About Iran
IRAN 2014 – with proved reserves of Natural Gas of 33,600,000,000,000 m³ (the 2nd largest in the world) and 154,600,000,000 Barrels of Crude Oil reserves (4th largest in the world) – and a population of 80 million.
With a population of 80 million, almost the same as Germany or Turkey, in an area of 1.65 million km² – Iran has in excess of 500 million people as neighbours in seven different countries, all connected by road and rail.
In terms of business, those are very exciting numbers – that’s a lot of potential customers.
Iran has good schools and an excellent education system, with very strong competition for entrance to University. With an insatiable appetite for technology, computers and advanced know how for the crucial oil and gas industry, Iran is a very exciting prospect for business.
Iran is an Energy Superpower and a leading member of OPEC and the Organisation of Gas Exporting Countries. Iran is also a net exporter of electricity and exchanges electrical power with all its land neighbours. Iran is also the:
- 4th largest oil producer in the world behind only Saudi Arabia, Russia and the USA
- 4th largest proved reserves of Crude Oil in the world behind Venezuela, Saudi Arabia and Canada
- 4th largest gas producer in the world behind only the USA, Russia and the EU
- 2nd largest proved reserves of Natural Gas in the world only behind Russia
Iran’s economy is dominated by its industrial sector, which includes oil and gas, petrochemicals, steel, textile, and automotive manufacturing.
Iran is the 15th largest motor vehicle producer in the world and the largest automaker among the Middle Eastern countries.
Iran’s agriculture sector is substantial. Iran is a major source of caviar and pistachio nuts. Iran’s climate also support tobacco, tea, wheat and barley, among other food commodities.
A very old country with a young population
27.6 years – that’s the median age of the population in Iran.
This figure is 37.5 in Australia, 40.5 in the UK, 43.7 in Germany.
In 2012, over half the population in Iran were aged under 35 years. Iran is one of the most tech-savvy societies in the developing world – led by youth. Iran also boasts one of the highest number of blogs in the Middle East – led by youth. Iranian women account for almost 33% of all cosmetics bought in the two dozen countries in the Middle East – led by youth. Iran’s young are better educated and more worldly than any previous generation, with many young Iranians wanting to be part of the international community and globalization.
Why Iran is good for business
So, what’s on offer in Iran?
As always, in business, it’s about getting in first.
A very lucrative emerging market that simply oozes business potential, with very healthy demographics and the once in a decade opportunity.
Iran has an excellent geographical location, sandwiched between Europe, Russia, the booming markets of the Gulf, and close enough to much of Asia to trade with that region as well.
France is sending business executives to Iran. German and Dutch entrepreneurs are taking courses on how to close a deal in Tehran, and carmakers are drawing up plans for investment. The interest is welcome as Iran is very keen to revive its economy after years of international isolation.
Among the first signs that business is ready to resume is the surge in demand for flights. Austrian Airlines announced it will resume five-weekly flights to Tehran, and its parent company Lufthansa said it is thinking about adding more seats to its daily flights. Turkish Airlines is also seeking permission to increase its routes’ frequencies.
Iran’s car industry is ready for investment. Its plants are running far below capacity. Iran Carmakers, plan to engage in new joint projects with foreign carmakers.
The biggest industry in Iran is undoubtedly its oil and gas sector, other industries include machinery, vehicle production, food, medical technology and pharmaceuticals.
The fundamentals of the Iranian economy look as attractive as any emerging market, and arguably more so. Iran has a population of 80 million . Add in the numbers of people, and the amount of oil and gas, and the Iranian GDP is already substantial.
But it still has the potential to double that at least, and could do so in a relatively short space of time.
There are not many other emerging markets with that kind of profile.
As the populous country in the Middle East with its excellent geographical location and its highly educated young people Iran has a significant market for foreign investment and international business.