A Critical Assessment of Existing Laws in the Field of Foreign Investment

Abstract

This article seeks to critically assess the existing laws in the field of foreign investment using a descriptive-analytical method. One of the most important economic phenomena of the present century is foreign investment, which has received increasing attention because it is regarded as one of the principal means of gaining access to capital, technology, and the possibility of sustained economic growth in countries. On the other hand, foreign investment is considered a main route through which developing countries can access advanced technology; it also increases domestic production both directly and indirectly and constitutes a key factor in the economic development of every country. Moreover, the most important role of foreign investment is to bring capital, skills, and technology into countries. Despite the remarkable scale of foreign investment in other countries and the enactment of the Foreign Investment Promotion and Protection Act in 2001 and its Executive Regulations approved in 2002, Iran, due to the absence of a coherent and dynamic legal system alongside other factors, has faced serious challenges in this regard. As a result, the existing deficiencies in the path of foreign investment have not only remained unresolved, but legal inadequacies have also prevented the realization of an efficient legal regime governing foreign investment. These issues are examined in this study.