Shahid Rajaei is a highly promising agro‐industrial company for agricultural production in the Khuzestan, Iran. The goal of this study was to investigate the challenges and factors hindering foreign investment in Shahid Rajaei's agro‐industry. To understand these challenges (including technical, economic, infrastructure, socio‐cultural challenges, and policy‐making as dependent variables), an Exploratory Factor Analysis was conducted. Additionally, their impacts on the level of foreign investment in Shahid Rajaei's agro‐industry (as the dependent variable) were tested through regression analysis. Based on the results, three independent variables ‐ policy factor, technical factor, and infrastructure factor ‐ had the most significant impact on the level of foreign investment in Shahid Rajaei's agro‐industry, explaining 53.5 percent of the variation in foreign investment level. These findings highlight the critical role of these factors in influencing the level of foreign investment in Shahid Rajaei's agro‐industrial sector."