Economy, Business And Markets

Amin Bank, German Firm to Facilitate Trade

Amin Bank, German Firm to Facilitate TradeAmin Bank, German Firm to Facilitate Trade

Amin Investment Bank and trAIDe GmbH have signed partnership deal to support German companies looking for insights to tap into Iran’s emerging economy.

In line with a decision by the German Parliament, the German Federal Ministry for Economic Affairs and Energy (BMWi) has set up a Market Development Program as an instrument to assist German companies in their market development in a bid to expand their foreign trade activities, according to a press release by Amin on Saturday.

BMWi opted trAIDe as the project manager. The latter specializes in assisting small and medium sized enterprises to access foreign future markets in a sustainable way. It also is a specialist in business matchmaking in Germany.

The partnership with Amin—the biggest investment banking firm in Iran with over $1.2 billion in assets under management—will facilitate access to a potent network of corporations and also investment opportunities within the last untapped market on earth.

A delegation, including representatives of 70 companies from Germany’s North Rhine-Westphalia, headed by the state’s Minister of Economic Affairs, Energy and Industry Garrelt Duin will visit Iran in May. Almost 80% of the machinery installed in Iranian factories are made in Germany.

Trade between Iran and Germany in 2005 and before the implementation of western sanctions against Iran over its nuclear program amounted to €4.4 billion, with NRW, the country’s most populous state, accounting for a quarter of the sum.


Unique Status

Iran is likely to become a regional economic powerhouse by 2025, with growth rates of around 3.5% this year as sanctions begin to fade. This would place Iran as the second fastest growing of the MENA economies. According to the IMF, since 2011, sanctions have wiped off between 15-20% from Iran's GDP.

Iran’s gross domestic product is put at $406 billion now that there are fewer restrictions on the Central Bank of Iran, domestic financial sectors and on trade. In addition to this, the nuclear deal will also unfreeze around $130 billion of Iran’s overseas assets (estimates range from anywhere between $50 billion and $150 billion).

This infusion of liquidity into the economy, coupled with the fact that Iran is already MENA’s most diversified economy, provide the ingredients for Iranian economic superpower status within the next 10 years.

Iran will also be able to add a further 1.5 million barrels of oil per day to the world markets. Buffeted by international sanctions, Iran remains rich in natural resources. The removal of sanctions may also see the return of the estimated 300,000 Iranians forced to look for work abroad. Iran will also continue to make strides in its historically strong fields, mathematics and science, where it will look to become a world leader once again. Its economic future appears bright, with circumstances conducive to regional superpower status.

Unlike the Persian Gulf Cooperation Council members, Iran’s economy is not fully dependent on oil export. The equity market is featuring 41 listed industries in Tehran Stock Exchange and Iran Fara Bourse, including promising players like the auto, oil, refining, petrochemicals, mining, chemicals, metals, telecommunication as well as transport sectors.

Given the country’s disconnect for over a decade due to the nuclear dispute with the West, many sectors are in dire need of fresh capital, new technologies and machinery. Leading international corporations are discussing mega deals with  high-profile delegations from all over the world flocking to the country in a bid to secure lucrative contracts as the Iranian economy opens up to the world for normal business.