Sanctions, the main barrier to attracting foreign investment: Hemmati

TEHRAN – Iranian Finance and Economic Affairs Minister Abdolnaser Hemmati stated that sanctions pose the most significant obstacle to attracting foreign investment, not the Financial Action Task Force (FATF). Speaking to IRIB, Hemmati noted that even if Iran were to adopt the Palermo and CFT conventions, removal from the FATF blacklist would not be guaranteed in the short term.

The minister highlighted the challenges in attracting foreign investment, stating: “Our foreign investment over the past two years and eight months has totaled $2.1 billion, which remains relatively modest.”

He further emphasized the urgent need to address productivity challenges, saying: “Productivity in the country is nearly zero, and the foreign investments allocated to production are insufficient. It is imperative that we take steps to significantly boost productivity nationwide.”

The Minister mentioned a significant initiative undertaken by the Ministry of Economy in this regard and said: “We have introduced a mechanism for financing the production chain using credit-backed instruments in the commodities exchange. This marks an important step towards supporting economic growth and production.”

Commenting on his participation and the outcomes of the Riyadh Investment Conference, Hemmati said: “This global event was a significant opportunity, as it brought together 2,500 leading investment experts and executives from around the world, including over 20 ministers. Valuable discussions took place, and I presented Iran’s position on attracting foreign investment. It was an important occasion for our country.”

“We must intensify our efforts to attract foreign investment. During the conference, I also had productive meetings with Saudi Arabia’s Minister of Economy and Minister of Investment. Our discussions focused on expanding economic ties and emphasized the constructive role these relations can play in strengthening political bonds. I am hopeful that these efforts will lead to continued collaboration and positive developments in our relations,” he added.

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