiterating the urgency of overcoming sanctions and financial barriers to unlock Iran’s vast economic potential and fully integrate into the global economy.