Iran Peace Deal Includes $300bn Investment Fund

A $300bn private investment fund is part of the framework agreement between the United States and Iran. More than half of the planned amount has already been committed, according to a source with direct knowledge of the deal.

The fund is intended to encourage investment in Iran and give both sides an economic incentive to conclude a final agreement ending the war. It will be financed entirely by private companies and will not include government money or grants.

Companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to provide financing. The pledged investments cover energy, logistics, manufacturing and transport.

Iran had initially sought $400bn from the United States in compensation for damage caused by the war, but Washington rejected the demand. The private investment fund was subsequently proposed as an alternative mechanism.

The fund, which is to be called the Reconstruction and Development Fund, will not be established or become operational until Washington and Tehran reach a final agreement. Once the memorandum of understanding is signed, administrators are expected to spend 60 days working with Iranian officials and investors to identify and plan projects.

(reuters, mja)