Nearly one year after the lifting of sanctions on Iran’s economy; now we can express our feedback about business with Iran.
Certainly, in 2016, Iran was the center of attention and the re-opening of the Iranian market has offered more opportunities for foreign companies. During last year, we read a lot of encouraging news about Iran and the post-sanction era. The Iranian authorities registered a high number of commercial delegations that came to the country looking new business opportunities from over 50 countries....
In addition, we have seen many companies that tried to enter this market for developing their business. However, after one year from the implementation day, how is the situation in Iranian market? Is Iran a market for all products? Who had a success in this complete market? Etc.
Personally, I think that the situation has changed a bit since last year. However, you have to consider that there are still some challenges for who wants to trade with Iran. For example the monetary transactions; major European banks are still reluctant to do business with Iran for fear of U.S. retribution. This is a big problem for Iranian government who has counted on attracting investments in Iran to create new jobs. At this moment only the small and medium-sized banks accept to collaborate with Iran (see this piece of news http://english.aawsat.com/2016/09/article55358319/foreign-banks-reluctant-deal-iran). Another thing is about the Iranian expectations, despite all the news about business and big commercial agreements, for many people the situation has not changed tremendously.
From a macroeconomic point of view, we have more stability in Iran but generally, Iranian people don't yet feel that the sanctions have been lifted this is because the effect of the lifting of sanctions is slow and Iranian economy recovery takes more time than expected. Iran needs investment in all sectors of the economy to become a more industrialized country that's why President Rohani does not want Iran to become only a destination for export.
Furthermore, I think that many products are requested by Iranian customers but in any case, it is important to do some research to understand the level of demand and the feasibility of projects considering the priorities of the country. It is useless to deny that there are many competitors from other countries.
At the end, I would like to share with you a short list of some winners in the opening of the Iranian Market in my opinion:
- The companies or institutions that organize events as seminars, conventions, summits, etc. Moreover, other businesses related to this sector;
- The companies which started before others in doing business with Iran;
- The people or companies that transfer their know-how;
- The companies active as organizers in the exhibition business;
- Companies who participated in the exhibitions held in Iran and were strongly able to follow up with their prospective clients.
You can complete this list and share with me your experience or your feedback about business with Iran. What do you think?
Thank you for your attention,
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