National Development Fund of Iran
|Industry||Sovereign wealth fund|
|Headquarters||No.25 , Palizvani St , Gandi St
|Key people||Mohammad Reza Farzin|
|Total assets||$35 billion USD (March 2012)|
The National Development Fund of Iran (NDFI) (Persian: صندوق توسعه ملی) is Iran's sovereign wealth fund. It was founded in 2011 to replace Oil Stabilization Fund. Its reserves stood at $24.4 billion in 2011 and $35 billion in 2012. It is foreseen that the Development Fund will reach $55 billion by March 2013 and $61 billion by March 2014. Based on Article 84 of the Fifth Five-year Socio Economic Development Plan (2011–2015), the National Development Fund was established to transform oil and gas revenues to productive investment for future generation. The money will increasingly be deposited in domestic banks.
Accordingly, 20% of oil income is to be transferred to the National Development Fund and this percentage increase 3% annually until the end of Fifth Five-year Socio Economic Development Plan. The new fund is to extend 50% of its financial facilities to private, cooperative and non-governmental sectors and 20% to promote foreign investment.
The National Development Fund of Iran (NDFI) aims to turn some of the country’s revenue earned by selling oil, gas, gas condensate and oil products to durable wealth, productivity, economic incentive and capital. The NDFI also aims to preserve the share of oil and gas resources and products for future.
The Articles of Association of the National Development Fund of Iran, under the directives of the Leader of the Islamic Revolution and ratification of the Parliament, has been incorporated in the Fifth Development Plan Law of the Islamic Republic of Iran. According to the Articles of Association, the Managing Board is the executive pillar of the NDFI whose main responsibility is to conclude agency agreements with the banks. The NDFI has, so far, concluded several agency agreements with different banks for supporting investment in the private Sector.
The National Development Fund of Iran (NDFI) was established based on Article 84 of the Fifth Economic, Social and Cultural Development Plan of the Islamic Republic of Iran. The NDFI aims to turn some of the country’s petrodollars to durable wealth, productivity, economic incentive and capital and to preserve the share of oil and gas resources and products for future generations. The NDFI strategies to materialize such goals include:
- To spotlight outcomes of spatial plans in the country for a regional sustainable and balanced development while distributing the resources of the NDFI.
- To make plans for reaching the goals of the 2025 Vision plan and the country’s Comprehensive Plan for Scientific Development.
- To pay due attention and support to the private sector and pay facilities in foreign currencies in order to develop economic infrastructure and reduce the role of government.
- To pay special attention to investment opportunities in deprived areas while incorporating short-term and long-time planning.
- To give priority to providing financial resources for energy consumption optimization plans, proposals to develop and reconstruct current capacities (such as buying equipment and machineries), business plans in convert industries, complementary agriculture, public and rail transport, joint foreign investment (subject to ratification within the framework of the 2002 Law to Encourage and Support Foreign Investors), proposals to export Iranian goods and services to target markets in the form of purchase credit, proposals to export indigenous technical-engineering services in the form of sell credit, providing facilities for buyers of Iran-made goods and services in foreign export target markets, proposals of technical-engineering services export by Iranian companies which win international tenders.
- To invest and have greater participation in foreign monetary and financial markets.
- To make decisions and adopt measures to ensure the return of the NDFI’s resources and its preservation for future generations.
National Development Fund of Iran (NDFI) has inked contracts with different banks including the Bank of Industry and Mine, the Sepah Bank, and the Exports Development Bank to allocate $9 billion to industry and mine, energy, cooperatives and agriculture in 2012. Iran also announced that it will allocate $14 billion from the NDFI to oil projects.
Since 2011, the fund allocated USD 21.546 billion to mining and industry (including the gas, oil and petrochemical industries), USD 566 million to housing and construction, USD 233 million to water and agriculture, USD 686 million to transportation and USD 193 million on the export of technical services.
|Iranian Year||Fund inflow (USD billion)||Fund outflow (USD billion)||Ending balance (USD billion)|
NDFI has 4 members of Board of Executive Directors :
- Dr. Mohammad Reza Farzin (Chairman)
- Dr. Ghasem Hosseini (Vice Chairman)
- Mahmoud Dodangeh (Member)
- Ali Movahed Nejad(Member)
Other key people: Mohammad Mazraati (Deputy of International Investments and Operations)