Reasons to Invest In Iran

Iran qualifies from many respects to be a good location for investment and doing business. Some of the features are mentioned below:
A unique geographical location at the heart of a cross-road connecting Asia and Europe, coupled with many inter –and trans
–regional trade, customs , tax, and investment arrangements.

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.

Strategic Location

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.

At the heart of Regional Market

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.

Among 25 largest Economies1

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.

Low Effective Rate of Taxation

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
Well-developed Infrastructure

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.


Population and Labor Market 2

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%

25.8 m
Labor force

Labor Force Participation Rate:41%

Female labor Force Participation Rate: 14%

4.8 m

Graduates in Science & Engineering Rank:5

Employment Share In Major Economic Sectors
Industry and Mining
Untapped Tourism Potential

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.

Abundant Mineral Resources

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

Energy Security3

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.

85 GW
Present Genaration Capacity


Main Trading Partners and Products6

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.

Banking System in Iran7

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

Economic Zones8

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
  • Foreign investment and nearly a hundred percent of the amount invested
  • Freedom of entry and exit of capital and profits
  • Protection and guarantees for foreign investments
  • Abolition of entry visas and easily issue of residence permits for foreigners
  • Facilitated regulation on labor relations, employment and social security
  • Transfer of part manufactured goods to the mainland without paying customs duties
  • Elimination of pay customs duties on imports from outside to the region and vice versa
  • Employing trained and skilled manpower in all different skill levels and professions
  • Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities
Incentives for investment in Special Economic Zones
  • Import of goods from the above-mentioned zones for domestic consumption would be subordinate subject to export and import regulations, and export of goods from these areas will be carried out without any formalities.
  • Import of goods from abroad or free trade zones or industrial areas would be carried out with minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.
  • Log entry of merchandise subject to this article will be done without any customs formalities.
  • Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.
  • Management of the region is allowed to assign the region to qualified natural or legal persons after classification and valuation.
  • Owners of goods imported to the region can send all or part of their goods for temporary entry into the country after doing customs clearance regulations.
  • If the processing of imported goods is to some extent that changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
  • Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.
  • The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.
  • All the goods imported to the region for the required production or services are exempted from the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.
  • Percentage of goods produced in the zone, imported to the country, the proportion of total value added and domestic parts and materials used in the total price of the commodity production are allowed without any limitation and in addition to not having to order and an open letter of credit.
  • Goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.

Note: Data refers to figures based on the information in 2021

  1. Central Bank of I.R.Iran 2021
  2. Statistical Center of Iran (SCI) 2021
  3. Ministry of Energy,2019
  4. United States Energy Information Administration
  5. Bp statistical Review of World Energy,2019
  6. IR.Iran Customs Administration (IRICA)
  7. World Bank 2019
  8. Organization for Investment Economic & Technical Assistance of Iran