Following the implementation of the JCPOA (Joint Comprehensive Plan of Action), commonly called nuclear deal, the economic door of Iran has a door-mat that reads “welcome”. For the story, after the JCPOA, there has been a $11billion FDI (Foreign Direct Investment) in Iran.
Iran is open for business, and some of its potential can be implied from the below:
80million people is the population of Iran, expanding by 1 million every year. If its neighbouring markets are included in the count, Iran can become the centre-point in the region, with an untapped market of 450million people. Moreover, most of these people composing those millions are 30years old (on average).
Have done my homework
The literacy rate of young Iranians is 98.5% (total population: 85%). 98% of the population attends school, and 13% has University-level education.
Iran has the 2nd largest Middle Eastern industrialisation. 74% is the urbanization rate of Iranians. They are a consuming population with an entrepreneurial mindset. 77% of Iranians own a phone, and 58% use the Internet.
Show me whatcha got
Iran is the largest agricultural producer of the Middle East, it has the 2nd proven gas reserves, and 3rd proven oil reserves. Its GDP is worth around 438,000billion US dollars.
“Iranians do have a trade spirit, and they want to help foreign businesses invest in their country.”
Attitude is what matters
Iranians do have a trade spirit, and they want to help foreign businesses invest in their country. The Tehran government is interested in joint production in Iran, export to neighbouring countries, and partnerships related to technology in the petroleum and energy industries. Iran needs a $50billion yearly investment in order to achieve its economic development goal of 8% growth rate.
Actions, not just words
Investors in Iran are supported. Certain governmental policies –already in place– can save investors from some headaches, and facilitate their entry into Iran. Examples:
- FIPPA (Foreign Investment Protection and Promotion Act)
- The creation of seven free trade zones and 19 special economic zones (introducing in these zones tax incentives)
- The setting up of an Investment Service Centre (investiniran.ir/en/investmentguide/sevicecenter) as a help desk for queries.
- Privatisation and demilitarisation culture
- Inflation and currency control
- Anti-bribery measures (new income tax laws)
- Globalisation culture (WTO membership application is in process)
“From the status of oil dependent and massive importer, Iran is on its way to become an industrial and exporting player, less oil dependent.”
PISTACHIOCO. Group of companies | Nutimpex SA | Cyrus Trade Group SA
Last but not least
The labour and infrastructure costs are low, and local competitors are inexperienced.
Learn all about investing in commodities in Iran; register for the Iran Commodity Trading Forum 2017 taking place on 24-26 October 2017 in Geneva, Switzerland.