With the election of President Hassan Rouhani in 2013, Iran has greatly improved its relations with other foreign countries. It is a far improvement of the condition of the country in the last 35 years. Now it is beginning to with the rest of the world and potential foreign investors again visited the country and expressed intentions on creating businesses. There are a lot of reasons why Iran is the next best place to invest.
Iran has 10% of the world’s proven oil reserves and 15% of its gas reserves so that the country an “energy superpower”. Most of the country’s exports are oil and gas, said the majority of the revenues of the government. The oil export revenues amount to over 100 billion in foreign exchange reserves from 2010 $ Iran in 18th place in the world rankings of GDP in 2010, higher than in Australia and Thailand. The government aims to 12th place in 2025. With these figures, even without foreign investment the country is economically stable.
Iran has a population of around 75 million in 2011. More than 40% of the population aged 20-40 years old. With its strategic location, the country also has easy access to neighboring markets with around 300 million people. Youth literacy is more than 90% from 2008, with the government to create a national education system, it is expected that this number to increase in the next decade. The country’s labor force is trained in the various sectors such as agriculture and industry, the mining, manufacturing and construction comprises.
In addition to the quantity of oil and the population, is another reason to invest in Iran their tax incentives. Investors can benefit from reduced tax rates from 65% to a flat fixed rate of 25% in spite of various tax exemptions. In 2014, foreign investors established and export 30% of their products in Iran production lines, authorized exceptions of up to 50%. The government enacted the Foreign Investment Promotion and Protection Act (FIPPA), which provides full security and legal protection for foreign investment on the basis of transparency and international standards.
Iran has set up free trade zones or FTZ and Special Economic Zones (SEZ) since the 1970s. As of 2010, there were 6 free-trade zones (FTZ) and 16 special economic zones (SEZ) in Iran. The government plans to create more and FTZ SEZ in the future. These were constructed in order to provide additional incentives to invest as 20 years tax exemption, no entry visa requirements, possibility of 100% foreign-owned, flexible labor law, financial and banking services and expanded legal guarantees and protection, among others. Overall, these are just some of the reasons to invest in Iran.