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Iran demands expertise and investment in infrastructure development

With the removal of the Iranian sanctions looking to come to fruition in Q1 of 2016, businesses in Europe are gearing up for a rush in one of the world’s most lucrative emerging markets says Raj Venugopal, key account manager at GAW Technologies

Raj Venugopal, GAW Technologies

In this space, the Iranian infrastructure sector is shaping to be one of the most profitable and most lucrative areas of for any Western company seeking to do business in Iran. Years of sanctions have given rise to the opportunity for Western businesses to supplement and spearhead the growth of the continuously expanding Iranian infrastructure. The decreasing dependence on road-transit in favour of rail-based transport gives an opportunity for electrification and modernisation technologies to flourish in the Iranian market.

In turn, further sub-sector increasing demands in infrastructure including power generation, water & agriculture, transportation and construction will give sustained investment potential to medium and long-term projects for any Western business prospecting in breaking into the Iranian market.  

"Sanctions compliance notwithstanding, businesses and entities seeking to do trade in Iran must understand the commercial risk of doing business in Iran through political, financial, legal & security contexts."

Areas where the Iranian economy predominantly lacks is development, design, engineering and joint investment for production and export. In this aspect Western businesses can help to bridge the gap by investing in the above sectors and assisting in transfer of technology through joint venture collaboration and partnership with the private sector.

However, with the most complex sanctions regime still in place, companies seeking to do business in Iran must conduct crucial due diligence before entering the Iranian market. Companies and businesses that have failed to comply with sanctions have been penalised heavily for sanctions breeches meaning that due diligence and appropriate market-preparation is critical.

Sanctions compliance notwithstanding, businesses and entities seeking to do trade in Iran must understand the commercial risk of doing business in Iran through political, financial, legal & security contexts. Through understanding the risks, any decision-maker aiming to do business in trade in Iran in 2016 will maximise their confidence in their commercial operations.

Forums in helping and preparing businesses to smooth their market entry into Iran to capitalise on these opportunities are emerging. On December 16th and 17th in London, at the first conference since the adoption of the Joint Comprehensive Plan of Action, businesses will begin to build strategic relationships and learn how to break into the profitable Iranian market.  

For more information about the Post-Sanctions Iran International Business Conference, please visit:  www.iran-international-business-conference.com or click here

 

If you would like to contact Bernadette Ballantyne about this, or any other story, please email bernadette.ballantyne@infrastructure-intelligence.com:2016-1.