Iran is at the cross-road of the Middle East, Asia and Europe with direct land and waterway access to 15 countries with a total population of 550 million. The country holds the second largest natural gas reserves in the world (17%), the fourth largest oil reserves (10%), and others natural resources including copper, zinc, cobalt, iron, lead, manganese and sulfur. The country’s transportation network includes 12.000 km of railway, 220.000 km of roads, 19M airlines passengers, and 9 commercial ports trading with over 80 foreign ports via 35 container lines. Iran’s GDP consisted of 9% in agriculture, 17% in oil and gas, 13% in manufacturing and mining, 9% in construction and the remaining 53% in services.
Iran produces a wide range of manufactured commodities, such as telecommunications equipment, industrial machinery, paper, rubber products, steel, food products, wood and leather products, textiles, pharmaceuticals, and well-known hand-woven carpets. Also, considering the key role of transportation in economic development, the country produces 1.4 million cars, Iran focus on the decrease in energy consumption, increase of safety, and the construction and renovation of roads.
Agri-food & Packaging sector has a huge potential for investors. Over 12k entities are engaged in the Iranian food industry, employing more than 330k people. Investments now total 7.7 billion USD, or 18% of total investment in the industry sector. The exports range around 1 billion USD per year, and the main export items are confectionary, dairy products, tomato paste, fruit juice and concentrate, mineral water, and pasta.
Iran’s financial market is heavily bank-oriented, where 89% of businesses finance their investments from the banks. Foreign assets constitute 14% of the banks’ assets and foreign exchange loans and deposits constitute 11% of their liabilities. The Foreign Investment Promotion and Protection Act (FIPPA) governs direct foreign investment in Iran, including all types of project financing such as civil participation, buy-back, countertrade and various BOT schemes. Many positive measures make the country more business friendly, including streamlining procedures for business registration, enforcing contracts, obtaining construction permits, company taxation and trade inspection.
Recently Salina inked a partnership with Sam Market Development, a consulting firm based in Iran. With this new partner, we can now assist you to enter in one of the most dynamic market in The Middle East region. Please contact us to claim your 1-hour free consulting to see how we can support your projects.