Business in Iran

EENI- School of International Business

Subject (Course): International Trade and Doing Business in Iran Tehran. Syllabus:

1. Introduction to the Islamic Republic of Iran (Central Asia).
2. Persian language (Farsi).
3. Shiite Islam.
4. Doing Business in Tehran.
5. Iranian Economy
6. Privatisation process.
7. The banking system and the financial sector.
8. International Trade of Iran.
9. Potential export sectors
10. Development Export Bank of Iran
11. Iran Customs Administration.
12. Case Study: International North-South Transport Corridor.
13. Foreign Direct Investment (FDI) in Iran.
14. Access to the Iranian Market
15. Business Plan for Iran

Case Study - Iranian Muslims Businesspeople and Companies.

1. Islamic Revolutionary Guard - Bahman Group.
2. “Bonyads”: Mostazafen Foundation of the Islamic Revolution.
3. Iranian National Shipping Lines.
4. Wagon Pars.
5. Iran Carpet.
6. Cooler Iran.
7. Misr-Iran Textile.
8. Aburaihan Pharmaceutical.
9. Esfahan Mobarakeh Steel.

Objectives of the subject “Foreign Trade and Doing Business in the Islamic Republic of Iran”:

1. To analyse the Iranian economy and foreign trade
2. To evaluate business opportunities in the Islamic Republic of Iran
3. To explore Iran's trade relations with the student's country
4. To know Iran's Free Trade Agreements (FTAs)
5. To examine the profile of Iranian Companies
6. To develop a business plan for the Iranian Market

Sample of the subject - Foreign Trade and Doing Business in Iran

Subject Description (Business in Iran).

The Islamic Republic of Iran.

1. The politics of Iran takes place in the framework of a Republic with Islamic ideology.
2. The December 1979 Constitution and its 1989 rectification define the political, economic, and social order of the Islamic Republic of Iran.
3. The Constitution declares that Shi'a Islam (Shiite) of the Twelve school of thought is the official religion of Iran.
4. Persian (Farsi) is the most broadly spoken language.
5. Persian has had a significant influence on neighbouring languages, particularly the Turkic languages in Central Asia.
6. Borders of Iran: Afghanistan, Armenia, Azerbaijan, Iraq, Pakistan, Turkey, and Turkmenistan.
7. Iranian Population: 78 millions of people
8. Area: 1,648,195 square kilometres
9. Iranian Currency: Rial
10. Abolition of slavery in Iran: 1928

Religion in Iran.

1. Islam. Almost 90% of Iranians are Shiite Muslims, thus being the spiritual leader of the Shiite community in the World.
2. An estimated 9% are Sunni.
   Iran is a Shiite Muslim country Imani - Twelver Shi'ism - (89% of the population), this branch is the majority in Shi'ism.
3. “Jaafari” is the most common by Iranian Shi'a school of law (fiqh).
4. Iran became an Islamic Republic after the 1979 Islamic Revolution.
5. Before the Arab invasion, Persia (Iran) was the homeland of Zarathustra, founder of Zoroastrianism (Parsis), today virtually nonexistent in Iran.
6. In Iran was born Bahaullah, the founder of Baha’i Faith

Iran belongs to the Central Eurasian Economic Area of the Islamic Civilisation.

Iranian Economy.

The economy of the Islamic Republic of Iran was crippled by the 1979 Islamic revolution, the Iran-Iraq war, and attendant economic mismanagement.

1. The Islamic Republic of Iran ranks fourth on the diversity of export agricultural products in the World.
2. The Islamic Republic of Iran is the second manufacturer of petrol and gas in the World.
3. Iran holds fourth to ninth rank in the production of zinc, lead, cobalt, aluminium, manganese, and copper in the World.
4. 233 Techno-Engineering projects have been executed in thirty-three countries by Iranian companies over the last decade.
5. The industrial commodities make up 70% of non-petroleum export.
6. Iranian import structure consists of capital, intermediated goods, and consumer products.
7. Iran holds the seventh standing in tourist attractions

Iranian petroleum industry is a largely developed industry with highly rated and valuable resources and capabilities with immense deposits of crude oil from which 130.798 billion barrels can be exploited in the form of primary and secondary recoveries.

Esfahan's Mobarakeh Steel is the biggest industrial complex in the Islamic Republic of Iran and has been established and commissioned after the victory of the Islamic revolution and entered into the functional stage in early 1993.

Foreign direct investment is allowed in agreement with the prevailing laws and regulations of the Islamic Republic of Iran. All foreign investors are allowed to invest, for the goal of development and producing activities, in all sectors of industry, mining, agriculture, and services.

However, from the standpoint of the Iranian Government, only those investments should be eligible to benefit from the privileges and protections under the Foreign Direct Investment Promotion and Protection Act that have obtained the required licence under the act.

The Iran foreign investment Company was incorporated on March 1998 as a Private Joint Stock company with a mission to manage and expand Iranian holdings abroad.

Iranian non-petroleum exports with an increase of 47.2% in value reached 16 billion and 300 million and 800,000 USD. The weight of exportable products has been 33.1 million tonnes, which augmented as 48.2% compared to the same period of the previous year.

The Central Bank of the Islamic Republic of Iran is responsible for the conception and implementation of the Monetary and Credit Policies with due regard to the general economic policy of the Islamic Republic of Iran.

The Islamic Republic of Iran Customs Administration consists of a central Headquarters and ten branches of supervision. Customs President serves as Deputy Minister of Finance and Economic Affairs, which is the highest position of Customs Administration.

Omid R. Kordestani is an Iranian-American Businessman was a senior adviser to the founders of Google and non-Executive Director of Vodafone.

Bonyads - Mostazafen Foundation of the Islamic Revolution

Iran's Organisations and Agreements.

1. Economic Cooperation Organisation (ECO)
2. Indian-Ocean Rim Association (IORA)
3. Asian Clearing Union (ACU)
4. Iran's Trade Agreements with Algeria, Syria, and Venezuela.
5. Armenia-Iran Free Trade Agreement (FTA)
6. Organisation of Islamic Cooperation (OIC)
7. Arab League
8. Islamic Development Bank