80% increase in Chinese investment demand in Iran
Chairman of the Iran-Foreign Joint Investment Association: In previous years, the demand for investment from the Chinese was very low, but this year, the demand for investment from the Chinese has increased by about 80%. There are projects that we did not think the Chinese would be interested in, and these projects benefit us as well.
According to the International Iranian Stone Exhibition, Hossein Salimi said about the effects of Joe Biden on coming to power: Mr. Biden's election had effects in the world that did not have these effects in Iran, stock market indices in Europe and America have grown, but unfortunately its effect on the stock market Iran was negative. If we have a part of the world economy and the windows of hope are open, then for us it should be like the rest of the world, a bit of an analysis of this issue is complicated. Even the dollar fell for two days and rose again.
Regarding the possibility of Biden returning to Burjam, Salimi clarified: "Burjam was concluded during Mr. Obama's term and Democrats accept Burjam. Our optimistic possibility is that Burjam can be on the agenda after Biden starts his work." What the new situation will be like can be analyzed immediately, but in the first weeks of the new presidency, the resumption of Borjam will be discussed.
He added: "Given that Trump imposed the most sanctions on Iran, there is hope that sanctions will be reduced with the arrival of the Democrats." In the market and business environment, hopes and expectations are driven in this direction.
Salimi added: "The most important reason for the decrease in foreign investment in the country is the issue of sanctions." Companies were either barred from investing in Iran or had difficulty transferring money. Large companies are barred from investing in Iran because they are simultaneously investing in the United States. Because the issue of sanctions will be part of Mr. Biden's administration's negotiation package, and it was opened during the Democratic era to lift sanctions, our hope is that foreign investment will increase as sanctions are eased.
Referring to the FATF issue, he said: "One of the obstacles to the transfer of investors' money to Iran or the transfer of investment profits from Iran and in general to any industrial work that requires money transfer is the issue of the FATF." As of November 22, 28 other banks will be subject to sanctions so that all Iranian banks, except for food and medicine, will be subject to sanctions. This makes money transfer difficult and increases its cost, because if the money transfer is not done through the bank and is done through ways such as exchange offices, the transfer cost will increase.
The head of the Association of Iranian and Foreign Investments added: "This is one of the important factors that we have not yet seen its impact on the market." The new banking sanctions will start in 12 days, when Trump is still president, so they will definitely last until January, when Mr. Biden takes office. Many of these changes will then be subject to parliamentary approval, with the Democrats no longer holding a majority in the Senate, and we will have to wait for the Senate by-elections. If the majority goes to the Democrats, there is hope that the Democrats' proposed legislation will pass. Otherwise it will face problems.
Regarding the amount of foreign investment requests, he said: "At the beginning of the year, due to the outbreak of coronary heart disease, investment requests had decreased, but after June, investment requests increased a lot and was almost double last year." Of course, there is a decline in the licensing phase, but the number of applications was much higher than last year, and licensing has doubled, but its implementation is time consuming and some of them may be abandoned in the middle of the road.
Salimi added: "Previously, we had less investment requests in the mining sector, but fortunately, four or five mining projects were applied for investment this year, and some of them started." This is one of the projects that the Chinese started. In the field of solar energy, the demand for investment increased significantly. There was a growing demand for solar energy from Germany. The solar energy project is one of the projects that must be done when requested.
Regarding Chinese investment in Iran, he noted: "In previous years, the demand for investment from the Chinese was very low, but this year, the demand for investment from the Chinese has increased by about 80%." There are projects that we did not think the Chinese would be interested in, and these projects benefit us as well.
Salimi added: "Iran-China cooperation paved the way for investment in Iran. The Chinese are hoping to invest in our country." China is a populous country that, if one thousandth of them have capital, there are large populations that invest heavily in the United States and Europe. The corona made China and Iran very weak, but this path is opening up.
* ILNA
