Page 14 - JCCI Business Focus Vol.1.3

NEW BEGINNING FOR IRAN’S ECONOMY

REOPENING OF THE ECONOMY TO GLOBAL BUSINESS

Mehrdad Syadatnasab, Commercial Zones. The country has competent In 2015 and 2016, Tehran hosted
Attaché of Iran Embassy, Pretoria, farmers, carmakers, drug firms a flurry of trade delegations
South Africa and a fairly sophisticated service and signed new contracts to
sector with abundant potential in boost cooperation and promote
ran is an important and engineering and technical services various opportunities in tourism,
historical country with an (721 Techno-Engineering projects transportation, technology,
Iancient civilization in the have been executed in 42 countries foodstuff, aviation and machinery
Middle East Region. Situated by Iranian companies over the last as well as oil and gas and other
in strategic location, with a 10 years), making it less dependent sectors. (Around 60 foreign
population of about 80 million, it on oil, now at rock-bottom prices, delegations visited Iran in 2016; at
is the world’s 17th-most-populous than other big producers such as least a dozen were from Europe.)
market. The economy of Iran is the Persian Gulf states.
the eighteenth largest economy As the largest untapped market
in the world by purchasing power The economy of Iran has been with a very young population,
parity (PPP). In fact, Iran is a very hit by sanctions and extensive the lifting of sanctions will
young nation and it is not only trade restrictions in recent years, bring around a host of new
about quantity, but also quality. yet the nuclear deal has opened opportunities to foreign Farm in Iran (www.agroinfo.com)
a clear path for total obliteration businesses with a prior presence in
Iran, as a major energy producer of sanction policy against Iran as well as those interested in the world, which makes it more companies are getting very excited
in the Middle East, holds 10% of the country. Although being entering the Iranian market. New resistant to global shocks. (The about Iran.
the world’s oil reserves (second sanctioned has been a big issue Iranian legislations such as the external debt to GDP is less
largest oil producer) and second for the economy, we can address Foreign Investment Promotion than 5 percent). Considering It is worthwhile to mention
largest reserves of natural gas (15% this issue as an opportunity rather and Protection Act have come the substantial amount of not- that, the removal of international
of the world’s total) and it has the than a threat. into force to attract more foreign satiated demand in almost every sanctions along with the
potential to become an energy investment, removing previous sector, an industrial base which government’s continued
superpower. After years of intensive restrictions on the percentage requires renovation and the privatisation drive will open
negotiations, all the of foreign shareholding in Iran, rich natural resources mainly new investment and trade
The economic fundamentals are misunderstandings around Iran’s underutilised due to investment
strong. It has been described as nuclear activities have finally and the possibility of registering deficiency in recent years, Iran opportunities for Iran, in both its
the Germany of the Middle East; cleared. In July 2015, Iran signed an Iranian company with 100% has extra ordinary expansion oil and non-oil sectors, such as
comprising an educated workforce, a historic deal with the P5+1 foreign capital as well as unlimited and investment potentials in the infrastructure, automotive and
developed infrastructure and a group of international mediators transfer of capital and dividends fields of oil, gas, petrochemicals, transportation and we can say that
proud tradition of manufacturing and now are taking the next step where applicable. mines, industries, agriculture and the Economic Renaissance has
with seven Free Trade-Industrial towards integrating more deeply The country has one of the service sectors and it’s easy to see started and Iran’s Golden Times
Zones and 30 Special Economic into the global economy. lowest levels of external debt in why investors and international are not far away. 

Azadi Tower, Tehran, Iran (http://surfiran.com/iran-tourism-nuclear-deal/) Tehran at night

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