Foreign Direct Investment in Iran - Potential Approaches To The Market

Potential Approaches To The Market

See also: Foreign portfolio investment in Iran and Licensing and franchising in Iran

First and foremost, it is crucial to realize that Iranian authorities insist on a long-term commitment and a transfer of technology as a requisite for getting a share in the market. Foreign companies are therefore advised to adopt a medium- to long-term strategy for the Iranian market. Iran will almost never honor the interests of a company that does not show long-term commitment. Tenders are strictly required for government contracts for purchasing or projects. These are rarely competitive. Breaking up contracts into smaller parts is a common practice to try to incorporate at least 30% of the contract's value in local capability and also to negotiate on specific prices.

Currently there are three main routes that a foreign company can follow to establish a long-term presence in Iran:

Read more about this topic:  Foreign Direct Investment In Iran

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