Page 20 - Trends

Focus: Iran

© Reuters

BMI ranks Iran in 12th place in its Operational Risk Index for Middle East and The last of these increased in January
2018, when US president Donald Trump
North Africa, citing factors such as “stringent” and “onerous” labor laws. suggested the US will withdraw from
the 2015 nuclear deal in April and im-
to gain access to advanced technolo- its Operational Risk Index for Middle pose new sanctions. These would be in
gy and to meet a need for investment East and North Africa, citing factors addition to existing US sanctions that
the government has put at $150-$200 such as “stringent” and “onerous” labor are unrelated to the nuclear program.
billion. But energy and other would- laws, the “pervasive presence of the Trump has strengthened those targeted at
be investors are cautious. BMI ranks state in the economy” and “the risk of the Islamic Revolutionary Guard Corps
Iran in 12th place out of 18 states in inter-state conflict”. (IRGC), whose wide and often opaque
business operations foreign investors
are concerned to avoid. If the US were
2.7 MILLION 0.8 PERCENT $11.8 BILLION to leave the nuclear deal, it is far from
clear that Europe, Russia, China and Iran
European Union sanctions have Growth has only just begun Iran’s foreign direct investment would maintain it.
enabled Iran to double its to broaden the non-oil sector, (FDI) rose from around $4
oil and condensate exports says the IMF, which puts non- billion in 2011 to this mark Facing a downfall
to nearly this number of oil growth for the Iranian year in 2017, according to Politics affects Iran’s relations with the
barrels a day. 2016-17 at only this mark. government figures. Gulf Cooperation Council (GCC) coun-
tries. Iran’s trade with the UAE was strong

20 TRENDS | February 2018