The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

BAT: a flagship investor

Turning the tables on Turkey  | Iran's business future fettered by politics

UK-listed company British American Tobacco opened a branch office in Tehran in December 2002, seven months after official importation of its products had begun following the liberalization of the Iranian tobacco industry. It received its licence from the Foreign Investment Board in July 2003, and opened its subsidiary in September 2003. This subsidiary, BAT Pars, was the result of an agreement with the Iranian Tobacco Company, the local monopoly, to produce cigarettes.

Tom Green, a director of BAT Pars, says that the $34 million investment involves BAT providing machinery and its expertise through management staff, with ITC providing the production capability, the premises, and production staff. The seven-year investment was licensed by the Foreign Investment Board under the Foreign Investment Promotion and Protection Act. "BAT is the first 100% foreign investment protected by Fippa," says Shadi Sedghinejad, managing director of legal and investment consultancy Evina Enterprises. "Previously, a JV had to be created with foreign ownership limited to 49% of the total project."

Green sees BAT as something of a flagship investor, and thinks its success sends a positive signal to other foreign investors.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree