Iran Economy in Brief – No. 41

More Practice Than Theory

On Monday, October 3, German Economic Minister, Sigmar Gabriel, headed a large business delegation to Tehran.

In his speech in Iran Chamber of Commerce, Gabriel brought a totally new idea for collaboration with Iran. His country is one of the best practices, is not the absolute best, for human empowerment without necessarily academic studies.

In Iran, however, common belief is that promising career could be achieved only through high level of education at the university. Germany has proved a counter example.

Now Vice Chancellor is ready to share their experiences with Iran.

Germans Are Back?no41

Although German companies are in negotiations with Iran at various levels, compared to French and Italian activities in Iran, it seems that Germans are more conservative in starting new businesses in Iran.

Iran has committed huge investment in buying new aircrafts which is an indication of the potentials in the related infrastructural such as airports. The Italian company, SEA, operating Milan-Malpensa Airport, has made a deal to build a unique terminal at the most crowded Iranian airport, Mehrabad Airport, located in Tehran. The second largest airport in Iran, Mashad Airport, will be renovated by the French. This is while no German company has shown interest to take part in other projects. Is this because Germans are particularly conservative or is it mainly because of the US sanctions?

Russian Exploring Deeply

Deputy Power Minister announced that Russia will invest $250 million to explore for deep water resources in Iran.

“Banking channels have been open for money transactions”, said Mr. Meidani.

Currently local experts are working on studying phases of the project.

Iran has borrowed $5 billion to run new infrastructure and construction projects.