Mashhad, Razavi Khorasan province - An industrial and trade elegation from Germany's Badden-Wurttemberg state headed by the Deputy economy minister is visiting the Eastern province of Razavi Khorassan province to hold talks with provincial officials.
Speaking to IRNA, one of the delegation members Achim Boul said that security of investments in a crucial factor for drawing more foreign capital to the province and to Iran in general.
"I as an investor will only invest in a region and or a country which I have the confidence that the security of my investments and repatriation of its returns has been guaranteed," he added.
In this framework it is necessary for the Iranian economy officials to put efforts in attracting investments to the country and Razavi Khorasan province.
He said that another obstacle to higher capital inflows is some political issues and the sanctions levied on Iran by the US. German economic policies are among other factors affecting both the tardy implementation of investments in Razavi Khorasan province by Badden-Wurttemberg state.
"German government puts limitations and enforces various provisions on developing economic relations with other nations," he added.
The Iranian province has ample potentials in investments in various rojects including roads, and high-pressure electricity pylons which an be implemented with adequate skilled manpower and using German private sector know-how, he added.
Also, managing director of provincial economic coordination policy Mehdi Rezvani said that investors from Germany, India, South Korea and the Netherlands have invested dlrs 70 million in various industries in the province.
He also expressed hope that the sum will reach dlrs 150 million by the end of the current Iranian year (March 20) saying that the province has carried out talks with other nations including Persian Gulf states' investors.
Earlier in April, Minister of Economy and Finance Safdar Hosseini in a meeting with his German Counterpart Wolfgang Clement stressed that Iran welcomes higher foreign investments to boost its socio-economic development program.
He said that Iran based on its 20-year development plan plans to achieve the premier economic position in the Middle east region and it needs to draw more foreign investments.
To achieve the economic goals and to stay competitive in the world economy Iran aims to increase activity with in the joint economic commissions with other nations, including Germany, Hosseini added .
He also alluded to the expansion of bilateral trade between the Tehran-Berlin in recent years.
The German economy minister said that the two nations should use their capabilities to expand economic and trade relations.
He added that as the german government representatives, he is been assigned the responsibility to provide grounds for higher bilateral trade relations with Iran and remove the legal hurdles for such objectives.
Since the last year Iranian year (ended March 19), various centers have been formed in many provinces to attract foreign investments.
The centers will assist investors to better gauge the investments potentials of various regions.
Head of Iran Foreign Investments Affairs at the Economy and Finance ministry said here in February that Iran has the capacity of attracting dlrs five billion of foreign investments annually.
He stressed on the need for implementing economic reforms which will ave significant effects on domestic and foreign investments.
He further defended the current economic structure alluding to the valuation provided by various financial institutions in the recent past as saying that "Iran even in its current economic conditions can attract about five billion of foreign investments annually." Investments are carried out in various sectors including services, mining, industry, petrochemicals, chemicals and foodstuffs.
In other sector including telecommunications there also are proposals for foreign investments, he said. "In the transportation sector, there should be more financial incentives for investors to recoup their capital quicker."
© IRNA 2005
