Qatar says proposed $300 billion Iran fund is still aspirational

DOHA: Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani has described a proposed $300 billion investment fund for Iran as an aspirational target, saying Gulf states could help finance it if Tehran reaches a final settlement with the United States.

In an interview with the Financial Times published on Wednesday, Sheikh Mohammed referred to the figure tied to the proposed fund and said it should not be treated as a settled commitment. He said the mechanism under discussion could initially function as a vehicle for companies seeking to invest in Iran.

Sheikh Mohammed said the idea of Gulf participation was linked to progress in US-Iran talks, but he did not specify whether Qatar itself would contribute financially. He added that Qatar wanted to see Iran prosper economically and said the country’s investment decisions had consistently been based on commercial considerations.

"The figure of $300 billion that has been slated for a proposed Iran investment fund is an aspirational number," he also said:

"Our aim is that Iran flourishes and their economy grows; and our investment basically has always been purely on commercial decisions,"

Link to US-Iran memorandum

The proposed funding arrangement is connected to Article 6 of the Islamabad Memorandum of Understanding between the United States and Iran, which is aimed at ending regional hostilities.

Under that provision, the United States, together with its regional partners, would commit to establishing a final agreed programme worth at least $300 billion for Iran’s reconstruction and economic development. The memorandum says the implementation mechanism for the plan is to be finalised as part of a final agreement within 60 days.

The same document also states that the United States would provide all necessary approvals, waivers and licences for financial transactions related to the programme.

The Trump administration had proposed that Gulf states could finance the fund. The arrangement would, at least initially, serve as a structure through which companies could invest in Iran.