Iran qualifies from many respects to be a good location for investment and doing business. Some of the features are mentioned below:
Iran is a country of 1.65 million square km in area and a population of close to 84 million. It has direct land or waterway access to 15 countries with a total population of 550 million that surround it. Iran is bordered by Iraq and Turkey on the west; Armenia, Azerbaijan, the Caspian Sea and Turkmenistan on the north; Afghanistan and Pakistan on the east; and the Persian Gulf and the Gulf of Oman on the south. The Persian Gulf gives it waterway access to Kuwait, Saudi Arabia, Bahrain, Qatar, UAE, Oman and of course the open waters, besides the Caspian Sea provides it with maritime pathways to Azerbaijan, Russia, Kazakhstan and Turkmenistan.
Straddling the Persian Gulf and the Caspian Sea, Iran Connects Central Asia to the open seas and West Asia to the Middle East, offering a unique and valuable geographic location. Almost 30% of the global requirements of crude oil (17m barrels per day) pass through the Straits of Hormuz.
Iran has land & sea borders with 15 countries, offering easy access to a combined market of over 530 million, whose demographics dynamics and growing purchasing power offer an expanding market at a time of stagnation in the world economy.
With a total GDP of about USD 1.1 trillion (PPP basis, current international $), Iran is among the world’s 25 largest economies and has plenty opportunities to climb higher, benefiting from demographic advantages, substantial natural resources and unused potentials.
There is a wide range of tax incentives for corporations, for instance, shareholders are not liable to any tax on dividends, exports are exempt from any taxation and under certain circumstances tax holidays of up to 15 years can be obtained.
15 years tax holidays
Through substantial investments, Iran has developed its ports, rail and road networks and air transport systems and generally a solid infrastructure, ripe for creating the perfect foundation for more advanced economic development and prosperity.
With a population of 84m of which some 4.8 million are students at various stages of higher education, Iran possesses one of the youngest population and well-educated youth in the developing world.
Growth Rate ~1.24%
Median Age: 30
Unemployment Rate ~10%
Labor Force Participation Rate:41%
Female labor Force Participation Rate: 14%
Graduates in Science & Engineering Rank:5
Employment Share In Major Economic Sectors
Industry and Mining
Ancient history, the heritage of some of the world’s greatest empires, exquisite arts and crafts, rich cultural heritage and refined and varied cuisine, coupled with diverse climates and breathtaking natural wonders provide the perfect platform for Iran to tap into the fast-growing and lucrative global tourism market.
The country is also exceedingly rich in mineral resources, which are worth an estimated USD700~800 billion. Iran is the MENA region’s leading country in reserves and production of critical base metals, including iron ore, zinc, steel, copper and lead.
billion tons of known reserves
billion tons of potential reserves
Iran"s global ranks in mine"s production
With close to 1/6 of total global proven gas reserves as the ranked 2nd country and the ranked 4th country in proved crude oil reserves with Iran is possesses one of the most sustainable resources supply of hydrocarbon fuels in the world. An extensive national pipeline network to deliver fuel, together with around 85 GW of installed electrical generation capacity Iran ensures energy security.
cheap and reliable energy is accessible to practically all of the firms and households in Iran.
Present Genaration Capacity
Iran has a sizable emerging market and probably the largest developing economy in the region. It has usually played a vital role in the region’s economy with which provides a lucrative staging ground for businesses.The country offers great opportunities for foreign businesses in agricultural and non-agricultural fields of activity.
The banking sector plays a fundamental role in the economy of the country. The banks and credit institutions are the main sources of funding for the industry and business in general. This reflects a high level of competition in the market which has naturally compelled them to focus on innovation, performance, and quality of their services.
Share of Various Economic Sectors in Facilities Extended by Banking Sector
In recent years Iran has created many special economic and free trade industrial zones in order to encourage businesses to set up and invest in these zones. To this end, officials have eased regulation on labor, investment, taxation system, trade and customs.
Incentives and advantages
Incentives for investment in Special Economic Zones
Note: Data refers to figures based on the information in 2021