Iran to provide foreign investment guarantees

Iran's parliament yesterday passed a law that will provide foreign investment guarantees as part of an attempt to jump-start the economy, which has been hit by the slump in oil prices.

Deputies approved the Cabinet bill which guarantees foreign investment in Iran's free trade zones against state takeover or seizures by courts, the official news agency, IRNA, reported.

The bill will also allow free foreign exchange dealings in the zones, where the Iranian rail would be floated, IRNA said.

The bill must still be approved by the clergy-based Guardian council, which must approve legislation passed by parliament before it becomes law.

Analysts say Iran has failed to draw much-needed investment because it lacks such guarantees and restricts the repatriation of profits.

Officials have said the zones have drawn just $300 million in foreign investment in the past five years.