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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 ..

Iran is planning to export its gas to Armenian border, then Georgia will receive Iran’s gas there, managing director of National Iranian Gas Company (NIGC) said.

Ali Reza Kameli told IRNA that the plan will be implemented according to talks between Iranian and Georgian officials.

However, exports of gas to Georgia should be done when it is economical, the official said.

About exports of Iran’s gas to Europe through Georgia in the Caucasus region, Kameli said Tehran does not believe in such exports via pipeline, adding the method of liquefied natural gas (LNG) has got priority.

At present, Turkey is the major buyer of Iran’s gas that imports daily 30 million cubic meters of gas from Iran, he added.

In Caucasus region, at the border of Europe and Asia, Azerbaijan and Armenia are also willing to buy Iran’s gas, said the official.

Iran exports gas to Armenia in exchange for electricity, Kameli said.

Georgia is the last country in the Caucasus region that has asked for Iran’s gas, said he, adding if the plan to export gas to that country is implemented, all states in Caucasus will be customers of Iran’s gas.

Georgia has already declared that it needs Iran’s gas.

Deputy Head of Cultural Heritage, Handicrafts and Tourism Organization (ICHHTO), Morteza Rahmani Movahed informed that a new era has begun in tourism and with cultural and human capital this era can be heralded.

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Rahmani Movahed in the cosing ceremony of the first International Tourism Brand Conference held in Isfahan. He was addressing a comprehensive list of participants in this event including people of Isfahan, universities, Chamber of Commerce, industry and agriculture, Municipality, Isfahan Cultural Heritage, Handicrafts and Tourism office, UNWTO and UNESCO representatives, professors and foreign scientific faces.

He added that the conference resulted in introducing Iran as a tourist spot for the world. For promotion of tourism in Iran, he added that creative and active human resources will be employed.

The new model of Iran’s oil and gas contracts, titled Iran Petroleum Contract (IPC), obtained final approval from the government’s Regulations Adjustment Panel, said the Iranian petroleum minister.

Speaking to Shana, Bijan Zanganeh said that there is no problem for executing the new contracts.
Last November, Iran hosted a conference to unveil IPC models and to brief foreign companies on the details of the new contracts. A large number of the representatives of major energy firms attended the forum and showed great interest in IPC.
IPC is expected to replace buy-back contracts. Under a buy-back deal, the host government agrees to pay the contractor a fixed price for the entire volume of hydrocarbons it produces.
However, the IPC requires the National Iranian Oil Company to set up joint ventures with international companies in oil and gas production. In addition, the foreign firms will receive a share of the output.
Tehran IPC conference is to be followed by another in London on February 22-24.

Head of Iran’s Chamber of Commerce, Industry, Mine and Agriculture Mohsen Jalalpour announced that Russia will lift tariff on Iran dairy imports as of January 15, 2016.

He made the remarks in a joint meeting with heads of three chambers of Commerce, shopkeepers and co-operative here on Monday.

Jalalpour said about his meeting with Russian ambassador to Tehran, and added that tariff on dairy imports to Russia will be lifted on January 15 and tariff on other goods from mid- February.

He added that Russian market has a potential capacity, which should not be ignored.

Referring to the tensions in Turkey and Russia relations, Jalalpour said that Iran can take advantage from this situation and increase its presence in regional markets.

Minister of Energy Hamid Chitchian announced Denmark’s proposal to build wind turbine factory in Iran and has mutual cooperation to develop renewable energies in the country.

He made the remarks after meeting with Danish Foreign Affairs Minister Kristian Jensen here on Monday.

Chitchian told reporters that Danish proposed investment to build a factory to produce wind turbines, so they would be able to export the merchandize into the region from Iran.

He said that this meeting was for recognition of Denmark investment opportunities in Iran’s water and electricity industry.

The minister said that Danish had good understanding with Ministry of Economic and Finance to complete plans and projects, and added that by good abilities of Danish experts in the fields of renewable energies, we hope to witness an effective bilateral cooperation.

Published reports on Iran’s commercial balance in year 2014, indicated that Denmark by increasing its ties with Iran by growth of 983 percent, by weight, could promote its position from 20 to rank 9 of Iran’s trade partner.

Managing-Director of Islamic Republic of Iran Shipping Lines (IRISL) Mohammad Saeedi said on Monday that the company is seeking to open bureaus across Europe.

Once the arbitrary sanctions on Iran are lifted, Iranian-flagged ships can travel between Iranian and European ports, Saeedi said speaking to reporters after a meeting with representatives from Danish shipping lines.

He said that imposition of anti-Iran sanctions banned Iranian ships from travelling to Europe and vessels owned by international companies from travelling to Iran as well.

Launching shipping bureaus across Europe is aimed at facilitating exports of Iranian oil and non-oil products to European ports, the official said.

He also said that after the lifting of sanctions the Iranian ships can receive insurance services from European insurers.

Referring to Iran’s failure to renovate its shipping fleet for seven years due to the tough sanctions imposed on the country, Saeedi said that Iran has plans to renovate its fleet after the sanctions.

Visiting Danish Foreign Minster Kristian Jensen said here in a conference on Tuesday that he is in Tehran to pave the way for a win-win trade cooperation between Copenhagen and Tehran.

In today’s conference on developing Iran-Denmark economic cooperation, Jensen said his country is determined to strengthen relations with Tehran.

Iran with its rich culture has already helped develop Western culture in the past, Jensen said.

Denmark and Iran enjoy 80-year-old diplomatic relations, he said adding that there are many areas in which the two can expand cooperation.

He further said his country will share its global experiences with Iran.

Iran is a leading player in the region, he noted stressing removal of anti-Iran sanctions will benefit both Tehran and its partners.

Today, the time is ripe for Iran to play its historical role in the global arenas, he stressed.

Italy has planned to take its agrofood industry to Iran in February with a delegation of companies led by Italian Agriculture Minister, Maurizio Martina, IRNA reported on Tuesday.

Cooperation in the agrofood sector began during Expo Milano 2015, before the agreement on Iran’s nuclear programme was finalised.
Italy intends to tighten relations with Iran by bringing to the country companies, products and technical know-how in the sectors in which it is a leader, from sustainable agriculture to the designation of geographical origin.
‘We have scheduled an agrofood mission to Iran in February following the new relationship opened with this country and the mission led by Carlo Calenda, the Deputy Minister for Economic Development, last November,’ Mr Martina told AGI, the Italian news agency.
The first important moment in this relationship was on June 4 and 5, when the Iranian Agriculture Minister participated in the agriculture forum at the Milan Expo. The meeting gave rise to a bilateral agreement with Iran and marked a first step to develop a joint agrofood project.
‘As you can see, our collaboration began much before the signing of the agreement on Iran’s nuclear programme and gained momentum after it,’ he said.
‘Italy has acquired a know-how in the agrofood sector which has made it world leader in many aspects and Iran is willing to discuss the Italian business model, which is more advanced compared to that of other countries.’
The three key points of the Italian agrofood industry, Mr Martina said, are: ‘its sustainability, as Italian agricultural practices are the most environmentally friendly in all of Europe; the dimension of the companies, which on average are small and medium-sized; and the close integration between the raw material production chain and the processing industries. It is a model in which we are leaders and that can be exported.’

Iranian carmakers manufactured 682,182 vehicles in the first nine months of the current Iranian calendar year (March 21- December 21).

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The country produced 78,708 vehicles in the Iranian ninth month of Azar (November 22-Decemebr 21), Tehran Times reported on Sunday.
The carmakers manufactured 1.13 million vehicles in the past Iranian calendar year, which ended on March 20, 2015, showing 53 percent growth compared to its preceding year.
The automobile industry, the biggest non-oil sector of the Iranian economy, constituting around 10 percent of gross domestic product (GDP), boomed over the decade ending in 2011 due to government support and the dearth of international competitors in the domestic market.
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.
The figures show Iranian automakers produced 1,090,846 cars and commercial vehicles in 2014.
Global automakers are in a race for new business in Iran following the signing of a nuclear accord between Iran and world powers on July 14, 2015, which will end economic sanctions against Iran in exchange for restrictions on its nuclear program.
In his visit to Iran in November 2015, Italian Economic Development minister Federica Guidi said his country is keen on investing in Iran’s car industry.
Japan also seeks joint car manufacturing in Iran, according to Japan External Trade Organization (JETRO) Chairman Hiroyuki Ishige who visited the country in October 2015.

Iran is scheduled to hold an international summit on January 28 and 29 to introduce opportunities to the foreign countries for expand their economic cooperation with the Islamic Republic.

The summit titled “Iran Open Business (I.O.B)” aims to bolster the country’s ties with the world in trade, financial, commercial, industrial, mining, development, and tourism sectors, the Tasnim News Agency reported on Friday.
Ambassadors, commercial attachés and representatives of economic entities from many countries will attend the gathering which will be held in Tehran.
The event will be an appropriate opportunity to introduce Iran’s investment attractions to the foreign entities.
The recent agreement between the P5+1 and Iran allows for the removal of most economic sanctions and for a significant improvement in Iran’s economic outlook, the International Monetary Fund said in its October report on regional economic outlook for Middle East and Central Asia.
The report said the sanctions relief will bring three key benefits for Iran. First and foremost will be a positive external demand shock, both for oil and non-oil exports. In addition, the decline in the cost of external trade and financial transactions will act as a positive terms-of-trade shock (lowering the price of imports and raising the price of exports). Finally, restored access to foreign assets and higher oil exports should also result in a positive wealth effect.
Taken together, these three shocks are likely to create a significant improvement in the outlook for the Iranian economy in the years ahead, outweighing the adverse effects from the sharp decline in global oil prices over the past year.
Estimates of the growth impact, based on analysis of the Iranian economy, suggest that domestic economic activity could accelerate markedly following sanctions relief. Real GDP growth could rise up to 5½ percent in 2016/17 and 2017/18, while hovering around 3½–4 percent annually in the years after.

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