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Why should I invest in Iran

Iran qualifies from many respects to be a good location for investment and doing business. it has huge potential for investing after the termination of economic sanctions, Some of the features are highlighted below:
1. Vast domestic market with a population of 80 million growing steadily 2. Young, educated and cheap labor force 3. Excellent strategic geographical position 4. The quick and easy access to neighboring markets with a population of 350 to 400 million 5. Developed and ready infrastructure 6. Cheap and abundant raw materials, energy and transportation 7. The four-season climate and climate variability in the country 8. Fiscal incentives 9. Security and political stability 10. Untapped and consumer market ..

As financial sanctions are eased against Iran, foreigners can enter a bourse in Tehran with almost as many listed companies as Istanbul. Inflows may reach as much as $1 billion after six to eight months, estimated Reza Soltanzadeh, a founding partner at ACL Assets Management, an investment firm that focuses on Iran.

What’s the big deal?

With a market cap of about $90 billion, Iran’s stock market is fifth-largest in the Middle East. The lifting of sanctions allows the country to compete for investor attention with Arab countries, which opened the region’s biggest stock market to direct foreign ownership seven months ago.

While investing on Tehran’s bourse was already legal for many international investors, financial sanctions placed on the banking system made it almost impossible to transfer money in and out of the country. The majority of those sanctions have been removed after an international deal over Iran’s nuclear ambitions, allowing the nation’s banks to reconnect to the Swift system for international financial transactions.

Although buying shares hasn’t been prohibited for Europeans, investing in certain industries, such as energy, has been off limits.

Who can and will invest?

For all the talk of how the nuclear deal has seen sanctions lifted, many U.S.-related bans remain. U.S. citizens and companies are mostly prohibited from trading with Iran, and most dollar-denominated transactions are unable to settle through the U.S. system, likely preventing large dollar deals.

Even so, dozens of Europeans and Americans living in Europe have been on organized investor tours to Iran over the past year, assessing the landscape and visiting some of the large, listed manufacturers. Many obtained the necessary trading codes and licenses to prepare for the removal of sanctions.

“Initially we’ll have the braver sort of family offices, fund managers who will come in in the first six to eight months,” said Soltanzadeh. These will be “setups that have done this in a lot more dangerous places in the world and they understand risk,” he said.

How can international investors enter?

There are two ways to access Iranian equities: invest directly, or go through local funds.

Investing directly requires the use of a broker based in Tehran, as well as a foreign trading license and investment code from the Securities and Exchange Organization. The code is needed to buy and sell securities in Iran.

The second way is to use a local fund. Several companies have been preparing foreign investment funds for Iran in anticipation of the lifting on sanctions. An index-linked ETF for foreigners already exists and a small fund exposed to sanctions-proof companies started in December.

What are the key statistics?

The more than 300-member benchmark TEDPIX Index traded at 5.7 times profit at the end of December, according to latest data on the exchange, compared with 12.2 times for stocks in developing countries, according to MSCI indexes.

The benchmark fell about 11 percent last year after sinking 21 percent in 2014, the first annual decline since 2008. The average monthly turnover for 2015 was $902 million.

Trading is from 9 a.m. to 12:30 p.m. in Tehran, Saturday to Wednesday.

Next year is going to be a good year for Iran’s economy, says the first vice president, urging all organizations and institutions to adopt the economy of resistance.

‘The government is confident that next year (Persian calendar), under reforms in economic, foreign and resistance economy policies, the country is going to experience good conditions in terms of investment, production and job creation,’ said Es’haq Jahangiri at an inaugural ceremony for the Mehrabad Airport subway.

Characterizing resistance economy as a transparent, knowledge-based, popular economy, Jahangiri urged all the organizations and institutions to follow the policies of the economy of resistance.

‘Resistance economy demands popular participation and everybody should adopt it,’ he said, referring to the endorsement given by Supreme Leader Ayatollah Seyyed Ali Khamenei for the economy of resistance.

‘The Supreme Leader says everybody is accountable in following the policies of resistance economy and that he is supportive of it,’ said Jahangiri.

Head of Securities and Exchange Organization reported of forming special workgroups to connect Iranian capital markets to South Korean ones saying that this connection will be regarded as a big achievement for Iranian market.

Mohammad Fatanat told IRNA on Monday that Iranian capital market delegation’s recent trip to Seoul aimed at following up the MoU signed between Iran’s Securities and Exchange Organization and Korea Exchange (KRX).

Fatanat reiterated that in order to implement the MoU, especial workgroups were created to provide technical, electronic, settlement and other mutually beneficial grounds.

He added that especial workgroups were also created in South Korea capital market in order toprovide legal and regulatory issues.

Referring to currency exchange as one of the most important issues in connecting both countries’ capital markets, he added that lifting sanctions and the recent MoU signed between Iran and South Korea Economy Ministries would facilitate currency exchange and implementation process of these MoUs.

Regarding South Korea’s annual stock transaction volume which is over $1,200 trillion, he said that being connected with this market would be a big achievement for Iran.

Head of the Presidential Office Mohammad Nahavandian said that bilateral meetings were held with British officials and businessmen on investment in oil industry, infrastructure, and environment fields.

European companies are interested in participating in Iran’s economic projects as Iran is no longer a sole importer of finished products, IRNA quoted him saying following a three-day conference in London focusing on Iran’s economic opportunities and challenges.
In addition to taking part in the conference, Nahavandian said, bilateral meetings were held with political and economic officials focusing on joint investment in infrastructure, oil, gas, and energy as well as in industrial sectors and environment.
‘The London conference was an opportunity to present Iran’s economic realities, its potentials, and development goals to this European economic center,’ he added.
‘Another important issue which was stressed was enhanced cooperation in financial and banking services,’ he said adding that London can serve as a hub linking Iranian and European banks.
‘It was reiterated in the meetings that full implementation of the Joint Comprehensive Plan of Action (JCPOA) can be achieved through expedited provision of financial services by non-American banks which do not fall under US sanctions.’
Nahavandian also said that in the meeting with members of the Iran-UK chamber of commerce, the European side expressed its interest to participate in Iran’s economic development projects.
On the political negotiations in London, the head of the Presidential Office said that besides bilateral ties, regional and global developments were discussed in meetings with Foreign Secretary Phillip Hammond, Trade Secretary Sajid Javid, and Prime Minister’s National Security Advisor Mark Lyall Grant.
‘It was stressed that Europe and UK, in particular, have to make additional efforts so that (nuclear) talks will lead to practical results as stipulated by the Supreme Leader.”UK Prime Minister David Cameron in a letter to the Barclays has instructed the bank to boost all of its operation to provide banking services to the Iran-UK economic ties so that any obstacle on the way of economic cooperation is lifted,’ he said.
‘Also Foreign Secretary Hammond said that UK will take every measures to expand banking ties with Iran and that a delegation to be headed by Trade Secretary Javid is schedule to visit Iran in coming months.’
“With the withdrawal of sanctions, everybody agrees that they were futile measure,” he said.

Deputy Minister of Health Iraj Harirchi said on Saturday that Iran and Japan have reached a comprehensive agreement for $10 billion investment, major portion of which presumably dedicated for the health sector.

Harirchi, speaking in a ceremony to ink an agreement with a Japanese delegation, hoped that expansion of cooperation between Iran and Japan will lead to a drastic change in the health services.

He said Iranian and Japanese officials have agreed on establishment of two hospitals by the Japanese government, which is hoped to be implemented so speedily.

He also hoped for cooperation between Iran and Japan in construction of hospitals with more than 1,000 beds as well as mobilization and state-of-art management of the centers running based on the latest information technology.

Also referring to the Iran Health Exhibition in Tehran, Harirchi said Japanese Minister of Health will be invited to be present in the inaugural meeting.

The official said under present junctures, such countries as Germany, Italy, Korea and China have expressed readiness for construction and mobilization of medication centers in Iran.

He concluded that Japan will also support the breast screening project to check spread of cancer in Iran.

Governor General of Tehran province Hossein Hashemi said on Saturday that two free economic zones in southern Tehran and industrial zone of hi-tech are ready for joint venture investment with Armenian Republic.

He made the remarks in a meeting with the Armenian Ambassador to Iran Artashes Tomanian.
He said that Tehran-Yerevan economic ties have always been effective for economic development of the two countries.
The official noted that Tehran Economic Free Zone has recently launched its activities in the vicinity of Imam Khomeini International Airport.
According to Hashemi, the entrance and exit of capital is free in Tehran Free Economic Zone and the place is the best corridor linking the West and East.
Underlining the need for promoting tourism relations between Iran and Armenia, Hashemi said that developing ties in cultural fields and holding joint exhibits and chambers of commerce can pave the way for further cooperation.
Armenian envoy, for his part, hailed Iran-Armenia current level of ties, saying that his country’s embassy in Tehran will make the Iranian investors familiar with Armenian economy.
‘Tehran province is of high significance for us and we will display our products in Tehran International Exhibition,’ Tomanian said.
Referring to the two great international developments regarding Iran, he said that nuclear deal and lifting the sanctions and the democratic elections held in Iran on Febraury 26 were important issues, displaying Iranian nation’s resolve to the world.
Lifting the sanctions paved the way for Armenia’s trade with Iran in different fields of agriculture, technology and education.

Lord Norman Lamont, UK’s trade envoy to Iran, expressed his optimistic view on resurrecting trade relations with Iran and said that the British market-driven economy is eager to do trade with Tehran.

Speaking to IRNA on the sidelines of a meeting between Iran’s Head of the Presidential Office Mohammad Nahavandian and the British Chamber of Commerce, Lamont said: ‘British economy is a market economy. It is not planned by the government; so things do not happen because the government says.’
Referring to the recent increase in the number of BICC memberships as a positive sign, he added, ‘Who would have thought we would have all those people at the FT conference, few month ago. All of these people who were at the meeting today with Dr. Nahavandian would not have come few months ago.’
‘This is all part of a process that goes on,’ he added.
The British politician also expressed satisfaction over the outcome of the meeting between BICC members and Nahavandian and emphasized that the economic program of the Iranian government had broad support in Iran.
‘Also different British sectors raised questions which were answered; so it was a good exchange of views.’
In response to question on the reason British firms are holding back trade with Iran, Lamont said that the banking issue is one major problem [since] the residual American sanctions are still in place.
‘A lot of British and American banks have been fined enormous sums of money. Some of them have defered prosecution agreements, some are still arguing with American regulators so they are very very cautious.’
“But I think we are beginning to see signs of some of the smaller banks coming back in and I think it will be like a pebble that starts the bigger stones rolling,” he told IRNA.
He also said, ‘We did not have an embassy [in Tehran] for quite while and hence there were no relations.’
Lamont rebuked previous British sanctions on Iran and said, ‘Britain enforced sanctions quite rigorously and so there is more to recover from.’
Asked whether there were any other issues apart from banking concerns for the British firms to start business with Iran, Lamont replied with a categorical “No”.
Lord Lamont has been appointed as the UK’s trade envoy to Iran as part of a wider government attempt to reverse Britain’s underwhelming record of exports.
The appointment of the former chancellor to the new role comes just three months after a series sanctions against Iran were lifted as a reward for Tehran dropping elements of its peaceful nuclear program.

Enamel

The art of Minakari or Enamelling is called miniature of fire as well as the decoration of metal and tile with mina glaze. Minakari or Enamelling is the art of painting, colouring and ornamenting the surface of metals by fusing over it brilliant colours that are decorated in an intricate design.

Mina is the feminine form of Minoo in Persian, meaning heaven. Mina refers to the Azure colour of heaven. The Iranian craftsmen of Sasanied era invented this art

These beautiful bowls, plates and vase are made in Esfahan, central part of Iran. This special blue colour is a national colour.

Khātam (Inlaid)

Khātam is a Persian version of marquetry, art forms made by decorating the surface of wooden articles with delicate pieces of wood, bone and metal precisely-cut geometrical shapes. Khatam kari is the art of crafting a Khatam. Common materials used in the construction of inlaid articles are gold, silver, brass, aluminum and twisted wire.

Ceramic glaze

Ceramic glaze is an impervious layer or coating of a vitreous substance which has been fused to a ceramic body through firing. Glaze can serve to color, decorate or waterproof an item.

Persian carpet

Carpets woven in towns and regional centers like Tabriz, Kerman, Mashhad, Kashan, Isfahan, Nain and Qom are characterized by their specific weaving techniques and use of high-quality materials, colours and patterns. Town manufactories like those of Tabriz have played an important historical role in reviving the tradition of carpet weaving after periods of decline. Rugs woven by the villages and various tribes of Iran are distinguished by their fine wool, bright and elaborate colours, and specific, traditional patterns.

Pile-woven Persian rugs

Flat-woven Persian rugs

Metal scrimshaw

scrimshaw the removal of decorations and designs on metal objects, particularly copper, gold, silver, brass, or in other words create lines and patterns by pen and by hammering on metal objects.

Calligraphy

The history of calligraphy in Persia dates back to the pre-Islam era. In Zoroastrianism beautiful and clear writings were always praised.

It is believed that ancient Persian script was invented by about 600–500 BC to provide monument inscriptions for the Achaemenid kings.

Persian painting and miniature

A Persian miniature is a small painting on paper, whether a book illustration or a separate work of art intended to be kept in an album of such works called a muraqqa. The techniques are broadly comparable to the Western and Byzantine traditions of miniatures in illuminated manuscripts.

Turquoise Inlay

Turquoise is a non-vitreous stone, which differs in shade from blue, green and blue-green depending on its origin.

For at least 2,000 years, Iran, previously known as Persia in the West, has remained an important source of turquoise which was named by Iranians initially “pirouzeh” meaning “victory” and later after Arab invasion “firouzeh”. In Iranian architecture, the blue turquoise was used to cover the domes of the Iranian palaces because its intense blue colour was also a symbol of heaven on earth.

Presidential Chief of Staff Mohammad Nahavandian said on Thursday that the Islamic Republic of Iran is to broaden cooperation with those countries mind to do investment in Iran.

Nahavandian made the remarks in a meeting with UK Minister of Trade and Investment Lord Francis Maude, in London on Thursday.

Implementation of the Joint Comprehensive Plan of Action (JCPOA) has created suitable economic opportunity in Iran which should be seized, he said.

After removal of economic sanctions which inflicted loses on all sides, Iran is ready to broaden cooperation with all countries wishing to play roles in the country’s economy, Nahavandian said.

Iran has already defined policies to broaden economic cooperation with the countries seeking to invest in the country, Nahavandian said.

Iran’s economy has many potentials in different fields and grounds for huge investments in the country and in various sectors are well prepared, Nahavandian said.

Grounds for investment in energy, mines, automobiles and other sectors are well prepared, he said.

The UK minister, for his part expressed satisfaction over lift of economic sanctions and welcomed recent accords between the two countries in various economic fields.

London regards expansion of economic cooperation with Iran for its very special status and is to broaden such wide-scale cooperation in various fields.

London is ready to help Iran to join World Trade Organization (WTO) to speed up pace of economic cooperation between the two sides, said UK minister.

A delegation from Chinese NFC investment company in a meeting with governor general of Ardebil announced readiness to make investment in mining industry in the province.

Majid Khodabakhsh, the provincial governor general, said the activities of the company in the field of exploitation of aluminum from mines in southern Iran are outstanding, adding that investment in Ardebil province mines will entail favorable results.
During the meeting geological, tourism and agricultural features of Ardebil Province were outlined and the Chinese company was invited to finance and cooperate with creditable Iranian companies, including Jihad Nasr for investment in the province.
The delegation is due to inspect Sabalan mining region and make the necessary decisions for joint cooperation in the area.

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