In the Name of God, the Compassionate, the Merciful. Iran: Golden Opportunities

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Ronald Hoover
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1 In the Name of God, the Compassionate, the Merciful Iran: Golden Opportunities

2 WELCOME TO IRAN

3 Outline: I. Introduction: i. Bilateral relations ii. General information iii. Neighbors iv. Strategic position II. Fertile land to invest i. Economic data ii. Advantages for investment in I.R.Iran iii. Retailing iv. Ample ground on retailing v. Challenges and perspectives III. Trump Presidency: the future of relations

4 I. Introduction: i. Bilateral relation: Iran and Italy o Historical relations: Rome Persia 96 B.C. Continuous even during imposed sanctions Stable market for Iranian goods o Impression on Italy: Positive among Iranians o Nature of economic relations: Diversified with vast varieties

5 I. Introduction: ii. General information o Official name: Islamic Republic of Iran I.R.Iran o Area: 1,648,195 km² o Population: ~ 80 million o Capital: Tehran o Currency: Iranian Rial o Time Zone: GMT + 4:30 o Official language: Persian

6 I. Introduction: Psychology: Art and Human Science: Iran Students; 0 ii. General information Mathematics and Accounting: o o World s 17 th largest populated country Universities: 80 public 25 private Business: Engineering: o Number of students: increase from 170,000 in 1979, to ~ 4,350,000 currently 1,700,000 engineering students M.A: 580,000 PhD: 140,000 Agriculture and Veterinary Health and Medicine: Services: Welfare:

8 I. Introduction: iii. Neighbors o 15 neighbors o Sea borders: Caspian Sea Persian Gulf Oman Sea o Easy access: Middle East Central Asia Caucasus region East Asia

9 I. Introduction: iii. Neighbors Total land borders: 5,894 km (3,662 mi*) - Afghanistan: 921 km (572 mi) - Armenia: 44 km (27 mi) - Azerbaijan: 432 km (268 mi) - Nakhichevan exclave: 179 km (111 mi) - Iraq: 1,599 km (994 mi) - Pakistan: 959 km (596 mi) - Turkey: 534 km (332 mi) - Turkmenistan: 1,148 km (713 mi) *mi: miles

10 I. Introduction: iii. Neighbors Easy access to regional market

11 II. Fertile land to invest: i. Economic data Source: (IMF, 2013)

12 II. Fertile land to invest: ii. Advantages for investment in I.R.Iran o Oil production: 4 th largest oil producer in the world o Gas reservoirs: 2 nd highest gas reserves o Industrial base: Largest industrial base in the MENA region o Tourism: 10 th country in tourism attractions 5 th in ecotourism o Mineral resources: 4 th - 9 th (e.g. Zinc, Lead, Cobalt, Aluminum ) o Agricultural products: 4 th in the world for diversity o 6 Free trade/industrial zones o 19 Special economic zones

13 II. Fertile land to invest: iii. Retailing o Annual turnover: 70 billion $ o Profit: 14% margin o Labor force: 16%

14 II. Fertile land to invest: iv. Ample ground on retailing o The Iranian retail market grew by 30 % in 2014 compared to the previous year according to data provider and research firm Euromonitor International. o Sales are forecast to grow further because of the country s young population and high disposable income: Tehran with 14 million inhabitants Esfahan with 4.2 million Mashhad with 3.4 million are the country s largest cities. Combined, they account for 27% of Iran s total population, but represent half of national consumer spending. o With the growth of malls, multiplexes and hyper markets, the consumer is being exposed to a new kind of shopping experience and services. o Less than 18% of Iran s retailing system is modernized. o A potential decrease of 20% on prices is expected if the system is modernized and reformed

Investment opportunities after JCPOA: Tourism and

15 II. Fertile land to invest: v. Challenges and perspectives o Holding seasonal fairs and exhibitions o Necessity to upgrade the infrastructure of retailing in urban areas o Investment opportunities after JCPOA: Tourism and Hotels Pharma ceutical sector Post Sanction Opportu nities Agricult ure Mines

16 II. Fertile land to invest: Introducing examples of chain stores in I.R.Iran 1. MAF Pars (Hyperstar): The investor of this company is Mr. Majid Al Futtaim. 2. Shahrvand: Shahrvand Group is a private group that started their work on 1994; Their Main base is Tehran. They have Around 32 stores in Tehran: Shahrvand even started giving new Services to their customers including, Call Center, E-Shopping, Customer Club, VIP Cards, Not mentioning they have no stores that obey the rules of discount, 3. Refah: Refah group is a private chain store based in Tehran. They are known to have 217 branches all over Iran, They started their work on Refah also started giving new Services to their customers the same in sharvand

17 II. Fertile land to invest: Introducing examples of chain stores in I.R.Iran 4. Everest Modern Pars: Everest Modern Pars started their business in 2012; The investor of this group is Hayat Co. in Turkey, Hayat Co. Also owns Pars Hayat Company in Iran. Right now they have one hyper market in Tabriz, 120 Open Discount stores in Tehran 5. Hami: Hami super markets have 17 branches all over Iran, 5 branches are placed in Tehran, with total Square meters selling area. They started their work on 2008, unlike the other Iranian groups Hami is 100% Private. 6. Haft: Newly Started Soft Discount stores, soon to become main competitors as the second Discount system in Iran, Number of SKU s are about 1200.

18 II. Fertile land to invest: Natural and other resources CBI report shows that 15 % of the country s GDP is share of oil value added. 102 oil and 43 gas fields, 78 of which are active. 62 of them are located onshore and the other 16 are offshore. World s 4 th largest oil and 2 nd largest reserves of natural gas. Definite crude oil reserves are appraised at 158 billion barrels, or 10% of global reserves. 1,201 trillion cubic feet natural gas comprising 22% of the world s reserves. Iran has 10 active refineries with capacity of 1,781 thousand barrels per day, all refineries except Abadan are listed in Tehran Stock Exchange.

19 II. Fertile land to invest: Natural and other resources

20 II. Fertile land to invest: Mining industry As one of the 15 most mineral-rich countries in the world, Iran has more than 68 kinds of mines with total proven reserves of 43 billion tons with an estimated value of 700 billion USD. 4.1% of the world s iron ore reserves, or 10 th largest holder of calculating over 33 million tons of output per year. One of the top copper reserve holders, Iran has 7% of copper world s proven reserves. There are over 5,500 active and operating mines in Iran divided into metal and non-metal. Mines and Mining Industries currently employ more than 620,000 people in Iran.

21 II. Fertile land to invest: Tourism and hotels According to UNWTO (World Trade Organization) statistics, tourism industry in Iran is ranked 10 th for historical monuments and ancient attractions. There are more than 1,100 hotels throughout Iran. 29 are five- star and 75 are four-star which must be increased to 400 by Some of already operative hotels must be renovated. Because of tensions in the region visitors to Iran increased drastically.

22 II. Fertile land to invest: Pharmaceutical industry 96% of medicine produced in Iran and 50% of materials have been consumed domestically. According to Iran Customs statistics, in 2015 Iran imported medicine from almost 60 countries, which amounts to 1.5 B.$. Approximately 46% of pharmaceutical imports are the medicines. Germany, Switzerland and United Arab Emirates are the three top trade partner. Export to 30 countries amounts to 100 M$. The main three countries for export are Germany, Afghanistan and Syria. 3 holdings including Social Service Investment Company (SSIC), Barakat Foundation and Melli Bank own 66% of medicine market.

23 Germany China Italy's competitors in Iran France England India

24 Lack of motivation in EU to renegotiate Iran-EU economic relations after Trump Presidency Solidity of legal status of JCPOA Continuous growth in Iran-EU economic relations

25 GENERAL CONSULATE OF I.R.IRAN: TEL: FAX:

26 THANK YOU

IRAN AS THE GATEWAY TO CIS. In the name of Allah, the compassionate, the merciful

IRAN AS THE GATEWAY TO CIS. In the name of Allah, the compassionate, the merciful IRAN AS THE GATEWAY TO CIS In the name of Allah, the compassionate, the merciful IRAN LOCATION Iranian geographical location is unique; Naturally could be consider as a strategic crossroad; South to North,