Document Type : Original Article
Author
PhD of Private Law-Attorney-at-law-Professor of University
Abstract
In all models of sovereign wealth fund investments, alongside portfolio investment, albeit to a lesser extent, the method of foreign direct investment is also applied. Although the Foreign Investment Promotion and Protection Act, enacted in 1380, focuses on foreign direct investment, this law, its executive bylaw, and other related regulations have several limitations regarding foreign direct investment in our country, which also apply to sovereign wealth funds. The objective of the present research is to identify potential legislative constraints in the field of foreign direct investment that could significantly affect sovereign wealth fund investments, and to analyze and evaluate these effects.
Based on the findings of this research, in relation to the export revenues of sovereign wealth funds, in most cases where the transactions originate and are paid outside the country, investing these revenues domestically is considered capital with foreign origins. Due to the effects of conditions and limitations on the transfer of assets related to investment, applying them to sovereign wealth funds is difficult or even impossible, making regulatory reform in this area is essential. Regarding the limitation on ownership of real estate for sovereign wealth funds, the principle prohibiting ownership of real estate in Iranian law presents a minor obstacle, applicable only to investments in real estate and also in power generation and energy infrastructure. Finally, recommendations for regulatory reform and implementation practices have been proposed.
Keywords
)