Adding insult to injury, lobbying groups such as United Against Nuclear Iran actively work toward discouraging foreign investment, even though Iran is one of the more developed markets in the Middle East available to emerging market investors.
Research conducted by the Iranian parliament’s Research Center makes it abundantly clear that Iran suffers from a consistent lack of FDI. Moreover, Iran ranks below even countries in the Middle East and North Africa when it comes to FPI. With merely 0.1% of the total cumulative value of foreign investment worldwide — and ranked 118 in the ease of doing business index — success in attracting FPI requires taking measures and finding solutions at a higher level.
This must include efforts to get rid of the current excessive and incomplete, noncodified instructions in favor of more transparent, unified and organized forms of law. Unless such reform is put in place, significant FDI — and foreign investment in local capital markets — will continue to remain a mirage for Iran.