“$100 Billion” in Capital Has Left Iran Over the Past Decade

The head of the investment services center at the Tehran Chamber of Commerce announced on Sunday, September 21, that “$100 billion” in capital has left Iran over the past decade.

Fereyal Mostofi, referring to the necessity of attracting foreign capital instead of capital flight, stated: Iran, like other countries in the world, needs cooperation with other nations and foreign investment for economic development and growth. Therefore, to succeed in attracting foreign capital, the country must provide appropriate conditions and infrastructure.

So far, no official statistics on the actual volume of capital flight from the country have been released.

Masoud Khansari, head of the Tehran Chamber of Commerce, said last March: “In the past two years, $100 billion in capital has left Iran.”

One of the indicators that can somewhat show the actual volume of capital flight from the country is the net capital account balance of the country.

The Central Bank of Iran has not yet released the country’s net capital account report for 1399 (2020-2021), but statistics from 1390 to 1398 (2011-2019) show that except for 1393 (2014-2015), this indicator has consistently been negative, which could indicate capital flight from the country.

From 1390 to 1398 (2011-2019), the country’s net capital account balance was more than negative $98 billion, which could indicate capital flight of this amount from the country.

On the other hand, attracting foreign direct investment in Iran has also declined sharply. According to the latest report from the United Nations Conference on Trade and Development (UNCTAD) released in June, the value of foreign direct investments worldwide in the past calendar year reached $999 billion, of which only $1.342 billion, equivalent to 0.13 percent, was in Iran.

Source: Radio Farda