How to Expand Your Business in Iran and Middle Eastern countries?
All countries in the Middle East have a positive rate of growth from wealthy countries like Qatar and Kuwait to the poor ones such as Gaza and Yemen. The economic structure of Middle Eastern nations are different in the sense that while some nations are heavily dependant on oil and oil-related products exports (such as Saudi Arabia, the UAE and Kuwait), others have a highly diverse economic base (such as Cyprus, Israel, Turkey and Egypt). Almost all of them have a great dependency upon import of products and goods.
Industries of the Middle Eastern countries include oil and oil-related products, agriculture, cotton, cattle, dairy, textiles, leather products, surgical instruments, defense equipment (guns, ammunition, tanks, submarines, fighter jets, UAVs, and missiles). Banking is also an important sector of the economies, especially in the case of the UAE and Bahrain.
Among all countries in the Middle East, the most safe and secure country is Iran. Although this country encounters lots of economic sanctions imposed by the USA supporting by some of its alliances in the region such as the UAE and Saudi Arabia, Iran continues its growth. Iran is the core of supplying of the largest amount of medium to high-tech products and consumables goods in Iraq and Afghanistan. Iranian traders have vast distribution channels among their neighbor countries including Pakistan, Turkmenistan, Uzbekistan, Georgia, Azerbaijan and even Russia, but because of the economic sanctions most of the trades are taking place informally such as business exchanges through some special channels, people and currency exchanges. Even Iran itself is a great market with more than 80 million populations where people welcome any new products from other countries. While Iran‘s economy doesn’t experience a rapid growth in 2019 due to sanctions, consumables and innovative products have a great demand.
Political turmoil of Iran’s government doesn’t accept presence of any foreign company in Iran easily while the culture of the people and body of the society welcome them. So entering such a market is a little sophisticated and surely any company needs dependable marketing consultants. One of the main important issues in order to enter Iran’s market is to have a powerful partner, with or without affiliated with the body of sovereignty. A good consultant in Iran who knows the structure of power and parts of economy can help you in this regard.
The devaluation of the national currency in Iran at 2018 has made the manufacturing of goods and products highly efficient. You can produce any kind of product at cheaper price comparing to the Chinese one, thanks to the low-cost energy sources and expert manpower. There are more than 4 million engineers in different fields and there is more than 12% unemployment rate in the country, more than 38% of which was related to university graduated ones at 2018. It should be emphasized that investment in Iran is completely safe and supported by comprehensive laws approved in the parliament and ruled by government. So despite media propaganda, Iran can be a heaven for investment. You can easily have access to affordable expert manpower, cheap energy resources, support of government for production and a very good market in the country and the neighbors. Presence of free trade zones, free industrial zones and guarantee of origin of both the investment and its profit by the government are some of the major advantages which make investors be able to produce their products in Iran with the most competitive merits.
Everyone knows that Iran’s specific political condition doesn’t remain unchanged. So, as an investor who is passionate about expanding its business in the Middle East, you can allocate at least a small portion of your capital to this market. The response would definitely be greater than exceptations. Solutia group will guarantee your success and make your economic goals come true!