Monday, April 26, 2010

Iran Eases Foreign Ownership Rules

Iran announced today that it has adopted new regulations to facilitate foreign investment in its capital markets. All restrictions on foreign investors transferring money out of Iran are removed and the limit of foreign ownership of Iranian companies is raised to 20 percent from 10 percent. Foreign investments are now exempt from paying any taxes.

"The government is now offering broader incentives to foreign investors with fewer regulatory strings attached," said Ali Saleh Abadi, director of Iran's Securities and Exchange Organization. "They will be exempt from paying tax and will no longer be subjected to excessive regulations." [Press TV, 26 April].

Iran is aiming to raise some $12.5 billion in foreign investment by privatizing more than 500 state-owned firms during its current fiscal year that began on 21 March. Among those firms are two carmakers and two refineries.

In the current political atmosphere and the hesitancy of foreign investors to enter the Iranian market, however, IRGC, the country’s most powerful branch of armed forces with extensive economic holdings in the country, is expected to take over the carmakers and the refineries put up for “privatization."

1 comment:

Anonymous said...

finally a big step in the right direction.should have been done 20 years ago.