Components of the New Iranian Foreign Investment Promotion and Protection Act for Attract Foreign Investment

The nature of capital needs a safe and peaceful environment for activity, so countries in need of capital try to provide an environment suitable for foreign investment and attract their confidence. Appropriate domestic legislation is among the most important tools. Thus, capital importing countries intended to protect foreign investment and attract foreign investment with specific legislation.

The regulatory framework for foreign investment in Iran has been the “Law on Attraction and Protection of Foreign Investment” since 1955. The Iranian parliament enacted a new law on foreign investment as “Foreign Investment Promotion and Protection Act” passed in 2002 in line with reforms in the economic structure of the country. Foreign Investment Promotion and Protection Act were replaced with 1955 Act. The replacement has caused of the legal framework and operational environment development for foreign investors in Iran.