7 May 2007 - 09:46
  • News Code: 103975

TEHRAN -- Iran is negotiating with Turkey and the United Arab Emirate to offer oil companies’ shares in regional bourses, head of Article 44 Taskforce in the National Iranian Oil Company announced Saturday.

Ali Kardour told Mehr that talks are underway with bourse officials in neighboring states as well as the Persian Gulf Arab sheikhdoms.

“The result is not clear yet but the most important issue is pricing methods used by regional stock exchange.“

In other words, he elaborated, Iranian officials and their counterparts have to agree on a new formula for pricing to be observed in stock exchanges in the country and those in regional states.

According to Kardour, if such systems do not exist, assets of these companies have to be reassessed by experts of regional bourse.

The move is aimed at attracting investments by Iranian expatriates since they hold significant assets, he said in response to question on whether domestic investors can afford to purchase shares of state companies.

Expert contend that if Iranian expatriates are encouraged to buy shares of state companies, the target economic growth rate envisaged in the Fourth Five-Year Development Plan (2005-2010) will certainly materialize.

Huge capital held by Iranian expatriates needs to be attracted and injected into the privatization drive.

Economists maintain that only if 10 percent of this capital arrives, things will change drastically in Iran.

News Code 103975

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