Economy, Business And Markets

Iran Economy Moves Closer to Opening Up

Iran Economy Moves Closer to Opening UpIran Economy Moves Closer to Opening Up

Iran has moved a step closer to opening up its economy for business, after the parliament passed a bill approving the July 14 nuclear deal with six world powers on Tuesday.

The deal, which requires Iran to limit its nuclear energy program in return for an easing of economic sanctions, was passed with 161 votes in favor, 59 against and 13 abstentions.

The approval paves the way for the country to emerge as a major force in international trade, wrote London-based business newspaper City A.M.

Thomas Pugh, commodities analyst at Capital Economics, said Iran’s energy industry has the most to gain from a renewed ability to do business with other countries.

“The removal of sanctions will allow a rebound in oil exports, which will rise steadily over the next few years and return to their previous levels,” he said.

“It will take a bit of time, but Iran is already gearing up well. International oil companies have already discussed investment terms with Iran and there will be a flurry of activity once trade officially becomes possible.”

Rem Korteweg, senior research fellow at the Center for European Reform, says Iran’s economy will receive “a lot of investment in all areas”.

Iran has an educated population with great potential that has suffered under the sanctions. Transport, construction, telecommunications and finance are just some of the many sectors set to benefit.

Tuesday’s win follows a similar victory that took place in the US last month, when the Democrats managed to block an attempt by the Republicans to reject the deal through a motion of disapproval in congress.

“After both sides have approved the deal, there will be a period of implementation to ensure each sticks to it,” Korteweg added. “It won’t be before mid-2016 that we see actual deals being made.”