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Iran Benefits From Sanctions Removal by Canceling Deals With Western Businesses

Iran Benefits From Sanctions Removal by Canceling Deals With Western Businesses

As the global financial system is reopened for Iran due to the lifting of sanctions, the western companies are competing for investment opportunities in the economically revived country. Referring to the Saturday speech of the President of Iran, more than 150 companies from 50 countries have visited Iran for investment in a short period of time.

The first steps to recovery will be the crucial points of Iranian economy—the $10bn purchase of 114 new planes from the French company Airbus and the return of the Daimler truck business. The Daimler company agreed to resume the cooperation after a six-year hiatus and signed the letter of understanding on Monday. In addition to the German manufacturer, business with French companies, including Renault and Peugeot, will be renewed as well.

After the lifting of sanctions, which became operational on Saturday after the accomplishment of last summer’s landmark nuclear deal, the international business leaders are aiming to enclose trade relations with Iran, the second largest economy of the Middle East. Besides, Iranian businesses have received the green light to implement the money exchange, and the banks have renovated the connections with the European financial system via Swift, which simplifies the international transactions. In fact, Europe is going to increase the trade level with Iran from the current €7.6bn (£5.8bn) to the pre-sanctions level of €28bn.

Iran is getting ready to meet trade delegations from China, Germany, and UK.

Quoting Ramin Rabii, CEO of Turquoise Partners, Iran definitely has business potential as the nuclear deal is considered the point of a new era of the Iranian economy, which can become the economic powerhouse for regional or even global markets in the next five to ten years. In the coming years, the economic growth rate of Iran will increase by 6-8%.

Rabii predicts that Iran is planning to supply half a million barrels of petroleum per day. It will cause the decrease of prices as the global oil market might be oversupplied.

He also states that it is almost impossible to predict the impact of this deal on theaverage person’s welfare but assures that the result will be positive both for the Iranian economy and the life quality of citizens.

Alstom, the French company of electricity generation and rail transport, is looking for contracts on the Tehran’s underground expansion, building two more lines in Mashhad, and taking part in the electrification of the 600-mile railway from Tehran to Mashhad. The Bouygues, the French industrial group, and Aéroports de Paris are also seeking agreements on construction of the second terminal at the Tehran’s Imam Khomeini international airport, the second largest transport project in Iran.

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