Iran Business Profile

Economy: Iran’s main sources of income are its huge oil and gas deposits, which are among the world’s largest. The agricultural sector is important for the numbers employed, although output has been depressed by drought and migration of rural labour to the cities. Both subsistence crops, mainly wheat, barley and sugar, and cash crops are grown. The manufacturing sector, which accounts for about one-sixth of total output, produces textiles, food-processing and transport equipment. Apart from hydrocarbons, Iran also has viable deposits of coal, magnesium ores and gypsum. Government policy has sought to promote the agricultural and light industry in order to reduce the economy’s dependence on oil and increase the influence of the private sector – about 80 per cent of economic activity is state controlled. The economy is performing fairly steadily at present: annual growth is about 5 per cent and inflation is 12 to 15 per cent. As in other areas, economic policy is dominated by fundamental difference of approach between the elected government and the ruling clergy. On the trade front, Iran has developed important new links with the newly independent states of central Asia as well as Turkey and China but, more importantly, existing trade with traditional partners in Europe, Japan and the Middle East have been restored. Bilateral trade with the US remains, not surprisingly, at a low level.

Business: Most Iranian businesspeople speak English and are polite and conservative in manner and expect an appropriate response from visitors. Exchanging calling cards is normally restricted to senior people. Appointments should be made and punctuality is expected for business meetings. Business gifts are quite acceptable. Office hours: Sat to Wed 0800-1600, Thurs 0900-1200 (some offices may close all day).