Chapter 3: Business Environment

January 2006
Iran Business Forecast Report;2006 1st Quarter, p19
Country Report
Country Report
This article presents information on business environment in Iran, which is constrained by government reluctance to allow substantial foreign investment into the country. The Foreign Investment Promotion and Protection Act has improved regulation surrounding foreign investment. The article presents strengths, weaknesses, opportunities, and threats analysis of the business environment in Iran. Iran has a comparatively bad record on transparency. Iran was ranked 78 (out of 133) in Transparency International's Corruption Perceptions Index in 2003, with its score of 3 marginally worse than the Middle East average of 4.26. The election of the conservative presidential candidate Mahmoud Ahmadinejad in June 2005 is likely to be seen as a retrograde move by those seeking to foster a more benign climate for foreign investment in Iran.


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