Foreign Investment Methods in Iran
In the project financing, regarding the type of the project and its related industry, financial volume and required time for doing project, conditions of the host country in terms of political and economical security and existing laws, sensitivity of the project in that country, there are different types of the project financing , in general, as fallows:
In case of using the internal resources
- The allocation of a part of the country total income
- The allocation of a part the earnings derived from the export
In case of using the external resources
1)Loan Methods (of Borrowing)
-Receiving facilities from banks and foreign financial institutions such the World Bank and Islamic Development Bank (IDB).
- Financening such projectional financing like Finance,Usans and Build-Operate-Transfer (BOT)
2)Non-Loan Methods (Investment)
- Foreign Direct Investment (FDI) including Acquisition or Purchasing, Constitution of the Firm Subsidiary Branch, Joint Venture, Production Participation,Profit Sharing, Time Participation.
- Foreign Indirect Investment (FII) including "Civil Participation","Buy-Back" and "Build-Operate-Transfer (BOT).
At the "Foreign Investment Promotion and Protection Act (FIPPA), Foreign Direct Investment (FDI) is admitted, in areas where the activity of the private sector , in terms of "The Law of Implementing of General Politics of the principle (44) of the constitution.
Foreign Investment in all sectors within the framework of “Civil Participation”, “Buy-Back” and “Build-Operate-Transfer” (BOT) schemes where the return of capital and profits accrued is solely emanated from the economic performance of the project in which the investment is made, and such return of capital and profit shall not be dependent upon a guarantee by the Government or government companies and/or banks (Act 3 of FIPPA).