Challenges regarding the definitions of capital, investor, and foreign investment, and examples of investment contracts in Iranian law

Abstract

In the current global economic climate, competitiveness is a determining factor in the economic sustainability and political stability of countries. Economic dynamism is not only an economic necessity, but also a prerequisite for maintaining national independence and security. In the meantime, foreign investment, as one of the efficient tools for economic growth and development, has found a special place in the legal and economic systems of countries. With the spread of ideas based on the doctrine of free trade and the globalization of markets, the importance of respecting the principle of freedom of will and the sovereignty of the will of the parties in shaping the rights and obligations arising from foreign investment has become more and more apparent. However, the Iranian legal system faces fundamental challenges in dealing with the concepts of "capital", "investor" and "foreign investment". Ambiguity in legal definitions, fragmentation of regulations and lack of full compliance of domestic concepts with internationally accepted standards have led to disagreements in the interpretation and implementation of investment contracts. Moreover, the emergence of new forms of investment contracts, including public-private partnerships, cross-selling, and indirect investments, requires a review of the traditional frameworks of legal analysis of these institutions. This article, with an analytical-critical approach, examines the conceptual and substantive challenges related to the definitions of capital, investor, and foreign investment in the Iranian legal system. Based on a comparative comparison with international practices and documents, it attempts to identify the conceptual and structural gaps in the Foreign Investment Promotion and Support Law and provide solutions for adapting it to the needs of the contemporary economy and the requirements of international interactions.