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Dubai - Officials in Tehran are preparing to roll out the red carpet for foreign firms with the prospect of a diplomatic breakthrough bringing an end to Iran's international isolation.
However, a tough legal environment and tricky domestic market mean the hoped-for billions in investment may not come soon.
Only a few more weeks remain before the 20 July deadline to conclude talks between Iran and Western powers aimed at ending sanctions in return for limits on Tehran's nuclear programme.
Obtaining resources
Hopeful of a breakthrough, Iranian officials are putting together a package of incentives to lure foreign investors into sectors ranging from oil and gas to agriculture, light manufacturing and free trade zones.
The incentives, which could be unveiled quickly after a diplomatic deal, are expected to include tax breaks, steps to ease the burden of bureaucracy on foreign firms as well as possible assistance in obtaining resources such as land, say businessmen and lawyers.
Iranian officials have also talked of the possibility of new types of production-sharing contracts to lure oil investors.
But as the deadline approaches, some foreign firms' initial euphoria over the prospect of investing in Iran is giving way to a harder-headed assessment of the obstacles and the risks.
Legal framework
Even if a nuclear deal is reached, unravelling the web of sanctions is likely to be a long, complex process, possibly taking years.
Companies will also have to deal with an uncertain legal framework and chaotic business environment within Iran.
Nobody doubts the potential of Iran, with a population of about 76 million, to become a big investment draw.
It is attractive partly because it has a far more diverse economy than its neighbours; major industries include not only energy but vehicles, farming for export, electrical goods and even medicines.
Money laundering
Consultancies around the world are offering seminars on Iran to interested foreign executives.
France's Renault said last week that it was looking for a financial partner to resume making vehicles with local partners in Iran, from which it withdrew after sanctions were tightened in 2011.
The single most damaging US sanctions measure against Iran was imposed in November 2011, when the US Treasury used Section 311 of the US Patriot Act to identify Iran as an area of "primary money laundering concern".
This effectively froze Iran out of the international banking system, making investment there almost impossible, by forcing banks around the world to choose between dealing with Iranian institutions and doing business with US firms.
However, a tough legal environment and tricky domestic market mean the hoped-for billions in investment may not come soon.
Only a few more weeks remain before the 20 July deadline to conclude talks between Iran and Western powers aimed at ending sanctions in return for limits on Tehran's nuclear programme.
Obtaining resources
Hopeful of a breakthrough, Iranian officials are putting together a package of incentives to lure foreign investors into sectors ranging from oil and gas to agriculture, light manufacturing and free trade zones.
The incentives, which could be unveiled quickly after a diplomatic deal, are expected to include tax breaks, steps to ease the burden of bureaucracy on foreign firms as well as possible assistance in obtaining resources such as land, say businessmen and lawyers.
Iranian officials have also talked of the possibility of new types of production-sharing contracts to lure oil investors.
But as the deadline approaches, some foreign firms' initial euphoria over the prospect of investing in Iran is giving way to a harder-headed assessment of the obstacles and the risks.
Legal framework
Even if a nuclear deal is reached, unravelling the web of sanctions is likely to be a long, complex process, possibly taking years.
Companies will also have to deal with an uncertain legal framework and chaotic business environment within Iran.
Nobody doubts the potential of Iran, with a population of about 76 million, to become a big investment draw.
It is attractive partly because it has a far more diverse economy than its neighbours; major industries include not only energy but vehicles, farming for export, electrical goods and even medicines.
Money laundering
Consultancies around the world are offering seminars on Iran to interested foreign executives.
France's Renault said last week that it was looking for a financial partner to resume making vehicles with local partners in Iran, from which it withdrew after sanctions were tightened in 2011.
The single most damaging US sanctions measure against Iran was imposed in November 2011, when the US Treasury used Section 311 of the US Patriot Act to identify Iran as an area of "primary money laundering concern".
This effectively froze Iran out of the international banking system, making investment there almost impossible, by forcing banks around the world to choose between dealing with Iranian institutions and doing business with US firms.
