Overview
Based on the World Bank report in 2015, Iran is the 18th largest economy in the world and the 2nd in Middel East and North Africa (MENA). Iran’s industry depends largely on hydrocarbon sector owning 2nd world’s largets natural gas reserves, and 4th in proven crude oil reserves. But it is noteworthy that Iran is also rich in comodities, spanning metals and agricultural raw matrials. In addition, Iran has great potential in the sectors of manufacturing, construction, transport, ICT, tourism, and health which have not been exploited to their fullest. In particular, Iran is seeking to further develope her non-hydrocarbon industries, by having introduced commercial incentives and attractive tax exemptions for foriegon investors. Therefore, opportunities exist for those businesses that can faciliatate and leverage these underlying trade potential in terms of import, export, outsourcing, service provision etc.
Government incentives
Iranian supportive policies for foreign investment in Iran was ratified by parliament in 2002 under the “Foreign Investment Promotion and Protection Act” (FIPPA). Some highlights of this treaty are:
- Broader fields for involvement of the foreign investors, such as involvement in major infrastructure.
- Broader definition given to the foreign investment, covering all types of investments from FDI to different types of project financing methods, such as civil participation, buyback, counter trade and various BOT schemes.
- Streamlined and fast track application of investment licensing and its approval process.
- Greater regulatory flexibility that facilitates access to foreign exchange for capital transfer optimally.
Demographic advantages
Iran has an estimated population of 78.8 million, of which 40% are aged between 20-39, and 86% are well-educated. One can obtain an overview of Iran’s advancement in science and technologies here. Therefore, Iran has a young, highly skilled, and leverageable work-force.
Infrastructure
Iran has an area of 1.648.195 square kilometers, of which 73% is urbanized with well-developed infrastructure in transportation, telecommunications and energy. Such infrastructures are under continious improvement.
Strategic location
Iran has a strategic location, connected to 15 neighboring countries via land and sea. This creates lucrative trade and transit routes in both north-south and east-west directions.
Special trading zones
Iran has 7 unique trade-industrial free zones, and 15 special economic zones, with particular tax, customs duty, logistic etc benefits for investors, manufacturers and traders.
Why Iran
In summary, doing business with Iran is a golden opportunity, because of:
- A diverse and resource-rich economy,
- A highly skilled work-force,
- A large domestic market with a predominantly upper-middle earnering consumer base,
- A well-developed infrastructure including world class transportation links,
- Supportive goverment policies that offer attractive tax exemptions and corporate incentives.
These great potentials can be utilized fairly for the benefit of 78.8 million Iranian people and the rest of the world, given the golden time of doing business with Iran now. ATIC aims to bridge such commercial relationship between Iran and Europe.
Above all, Iran is a land of history, mystery and rich culture. ATIC aspires to build commercial relationships which also serve as cross-cultural relationships. We recommend you to also combine your business trip with a fabulous tour of your choice from this amazing land, and let yourself be surprised by the warmth and positivity of Iranian people.