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Trendigest

by Luigi Esposito

AUGUST 2, 2015

NUMBER 1/2015

Abstract

What next for Irans economy? By Miroslav Dusek Jul 29 2015


Today is a new
chapter to work
towards growth and
development a day
for youth to dream
again of a brighter
future. Iranian
President Hassan
Rouhani.

This week focus is on Iran. The Viennas Nuclear Deal has no less impact
on business than the one on global political reshaping. In the article,
Dusek briefly explores the positive outlooks in terms of business
expansion after the Viennas events. Sanctions relief means an open
opportunity for a country that shall build a new economy. Iran is on the
same wave of other emerging economies such as Turkey, Mexico
and Indonesia. Vienna is an to enhance competiveness and create a more
stable economic context where oil revenues remain the fuel for
investments and future market growth. Harnessing human capital and a
new infrastructure mindset will be drivers that will let Iran to afford the
new future challenges. Critical next steps are then identified in a)
expanding workforce opportunity with a particular focus on youth and
women; b) upgrading infrastructures, both hard (railways, ports and
roads above $50B projects are expected in the near coming few years)
and digital; c) reducing the administrative barriers to business; d)
security.
Other sources

YouTube, (2015). Davos Annual Meeting 2008 - Understanding Iran's Ambitions.


[online] Available at: https://goo.gl/4dIwTE [Accessed 2 Aug. 2015].

Iran, E., Administration, and Clough, (2015). Energy profile of Iran. [online]
Eoearth.org. Available at: http://www.eoearth.org/view/article/152502/ [Accessed
2 Aug. 2015].

Amar.org.ir, (2015). Statistical Centre of Iran > Home. [online] Available at:
http://www.amar.org.ir/Default.aspx?tabid=133 [Accessed 2 Aug. 2015].

Data.un.org, (2015). UNdata | country profile | Iran (Islamic Republic of). [online]
Available at:
https://data.un.org/CountryProfile.aspx?crName=Iran%20(Islamic%20Republic%2
0of) [Accessed 2 Aug. 2015].

The Ease of Doing


Business Index of Iran
has been compared
with the one of Saudi
Arabia. The matter is
not to start up the
business but to run it.
While Saudi Arabia is
not bureacracy free,
the bar chart is clearly
showing that
administrative barriers
are to improve.
Analysts do not expect
that the sanctions'
relief effect on the
perceived business
environment may
change overnight!

The importance of
Social Media will
growth as well.
Telecom and relevant
services will follow.
Actually, about
200,000 Internet hosts
are operating in the
country and Telcom of
Iran is expanding to
rural areas the fiber
optic services.

+3%
Total Employed
Population
28%

26%

25%
Urban Population

74%

Male Working
Population
23%

20%

Rural Population
Female Working
Population
5%

5%

2005

2013

130

Saudi Arabia
Iran, Islamic Rep.
49

Ease of Doing
Business Rank

Starting a
Business

Dealing with
Construction
Permits

Getting
Electricity

Registering
Property

Getting Credit

Iran Length of Asphalted Roads


[Thousand Kilometers]
210

+6% per
160

110

2005
124

2012
177

Protecting
Minority
Investors

2015
198

Paying Taxes

Railways length
x 1,000km

Investment in
infrastructure like roads
and railways are
strongly correlated in
Iran and constantly
growing. The trends is
expected to be
maintained during the
next years

Iran Total Population


78.7mln

Trading Across
Borders

Enforcing
Contracts

Resolving
Insolvency

11,5

11

10,5

10

9,5

9
60
8,5

R = 94%