Q&A with Dr. Mohammad Reza Farzin, Chairman of the Managing Board of National Development Fund of Iran
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. ]
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