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Iran, 18th Largest Country in the World

 

Iran Country

With a surface area of 1,648,195 square kilometers Iran is considered the 18th largest country in the world and its young, educated population comprises a large domestic market of over 77 million. Iran occupies a most prominent politico-economic position in the Middle East.

 

The country is truly unique, and enjoys many advantages. Huge reserves of gas and petroleum have turned Iran into a giant oil exporter, second in OPEC, and its rich mineral resources have made many industries thrive in the country in the past decades.

 

Iran has world’s largest Zinc reserves and its Copper reserves are the 2nd largest in the world. With The Caspian Sea in the north and the Persian Gulf and the Sea of Omen in the south, Iran acts as a "bridge" that links the Middle Asian states in the north to the wealthy people south of the Persian Gulf who are both producers and consumers. It also joins the Caspian Sea to the Indian Ocean by road and railway.

 

Iran is cozily nestled in the middle of a market with 380 million consumers and in order to make international trade more convenient, it has created 7 Free Trade Zones and 16 Special Economic Zones that offer many advantages and investment incentives, such as exempt from customs duties and other tax exemptions. These zones have easy access to major air, sea and land transportation routes and are in proximity to regional markets with regard to import of raw materials, and intermediate or manufactured goods. Foreign investors may lease land with reasonable rents, and own the buildings and other installations built on the land in these zones and foreign nationals who choose direct entry to the zones, do not need to apply for visa in advance. The offshore banking and non- banking credit activities regulations in the zones are flexible, and compatible with international offshore banking practices and standards. Foreign banks and financial institutions may open head offices, branches and counters independently or in partnership with domestic partners in these zones.

 

Iran is looking to transform its industrial sector. A lot of industries in the country are in need of new technologies and innovations in order to expand and develop. Agriculture is a good example. Attention needs to be paid to facilitating the transition of the agricultural sector from a traditional setting to a more industrial and modern structure. This transformation will require investments in infrastructure as well as attention to issues such as promoting public-private partnerships to improve the conditions in production, storage and distribution across the country.

 

Iran is also putting a special focus on developing its gas sector. It is conceivable that by 2020 Iran will become the fifth-largest gas market in the world after the United States, the European Union, Russia and China; therefore, Iran is in severe need of the technology and capital to reach this goal since the growing potential of gas will create new opportunities in developing economically significant industries and export potentials. The industries that rely on the availability of gas and energy could flourish very fast in the post sanction-environment. If appropriate investments are made, Iran could become a significant producer of steel and Aluminum, similar to the position it has already achieved in cement production as the 4th largest producer in the world. Iran will have to compete with its peers for foreign direct investment by multinational companies. One advantage that Iran has is the Iranian diaspora, which will be able to invest extensively in a sanctions-free environment.