Iran’s economy must head towards SMEs

The President of Iran Export Confederation believes that in order to increase cooperation with European Countries, Iran’s economy must head towards small and medium-sized private companies. Mr. Lahouti stated that the truly private sector has only 20% effect on the economy of Iran and even so, the private sector is heavily affected by the government. He added in order to improve the economy, this pattern must change.

“In dealings with European companies, we must accept that these companies are privately owned and do not receive orders from their governments. On the other hand, their governments are different from the Iranian government as they cannot make and implement decisions overnight. Thus, small European companies will not resume dealings with Iran on the basis of governmental policies.” Said Mr. Lahouti. He believes the first step to cooperation is creating trust and guaranteeing the return of capital and investment to the European side.

This week, in a visit to the investment center in the province of Yazd, Stefan Scholz, the Austrian Ambassador to Iran said that his country is prepared to support small and medium-sized Austrian companies who wish to operate in Iran. Taadol quotes Mr. Scholz as mentioning the three area of sustainable energies, tourism and modern water resource management as the main areas ready for cooperation between Iran and Austria. Mr. Scholz said that the purpose of visiting different Iranian cities is t show that the European Union and Austria are prepared to continue cooperation with Iran.

“The current situation is fleeting. In spite of this the situation is not as the parties wish yet we must take steps forward” Mr. Scholz said.