Is business between Italy and Iran still possible?
Our company operates in Italy, Europe and in various countries of the Middle East, preferring to work in markets that are not simple but rich in opportunities, for those who know how to work and how to move.
Iran is the lead country of the next eleven (N-11) which, together with the BRICS, are identified as the largest economies in the world in the 21st century.
Working in Iran means being present in a country that has over 80 million inhabitants, of which two thirds are under the age of 35 and the average level of education is high.
It is the central country of the OBOR (One belt one road) project or the New Silk Road, strongly desired and designed by the Chinese government, with an investment of 100 billion dollars for the improvement of trade links.
It is a regional hub, the basis for reaching a market of 400 million consumers in the neighboring countries of the Middle East and in the former Soviet republics.
The government wants to invest in transport (airports, ports, railways) and in the development of internal production.
For this reason, there is a great demand for technology, machinery and production lines with particular attention to quality.
The automotive industry, which constitutes 10% of Iran’s gross domestic product, has great ambitions as well as the sectors:
Food and Beverage, Furniture and Construction, Ceramics, Cosmetics, Pharmaceutical and Medical, Energy, Mining and Metallurgy, Mechanics, Fashion, Oil&Gas, Packaging, Textile.
Oil, which has always been the basis of the Iranian economy, has been the country’s main source of income for many years.
The government’s goal today is to continue selling petroleum products to historical partners, without using the dollar, but it needs international investments to modernize the plants.
At the same time, efforts are focused on non-oil exports that have exceeded 30 billion dollars.
Iran also has large gas reserves (it is second only to Russia).
As in Italy, 90% of the companies are small and medium-sized.
That’s why Italy and Europe should continue to work with Iran.
The situation after Biden’s election in the US
The agreement on the nuclear program, signed on 14 July 2015 between Tehran and the group of 5+1 (the members of the UN Security Council + Germany) has not only redesigned the geopolitical scene in the Middle East but has also had a significant impact in economic terms, despite the pressure from the United States that would like to prevent European companies from working in Iran.
After US President Trump’s withdrawal from the nuclear deal and the consequent American return to sanctions, there was great wish to understand what would happen.
However, Italy and Europe have not introduced any kind of sanctions against Iran, sanctions that have remained exclusively American.
Now, after Biden’s election as President of the United States, the US reopened to Iran talking about a possible lifting of the Trump sanctions.
Waiting for future developments, many European and Italian companies continue to work with Iran and the number of those interested in doing so is growing.
In fact, for many companies this country represents a fundamental market, for some of them even the first destination of their exports.
Italy privileged partner
In addition to the economic and development potential of this country, here are some reasons and curiosities that can help to understand why Italian and Iranian companies have numerous chances of success in working and investing together.
The Iranian and the Italian people have multiple similarities and there is a natural sympathy between the heirs of ancient civilizations, namely the Persians and the Romans.
In the Iran-Iraq war (1980-1988) Iranians were victims of an attack without any warning.
Despite this, all the most powerful states lined up in support of Iraq.
Italy, on the other hand, asked and obtained from its Parliament the freezing of military supplies (supplies already paid for and largely already built that had to be delivered to the Iraqi navy).
Otherwise Iraq would have become the largest naval power in the region, probably winning the conflict.
This is just one of the many reasons why the Iranian people are grateful and love our country.
Italy was the first European country to resume economic contacts with Iran back in 1998.
Italian companies, especially small and medium-sized ones, continued to work in Iran even during the sanctions.
Made in Italy is very strong and appreciated: it is no coincidence that after six years of sanctions Italy has returned to being Iran’s first trading partner within the EU, only to be overtaken by Germany and Switzerland (this last due to humanitarian channels) due to the ban on buying Iranian oil of which Italy was a major customer.
The two nations, heirs of ancient Persia and ancient Rome, have also made culture in all its forms the fertile ground for their relationships: in fact, recently both Maestro Riccardo Muti, in homage to Verdi, and Maestro Nicola Piovani, Oscar winner, performed in Tehran.