INVITATION DANISH OFFICIAL VISIT TO IRAN 4-5 JANUARY 2016 On 4 and 5 January 2016, the Danish Minister for Foreign Affairs, Mr. Kristian Jensen will visit Iran. On this occasion, the organizing team is pleased to invite Danish companies to join the official business delegation.
IS IRAN THE NEXT BIG THING? During the last decade, trade with Iran has been constrained by comprehensive international sanctions. The major part of these sanctions relate to Iran s nuclear activities and these are expected to be lifted in early 2016. This will offer new opportunities for Danish companies with the capacity to engage the Iranian market, especially since GDP, investments and private consumption are expected to grow significantly. Measured in PPP the Iranian economy is the 18th largest in the world. The population is relatively well educated and young: 65 percent is younger than 35 years. As a benchmark, Danish exports to Saudi-Arabia and Turkey have doubled in the period 2005-2013 and a similar positive development is realistic in Iran. At present Danish exports to Iran amounts to DKK 1 billion. In 2008, before the introduction of the wider sanction regime, Danish exports amounted to DKK 2 billion. A lot of Danish companies have been active on the Iranian market for many years and Danish products and services have a good reputation in Iran. SECTOR FOCUS In 2016, the current limitations on Iranian oil exports, the ban on export to Iran of equipment and machinery for the oil, gas and petrochemical sectors and for the maritime industry, as well as the prohibition of financial transfers to and from Iran are expected to be lifted. This will give rise to business opportunities for Danish companies in a wide range of sectors, including energy, maritime and cleantech, health and agribusiness. Activities, seminars and events during the official visit will lie primarily within these sectors. Companies operating within other sectors are also welcome to participate. ENERGY, MARITIME AND CLEANTECH The oil and gas sector, petrochemicals, shipping, ports, maritime technologies and services, fisheries, clean energy, water, waste management, energy efficiency, consultancy services and IT-applications for intelligent and green solutions. HEALTH SECTOR Pharmaceuticals, clinical products, machinery, applications and consultancy for the health sector. IRAN AT A GLANCE 18th largest economy in the world measured in PPP. Expected GDP growth of 5-6 %, when sanctions are lifted. Investments and private consumption are likely to grow at 7-10% and 6 % respectively. Young population with 65 % below the age of 35. Urbanization: Officially 70 % in 2014; expected to rise. Iran holds approximately 17% of the world s proven gas reserves and 10% of the world s proven oil reserves. EXPORT TO IRAN Implementation of the JCPOA Nuclear-deal entails the lifting of sanctions on oil, gas, maritime, petrochemical and financial sectors. Export of goods from Denmark to Iran were DKK 1 billion in 2014. In 2008 before the imposition of most sanctions, Danish exports were DKK 2 billion. FOOD AND AGROINDUSTRY Food processing and agricultural machinery, animal feed, aqua technology, aquaculture, food, beverages, additives, packaging and other inputs.
TENTATIVE PROGRAMME TIME ACTIVITY VENUE MONDAY 4 JANUARY 08:30-09:00 Welcome briefing with the Danish Ambassador Hotel Parsian Azadi, Almass Hall 09:00-11:00 Seminar: How to do business in Iran part I Hotel Parsian Azadi, Almass Hall 11:30-15:00 Site-visits including sandwiches in the bus Departure from Azadi Hotel 1. MAPNA Energy machinery company 2. Milad Hospital 3. Iranian Supermarkets or 4. Mihan Diary Company Note: Site visits may be cancelled in case of insufficient participation 18:30-21.30 Informal networking dinner (at own expense) TBC TUESDAY 5 JANUARY 08:00 Breakfast briefing for the Danish business delegation with the Danish Foreign Minister Hotel Parsian Azadi 09:00-09:30 Arrival of guests. Coffee and tea Hotel Parsian Azadi, Zarim Hall 09:30-10:15 Grand Opening of the Danish-Iranian Business Day Hotel Parsian Azadi Speeches by the Danish Foreign Minister, Iranian business authorities and Danish business organizations 10:15-12:30 Sector workshops and matchmaking: 1. Energy, Maritime and Cleantech 2. Health Sector 3. Food and Agroindustry Hotel Parsian Azadi, Brilliant, Almass and Zomorrod halls 12:30-13:30 Business Lunch Hotel Parsian Azadi 13:30-17:30 Meeting with Iranian sector ministers with the possible participation of a group of the Danish companies or The relevant Iranian ministries Hotel Parsian Azadi Own programme 14:00-16:00 Seminar: How to do business in Iran part II (focus on finance) Hotel Parsian Azadi 18:30-19:00 Debriefing with the Danish Embassy and the Danish Business Delegation Milad Tower 19:00-21:30 Dinner with the Danish Foreign Minister, participating Danish delegation and selected invited Iranian companies Milad Tower
WHY ENERGY, MARITIME AND CLEANTECH? The energy sector has suffered from chronic underinvestment due to sanctions and the constitutional barring of foreign ownership within the oil and gas sector. The government has announced that it with regard to funding and attention will give first priority to export generating investments in the oil and gas sector. It is expected that Iran in November 2015 will announce plans for new legislation paving the way for foreign profit-sharing in oil and gas exploitation (as opposed to the present buy-back scheme) Even before the expected lifting of sanctions Iran had plans to build up to 10 new refineries, plans to bring some new oilfields on stream and plans to increase gas production by approximately 25 percent over 5 years. Many of Iran s existing oil fields are mature, but require sophisticated foreign technologies in order to raise recovery rates technologies where European firms have a competitive edge. With current low oil prices, Iran is likely to focus more on downstream valueadded in the petrochemical sector requiring new investments and new technologies. Electricity consumption is projected to grow at least 10% over the coming 5 years requiring new investments in the sector. Iran has a wind potential and the government might likely choose to develop alternative energy sources to bridge part of the gap also in order to free other energy production for exports. Holding the world s fourth largest reserve of oil and the world s second largest reserve of natural gas, makes Iran a major player in global fossil fuel trading. Combined with an uptake in domestic consumption, this entails a potential for an increase of DKK 150 million/year for the Danish ship owners. With an increase in trade due to an increase in domestic demand, there will be a big potential for developing Iranian port facilities and shipping also in order for less trade to transit through the UAE requiring engineering, shipping and other services. The rate of urbanization is already relatively high (officially 70%) and it is expected to grow stimulating investments in urban infrastructure.
WHY HEALTH SECTOR? Public healthcare spending has increased from 10% in 2008 to around 15% i.e. a real growth of more than 50% reflecting that the area is a government priority. In 2014 president Rouhani announced a new health insurance plan that aims to bring coverage to all Iranians. The government operates several insurance schemes. There is also a welldeveloped and technology-focused private health sector. With incomes rising a growing share of both private and public income is likely to be spent in the health sector. Private consumer expenditure on health is estimated at around 18 billion USD in 2015. The growing population and the relatively high educational level and thereby also a relatively high level of health awareness and incidence to seek treatment of the population will stimulate demand for health services. Obesity rate is relatively high especially among females (19%). In 2013 there were 4.3 million reported cases of diabetes. This number is expected to double by 2035 in accordance with the overall trend for the Middle East. Average life expectancy is expected to grow from around 73 years to 75 years in 2018. The research and development capabilities of the Iranian pharmaceutical sector are limited. Local production accounts for 97% of the pharmaceutical market in volume, but accounts for only 35% of the market in value terms. WHY FOOD AND AGROINDUSTRY? Expenditure on food, beverages and tobacco accounts for 30% of household expenditure and thereby represents a value of around 60 billion USD. With a rapidly growing population and expected increasing incomes expenditure on food and beverages is likely to rise with more than 1 billion USD per year. The restrictions on imports due to banking sanctions and lack of currency has left the Iranian food market with relatively few varieties within processed foods leaving a big potential for modernisation of the sector. Traditional grocery and other stores accounts for more than 80% of retail sales. However hyper- and supermarkets are growing in importance thereby stimulating the demand for more advanced products. Restrictions on imports of machinery to the food and food-packaging industry have left a huge back-log of required investment. Danish food-additives and machineries have a good reputation in Iran. The official policy focuses on self-sufficiency of food and limits food imports, but this objective is likely to become increasingly challenged due to trade liberalisations, a rapidly growing population and water shortages, which limits the potential for domestic food production. This in turn is likely to spur increased investment into new water management technologies and a shift to more high value productions as well as increased imports (of e.g. meat) in order to balance the market. Increased attention to environmental issues is part of the government s official policy and there is growing environmental awareness in the population also related to the increased educational level of the population.
PRICE The total price for participation is DKK 13,000 per company (Covering 2 company representatives). The price is based on 30 participating companies and an expected subsidy from the Trade Council. WHAT S INCLUDED? Standard Package: Welcome briefing and debriefing. One sector seminar. One site visit. How to do business in Iran seminar part I and II. Business Lunch (no seat limits). Dinner January 5 (4 seats, 2 Danish company representatives and 2 Iranian guests pr. company or 1/3). Official brochure exposure with logo and contact details. One company roll-up. Invitation of requested Iranian business associates to the Danish-Iranian Business Day. Interpretation. Local transportation between events, incl. airport transfer if arrival and departure take place on the main arrivals and departures of the visit. Pre-meeting on 9 December. WHAT S NOT INCLUDED? Companies are able to choose the following add-ons to the standard package: FURTHER INFORMATION http://iran.um.dk/en/ CONTACT DETAILS Danish Embassy in Teheran Main address: thrbes@um.dk Jens Jacob Simonsen jensim@um.dk Cc: Parastoo Sharifi parsha@um.dk Confederation of Danish Industry Ejvind Vøgg ejv@di.dk Danish Agriculture & Food Council Anders Boeskov ahb@lf.dk Michael Stahlschmidt mis@lf.dk Danish Shipowners Association Thomas Sylvest ths@shipowners.dk Danish Chamber of Commerce Michael Bremerskov Jensen mje@danskerhverv.dk Danish Export Association Halldor Halldorsson halldor.halldorsson@dk-export.dk Extra company representative / extra sector track Additional company representative can participate at a fee of DKK 1,500. Extra seats for dinner on 5 January Extra seats are available for the dinner at a price of DKK 500 per seat. Individual Farsi/English interpreter on 4 th January A pool of Farsi/English interpreters will be available for the Danish companies on 5 January. It will be possible to have an interpreter at your disposition on 4 January (e.g. as a guide or for your individual business meetings) at a price of DKK 2,000. Individual meetings The Danish Embassy in Tehran can upon request give an offer for the assistance in arranging individual meetings for the participating Danish companies e.g. in continuation of the official programme on 6 January. Hotel and travel information A travel proposal will be sent to you upon request from BCD Travel. Please contact Ms. Annette Paludan, delegation@bcdme.com. For practical and security reasons we recommend you make your reservations through BCD. Networking Dinner Networking dinner on 4 January is available at own expense. Please contact BCD, Ms. Annette Paludan at delegation@bcdme.com in order to sign up.
OTHER PRACTICAL INFORMATION Pre-meeting A pre-meeting will be held on 9 December 13-16. A separate invitation will be forwarded to participating companies. Visa Visa must be applied for well in advance at www.iran-embassy.dk/visas-en.html. (4 weeks before departure, please note in your application that you are part of the business delegation of the Official visit of the Danish Minister for Foreign Affairs, Mr. Kristian Jensen to Iran on 4-6 January 2016). Individual company roll ups and brochure input Company logo and picture for the individual company roll-up as well as text for the official brochure must be provided up front (e.g. 2 December at the latest). Car rental Cars with drivers can be hired at www.egp-rentcar.ir info@tashrifat-afarinan-iranian.com. REGISTRATION Please sign-up to iran2016@danishofficialvisit.dk When signing up, you will receive a registration form. Please note, that this registration form as well as other required information must be completed and forwarded no later than Wednesday 2 December 2015. Only when the registration form is completed and the required information has been received, you will receive a confirmation of your participation. Please note, that registration after 2. December will not be possible. The organizers will also contact you to clarify wishes and expectations.