Sputnik- The final nuclear agreement turned Iran into an attractive destination for foreign investments. After the agreement was signed, a free economic zone on the Iranian island of Qeshm managed to attract investments from 10 countries.


Qeshm Island is located a few kilometers off�the Iranian southern coast, opposite�the port cities of�Bandar Abbas and Bandar Khamir. The 135 km long island, which is the largest in�the Persian Gulf, hosts a 300 square kilometer free zone jurisdiction.


In an interview with�IRNA, Hami-Reza Moameni, managing director of�the Qeshm economic zone, said that among�the interested countries were Russia, France, Britain, China and Japan.
"After Iran reached a deal with�six international mediators on�its nuclear program its economic ties with�foreign partners deeply transformed. Iran became a magnet for�international business," Vladimir Sazhin, senior research fellow at�the Institute for�Eastern Studies, at�the Russian Academy of�Sciences, told Sputnik Persian.


In 2016, Tehran began to�compensate losses in�trade and economic ties, after�years of�Western sanctions. The focus was placed on�such centers of�power as�the European Union and China. Last year, Iran managed to�significantly increase trade with�France, Italy, Britain, Japan, Turkey etc.

Currently, foreign investments play the key role in�developing the Iranian economy. According to�estimates obtained by�Sputnik, Tehran will need nearly $500 billion in�the coming five-seven years. For example, by�2020, Iran eyes attracting $185 billion of�investments only in�the oil, gas and petrochemical industry.

In 2016, Iran�s economy received around $12 billion for�113 projects. In the investment field, Iran cooperates with�a number of�countries, including China, France, the United Arab Emirates, Venezuela, Britain and Russia. In December, the Russian parliament passed a draft bill to�ratify a Russia-Iran agreement to�promote and secure mutual investments.

Companies from�Germany and Spain have been the most active players in�the Iranian investment market. For instance, between�December 2015 and December 2016 Spanish companies invested $3.2 billion into�a few projects, and companies from�Germany�� $2.9 billion in�17 projects.
"This is still far from�the planned $500 billion, and there are several reasons for�that. In particular, the Iranian laws do not fully comply with�foreign investors� requirements and interest. Tehran knows that and is currently working to�adjust its norms to�internationally adopted rules. In addition, not all possible investors see the advantages of�placing money in�the Iranian economy. They are still prisoners of�the stereotypes from�the period of�sanctions," Sazhin explained.


In turn, Iran is working to�improve and promote investing attractiveness of�its economy, including in�different sectors and regions.

There are seven free economic zones in�Iran. According to�Moameni, the Qeshm Free Economic Zone outstands in�terms of�investment attractiveness because it is a rich in�oil region with�well-developed logistics infrastructure.
Its advantageous geographical location makes Qeshm Island a transfer point in�trade between�Iran, the Gulf countries and Europe. The Iranian government expects that the Qeshm free zone will become a major economic center, comprising industrial production, information technologies as�well as�financial and banking institutions.


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