Absorbing investment in urban area is an important factor affecting progress and prosperity of the urban economy. Investment in any province is affected by a set of major factors in the country and specific factors of that province. If it is not invested appropriately in any society, economic growth will be slowed or stopped. During last years, by notifying the policies of Article 44 of the constitution and law of attraction and protection of foreign investment, the ground has been prepared to increase private sector participation in investment. Thus, this research aims to investigate the barriers of absorbing investment in urban area in Lorestan Province. Data were collected by questionnaire from a sample of 189 economic experts and masters in the Organization of Industry, Trade and Mine in 2015. To analyze data, one sample t-test and ANOVA were used. The results indicated that development of investment infrastructures, risk (insecurity) of investment, organizations and governmental institutions’ attitude toward investment, and rules and regulations of investment affect extremely investment in Lorestan Province.