April 3, 2015


Billions up for grabs if nuclear deal opens Iran economy (ANDREW TORCHIA, 4/03/15, Reuters) 

Iranian investment banker Ramin Rabii says he shouted in joy when he learned that Tehran and world powers had reached a deal which promises to lift economic sanctions on Iran. Then he called colleagues to discuss the business implications. [...]

"We've been preparing for this moment for 10 years," Rabii said by telephone, adding that in the months leading up to the deal Turquoise was in touch with hundreds of potential foreign investors about opportunities for them if sanctions were lifted. [...]

Frozen out of the international banking system, its foreign trade slashed by the sanctions, Iran looks likely to become the biggest country to rejoin the global economy since post-Communist eastern Europe in the early 1990s.

The resulting boom could create tens of billions of dollars worth of business for both local and foreign companies and shift the economic balance in the Gulf, which has so far been heavily weighted toward the rich Gulf Arab oil exporting countries.

"Precautionary talks have already started between Iran and some big Western investors" in areas such as oil and autos, said Iranian-born economist Mehrdad Emadi of London's Betamatrix consultancy. "Now there will be accelerating momentum."

He predicted annual growth of Iran's $420 billion economy would rise by as much as 2 percentage points to over 5 percent in the year after a final nuclear deal. It could accelerate further to 7 or 8 percent in the following 18 months - matching the growth of Asia's "tiger economies" during their boom years.

Iran's trade with the European Union, which totaled 7.6 billion euros ($8.3 billion) last year, could balloon 400 percent by mid-2018, Emadi said.

Note that it was ten years ago that Khatami/Khameini tried getting W to let them in from the Cold.

Posted by at April 3, 2015 3:09 PM

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