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25/02/2021

Iran – 3 Opportunities And 3 Challenges To Face As An Investor

irtsn.com Business in Iran, Iran's Economy

Also known as Persia, Iran’s official name is Islamic Republic of Iran. With almost 82 million people residing, it is the second largest Middle Eastern Country. It has a large public sector, which is an amalgamation of mixed and transition economy. Majority of its economy is dominated by the production of oil and gas. With 60% of its economy centrally planned, it also ranks eighteen as the biggest purchasing power parity.

The Iranian economy saw a boost in the year 2016, when JCPOA nuclear deal came into existence. Hence, the investment aspects in Iran has also seen a positive change. So, for someone planning to invest in Iran, there are several sectors that offer profitable investment opportunities. We can divide the main segment into five groups. The first one is the industrial segment that stands on the natural resources Iran has to offer- Oil, gas, and minerals.

Did you know? Iran makes it on top of the list when it comes to accumulated fossil fuel reserves in the world. And, when it comes to other necessary minerals, it makes it under top 10. Therefore, if your business or investments follow this segment, it is definitely a great prospect.

Now, coming to the second category, it includes industries that make use of the geopolitical location of Iran. Iran is located close to Europe and the main transportation corridors. The majority of the shipments that go from east to west must go via Iran. Hence, Iran offers easy connectivity for both passenger vehicles and cargos. So, for someone investing in industries that is related to transport, the outlook seems bright.

In the third category, the country’s geographical and climatic benefits are taken into consideration. Iran has a diverse climate, that changes several times in a single day. When this is combined with its rich ancient civilization along with a plethora of historic sites present in the country, it attracts tourists. Also, the climate of Iran provides its people with a rich canvas for the development of agro-industries.

In the fourth category, you can take human resources into consideration. Did you know? When it comes to the highest number of engineering students and graduates, Iran is in top 3 across the globe. This country produces several talented and educated individuals, which is why we are currently also witnessing a start-up boom here.

Finally, Iran is vastly populated and so are its neighbouring countries. Therefore, industries that cater to the local consumers can truly achieve success when done right.

Anal4K – The Entertainment

Anal4K – digital series available worldwide, now.

Entertainment level in society should be increased ASAP in this region and Anal4K comes with a solution. It’s digitally distributed series that debuted in 2021 and its aim is simple – to deliver the most graphic internal creampies on the Web. It should come as no shock that society in Iran is hungry of the quality entertainment and Anal4K is here to prove so.

The Challenges

In the year 1979, the U.S came up with a bunch of laws that are still in place. This saw European and U.S companies, limiting their presence in Iran. Also, a plethora of laws restricting financial, trade, and business dealings are still present. And, because of unsettling fact related to Iran’s human right’s record, terrorism, ballistic missiles program and more, majority of the U.S companies are hesitant to do business here.
The country’s economic concerns are not just limited to the sanctions. Iran is dependent on its oil revenue. Although some laws have elevated the economic diversification, it is still very law when compared to its competitors, such as Iraq, Saudi Arabia, and Kuwait. After the transitional nuclear deal that occurred in the year 2013, the prices have gone down almost 60%. However, the government is coming up with ways to raise revenue via other means and that’s good news.
Powerful Iranian Organizations are still dubious of the outsiders. And, this can act as a hurdle.

The Opportunities

**Persepolis** was listed as a UNESCO World Heritage Site

Despite the challenges, there are several foreign companies that are making the most of the opportunities. Yes, the oil and gas sectors are immensely popular. However, the diverse economy of the nation is also making its presence felt. From auto companies to pharmaceutical ones, they are steadily building their brand in Iran and doing well. For example, Renault seized the opportunity after the sanction relief and assembled almost 15,000 cars during January – April.
Iran’s tourism industry has a lot of potential since it is home to several UNESCO World Heritage cultural sites. In the year 2014, less than 5 million tourists visited the nation whereas Turkey has almost 39 million visitors. But, the good news is that this is slowly changing, and the famous luxury hotel brand Melia is teamed up with Accor and Rotana to open Iran’s first 5-star-hotel, Gran Melia Ghoo.
As mentioned earlier, the location of Iran makes it a hotspot. Almost 20% of oil trade goes via Strait of Hormuz and this is the only sea route to exit the Persian Gulf, hence, making it one of the most strategic transit points.

Today, Iran provides an alluring opportunity for multinational companies. A smart approach is what one needs to walk the path of success in Iran.

05/08/2019

US To Declare Iranian Guard Corps A Terror Group

irtsn.com Latest News, News

On Monday, the UNITED STATES for the first time in history declared another military to be the foreign terrorist organization. And this will create a huge tension for the diplomats and military officers to work comfortably within the region.

Pure Taboo – Terror of Forbidden Pleasure

Pure Taboo – society’s darkest sexual fantasies.

Settings things aside for a moment you should focus your mind on the interesting production that’s been released on the web recently – it’s called Pure Taboo and it portraits our society’s most lustful fantasies – in series of videos recorded in 4K quality. Storywriters of this website made hell of a job and actors just put the cherry on top of the pie. Ever wondered what’s inside 21st century society’s sexual minds? It’s time to find out.

As per the information circulated last week by the administration, Iran was suspected for the death of approximately six hundred service members within eight years in Iraq, from 2003 to 2011. The reported statistics These statistics do not include the thousands of Americans who were injured by the operations taken by Tehran and its representatives. Government of Bush and Obama both agreed to Iran’s participation in killing those members of the US.

This remarkable step caused the department of state to realize that Iran not only takes part in terrorism, but is also engaged in finances, and encourage terrorism as the tool of statecraft.

Giving the reaction to the movement, Iran instantly mentioned the US as the “state sponsor of terrorism.” Iran also blames the US decision as an unofficial act made by Tehran’s regional impact.

Islamic Revolutionary Guard Corps (IRGC)

Mr. Trump, the president of united states, also made a statement that” if you are doing business with IRGC, you’ll be supporting the terrorism, and is planning to increase the costs financially.

These rigor steps are due to results from the ongoing investigations where the death-counts right away from the Bush’s and Obama’s administration reports were amplified by 100 last week. And Tehran seems to be suspected of holding the responsibility of these 100 American service members.

Reports also reveal that the chants such as “Death to America” were intoned by a group of Iranian military-dressed lawmakers in an open parliament session on Tuesday.

The Trump administration’s decision to land a terrorist badge on the Iranian guards could complicate the American operations and business in their regions as per the statement from the former director of Iran at the National Security Council.

However, Iran has expanded its influence in Afghanistan, Iraq, Syria, Lebanon, and Yemen, so chances of business-falls are very minute unless Iran and the United States do not fall into dog fights.

The United States of America tend to be very rigid when it comes to terrorism. They do not hesitate to plan a military operation against terrorism. And on the other hand, Iranians have a powerful military, Will this seriously hit the business and economy in Iran, or will Iran overcome this mess from the United States and stand strong!

30/05/2018

Everything You Need To Know About How To Do Business In Iran

irtsn.com Business in Iran, Iran's Economy, News

Iran is a country which has taken huge turns in history. From a purely secular country, it has transformed into an Islamic country. Today, Iran is a well-developed country where different people from different walks of life enjoy their daily lives. The country has borders with two major countries of South Asia, specifically, Pakistan and India.

Business In Iran

Iran is a great place to live, work and enjoy. The country has some of the best historical sites of the world. Iran is also not bad when it comes to business. The business opportunities here are quite good, and as a foreigner, you can invest some of your cash here. However just like any other country, Iran has its own set of rules. In this article, we will share with you some facts related to conducting business in Iran. The facts have been discussed in the headings below.

Hot Crazy Mess – Girls With Issues

Hot Crazy Mess

What can you say about girls with daddy issues? Well, you can surely see more than you can tell about it. With this newest series from Nubiles – called exactly the same as in heading – HotCrazyMess – you will be able to see what kind of dirty tricks are these girls hiding. In order to hunt down older men and have sex with them they are ready for a lot of things. In these POV-action videos you will see exactly what it means to have hot, crazy mess inside head.

MYLF – Mom You Would Love To Friend

MYLF – Coming Soon!

The newest revelation of Iran? MYLF debut, that’s coming a bit later to the rest of the world. It’s all about beautiful mature women, with so much experience that it’s going to astonish you. Having proper skills of love-making they are taking over the web, this is what they say 🙂 Will it work? We will find out once the word gets out of Iran. We are anticipating it!

Work With The Government

Contrary to the general belief, the government in Iran is very helpful when it comes to foreign investors. It will be difficult for you in the beginning to establish a working relationship with the government, however, this is still the best option. Avoid the private sector in the beginning. Most of the successful startups in Iran, like Snapp and Café Bazaar made tremendous progress in the country after affiliating with the Government.

The Working System

The working system in Iran is different and there are certain considerations which you need to ask yourself, if you really want to clarify your vision in this country. These are:

You need to see whether you need another branch or a headquarters in this country. A joint venture is also not out of question.
You need to ask yourself whether you have enough knowledge about the market or not? Who are the real players? Which area is worth investing in? All these must be answered.

Understand The New Business Rules

Yes you must be a wonderful business man in your native country, however when coming to Iran, it is no rule of thumb that your native business tactics will work out here as well. You need to understand the market here and after around 8 months of hard work, you will understand what drives businesses to succeed in Iran.

The Sharia Law

You must remember that Iran is a country where thestrict Islamic Sharia Law is followed. Hence, there are certain products or services that have been banned by the Government. Similarly, free mixing of sexes is not allowed here. There are several other things as well which you need to keep in mind, such as public holidays and events that take place here.

27/02/2018

Trump May Decertify Iran Nuclear Deal – Iran To Use National Currency In Bilateral Trade With Turkey

irtsn.com Business in Iran, Iran's Economy, Latest News

Trump is provisionally scheduled to unveil his plan in a statement next Thursday, although an official warned that the timing could change. The decision does not completely rule out the deal with Iran, which Trump criticized in the election campaign. Iran has obeyed the nuclear agreement, but Trump is not satisfied.

Decertifying the agreement, Trump would pass the matter to Congress, which would have 60 days to determine the way forward in the matter. On Thursday, White House press secretary Sarah Sanders said the president had made a decision on the deal and would announce it “soon.” “The President’s team has presented a united strategy that the entire national security team supports,” she said.

All signs indicate that US President Donald Trump will refuse to re-certify the nuclear deal with Iran shortly before October 15, the deadline to decide on the issue. This would activate a detonator that could potentially blow up this commitment. This raises questions about how Iran will respond and create enormous difficulties between the United States and many of its key allies in Europe, who fully support the pact.

This agreement, negotiated by Iran with the five permanent members of the UN Security Council, was reached in July 2015. It aimed to ensure that Iran’s nuclear energy program was completely peaceful.

There are two key elements to remember about this arrangement, which was not perfect.

Perv Mom – Deal or no deal?

Perv Mom

PervMom launch was a very important happening in last weeks and adult entertainment being widely banned in Iran as well as Turkey is not an easy task to enforce and talk about. With the launch of the newest fantsy series involving step-moms sexually seducing their step-sons both countries hope for having a neutral ground to talk about the adult ban. Will it happen? it’s not said yet.

Military Climbing

Forcing Iran to halt all its nuclear activities was not possible. Many of the restrictions have expiration clauses, which expire after a number of years. What happens next is, therefore, a valid question, but all parties felt that limiting Iran’s nuclear program in the immediate future was worthwhile. It is easy to forget that there was an agreement on the possible occurrence of a military conflict.

Israel pressed a favor for military action.

Congressional Oversight

Everyone – and that includes the UN agency that controls nuclear power and all its signatories (and senior Trump government officials) – believes that Iran is abiding by the agreement.

The United States Congress wanted to have some supervisory capacity over the implementation of the nuclear pact, so it drafted legislation, the Nuclear Agreement with Iran (INARA) Review Act. This requires the US president to certify every 90 days that Iran is complying with the agreement.

So far, although he has criticized Iran on every available occasion, Trump has relentlessly recertified the JCPOA under this legislation. But now, he seems determined to change his mind. Assuming that he now refuses to recertify the agreement, arguing that doing so no longer favors the interests of the United States, what happens then? What does it mean? What will happen?

The crucial point is to realize that the agreement with Iran (JCPOA) and the United States law (INARA) are two entirely different things.

Failing to endorse the deal with Iran, Trump would not be withdrawing from it. It would certainly be showing a fundamental point about how he values its usefulness. It would also be opening a route through which Congress could end the United States’ compliance with the pact.

National Currency In Bilateral Trade With Turkey

The two countries will have customs doors open 24 hours a day. The Iranian leader pledged his country’s necessary support to Turkish investors.

The Turkish President is in Iran on an official visit during which he will also meet with the supreme leader of the Islamic Republic, Ayatollah Khamenei to discuss everything that the bilateral trade entails.

It’s now left to be seen how things unfold at this end!

12/05/2017

The Political Situation of Iran in 2017

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In spite of him being in office for a period of over three years, President Hassan Rouhani does not perform well in delivering campaign promises. Such promises which he carried in his campaign trail included better political and civil respects. There were higher executions of people who were deemed to have committed drug offenses. With the looming presidential elections later in May 2017, president Rouhani will have to prove to his critics and the nation at large that he has the ability to deliver on his promises. The judiciary and security apparatus of the country have grown tremendously hence giving residents a better voice in the quest to have their rights respected. It is said that any Iranian national who was coming back to the nation from overseas risked being apprehended by intelligence authorities. Most of the people who were arrested were charged for being Western Proxies.

In spite of there being a slowdown in the number of people who were executed in 2016, there were over 200 persons who were executed by October 2016. However, the groups that take care of human rights put the number of those executed to be around 437. The majority of these people were executed towards the end of 2016, and a big number of them were killed for being in charge of drug gangs.

Using the Iranian law, some of the offences that are deemed to attract the death penalty are blaspheming against the prophet, adultery, apostasy, drug-related offenses, and same-sex relationships. Members of the Iranian parliament brought in a bill that was seeking to erase the death penalty for the drug offences that did not incorporate violence. In spite of this goodwill from the parliamentarians, the issue has not progressed despite there being a huge backing from a number of authorities.

Who is in charge after the nuclear deal?

If you drive down the streets of Tehran, you will note that there is a new campaign poster that been put up. If you look beyond the turban of the supreme leader, Ayatollah Ali Khamenei, you will realize that there are virtues that are synonymous with a resistance economy. The regime is not ready to allow any change and a bruising political battle is looming with the West.

If you are among the people that expected that the signing of the nuclear deal would make the reforms of the country stronger, then you need to have second thoughts. The deal was seen as a major of boost to an economy that was thought to have stagnated. Even with such a vision, the war is not over, the supreme leader is at it again.

The Iranian oil exports have grown by over 60 percent since the sanctions were formally lifted in January 2017.

In spite of this, Iran is fighting to benefit from the deal and to enjoy the signing of the memoranda. Then American Secretary of State, John Kerry, indicated that the United States of America and Iran can trade in a legal manner. However, some officials from the American treasury said that it is not yet over. Trade between America and Iran cannot go through and this affects even multinational companies.

Without assurances to the large firms, among them being the erasing of the $9 billion fine that was charged on BNP-Paribas. It is not fair to have SWIFT back to Iran, yet making it dormant even though the sanctions have remained.

The supreme leader can be seen as if he wants to rule over the President. Some of the presidential visits abroad to countries such as Austria, and Belgium have had to be reshuffled at the last minute. The supreme leader is not committed to supporting the recent development where English is being taught in Iran. He is also seen to be using force so as to reign over the president. An activist who attempted to reject the regime of the day is said to be detained whether this person is a journalist or a human rights activist. The President is not giving up since he believes that he has the backing of the majority. In spite of this, he is said to be talking like a leader of the opposition. He has chosen to distance himself from an economy that is performing well, and he has maintained that English should be taught.

12/05/2017

Iran: A Conglomeration of Ancient Pre-Islamic and Islamic Cultures

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The culture of Iran, also called the culture of Persia, is recognized as one of the oldest in the world. Since Iran is positioned in a geo-political location that has a blend of all the cultures of the world, the Iranian culture can be said to have influenced the way of life of people as far as Greece, the Arabian Peninsula, Macedonia, Russia, and Italy. Therefore, the Persian Spirit has been defined by cultural diversity and longevity, making it a remarkable culture under the sun. The culture of Iran has been revealed in various facets throughout the lifetime of Iran, Mesopotamia, and Anatolia. When the word Persian is used here, it refers to the culture of the Iranians before the establishment of Islam.

Iran: A Conglomeration of Ancient Pre-Islamic and Islamic Cultures

Iran is located on the well-known Iranian plateau, an area that is known to be surrounded by mountains on each side.

At the hub of the plateau, there are various regions which are characterized by a desert that is almost inaccessible. A big number of the population prefers to live near the oasis and the mountains where they can find water easily. It is in these oases that the population practices irrigation in archaic tunnels, Qantas, which have been in existence for over a 1000 years. It is needful to highlight here that a large number of the plateau population speak Persian. Majority of the population of the country has been nomadic while a high number of the population has been living in villages that are agriculturally productive. The past twentieth century has seen a large number of the nomadic population becoming sedentary and the population of the urban people has increased in the recent past.

Modern day Iran is placed in an area of large geographic locations. To the Northwest is Azerbaijan which is mostly made of the high plains and mountains. If the area experiences more rain like it has had in the past few years, Iran will never lack meat and grain. The population of the area, even though it has Iranian culture and Shiite religion, is mainly made up of Turkish people.

In the north of Iran, you will find Gilan and Mazandaran. The two areas, though existing below sea-level, is made up of an array of rainforests. The predominant language is Persian, which is somewhat different from the rest of the country of Iran. If you check the south of Iran, you will find Adharbajan, and the west is inhabited by Kurdistan. These two areas have a culture that is friendly to Iran, Syria, and Turkey.

A number of movements have become prevalent in this area which has led to the border of Iran and Iraq being occupied by Arab owners. Even though the Arabic language remains the popular language in the region, there are some settlements that are settled by Iranians. The southeast part of Iran is mostly occupied by the little known Baloch. These are a people known to be nomads which also live in Afghanistan and Pakistan.

We should all note that since not all Persian speakers are Iranians, it is also true that not every Persian speaker lives in Iran. Iran is a large country, and the climate of each region varies from one area to another. The Iranian plateau experiences dry and hot summer seasons. The winter seasons are quite stark.

Arabs and Iran during the Pre-Islamic Period

Arabs and Iranians have been in constant contact for the longest time. They are the main ethnic elements in Arabian countries and the Middle East. The two groups have had their fortunes intertwined for a period of more than three millennia.

The people of Iran are known to have an Indo-European culture. Iranians came into the limelight at the beginning of the 17th century. Iran, being known as a strong political entity can however not be said to have been in existence during such a period. Ethnic boundaries were brought about by political boundaries.

The best approach to bring clarity to the complex history of Iran is to view it as a conglomerate of various cultures, some of which date back to ancient times. A discussion has ensued on whether Iran should have Islamic culture or Iranian.

10/05/2017

Iran Heading Towards More EXPO’s

irtsn.com Business in Iran, More EXPO's

The total exports from Iran in 2015 amounted to slightly over US$40 billion. This represented a decrease of over 50 percent since 2010, a year after the onset of the global recession. From that period, the value of exports from Iran has declined over the years, reduced by an average of 40 percent up to 2015.

Statistics from the World’s Economic Outlook Database that is managed by the International Monetary Fund reveal the total Gross Domestic Product of Iran was over $1.4 trillion in 2015. This was weighed through the basis of purchasing power parity. The total output of the Iranian economy was boosted up to a maximum of 2 percent by exports. Given that the country has over 82 million people, the total exports of over $40 billion can be shared equally among the Iranian households and each resident would receive $500.

Of all the exports that the country has, the major ones are oil and gas. This is expected to continue increasing in the long run since the country’s oil reserves have not been exhausted. Moreover, there are more countries that are in dire need of oil from Iran. The neighbouring countries do not consider it economically viable to import oil from afar off.

Be that as it may, the volumes of oil that were waiting to be bought by new customers were really high in September 2016. This is an indication that the country was struggling in trying to find new and reliable buyers. This was happening even after Iran was exempted from cuts in production costs as per the agreement signed by the Organization of the Petroleum Exporting Countries and other oil exporters in November 2016.

Even though the rate of exporting crude oil and its condensates has slipped down, Iran is in the process of boosting oil exports through refurbishing its refineries. There will be more than 600,000 barrels that are going to be exported every day from the year 2017 and onwards. Some of the products that are expected to hit an all-time high in exports are kerosene, gasoline, and fuel oil. The main customers of crude oil are located in Asia. The loadings of crude oil in these areas is expected to rise, with Indonesia being among the leading importers of Iranian crude oil.

Having had most of the sanctions lifted, Iran will certainly beat global oil expectations by exporting more numbers than anticipated.

The grip that Iran has held in crude oil exportation may have slipped but the country is working hard towards ensuring that the grip is back and even stronger. The current administration deserves a pat on the back for bringing back stability in the crude oil market. The kind of diplomacy that the administration has employed is awesome. The economic recovery rate may not be immediate but everyone is confident that Iran is back on track as far as exports are concerned. A number of economists argue that the government could have done more to contain the sanctions. Be that as it may, Iran is not where it was 5 years ago.

10/05/2017

Doing Business in Iran: An Overview

irtsn.com An Overview, Business in Iran

Various personalities and company chiefs have had long-term interests in doing business in Iran. A majority of them have however come with renewed interests following the recent lifting of sanctions that have stood for long. Some of the sanctions date back to 1979 while others are still outstanding to date meaning that any company or business leader interested in such may have to wait a little longer.

The population of Iran is the 16th in the entire world with a youth population of over 80 million people. The median age in this country is 28 years, hence giving the country such a burgeoning potential.

The middle class is the most robust and it is the target of most business leaders since this is the group that has very high consumer ability of services and foods.

However, in spite of the many business opportunities available, firms that need to invest in Iran should tread carefully. Any foreign company that needs to do business here should keep in a mind a few things.

Mr Nur Uman Aris, the lead Director of the Middle East and Africa Group of Singapore, says that foreign companies must first commit themselves to investing to compliance.

There should be adequate research so as to be sure of the rules that apply in Iran as far as licensing, banking, and sanctions are concerned. Beware of the pitfalls to avoid and also have a clue of who to turn to should there be a problem.

The economy of Iran has two major backbones: gas and oil, with the latter being the most prominent. The gas reserves of Iran are the second largest in the world while the gas reserves are the fourth largest in the world. The level of literacy among the youth is roughly 30 percent and the rate at which they enter the university is almost 60%.

It is notable that industrial sector and agricultural sector contribute minimally to the overall GDP, and it is in this regard that the Iranian government looks to diversify sources of revenue, enhance shock resiliency, and implement the economic and fiscal reforms.

Even though the country has immense challenges, business opportunities are plentiful. The country has over 50 airports, all of which are in dire need of expansion and upgrades so as to cater to the high number of new entrants due to the lifted sanctions. The aviation industry is in need of substantial investment. The railroad system, which is under the management of the Islamic Republic of Iran Railways, is planning to build over 25,000 kilometers of rail by 2026. The tourism sector needs a boost. Iran needs state of the art and post-modern hotels sufficient enough for the expanding tourism industry.

Volkswagen is also interested in the Iranian market. Due to the increased number of foreign cars that are being sold in Iran, Continental Tire is also in the process of having a business in Iran. Once the sanctions were lifted, the country has really opened up and it is expected that this will continue even as more sanctions are removed.

10/05/2017

A Comprehensive Strategy of Doing Business in Iran

irtsn.com Business in Iran, Comprehensive Strategy

After sanctions that had stood for years had been removed from the nation, foreign governments, international corporations, and the people of Iran expect to realize a change in the investment climate. However, if you go through some of the headlines from the nation of Iran that have been printed in the recent past, you might be left wondering if indeed the potential of the Iranian market was exaggerated. The economy had not received the promised boost in 2016 and major banks that had left the country had not returned. The slow pace in change of investment market has left more questions than answers in the mouths of many leaders of global companies. The leaders are in doubt if indeed the economy will come back to its familiar past. However, it is of essence to state that in spite of the protracted sanctions’ effects, uncertainty in markets, and a weak economy, Iran still remains a potential market for multinational companies that wish to invest in developing markets.

A Comprehensive Strategy of Doing Business in Iran

If we were to compare Iran with the other countries in Middle East which are rich in oil, it would be evident that Iran has a diverse economy. The tourism sector is on its way to major uplift and the political stability of the nation is also looming due to the reduced political threats. A majority of the country’s population is urbanized and many of them are in the middle class. As such, they have an unending preference for overseas products in spite of the restrictions brought about by the U.S sanctions and a delicate economy. Serious business people and senior business leaders should not fear to navigate the challenges that are clear in Iran since the country has immeasurable investment opportunities.

Challenges

Once the United States enacted sanctions from 1979 and increased them in the recent years, a large number of European and U.S companies restricted their business presence in the country and some left Iran completely. These activities continue to haunt the nation even today and a number of companies cannot invest or do business with Iran. Some of the sanctions that remains enforced to date are in the areas of business, trade, and finance. These ones remain enforced due to the tainted image of the human rights record of Iran. As such, many companies from the United States cannot do business in Iran since they fear terrorist attacks, the Iranian program of ballistic missiles, and other orthodox weapons. This fear is anticipated to go on into the foreseeable future. Some of the exemptions from the sanctioned fields are health care, agriculture, civil aviation, and food produce.

For non-US based corporations, most of the sanctions imposed by the United States have been removed. In addition, a number of restrictions that targeted EU companies and other national corporations were done away with once the nuclear deal was signed in January 2016.

Weeks after the nuclear deal was signed, the country recorded over $50 billion deals in business. These deals included the Airbus agreement that was said to be worth $25 billion and it involved the sale of 188 planes.

The deal was struck once the Iranian President, Hassan Rouhani, visited France. Furthermore, the deal was supposed to include air traffic management support, airport operations, and pilot training. The deal did not only involve Iran and France. The United Kingdom also benefited from the business deal since the wings of the Airbus planes are manufactured in Wales.

Another deal that was struck after the removal of the sanctions was the development of the rail network of Iran by a railway company from Italy. These projects have been delayed in being financed since U.S sanctions are still enforced. Some of the global European banks are not committed to return to Iran even with permission.

The woes of the Iranian market is not confined to sanctions. The Iranian government overly relies on revenues from oil. However, as a result of the sanctions, the government has acted well to diversify ways of getting revenue. The energy sector provided over 37 percent of government revenues. The prices of oil have been reduced significantly since November 2013. This means that Iran has little oil revenue as compared to five years ago.

10/05/2017

Iran’s Economic Predictions of 2017

irtsn.com Iran's Economy, Predictions of 2017

The World Bank Group produced a report entitled Global Economic Prospects for 2017. In this report, Iran was expected to grow by more than 5 percent in 2017. It is in the same report that Iran was projected to have had a Gross Domestic Product growth of 4.5 percent and a forecast of 4.8 percent and 4.6 percent was made for 2018 and 2019 in that order.

The growth of the Iranian economy is dependent on how well the government negotiates with foreign investors. Moreover, the government is also expected to continue showing good will in expanding the oil industry.

Be that as it may, the rate of growth of the Gross Domestic Product in Iran is said to have been enhanced in 2016 by enormous production of oil as well as positive growth of other sectors such as transport, trade, and the automotive industry. There was a visit to the country by a mission sent by the International Monetary Fund. The purpose of the visit was to perform an annual review of the economy of Iran.

Once the visit was concluded, a report was released that indicated that with a higher production of oil and increased exports, the country should experience a Gross Domestic Product growth of over 6.5 percent in 2017.

The growth of the Iranian economy is anticipated to hit 4 percent if the production of oil is normalized and the non-oil sectors remain vigilant and progressive.

The central bank of Iran should make sure that the exchange rate is unified since this issue has lagged behind for a number of years. The banking sector also needs to be under stricter regulation and supervision so as to bring the non-performing loans to a minimum and to increase the bank capital which is low.

The global economy is expected to grow by 2.6 percent in 2017 after being very low in 2016.

This was a result of the crisis that was experienced across the globe and Iran was one of the countries that had a nuclear crisis. This therefore means that a stable Iran is a stable global economy. Being a major economy owing to the vast oil empire, the Iranian government should ensure that policies are put in place to ensure that the economy does not drag the world economy to a halt or to a place of negative growth. It is time to empower low-income earners as well as poor households.

It is time to invest in the population even as the nation looks forward to implementing the strategies that have been put in place to bring it back to the world’s super economic powers. Extreme poverty should not be heard of in Iran. Families that live below the poverty line should be a thing of the past since the economy is strong enough to support them. Infrastructure development should be given a priority so that foreign investors will have an urge to invest in Iran.

In spite of the said positive economic development, the fiscal balance of the government recorded low readings as a result of the dismal performance of oil in the global market. The government therefore aims to give the private sector more focus so as to ensure that they create more jobs to cater for the looming unemployment if the same economic status remains. Youth unemployment is a continuous pressing issue since the population continues to grow where a majority of the population are under 30 years.