UAE biggest investor in Iran's power sector
Despite sanctions, UAE companies invest US$720 million.
The UAE companies invested nearly US$720 million in Iranian power projects last year, becoming the largest foreign direct investor in the country's energy sector, writes the state owned Emirates 24/7 website.
"The UAE has invested $720 million in the construction of a gas power plant as well as a combined cycle power plant in Isfahan and Shiraz; Germany has invested $445 million in construction of the Pareh-Sar combined cycle power," confirmed Iran's Ministry of Energy.
Germany came second with investments worth $445 million in its energy sector, taking the tally to more than $1.16bn last year.
According to International Monetary Fund, foreign investment in Iran has risen by 87 per cent to more than $3 billion in 2009.
Iran's Minister of Economic Affairs and Finance, Shamseddin Hosseini, said recently that the country ranked sixth in attracting foreign investment in spite of the fact that foreign investment witnessed a 35 per cent growth decline in the world.
Iran's Foreign Investment Package law, which encourages and supports foreign investments, offers investments in power on the of Build-Own-Operate (BOO) and Build-Operate-Transfer (BOT) basis.
Currently, 54 plants are in the construction phase with capacity to produce 34, 129 megawatts of power by private sector with an investment of $19 billion on BOO basis while contracts for five plants with capacity of 4,267 megawatts have been awarded to private firms with investment of $2.4bn.