OVERVIEW. 1. Introduction 2. Economic situation 3. Trends, developments & opportunities 4. Approach of the market 5. Actions 2014

Transcription

1 OVERVIEW 1. Introduction 2. Economic situation 3. Trends, developments & opportunities 4. Approach of the market 5. Actions 2014

2 Economic situation IRAN

3 Economic situation IRAN

4 Economic situation in Iran The impact of the sanctions imposed on Iran by the United States and Europe resulted in a very difficult economical condition during 2012 and The economy has experienced recession with negative growth reported at 5,4 % during the last Iranian year which ended at 20st of March 2013, an inflation of nearly 40 % and a deficit of budget. It should be mentioned that this has not affected the Belgian export to Iran which has increased by 275.9% during the first 7 months of Value (1000 ) Variation in % Share 01-08/ / /2013 in % 2011/ / ,0-43,1 275,9

5 Economic situation in Iran After the election of Dr. Hassan Rouhani (a victory versus the extremism), his selection of specialized and experienced ministers and their international negotiations, the worlds view has changed for better and it has improved their confidence in future business and international relations. One expects a positive settlement of the nuclear issue, and there is hope for a rapid reduction of the current restrictions, especially after reaching the first agreement with 5+1 last week.

6 Economic situation in Iran Under the U.S. and EU sanctions the Iranian oil export has decreased by more than 50%. This has resulted in precarious increase of the value of foreign currency. For example the price of euro and dollar for trading rate has doubled since Oct 2012 and it has been made available only for essential priorities such as food, medicine and etc. Info plus statistics to be found on Foreign Exchange Rates Exchange Rates 23/11/ /11/2013 EURO 15,740 IRR EURO 33,654 IRR USD 12,260 IRR USD 24,822 IRR GBP 19,563 IRR GBP 40,273 IRR

7 For the purchase of other products and equipment, the free market rate is used (still changeable but more or less balanced after the elections in June 2013).

8 Trends, developments & opportunities in Iran

9 Trends, developments & opportunities The Iranian market longs for cooperation with European countries for export and import; the quality of Europe is favored over that of China, India and Korea. During the sanctions it was almost mandatory to purchase needed goods from these countries because of currency issues. After the election the Iranian private sector has resumed activities and investments because of the positive trust in the future. The request for professional cooperation has been increasing day by day between Iran and Belgium. One of Dr. Rouhani sgoals is improving and expanding all industries, meaning opportunities for all the different industrial sectors such as machineries, spare parts, raw materials and

10 Trends, developments & opportunities As Iran has a coastline of 2,240 KM, investment in the maritime industries and expansion of ports is crucial and if the restrictions are reduced or preferably lifted Iran will be one of the major players in the maritime industries and trade, not only in the Middle east but also in Central Asia and Europe. There would be possibilities for mutual cooperation in all aspects. Please note that for the aircraft and automotive industries, the U.S. competitors such as General Motors and Boeing are already negotiating with Iran.

11 Approach of the market in Iran

12 Approach of the market in Iran 1 With the hope of a positive settlement on the nuclear issue and reduction of the current restrictions, it is very important to maintain existing contacts and make new contacts even in sectors that still fall under the sanctions. The market is flooded with competitors from the EU and the US. 2 Visit and / or participate in international trade fairs that are organized regularly in all sectors. 3 The best results are achieved by companies that work with a local representative.

13 Approach of the market in Iran 4 Inviting customers to visit the Belgian companies. 5 Organizing seminars and training programs in various sectors. 6 For the time being keep in mind to request a release letter or export permit as it could be a quite time consuming task. *Responsible authority for the Walloon region: S.P.W. D.G.O.6. Dir. Gestion des Licences TEL: 0032/81/ FAX: 0032/81/ michel.moreels@spw.wallonie.be

14 Approach of the market in Iran Departement internationaal Vlaanderen Flemish Department of Foreign Affairs Dienst Controle Strategische Goederen Strategic Goods Control Unit T: F: lotte.bruynen@iv.vlaanderen.be csg@iv.vlaanderen.be * Brussels Hoofdstedelijk Gewest/Région de Bruxelles-Capitale External Relations Directorate Licence Cell Tel: Fax: weaponslic@mrbc.irisnet.be

15 Approach of the market in Iran 7 To avoid problems concerning the payments contact Thesauri Administration Belgium in advance, Fax: 0032/2/ quesinvragen.tf@minfin.fed.be HAVE PATIENCE AND TRUST!

16 Approach of the market in Iran For transactions you can contact: The Middle East Bank (100% private and linked to the SWIFT network only for payment of FOOD, AGRICULTURAL COMMODITIES, MEDICINE and MEDICAL Devises import.) For other authorized sectors which have an export license or a release letter and the declaration to the Administration of the Treasury they also carry out payments for both sides mostly via Oman.

17 Approach of the market in Iran Please see under-mentioned website from the Department of the Treasury Washington D.C. dd 25 July 2013 from the part of OFAC.

18 4. Actions 2014

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