Although some critics worry that Iran’s slightly different interpretation of Sharia governance could be a stumbling block to its entry on the international stage, Mirzakhani said Iran’s financial regulations are more flexible than other Muslim countries. Mohammad Javad Farahanian, the education director at the SEO, shared the same thoughts, telling Al-Monitor that the RDIS has shown much flexibility and has eased financial regulations in a way that financial instruments can be compatible with international standards.
Despite the positive signals SEO officials have been sending, the private sector — which is involved in doing business with multinational investment entities — complains that foreigners do not make investments through private brokerage firms unless they receive a sovereign guarantee.
Padidar, of the Karafarin Investment Group, said that without a government body offering a guarantee that all obligations will be satisfied when and if the primary obligator goes into default, no major investment will be made through the private sector’s brokerage firms. In other words, the political risks are still prevailing, despite the lifting of nuclear-related sanctions and hopes for the inflow of capital to the Iranian market.
Thus, it seems that neither the Central Bank of Iran nor any other government body wants to take the risks of the private sector’s possible default on its obligations — a policy that continues to make foreign investors skeptical of the future prospects of Iran’s capital markets.