The creation of a private investment fund of $300 billion, aimed at attracting funds to Iran, is included under an agreement between Washington and Tehran to end the war, according to a source who has a direct knowledge of the negotiations and spoke to Reuters. As indicated, more than half of the amount has already been secured by private enterprises and investors.
The fund is designed to create economic incentives for both sides in order to reach a final agreement that will end conflicts. The same source, who asked to maintain its anonymity, as the plan has not yet been officially announced, said the agreement is expected to be signed on Friday.
Although the existence of the fund had become known in the past, Reuters for the first time reveals that funds of more than $150 billion have already been committed and that all resources will come exclusively from the private sector.
Americans (with Donald Trump first) and Iranian officials announced on Sunday that they reached an agreement to end the war that broke out when American and Israeli forces attacked Iran on 28 February. The agreement also provides for the lifting of Iran's American blockade and the reopening of the Straits of Hormuz, one of the world's most important oil and gas transport arteries.
This is not a compensation programme.According to the source, the new investment scheme is not a compensation or state reconstruction programme and will not include public funds, State aid or grants. On the contrary, it is an investment vehicle to be financed exclusively from private funds.
The project has already been agreed to involve businesses from the United States, the Gulf Arab countries, Asia, South America and Africa. The proposed investments concern energy, transport, industrial production and supply chain.
A senior Iranian source told Reuters that Tehran had initially asked the United States for compensation of $400 billion for the damage suffered during the war. Washington, however, made it clear that it was not going to pay that amount, which led to the idea of creating the investment fund.
The new scheme, which will be called the Reconstruction and Development Fund, provides for the participation of countries in the region through loans, credit lines or direct financing of rehabilitation projects.
Rehabilitation of energy installations and infrastructureThe projects to be financed include the restoration of damaged facilities during the war, such as the Mobarakeh Steel steel complex, refineries, airports and critical infrastructure affected by hostilities.
Despite the size of its economy, Iran has attracted little foreign direct investment in the past four decades, as American and international sanctions have effectively excluded it from global capital markets.
The country has the second largest proven natural gas reserves in the world and the fourth largest oil reserves. At the same time, it has a population of over 92 million, with a high educational level and significant development potential in sectors such as petrochemicals, mining, tourism and agricultural production.
The source familiar with the negotiations clarified that the investment fund is completely independent of parallel talks on lifting US sanctions and releasing Iranian state assets that remain frozen abroad. These are, as he said, two different financial instruments with different objectives and timetables.
The fund will not be created or put into operation before a definitive and mutually acceptable agreement is reached. The memorandum of understanding expected to be signed will determine the procedure for the next 60 days. "It will only be created when the final agreement is signed," the source said. "During these 60 days fund managers will work with Iranian authorities and investors to design and mature projects".
Iran's foreign ministry and Pakistan's foreign ministry, which allegedly contributed to mediation on the agreement, did not respond directly to requests for comment.
For his part, the White House referred to an interview by U.S. Vice President, J.D. Vance, at CBS, where it stated that Iran could gain access to a 300 billion dollar reconstruction fund supported by Gulf states, as long as it adheres to its commitments to Washington. These include dismantling the nuclear programme, eliminating stocks of enriched material and accepting a strict inspection and control mechanism.
The source did not reveal who will manage the fund or which structure will be followed, noting that the relevant details remain under negotiation. However, it stated that companies from South Korea, Japan, Singapore, Malaysia and the United States have already expressed interest and made financial commitments, without giving a full list of participants.