Iran Economic Overview and Opportunities

Posted on Posted in Business Guidelines

Iran is the second largest economy in the Middle East after Saudi Arabia with an estimated nominal GDP of $397bn in 2015.

It has the second largest population in the Middle East after Egypt with around 80 million people. Over 60% are estimated to be under 30 years old and the workforce is highly educated.

EU trade with Iran currently stands at around $8bn and is expected to quadruple in the next 2 years.

Contact a UKTI Iran export adviser for a free consultation if you are interested in exporting to Iran.

Iran’s economy is currently reliant on the oil and gas sector, though the country is looking to diversify its economy. Iran also possesses significant agricultural, industrial and service sectors.

Iran has the second largest gas reserves in the world and fourth largest oil reserves. It has highlighted its desire to increase oil output to 1bn barrels per day in 2016.

The main imports to Iran are non-electrical machinery, iron and steel, chemicals and related products, transport vehicles, electrical machinery, tools and appliances.

The Iranian Government is keen to attract foreign investment, with foreign direct investment needed across all major economic sectors.

Over a trillion $ of investment in infrastructure is likely to be needed over the next 10 years. Key opportunities will also include the energy sector, automotive and airline manufacturing sectors. There may be an increased demand for consumer goods such as electronics and clothing.

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