Iran is the second largest country in terms of reserve of oil and natural gas in the world and it can be good opportunity for Iran in the oil markets, the only thing that is required, is investment and utilization of new technologies. As a Petroleum Exporting Country Iran because of lack of capital needed for invest in Oil sector and accesses to new technology, pay attention to attract more FDI. FDI (and TNCs) have an effect on economic growth through three types of mechanisms: Size effects, Skill and Technology effects, and Structural effects. Size effects mention the net contribution of FDI to the host country's savings and investment, thus affecting the growth rate of the production base. Iran has enormous reserves of oil and natural gas. Oil reserves are estimated at more than 130 billion barrels, and natural gas reserves are estimated at more than 32 trillion cubic meters. In fact effect of FDI on economy on country like Iran can be very widespread, because not only as an engine of growth Iran can satisfy from foreign capital entry, also other positive effects of FDI could be more important for Iran’s economy, fresh and new technology needed for Oil and Gas industry, managerial efficiency for domestic companies, competition of reaching higher productivity by entry of foreign companies, and import substitution of consumer goods.
