Iran woos local investors as US sanctions loom

DUBAI — Iran plans to offer price and tax incentives to private investors to take over idle state projects and help boost the economy, state media reported on Saturday, as the country faces likely US sanctions and the exit of many foreign companies.

In May the United States pulled out of a multinational deal to lift sanctions against Iran in return for curbs on its nuclear program, and Washington has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

The new Iranian plan, along with action against alleged financial crime, appears to be aimed at easing concern over the US decision.

The probable return of sanctions has triggered a rapid fall of Iran’s currency, protests by bazaar traders usually loyal to the Islamist rulers, and a public outcry over alleged profiteering.

The plan will offer attractive prices and flexible terms as well as tax holidays for investors who agree to take over some of the 76,000 government projects which are unfinished or idle, Vice-President Eshaq Jahangiri said on state television.

“Over the past few months, the country’s liquidity has gone into housing, foreign exchange and gold coins, raising prices and provoking public concerns,” Jahangiri was quoted as saying by the website of the state broadcaster.

“A main issue in the meeting ... was to find solutions to push liquidity toward employment and activating manufacturing,” Jahangiri added after the meeting

According to international protocols, what belongs to a nation could not be sanctioned.” Fereshteh Dastpak,

attended by Iranian President Hassan Rouhani, and other high-level officials.

The Iranian rial plunged to a record low against the US dollar on the unofficial market on Saturday.

Meanwhile, Iran will file a lawsuit against US fresh sanctions on importing handwoven Iranian rugs, Press TV reported on Saturday.

US President Donald Trump “has wrongly sanctioned the art industry, which is a symbol of culture and intellectual property of the Iranian people”, said Fereshteh Dastpak, head of Iran National Carpet Center.

“According to international protocols, what belongs to a nation could not be sanctioned,” Dastpak said.

The Office of Foreign Assets Control of the US Treasury Department recently revoked the license for importing Iran’s carpets and foods, including pistachios and caviar.