Strategies and Legal Challenges of the National Development Fund Investment in the Upstream Sector of the Oil and Gas Industry

Articles in Press

Document Type : Original Article

Authors

1 International trade law, Faculty of Law, Shahid Beheshti University, Tehran, Iran

2 international trade law, Faculty of Law, Shahid Beheshti University, Tehran, Iran

10.48308/jlr.2026.242605.3007

Abstract

The oil and gas industry, particularly its upstream sector, faces substantial financial demands and significant risks. Attracting large-scale investors in this field is therefore crucial to its success. The National Development Fund of Iran is one such institutional investor with significant capacity. National development funds channel capital into strategic sectors of the national economy. In this regard, these funds seek to invest the national wealth entrusted to them in a manner that brings private-sector investors as well as foreign investors on board. This study employs a descriptive–analytical method to examine the legal foundations of the National Development Fund of Iran’s investments in the upstream oil and gas sector. It examines whether these investments align with effective strategies used by national development funds. The research finds that recent legislative efforts to use the Fund’s capacity in the upstream sector have not created the necessary conditions for the Fund to play a strategic role. This is caused by restrictions on the Fund’s investment authority and weaknesses in related contractual structures. For the Fund to transition from a mere financier to a strategic investor, it requires expanded investment authority, revised contracts, and a range of diverse investment instruments and methods.

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Legal Research Quarterly

Articles in Press, Accepted Manuscript
Available Online from 13 June 2026

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History

  • Receive Date: 27 November 2025
  • Revise Date: 04 May 2026
  • Accept Date: 13 June 2026

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