Last great economy: IRAN

Following the deal with five permenent members of UN Security Council and Germany, Iran, one of the largest markets of the Middle East, is bracing for the world to realize its huge potential as a market. Deemed the last great economy where large scale investors do not yet have entrenched positions, Iran will see foreign investments and exports double once the sanctions are removed. Ranked among the top 5 countries Iran engages in foreign trade with, Turkey will be among the most important gateways to this market.

10 PERCENT SHARE

The Preferential Trade Agreement signed with Iran in January 2015 increased the foreign trade volume between Turkey and Iran by 30 percent, and will duly assume the role of an important gateway to the huge opportunity Iranian market presents for foreign investors. Iran's foreign trade volume is expected to hit TRY 250 billion through the leap by opening up to global investors. Turkey, one of the most important foreign trade partners of Iran, is set to get a 10 percent share of this cake.

DEPENDENCE ON OIL IS TO FALL

Iran has 10.6 percent of all oil reserves of the world. It ranks third in the list of countries with significant oil reserves. This huge market had hitherto based its foreign trade on oil, and is now trying to reduce the dependence of its economy on this limited resource. That is why it is currently focusing on petrochemicals industry and planning for the implementation of 44 billion Dollars worth of petrochemical investments in 64 projects to produce an annual capacity of 50 million tons, within the framework of the 5th Development Plan.

MINING HEAVEN

Iran is virtually a mining heaven, and its potential reserves are in excess of 57 billion tons. Investments in this sector are subsidized by the government. Furthermore, Iran is expected to increase its direct-reduced steel production from the current level of 16 million tons to 56 million tons by 2025, with a bid to ranking top worldwide.It is often pronounced that investments up to 500 million US Dollars are probable within the next five years, for the development of new sources of steel.

HOMELAND OF NATURAL GAS

According to BP Statistical Review of World Energy, Iran ranks top worldwide, with its natural gas reserves of 33.8 trillion cubic meters. The natural gas sector of the country is considered the sector to breath some sort of stability into the volatility of oil revenues. That is why the country invests in liquefied natural gas production for exports. Many natural gas fields of the country are developed through foreign investments, with a view to furthering the country's position regarding this goal. Iran, an important natural gas supplier, has Turkey as a major partner in natural gas exports. Since 2002, Turkey engages in transfer operations for a total of 10 billion cubic meters of natural gas from Iran, through 25 years. Furthermore, Iran intends to export natural gas to Austria through Turkey and Bulgaria, within the framework of the Nabucco project.

SPEAKING TURKISH, ACCEPTING TRY

Having maintained its trade ties with Iran through the sanctions imposed by the West, Turkey is now in a position to serve as a model for the West in terms of venturing into the Iranian market. For Turkish is the language spoken by 27 percent of this hugely attractive market, and according to the Central Bank of Iran, Turkish Lira is one of the most widely accepted currencies in Iran.

GATEWAY TO NORTHERN AFRICA

Iran has the second largest natural gas reserves of the world, and is the second largest economy in the Middle East and North Africa, ranking just behind Saudi Arabia.

30 PERCENT INCREASE THANKS TO THE PREFERENTIAL TRADE AGREEMENT

One of the most important advantages Turkey enjoys in terms of its trade with Iran is the Preferential Trade Agreement which entered into force in January 2015. The agreement reduced the import duties for approximately 120 products Turkey exports to Iran, by rates ranging from 30 to 40 percent. This translates into a 30 percent increase over the export figures for the comparable period of the previous year. Total exports to Iran rose to USD 1.9 billion. This marked the largest growth in exports among the first halves of the last five years.

09 Mart 2016 Çarşamba

Etiketler : English