This is a Q&A with Dr. Mohammad Reza Farzin, Chairman of the Managing Board of National Development Fund of Iran.
Dr. Mohammad Reza Farzin was appointed as the Chairman of the Board of Executive Directors at the end of May 2012 by the NDFI’s Board of Trustee.
1. What was the genesis of creating the National Development Fund of Iran?
The NDFI can be traced back to the Third Development Plan (2000) when a Foreign Currency Reserve Account (known as Oil Stabilization Fund) was established to stabilize the annual budget and prevent the oil shocks doing harm to the economy. The other objective of OSF was to save a portion of oil revenues for future generations through making productive investments. Given the failure of OSF, it was in the Fifth Development Plan (2011) that NDFI was formed to transform a portion of oil revenues to productive investments and the OSF remained in place only with the single task of keeping the annual budget balanced.
NDFI is mandated with transforming the revenues of export of oil, gas, gas condensates and oil products to sustainable and productive economic wealth and investments, as well as saving the share of future generations from these resources.
The General policies of establishment of NDFI were notified by the Supreme Leader.
2. What are some notable achievements of the National Development Fund of Iran since its establishment in 2011?
Since inception in 2011, the resources accumulated in NDF amount to $42 billion. The by-laws and regulations executed and approved, the structure of NDFI is being modified and some highly-educated and experienced people have joined the Fund. A portion of resource has been allocated to the identified domestic sectors, and a portion is frozen for specific projects. Contracts with 12 banks entered into to act as correspondent and agent intermediaries. Our staff is participating in international forums and workshops and we are expanding our net of communications and relations.
3. Will the National Development Fund of Iran invest internationally? If so, are their certain asset classes or geographic markets of interest?[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
Abu Dhabi-based Mubadala Investment Company is in the final stages of negotiation on a deal to buy Queiroz Galvão Energia SA (QGE) – the renewable energy division of Brazilian oil and natural gas company Queiroz Galvão Participacaoes – at a valuation of nearly 4 billion BRL (US$ 1.2 billion), according to a report from local financial newspaper Valor Econômico. Valor reports that the buyout-centric arm of Abu Dhabi’s overarching Mubadala Investment Company has teamed up with Castlerock Asset Management Inc. on the acquisition, although neither party could be reached for comment at time of writing.
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A group of Japanese investors led by Kansai Electric Power (Kepco) and Tokyo Gas acquired the Shiba Park Building, also known as the Gunkan (or warship) building, for a reported 150 billion JPY (US$ 1.4 billion) from a consortium of investors. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
If you thought red meat-centric investments ended back in 2007 with Trump Steaks, think again. Singaporean sovereign wealth funds Temasek Holdings and GIC Private Limited are reportedly working alongside London-based Metric Capital Partners to buy a US$ 200 million minority stake in D.ream Group, according to the Financial Times. An entertainment-focused subsidiary of Turkey’s Doğuş Group valued at nearly US$ 1.5 billion, D.ream owns of a number of high-end dining establishments – including the steakhouse chain founded by Turkish chef Nusret Gökçe, better known on social media platform Instagram as Salt Bae.
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