Liberalisation and Privatisation
The economy has been state-owned since industries were nationalised after the 1979 Revolution. Iran’s post-revolutionary constitution did not allow for private ownership of ‘strategic industries’ including petroleum, telecommunications, banking, insurance, airlines and large mining companies. The liberalisation of the economy started in the 1990’s with the establishment of private telecommunications, insurance, banking and airline companies such as Taliya Telecom, Parsian Bank and Mahan Airlines. Also, over the past 3 years some of the largest state-owned companies such as the Mobarakeh Steel Complex, National Iranian Copper Industries Company, Isfahan Refinery, Mellat Bank and Telecommunications Company of Iran have undergone privatisation through a listing on the stock exchange. There are many more privatisation deals including Iran Air, Tabriz Refinery and several insurance companies in the pipeline.
There is considerable appetite within Iran to attract foreign investment and cooperate with other global markets. The Foreign Investment Promotion and Protection Act (FIPPA) was ratified in 2002 to increase foreign direct investment by strengthening guarantees offered to foreign investors. In 2005, the Securities and Exchange Organization (SEO) of Iran introduced a series of legislation to implement the FIPPA Act for investments into the equity market.
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