Iran – a reopening market

THESE days there is much talk about the Iranian market.

Being an energy superpower and because of historical ties between the two countries, Iran is a good opportunity for the UK’s Oil & Gas supply chain.

Also Iran is planning 50 major project investment commitments in the sector by 2020. So should UK suppliers be planning for business in Iran and visiting Iran now?

At the beginning of October, the British-Iranian Chamber of Commerce (BICC) took a delegation of 15 businesses from 10 sectors, one of which was the oil sector, to Iran.

The Iranian government wants the participation of the UK in its country’s trade and the Delegation was warmly received at ministerial and official level.

In July, five world powers and Iran signed the Joint Comprehensive Plan of Action (JCPOA), which allows for sanctions relief for Iran in exchange for restrains on Iran’s nuclear industry.

Implementation of the JCPOA is progressing towards Implementation Day – the day on which it will be declared that Iran has met its obligations and sanctions can commence to be rescinded.

Many believe that Implementation Day will be early in the first quarter of 2016.
Before Implementation Day, companies may not enter into contracts with counterparts in the Iran’s Oil & Gas sector, but they may prepare to do so.

Exporters may travel to Iran, re-establish former customer relationships, make new buyer contacts, identify agency relationships, identify Iran’s requirements for their products and services and present their goods and services to decision-makers.

All-in-all exporters can get ready to contract when this is allowed after Implementation Day.
There is much to think about for those looking to new markets to boost their business. Iran is one such market.

Exporters might consider it now.