Two weeks ago, a conference titled Irans Future Economy after Sanctions was held in Munich the capital city of Bavaria Province. The purpose of the conference showed that German investors have aimed for an active presence in Iran capital market and great investment potential in Iran economy. More than a hundred of Bavarian investors, economic players and businessmen attended this conference which was hosted by the Bavarian Industries Association as a chance to introduce Irans promising economic potential, especially post sanctions.
Some of the panel topics presented in this conference included: Promising Prospect: Cooperation between Iran and Germany after Sanctions, Investment Market in Iran: Characteristics and Features, Analysis on current industries and investment potential in different industries, and etc.
Director of the Bavarian Industries Association, Borssardt, in his speech mentioned Bavarias interest in further communication and cooperation with Iran economy and said, The history of previous cooperation between these two, going back to the time before sanctions, is a good pretext to pursue them again as soon as the sanctions are removed. Iran Consulate in Germany and the Honorary Chairman of Iran Germany Chamber of Commerce, also predicted a bright prospect for the economic cooperation between these two countries and appreciated the opportunity for pursuing joint projects. Behzad Golkar, the CEO of Sina Financial and Investment Holding further explained the macroeconomics and investment market of Iran considering its economic infrastructure, There is a great potential for investment and joint projects between Germany and Iran.
Apart from the prominent players of investment entities from Germany, representatives from Cornelius Treuhand Bank, insurance groups, investment management firms such as DC Placemant Advisors, BEV-Private Bank and also representatives from industries such auto manufacturing, financial services, insurance, agriculture, hospitality, transportation, energy, information technology and banking attended this conference. Also a few private meetings took place with a few brokerage companies, investment bank of Baader Bank and Munich Re insurance group.
Iran-Bavaria Bureau in Tehran
Borssardt depicted a bright future for the cooperations between Iran and Germany and remarked: Bavarian industries have the experience of working in Irans economy and for this reason, they are more than eager to start over after removal of the sanctions.
Borssardt indicated that this conference is only the first step in renewing the old ties and added: In this stage, we wanted to introduce Irans economy after sanctions and to help Bavarian businesses in realizing this great opportunity. He also explained: Next, we are going to follow this communication channel in the form of an expedition to Iran and having a conference there, also we are going to establish Iran-Bavaria bureau in Tehran which would be a great help in the way of achieving our goals.
120 Bavarian Businessmen to Visit Tehran
Borssardt announced that in response to the invitation of Irans commerce chamber, he accompanied by Bavarias economy minister and more than 120 active players in this field, would visit Tehran in the coming November. He said: At that time, Iran-Bavaria bureau will officially start its activity.
Emphasizing on the long-standing relation between Irans industries and Bavarian businesses, he expressed high hopes for the continuation of this positive cooperation. Nekunam-Qadiri, Irans consul in Munich, also pointed out the fertile investing ground in Iran, ready to receive foreign capital and he also predicted a successful collaboration between these two countries.
Khan-bedaqi, honorary chairman of Iran-Germany Commerce Chamber and another presenter in this conference, outlined the background of Irans industries, their development and their connection with the German industries; after claiming that Irans atmosphere is highly favorable for the foreign investments, he detailed the presence of European and American brands operating in Irans market.
Dr. Conrad, director of the legal team in the Foreign Trade Group, also manager of chemical weapons convention in Economy and Energy federal ministry of Germany, explained the joint action plan for the removal of sanctions and illustrated the details for the conference attendees. Golkar also talked about major economy indexes in Iran GDP, Gini, etc- demographic characteristics of the country and different aspects of the investment market like incentive package of FIPPA- especially stock exchange in Iran.
Claiming that Irans economy has a strong and stable foundation, Golkar added: Comparison with Afghanistan, Emirates, Iraq or Saudi Arabia is not logical, because Iran has a 50-year history of long-term investments in economic and industrial infrastructures. Slow economic growth in other countries, decrease in demand, drop in the total demand and price of essential materials like copper, steel and etc., and many other factors has created a situation in which direct and beneficial communication with Iran is the best choice and needs no extra encouragement.
He argued that even during the period of sanctions, essential and inessential goods from western brands were all available in Iran and added: The only problem was the high transaction costs which would be lowered after the sanctions.
At the closing of this conference, Lohmman a researcher in the American branch of Wissenschaft Research Institute and also SWP- traced the changes in Irans economy after Islamic revolution and also during the period of sanctions and finally concluded that the problems caused by the sanctions would be resolved gradually but surely.
Bavaria is the largest among the 16 federal states of Germany, located at the southern point of the country. Its capital is Munich and its neighbors are Austria in the south and Czech Republic in the east. Bavaria has a 17 percent based on fixed prices; 25 percent according to current prices- contribution in Germanys GDP.
What are Bavarians main interests?
Investing in Irans market, acquiring its companies shares, especially those working in the field of banking and insurance; establishing joint investing funds; collaboration in funds for the purpose of supporting leasing projects; investing in information technology, energy, various industries, agriculture, hotels, transportation, construction, etc.; supporting infrastructure projects like railroads and etc.