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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 ..
‘India’s private sector is deeply interested in investing in Chahbahar, but the government of this country has shown no interest in this regard,’ Gholam-Reza Ansari told a meeting here on Thursday.
Saying that India’s regional policy has been unnecessarily cautious, he added, ‘In the post-sanctions era, India shall be aware that investment in Iran will be a correct move.’
‘Conditions in West Asia have changed… Does India want to miss excellent opportunities by further delays?’ he asked.
The envoy also referred to Iran’s role in establishment of peace and stability in the region and said, ‘Iran is fighting against the extremist forces that attempt to disturb security in the region.’
“We signed a licensing deal with Iran Khodro Industrial Group for local production in 2005. With the recent easing of sanctions, we’d like to consider restarting our business there,” Suzuki President Toshihiro Suzuki told reporters, as reported by Reuters.
Under its agreement with Iran Khodro, the company which specializes in compact cars, sent parts for 6,200 cars to Iran in 2011, its peak year of operations in the country, Reuters added.
Suzuki has now joined other global auto leaders including Daimler, Peugeot, Renault and Fiat that have voiced interest in returning to the Iranian market in a post-sanctions era.
The economic sanctions against Iran were lifted over the weekend after a nuclear deal that the country had sealed last year with the P5+1 group of countries – the five permanent members of the Security Council plus Germany – was implemented.
A central theme of the sanctions concerned restrictions over investments in Iran’s auto industry as well as any form of cooperation with the Iranian automakers.
Iran is the Middle East’s largest auto market with a population of 80 million who bought 1.1 million cars in 2014.The automobile industry is seen as Iran’s biggest non-oil sector, accounting for nearly 10% of the country’s gross domestic product (GDP). Iran Khodro and Saipa companies account for more than 90 percent of the total domestic production in Iran.
Latest data shows that Iran ranks 18th on the list of the world’s top auto manufacturers. The 2014 production statistics by the International Organization of Motor Vehicle Manufacturers (OICA) indicate Iran’s auto production increased by 46.7 percent in the 12-month period.
‘I believe we have a share in the market which was removed from us. Now we have to return our share and the market has to adjust,’ Sputnik quoted Zarif saying.
The removal of sanctions allows Iranian crude oil producers to re-enter the international market.
Iranian increased its oil exports 500,000 barrels immediately after withdrawal of sanctions and is planning to increase it an additional 500,000 barrels in coming weeks.
Pierre Sarute said that Iran and France enjoyed satisfactory relations over the past two years in light of their sustainable beneficial ties in remote past.
He said that the international sanctions’ era was the only period in which the level of Iran-France relations decreased somehow, while now after the implementation of the nuclear agreement the ties will be developed.
‘The termination of sanctions has now opened gates towards both countries and we hope to be able to establish a satisfactory level of cooperation in pharmaceutical field,’ he said.
He said that France is going to export pharmaceutical supplies and hospital facilities to Iran and import some Iranian pharmaceutical products and health facilities.
The managing director of LEEM said that a team from the Iranian Health Ministry is scheduled to visit France early next week and the representatives of the Iranian Red Crescent Society are invited to visit Paris in October.
Deputy Managing Director of the Iranian Red Crescent Society for Executive Affairs Javad Fallah announced the Iranian pharmaceutical industry readiness for full cooperation with France.
‘We hope in this newly emerged atmosphere in the post-nuclear agreement era we will manage to establish a very positive and fruitful cooperation with France,’ he said, hoping for improvement of medical items’ quality thanks to such international interactions.
A number of French medical industry managers accompanying the LEEM managing director got familiarized with the activities of IRCS in producing medical sipplies.
In a conference in Sari, the capital city of northern province of Mazandaran, Ahmad Asghari, said that Iran Chamber of Commerce has begun negotiations for attracting tourists from Russia.
Referring to Iran’s tourism attractions, he said that Iran has to make use of Moscow’s restrictions for travelling to Turkey.
Asghari said that in order to be able to attract more tourists, Iran has to take some preparatory measures, particularly by providing easier visa regulations.
When oil prices have shrunk to lower than 30 d/b, expansion of tourism sector can be a main way for getting rid of mono product economy.
Speaking in this northern provincial capital city, he said the company is planning to purchase ten ships.
Noting that the company owns the biggest marine transportation fleet in the region, the official said it also provides the most regular exporting services from all northern ports to all Caspian Sea littoral states.
Despite sanctions and other problems that the company has been facing, Padidari stressed, it has kept improving and increasing its services.
He said the company presently owned 350 container for carrying dry goods and 32 freezing containers.
He adde that the company has so far carried over 2,130,000 tons of goods to its export destinations.
Padidari went on to note that the Khazar Shipping Company plays a significant role in stabilizing transportation costs in the region as it accounts for 35 percent of regional transportation.
The talks were held on the sidelines of the World Economic Forum Annual Meeting underway in Davos, Switzerland.
The two also reviewed the international and regional issues.
During the talks, the Azeri president expressed satisfaction over implementation of the landmark agreement between Iran and the 5+1 since January 16 and felicitated the Iranian nation and government on the achievement.
He hoped Baku and Tehran would take more serious steps towards strengthening bilateral relations.
On regional developments, Aliyev described terrorism as the biggest threat to all regional countries.
Azerbaijan, he said, is ready to cooperate in every possible way to help get rid of violence and restore peace and tranquility to the region.
For his part, the Iranian official said Tehran and Baku enjoy positive growing relations.
Iran is serious in having constructive interaction with all nations, the neighbors in particular, said Nahavandian.
Iran, he said further, welcomes any joint investment with other countries.
Full text of the People’s Daily article follows:
Chinese President Xi Jinping pays a state visit to Iran days after a comprehensive plan of action on the Iranian nuclear issue finally went into effect.
Analysts believe that it marks a new era for Sino-Iranian cooperation, in which Iran will embrace more Chinese investment and technology.
Xi’s visit to Iran on January 22 and 23, will be the first visit to the country by a Chinese president in 14 years.
Six days before Xi’s trip, the Iranian people said goodbye to their hardest days with the implementation of the nuclear plan, which required Western countries to lift economic sanctions against Tehran.
Analysts believe that the two milestones also make 2016 a significant year for the resource-abundant Middle Eastern nation.
Sino-Iranian economic and trade ties – which have suffered severe setbacks over the past 30-plus years – will embrace a new phase in the post-nuclear-deal era, Hua Liming, former Chinese Ambassador to Iran, the United Arab Emirates and the Netherlands told the People’s Daily.
“As the sanctions have been lifted, Iran’s oil exports are back on track,” Hua explained.
He believes Iran’s economy will benefit not only from oil exports to China, but also from Chinese investment and technology.
Hailing Sino-Iranian economic and trade cooperation as a highlight of Xi’s trip, Li Shaoxian, an expert on Middle East studies at Ningxia University, described the two nations as born partners.
Li was optimistic about Iran’s future, insisting that thanks to its vast territory, rich natural resources and strong national education system, it will only be a matter of time before Iran takes off, as long as it seizes the right opportunities.
But as more countries have begun to seek cooperation with the resource-abundant nation now that sanctions have been lifted, China faces larger pressure to compete for the “big cake.”
Li emphasized that there will certainly be more space for Sino-Iranian cooperation, explaining that as Iran’s largest trade partner, China is a strategic complement to Iran.
According to Li, Iran is also one of China’s key partners in the building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
Li said Iran’s active echoes of China’s proposal are appreciated, and he pointed out that Iran requires a large sum of financial and technical support to revitalize itself.
China’s expertise in infrastructure and production capacity can help realize win-win cooperation, the expert added.
Hua suggested that under the framework of China’s “Belt and Road” proposal, areas of cooperation can be expanded beyond the infrastructure and energy fields.
Against the backdrop of closer trade ties, Hua also called for more cooperation in education, tourism and other cultural exchanges.
“I hope both countries can improve their mutual understanding and friendship by intensifying cultural exchanges and communication in the post-nuclear-deal era,” he added.
The article was published on the occassion of a visit to Tehran by Chinese President Xi Jinping who arrived in the Iranian capital Friday night heading a high-ranking delegation. This is the first visit to Iran by a Chinese president in 14 years.
Prior to his visit to Iran, President Xi wrote in a statement that Beijing gives great importance to Tehran and is ready to ‘join hands with Iran to renew the Silk Road spirit and create an ever better future for China-Iran relations.’
Below is the full text of the Chinese newspaper article on importance of Iran for China-proposed ‘One Belt, One Road’ initiative:
‘Chinese President Xi Jinping arrived Iran on Friday night as the last leg of his first tour of the Middle East with stops also at Saudi Arabia and Egypt. This is the first visit to Iran by a Chinese president since 2002.
Xi’s trip comes against a backdrop of strife between Saudi and Iran after the former executed Shiite cleric and activist Nimr al-Nimr, triggering furious protest. But this is unlikely to hamper China’s relations with the two countries. Making the three Middle East countries as destinations of Xi’s first overseas trip in 2016 demonstrates the comprehensive advancement of major-country diplomacy with Chinese characteristics and this is a key step in elevating China’s overall relations with the Middle East to a higher phase.
In fact, Xi’s insistence on the trip despite the unrest in the Middle East will prompt parties to push forward the peace and stability in the region and reach a consensus on major issues, which will help ease the tensions between Saudi Arabia and Iran. As China’s Vice Foreign Minister Zhang Ming said, there will be no peace for the world with a messy Middle East.
China’s relationship with Iran is an important part of its overall ties with the Middle East. China and Iran have seen a series of high-level visits over the past two years and Xi’s trip is also a reciprocal one for the visit to China by Iranian President Hassan Rouhani in May 2014. The two countries maintained friendly cooperation when Western countries imposed sanctions on Tehran over its nuclear program and they have close connections in energy security, economic complementarity and strategic cooperation. Over the past seven years China has been Iran’s top trading partner. The two-way trade reached $ 51.85 billion in 2014 and about 100 Chinese companies have a presence in Iran. Advancing the China-Iran relationship has been a consensus among the people and the leaders as Iran’s external environment is improving, and this will bolster stability and development in the Middle East.
Soon before the visit, the US and EU lifted sanctions on Iran and the nation is now able to re-engage with the global economy. Iran values the hard-earned peaceful environment to boost its economic and social development. But as Iran’s broad market is open, many Western reports asserted that Xi intentionally made Iran one of his destinations in this tour to ensure China’s predominant position in the Iranian market was uncontested and counter an influx of Western competitors. This is definitely a misreading.
The friendly cooperation between Beijing and Tehran during the times when Western countries were estranged from Iran has already laid sound foundations. As Rouhani said, ‘Iran will not forget its friends that had good relations with the country during the difficult conditions of sanctions. No power can influence good relations between Tehran and Beijing.’
Besides, China’s advantages in technology, infrastructure construction and capital can provide items Iran direly needs. Naturally Tehran will make its own choice during the re-engagement and tilt toward whoever can provide more benefits. Yet Iran is clearly aware what Western countries are able to offer. After all, they are extremely cautious in providing technology transfer and investment for countries like Iran. In this sense, China has no concerns for Western competitors and the bilateral cooperation will continue to move forward on current basis.
As an influential country in the region, Iran is an important outpost in the China-proposed ‘One Belt, One Road’ initiative and also a key partner to promote the initiative. During Xi’s visit, the two sides are expected to deepen their consensus and bring notable outcomes in this regard. This will help build a corridor that connects China with Central Asia, Iran, West Asia and Europe, and reinvigorate the social and economic development of Asia and Europe. On this account, Xi’s visit to Iran is highly anticipated.
The author is a research fellow at the Institute of West-Asian and African Studies at the Chinese Academy of Social Sciences.
In 2015, bilateral trade shrank 30%, totaling $1.67 billion. In the previous year, before the toughening of sanctions, it reached $2.37 billion, the Brazilian newspaper Folha reported.
Brazilian exports were 98.5% of the total trading.
“I think we can, in the short term, in a five-year horizon, triple current trade with Iran,” said Armando Monteiro, Brazil’s Minister of Development, Industry and Foreign Trade.
Monteiro was the head of a mission with 33 companies and Brazilian organizations that visited Iran in October.
The first meeting of a joint committee on economic themes-being regathered-is expected to be held in March or April, in Brasilia, with government representatives from both countries.
The Brazilian government would also be considering an investment facilitation agreement with Iran, similar to the ones signed last year with Mexico, Colombia, Chile, Angola and Mozambique.
The Brazilian government and exporters expect that the political proximity the country has kept with Tehran in recent years will be a differential in the race for Iranian consumers, Financial Tribune reported.
“Politically, in recent years, Brazil has not been hostile to Iran. And that will possibly revert in Brazil’s exports to that country,” said Jose Augusto de Castro, head of the Brazilian Foreign Trade Association.
According to Rodrigo Azeredo, director of the Trade and Investment Promotion Department of the Foreign Ministry, the message was clear during the trade mission that visited Iran in October.
“Brazil is very competitive in several segments and they have with Brazil a relationship of trust and friendship,” he said.
Italy’s Carlo Maresca on Saturday signed a $100-million contract with the Iranian organization to construct a solar power plant near Garmsar Special Economic Zone in the central province of Semnan. As per the deal, a 100-megawatt will be built on a 2,000-hectare area within 15 months, IDRO’s official website reported….
Iran says credit line with Russia to boost trade Iran’s Minister of Economy and Financial Affairs Masoud Karbasian. Iran says it expects a recent agreement with Russia over the creation of a credit line to fund Iranian projects to help promote trade between the two countries. Iran’s Minister of Economy…
Iran huge rise in imports from Europe Iran has reported a major rise in imports from several key European countries over a period of nine months starting 21 March 2017. As Iran is celebrating the second anniversary of the removal of sanctions, figures show the country’s imports have been picking…
Iran opens third DRI steel mill using domestic technology Neyriz Steel Complex at the time of commissioning. Iran has brought online its third steel plant which uses domestic technology for production of direct reduced iron (DRI) or sponge iron. The hot commissioning of Neyriz Steel Complex in the southern Fars…
With better risk rating, Iran now stands next to Brazil The Organization for Economic Cooperation and Development (OECD) has improved Iran’s risk rating by one notch. Iran’s media are reporting that the country’s risk classification has improved by one notch in a vital sign of improved investment environment. The English-language…
PSA invites Iran Khodro to produce Peugeots in Algeria Iran Khodro logo French carmaker PSA Group has invited Iran Khodro (IKCO) to set up a production line for Peugeot cars in Algeria, the Islamic Republic News Agency (IRNA) reports. PSA executive vice-president for purchasing, Yannick Bézard, on Tuesday visited Tehran-based…
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