Foreign Direct Investment and Iran's Role in the Global Value Chain

The Minister of Economy wrote: Participating in the "Global Investment Summit" in Riyadh and discussing with the ministers attending this economic event was an opportunity to better understand the investment situation and trends worldwide.

According to Mehr News Agency, Abdolnaser Hemmati, the Minister of Economic Affairs and Finance, shared a note on his social media, referencing his participation in the "Global Investment Summit" in Riyadh and his conversations with the ministers attending the event. He stated that this event was an opportunity to gain a deeper understanding of the global investment situation and trends.

He further explained that the paradigm shift and its impact on the relationship between industrial policy and investment promotion strategies not only determines the future path of the global economy but also shapes the fate of international cooperation and the quality of life for people around the world. He said, according to UNCTAD (United Nations Conference on Trade and Development), the volume of foreign direct investment (FDI) in 2023 was $1.3 trillion, while Iran's share of FDI in the same year was less than one-thousandth of this global figure!

He added that foreign direct investment plays a crucial role in global value chains. Policy-making in developing countries, including Iran, must consider the strategies of multinational corporations, internationalization paths for domestic companies, and how policies can create a favorable environment for both types of companies.

In his note, he explained: "My serious evaluation is that, despite Iran's vast capacity in terms of energy and mineral reserves, as well as its educated, skilled, and creative human capital, without resolving the issue of sanctions and removing Iran from the FATF blacklist, and thus having smooth banking and financial exchanges at both regional and global levels, the speed of attracting investment and benefiting from global value chains, despite its importance, will remain very limited."

The Minister of Economic Affairs and Finance concluded his note by stating: "Despite all the limitations caused by sanctions, the strategy of the Ministry of Economy and the Iranian Investment Organization is to plan and work harder to attract more investment."

Abdolnaser Hemmati also mentioned that based on positive negotiations with the Executive Director of the "World Association of Investment Promotion Agencies" (WAIPA) in Riyadh, active communication with the agency regarding investment opportunities and enhancing the knowledge and experience of Iran's private and public sectors in investment attraction will take place.