Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2002
Effective Start Year: 
2016
Scope: 
National
Document Type: 
Act
Economic Sector: 
Multi-Sector
Energy Types: 
All
Issued by: 
Government of the I.R. of Iran
Notes: 
Unofficial source
Overall Summary: 
The Foreign Investment Promotion and Protection Act, 2002 (2016 Ed.) ("FIPPA") which is the main legislation for the protection of foreign investments. In accordance with FIPPA, foreign investors are defined as non-Iranian natural and/or legal persons or Iranians using capital with foreign origin, who have obtained the FIPPA investment license. The Act establishes that Foreign Investments shall equally enjoy all rights, protections, and facilities available to local investments. Also, Foreign Investments shall not be subjected to expropriation or nationalisation, unless for public interests, by means of legal process, in a non-discriminatory manner, and against payment of appropriate compensation on the basis of the real value of the investment immediately before the expropriation.
Investment
Investment climate development: 
Foreign Investments under this Act shall equally enjoy all rights, protections, and facilities available to local investments---Foreign Investments shall not be subjected to expropriation or nationalisation, unless for public interests, by means of legal process, in a non-discriminatory manner, and against payment of appropriate compensation on the basis of the real value of the investment immediately before the expropriation.--- The profit derived from Foreign Investment after deduction of taxes, dues and statutory reserves, upon the approval of the Board and confirmation by the Minister of Economic Affairs and Finance, shall be transferable abroad. ---Admission of Foreign Investment shall be made, in accordance with the provisions of this Act and with due observance of other prevailing laws and regulations of the country, for the purpose of development and promotion of producing activities in industry, mining, agriculture and services, and based on the following criteria: a) Bring about economic growth, upgrade technology, enhance the quality of products, increase employment opportunities and exports; b) Does not pose any threat to the national security and public interests, and cause damage to the environment; does not disrupt the country's economy and jeopardise the production by local investments; [...]d) The ratio of the value of the goods and services produced by the Foreign Investments, contemplated in this Act, to the value of the goods and services supplied to the local market, at the time of issuance of the Investment License, shall not exceed 25 percent in each economic sector and 35 percent in each field (sub-sector). The fields and extent of investment in each field shall be determined in the by-law to be approved by the Council of Ministers. Foreign Investment for the production of goods and services for export purposes, other than crude oil, shall be exempted from the aforementioned ratios. [...] Foreign Investments admitted in accordance with the provisions of this Act shall enjoy the incentives and protections available under this Act. Such investments may be admitted under the following two categories: a) Foreign direct investment (FDI) in fields where the activity of the private sector is permitted; Foreign Investments in all sectors within the framework of "Civil Partnership", "Buy-Back" and "Build-Operate- Transfer" (BOT) schemes [...].