Economy, Business And Markets

Capital Market’s Post-Sanctions Agenda

Analyst at Securities & Exchange Organization
Capital Market’s Post-Sanctions Agenda
Capital Market’s Post-Sanctions Agenda

Following the historic nuclear accord reached in Vienna last week, different sectors of the economy are poised to benefit in the post-sanctions era. In recent days, potential opportunities for investors in Iran’s untapped markets have become the focus of media outlets all over the world. Accordingly, authorities in each sector of the economy have been reaching out to announce their plans, priorities and steps to be taken in the days to come.

Head of Securities and Exchanges Organization of Iran, Mohammad Fetanat, was among the first to elaborate on the outlook of Iran’s capital market, as the greatest benchmark and arguably the first and top destination for foreign investments.

In an interview with Bourse Press news agency, Fetanat set out to praise the diplomatic path taken by the government before outlining SEO’s three major programs.

“Many accredited foreign and domestic analyses like the one by Goldman Sachs acknowledge that as soon as the sanctions [imposed by the West on Iran over the country’s nuclear energy program] are lifted, Iran will be placed among the first 11 countries in terms of economic growth,” Fetanat said. “Everyone is talking about Iran’s vast resources and how enthusiastic investors are toward our country.”

He also emphasized that Resistance Economy has proven to be instrumental during years of sanctions, and that many companies managed to withstand the harsh conditions and even pushed forward. Resistance Economy refers to a set of guidelines proposed by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei to counter sanctions, promote domestic growth and reduce reliance on oil.

“Now with the lifting of sanctions, different industries look set to reap remarkable benefits in the short and long run based on their activities and local and international standing.”

According to Fetanat, SEO’s first major plan is to hold an international conference in September hosting foreign investors to officially announce the opening up of Iran’s stock market.

“Although many foreigners are eager to invest in our domestic markets, there are no clear instructions to guide them on how to transfer their money and invest. They don’t even have a clear insight into our exclusive systematic risks.”

Designing new, diverse and internationally adaptive financial instruments was mentioned as the SEO’s second program by Fetanat.

“Our markets have long suffered from the dearth of international instruments. Foreign investors will not get along with the current investing environment. Incorporating instruments such as different derivatives is a must.”

The third program was explained as “accelerating market transparency and resolving all remaining issues related to capital market industries such as refining and chemicals.” Fetanat gave assurance that SEO, in cooperation with the government, is taking all necessary measures to ensure market transparency.

At the end, Fetanat asked market participants to fully exploit the opportunity and pave the way for foreign investors to enter Iranian’s markets which would help boost the domestic economy.