Iran Plans $300 Billion Private Investment Fund Amidst US Deal

Dubai. A plan to establish a private investment fund of 300 billion US dollars with the aim of bringing large-scale investment into Iran has been included in the Iran-US agreement. According to a source with direct knowledge of the agreement, investment commitments have already been received for more than half of that amount. According to the source, this fund has been created with the aim of providing financial incentives for both parties to reach a final agreement. The plan has not yet been made public as the US and Iran are preparing to sign an agreement on Friday. US and Iranian officials stated on Sunday that a framework agreement had been reached to end the war. The war began after the US and Israel attacked Iran on February 28. According to the agreement, US sanctions will be lifted and the Strait of Hormuz, a major route for global oil and gas supply, will be reopened. The proposed fund will be a purely private investment mechanism. The source stated that it will not include any government funds or grants. Companies from the US, Gulf Arab countries, Asia, South America, and Africa have agreed to invest. Investment will be focused on sectors including energy, transportation, manufacturing industries, and supply chain management (logistics). According to another senior Iranian source, Iran initially demanded 400 billion dollars in compensation from the US for war damages. However, after Washington stated that such an amount could not be provided, the concept of establishing a reconstruction and development fund was put forward. Under this mechanism, regional countries will provide loan guarantees, offer credit facilities, or directly invest in the reconstruction of war-damaged structures. This includes the Mobarakeh Steel Industry, oil refineries, airports, and other infrastructure. For more than four decades, Iran has not been able to attract significant foreign direct investment due to US and international sanctions. However, Iran has the world's second-largest proven natural gas reserves and the fourth-largest oil reserves. Iran, with a population of over 92 million, is considered to have a young and educated workforce, a diverse industrial base, and great potential in the petrochemical, mining, tourism, and agricultural sectors. According to the source, this investment fund will be completely separate from the parallel talks being held on lifting US sanctions and releasing Iranian assets frozen abroad. The objectives and implementation timelines of both mechanisms will be different. The fund will be formally established and operational only after a final and satisfactory agreement is reached. The memorandum of understanding to be signed is expected to lay the groundwork for advancing that process within the next 60 days.