Foreign Direct Investment and M&A in Iran
In 2001 the Islamic Parliament approved the foreign investment promotion and protection act (FIPPA). According to this act, foreign investors would benefit from the protection of their investment in Iran after obtaining the license from the Organization for Investment, Economic, and Technical Assistance of Iran.
According to this act, foreign investment can be done by two methods:
1. Direct foreign investment in areas in which the private sector’s activities are allowed.
2. Foreign investment in all sections in the form of “ partnership”, “buyback” and “build, operate, transfer” contracts in which investment return and related interests would solely result from economic performance of the project and not dependent on a guarantee by the government, banks or public companies.