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FOREIGN investors have welcomed the Iranian government's new Foreign Investment Promotion and Protection Act (Fippa) aimed at enhancing foreign participation.
The Fippa, which came into force this month, replaces the previous Law on Attraction and Protection of Foreign Investment (Lapfi) which was ratified in the 1950s. The new law offers greater flexibility in repatriation of profits in hard currency, safeguards against takeovers by the government and streamlines approval procedures.
'We welcome the improvements made to the Lapfi, especially on investment protection,' a source close to Sabic EuroPetrochemicals said. Sabic has formed a joint-venture company in Iran for an 1dPE project.
He added that the new company, named Laleh Petrochemical Co, is now waiting for the English version of the Fippa guidelines before filing an application which will entitle the project to investment protection.
Johan van Buren-Schele, general manager of Sasol Polymers, said: `The changes made to the law are positive. While Sasol has not made a final decision on any investment participation in Iran, we are satisfied with the package as a whole.'
Sasol is studying a stake in the Olefins No9 complex, excluding the styrene facility.
Industry observers, however, are sceptical about...