A specialized advisory committee has been formed within the Tehran Chamber of Commerce, Industries, Mines and Agriculture to facilitate the speedy entry of foreign firms and their access to local resources. The TCCIMA committee consists of various subcommittees, including ones tasked with assessing deregulation and capital markets.This committee certainly has its work cut out for it, as foreign firms seeking to enter Iran face a multitude of challenges. There is a troubling lack of transparency and stability in regulations, and also issues with the adoption of laws at variance with international regulations, especially on partnership with local firms and investment.
At the macro level, stubborn inflation and continuing fluctuations in the value of the Iranian rial pose challenges, not to mention the endemic corruption.
The Corruption Perceptions Index, collated by Transparency International, ranks Iran 136th among 175 countries, underscoring the depth of obscurities in the country’s economy. Things have gone backward for Iran in this regard in recent years. In 2003, it ranked 78th—the best it has ranked since.
In an interview with Financial Tribune, head of the TCCIMA’s new committee, Iman Bahadorani, said his main mission is “to identify investment barriers and brief policymakers” ahead of early 2016, when the main sanctions are expected to be lifted.
Bahadorani added that “given our economy’s investment ambiguities, which are somewhat comparable with those of other emerging markets, TCCIMA is geared up to create a database of local industries aimed at presenting them to foreign investors.”
There are two types of problems embedded in Iran’s trade sector, namely procedural and economic. The first one includes giving permission to foreign investors to trade at the equity market, open bank accounts, register the company, adopt regulations and comply with conventional practices, with “Know Your Customer” on top of them, a member of TCCIMA committee told Financial Tribune on condition of anonymity.
The member noted that to sidestep pitfalls, the respective organizations, including SEO, the Central Bank of Iran and State Organization for Registration of Deeds and Properties, would be briefed.
“The economic problems consist of those directly associated with administration policies, like feedstock price and mining royalties. Hence, the committee has to approach the Cabinet on various occasions,” he said.More...