Due to the size of its market (81 million people) Iran is in economic terms the most important country in the Persian gulf. Its economy has a great dependency on oil, representing more than 30% of its GNP, although in the last few years and due to the fall in the price of oil, its economy has developed other important sectors.
Iran’s main commercial partners are the countries from the EU, followed closely by China – which has strengthened its links recently. There are also main players like South Korea, India and Turkey.
After the disembargo, Iran got the whole attention of the World. Iran is ranked at 4th position in World oil reserves with 99,5 billion $ in last 15 years, but now with the new found reserves Iran jumped to second with its 137,5 billion $ estimated reserves. 80% of the foreign currency inflow is composed by oil incomes.
Besides oil, Iran also is holding the second biggest reserve of natural gas after Russia. And after the withdraw of the embargo, it became a huge movement in the world economy and Iran’s economy got a good effect in that.
Iran’s main suppliers are the UAE, Germany, China, Switzerland and South Korea. The main imports are gasoline, agricultural and siderurgic products, technological goods and services, which are highly needed and in great demand. Another developing sector is transport and infrastructures. Construction proyects in the underground system of several cities, including Teheran. Rasht and Erevan and the connection to Azerbayan, create good opportunities for doing business. Apart from major infrastructure, water sewage systems, oil refineries, electric power and renewable energies also represent good opportunities due to the county’s need for technological partners.
The automotive sector is also being renewed through joint ventures with foreign companies. Although its privatizations represent great opportunities, Turkey is the only country that has participated in them, mainly due to its geographical proximity and the good relations between the two countries. Imports from Turkish as a proportion of total imports are growing,
The bilateral agreements and conferences between two countries are:
Joint Economic Commission
Lately, the 25th meeting between Turkey- Iran Joint Economic Commission was held on 7-9th April 2016 in Ankara and Konya.
The latest meeting was held on 5th March 2016 in Tehran. On the other side, the chamber of commerces are visiting each other frequently.
Road Transportation Joint Committee
The latest meeting was held on 28-29 April in Istanbul.
Turkey is a good partner for Iran considering the geographic location and the advantage of logistics. Also, these two countries are knowing each other very well and mostly sharing similar culture etc. In Iran, there is a community of 15 million people with Turk’s origins from the Ottoman Empire.