Foreign banks shy away from Iran FTZ
Only two foreign banks are left from a list of ten who had originally intended to establish offices and business ties in Iranian Free Trade Zones (FTZ), reported Iran Daily. Bureaucratic red-tape and inconsistent policies are the major reasons why foreign investors are keeping away from Iran.
Hossein Allah-Moradi, Kish Island’s FTZ spokesman, told Iran Daily that “FTZ policies have been more repulsive rather than attractive.” None of the banks were mentioned by name, however, the conclusions are the same — no foreign investment means little or no job creation in a country which is expected to increase in labor size by 3.5 million within the next five years. Only the state-run energy and mines sector has substantial foreign direct investment.
For Iran to meet domestic employment needs, it is expected that an increase of no less than 7 percent in investment and 6 percent economic growth is required. Allah-Moradi blames much of the problem on poor executive policies. — (Albawaba-MEBG)