Iran also is hoping to attract billions of dollars worth of foreign investment to the country by creating a more favorable investment climate (i.e., reduced restrictions and duties on imports, creation of free-trade zones).

However, there has not been a great deal of progress in this area, in part due to disagreements between reformers and conservatives.  In addition, foreign investors appear to be cautious about Iran due to uncertainties regarding its future direction under new leadership, as Well as the ongoing, international standoff over the country's nuclear program.

In September 2005, Iran threatened to impose investment limits on countries opposing its right to access nuclear fuel cycle technology. In November 2005, Iran rejected a proposal by Russia and the EU whereby Russia would supply it with enriched uranium, as opposed to Iran enriching the uranium itself.

Source: Energy Information Administration