Why IRAN is the best country to invest in the Middle East right NOW?

Why IRAN is the best country to invest in the Middle East right NOW?

Iran – a country of great history, similar to many others like India and China, with a long and interesting past, with rulers like Cyrus, Xerxes, and Darius who ruled from 750 BC. The Silk Route passed through here to reach Africa and Europe resulting in huge commerce and trade. Something that can be seen today, when you visit the palaces of kings who were rich beyond comprehension.

It is also a country of great scientists, scholars, poets and writers with works like Shahnama (Tale of Kings) by Firdausi, considered the best books ever written in Farsi (Persian). An adaptation of sorts is The Arabian Nights, which many Persians will vow is a rip-off of the original works written centuries before. There are many innovations in mathematics, medicine, astronomy and chemistry that have come from Persia.

Like most of you, I had little knowledge of Iran, except what I heard in media and the news – about an Islamic country ruled by the clerics with little human or women’s rights. When I traveled there for the first time, last year, I was like anyone else, cautious.

Iran ranks as the third biggest economy in the Middle East, with sanctions being imposed on them for the past few decades from the USA and their allied nations. They suffered through a decade-long war with Saddam Hussain which depleted much of their resources. Their image in the world, is highly biased, thanks to their political position against USA, Saudi Arabia, and Israel – all of which are big influencers in the movement of finance and trade in the region, and their control of media. The banking and finance sector in Iran is not as developed and integrated with the Western world, based on these limitations being imposed on them. For example, credit cards like VISA, MasterCard and Amex are hardly used there, and the country works on cash and debit, so access to capital is highly limited and controlled. In the past few months, their strong political stance on Iraq and Syria has raised tensions as well.

Based on the previous information, you’d start to think has Farrukh gone mad to proposition such a risk-high economy as one of the best investment opportunities in Asia. These are a few reasons why AzrimExport sees Iran as one of the best countries to invest right now in the Middle East.

Oil and Minerals: The mining sector might have started to cool down in Australia, but it has hardly even warmed up in Iran. With the largest oil reserves in the world, Iran has one of the strongest positions on OPEC and is already starting to win a large market share of the global petroleum and petrochemical trade. Plus, they have unlimited natural reserves of minerals which are not available to countries like UAE, Qatar, Iraq and others.

Economic Alliance with India, China & Russia: By forming a new alliance trade partnership with India, China, and Russia, Iran has access to over 2.5B of the world’s 6B population. The production and manufacturing facilities in Iran, are some of the most advanced in the Middle East, especially in carpets, fruits and nuts, saffron, wool, leather and so on.

The lifting of Sanctions in 2017: Australia lifted its trade sanctions on export and import as of January 2017, and more European and Asian countries will follow in the coming months. This gives us the perfect opportunity to establish relationships and invest in exporting as Iran will be looking to buy what it needs to build its economy. With USA and UK barred, this means it’s the best opportunity to take the spot in certain industries and categories like education, finance, aggrotech, livestock and much more.

Educated and Young: With a local population of 80M, Iran has a highly evolved and sustainable local economy. The majority of the population in Iran is Youth (aged 25 and below) which is a huge advantage compared to most countries in the world. Also, they are the most educated people in the world, with the highest PHDs per capita anywhere in the world. This includes women, who are not only highly educated but strong influence in the parliament, politics, and business.

Many of the women I met and spoke to, during my travels, said apart from the clothing limitations, they are independent and allowed to do most things. Yes, they don’t enjoy complete freedom but this is something that is part of their religious, cultural and traditional ideology which is not our concern for business and trade.

Commercial & Residential Property & Infrastructure: With a renewed economy mainly of the increased demand for Petroleum and Minerals, and their trade with Russia, India, and China, there is a multi-billion dollar investment into the development of infrastructure, trade parks, commercial and residential property, as well as hotels for tourism. Australia and New Zealand can benefit by exporting expertise and knowledge to the region, and score some multi-million dollar contracts.

The re-election of Rouhani – a liberal leader by a massive majority: Last week’s elections in Iran, led to the re-election of Rouhani as the President of Iran. He has made a massive change in the political landscape by representing the vision of Iran as a liberal, moderate and collaborative country compared to the damages done by Ahmedinejad in the past. This means stability and consistency in the policies and is a major positive to consider.

The collection output of that is that the foreign currency exchange rate of the Riyal has improved, employment has improved and foreign investment initiatives are being rewarded through Free Trade Zones established in Iran to help exporters from other countries wanting to do business in Iran.

To me, this will continue to improve, as Iran has recognized their potential and are now making things easy for people to visit them, and consider investing in the trade to either manufacture or supply to their economy. They have far fewer restrictions and better profit margins compared to UAE, Saudi Arabia, and Qatar when you take all things into perspective.

Key Sectors worth considering: As part of my research into the country based on information received in Iran, and even from government and business resources in Australia, there are a number of sectors that have massive potential right NOW and need investment.

Education and training where students can come to study in Australia, or professionals from here can be sent to train organisations in Iran; Aggrotech where leading experts in Agriculture, Farming, Livestock, and Fisheries can work with leading bodies in Iran to advise them on how to improve and sustain their local resources; Petroleum is a huge demand commodity here with refined petroleum being the most imported product from Iran; Wool, Wood, Dairy, and Fruits-Veggies are also other product categories that are highly profitable through the right channels. With a young population, there is potential to invest in Franchised Restaurants, Automotives and Sports as there’s a huge demand for entertainment and leisure.

Where AZRIMEXPORT comes into play?

By establishing AZRIMEXPORT, I have set up export offices in Iran, UAE, and India that will service exporters and investors from Australia and New Zealand primarily. We want to be your ears and eyes on the ground there, whereby you’re dealing with an Australian-Kiwi entity, which is opening doors for you. We will work closely with the assistance of NZTE and ECAU. By being part of a collective, you will reduce risk and use our resources to help you tap into the right opportunities through vetted entities there. We will work closely with the local trade, business, e-commerce and government officials on your behalf.

We will support you in your marketing, branding, and export development needs by working with the best local and international suppliers and have a dedicated Account Manager to service your business. We will find trade partners for you through which you can export millions in trade, as well as investment opportunities both in Iran and other countries like India and UAE. By setting our offices in Trade Free Zones, we have additional benefits like relaxed tax and levies, as well as access to export to Russia, Iraq, Syria, Jordan, Turkey and other countries in the region.

We currently have over 100 projects in Iran that can be considered for partnership and investment, and the businesses we are interested in talking to have to do a turnover of over $10M with a potential to invest at least $1M USD. The ROI is much higher than that in Australia, as these are government-backed initiatives with guaranteed dividends over 5 to 20 years.

If you’re interested to find out more, please book an appointment with me on hello@azrim.com.au

Azrim Pty Ltd was established in 2004 in NZ and grew to AU from 2010. We are primarily in the business of clothing and fashion but have now set up Azrim Export to help exporters and traders in India, UAE, NZ and Australia to do business with each other through a collective enabling them maximum leverage with minimum investment. We are aiming to secure investment over $10M by end 2017 with an ambitious goal to do a turnover of over $100M by 2020 across these countries, with the HeadQuarters established in Sydney Australia with satellite offices in Auckland NZ, Tehran Iran, Abu Dhabi UAE, Delhi & Bangalore INDIA.

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