Jeremy Paner Discusses the Risks of Investing in Iran with Arabian Gulf Business Insight

Jeremy Paner discussed the barriers to Gulf states’ investment in Iran following the apparent U.S.-Iran détente in an interview with Arabian Gulf Business Insight.

The article detailed the resumption of trade between Iran and the United Arab Emirates, with vessel traffic returning to pre-war levels after trade routes across the Arabian Gulf reopened. While commercial activity has rebounded, Paner noted that major obstacles remain for any foreign investment in Iran.

“To create a world where Saudi Arabia and the UAE are going to invest in Iran, that’s laughable,” Paner said.

Paner explained that Iran presents significant political, legal and regulatory risks for investors. “You’re dealing with a very opaque place,” he said. “That’s a very hard place to do business.”

He also noted that much of Iran’s economy is tied to the Islamic Revolutionary Guard Corps, whose designation by the U.S. and others as a terrorist organization creates numerous opportunities for investors to fall foul of the law.

Drawing on his experience at the U.S. Department of the Treasury in the lead up to the Joint Comprehensive Plan of Action, Paner contrasted the current environment with the extensive planning that accompanied that 2015 nuclear agreement. He noted that years of preparation went into developing detailed guidance for businesses seeking to enter the Iranian market following sanctions relief.

By comparison, Paner said the current U.S. administration has not yet provided a similar framework or level of clarity for companies considering business opportunities in Iran. Referring to the state of negotiations and sanctions guidance today, he said: “They’re not even at the starting line.”

Read the article.