68325
London-Based Investor: Iran Holds Huge Promise
Economy, Domestic Economy

London-Based Investor: Iran Holds Huge Promise

Iran has piqued financial interest throughout the world for its massive energy reserves, but the country actually has a host of other opportunities in less obvious areas, a global investor said.
For Clemente Cappello, CIO of London-based Sturgeon Capital, Iran holds promise in part for its cheap labor, abundance of natural resources and well-educated youth.
Specific sectors that could benefit from this mix include glass, manufacturing and petrochemicals, he explained, but Iran could also grow its technology sector.
In fact, the country already has local versions of Uber, Amazon and eBay.
In addition, Cappello mentioned that he thinks “equity opportunity is the easiest and most profitable” option in the country.
Stocks, he said, are trading on average of six times price-to-earnings ratio, dividend yields are “well into the double digits” and interest rates could soon be cut in half.
Iran’s recent election in May could provide a strong mandate for President Hassan Rouhani to continue with a foreign policy of reintegrating Iran’s economy with the rest of the world, and also with his domestic economic reforms, especially in the troubled banking sector.
Cappello, who launched Sturgeon Capital’s Iranian fund, told CNBC’s “Street Signs” that service providers such as banks are the “real obstacle” for foreign investors.
Those banks, he said, “are not keen to do business with Iran.”
The investor also highlighted the risk foreign investors run when they lack understanding about the changing Iranian business dynamics.
“Other risks associated with doing business in Iran include not understanding the stakeholder structure of entities,” he said.
A week before the Iranian election, the US signed a waiver extending sanction relief.
The United Nations Conference on Trade and Development has put Iran among successful countries in terms of attracting foreign investments in 2016. In its 2017 World Investment Report, Iran attracted $3.372 billion worth of foreign investments, which is a 63% increase from the previous year.
Despite US President Donald Trump’s administration putting Iran “on notice”, new sanctions have failed to scare off foreign investors. French energy giant Total recently signed a $4.8-billion deal to invest in Iran’s South Pars Gas Field.
Cappello said the US cannot legally alter the international agreement with Tehran on its own.
“And when it comes to Iran developing a fruitful economic relationship with investors, it will depend on continued reforms,” he said.
“Our hope is that ... deals such as the one Total signed will set a precedent that doing business with Iran is okay and encourage the global business community to reengage the country.”

Short URL : https://goo.gl/MueSx2
  1. https://goo.gl/xAGS1V
  • https://goo.gl/8u15K2
  • https://goo.gl/BjuHnB
  • https://goo.gl/oEWKZp
  • https://goo.gl/fXjWzU

You can also read ...

 Iran’s steel production capacity has been boosted from 21 million tons to 31 million tons in the past four years.
Blessed by a plethora of mineral reserves, Iran has been...
Deposits made in investment funds are also subject to the latest central bank directive.
While more than a year has passed since bank deposit interest...
Iran-Azerbaijan Rail Linkup in 6 Months
A railroad connecting the Iranian Caspian port city of Astara...
Mohammad Baqer Nobakht
Head of Planning and Budget Organization Mohammad Baqer...
Chadormalu Mining and Industrial Company is one of the Middle East’s largest iron ore concentrate producers.
Iran’s Department of Environment has issued a permit for...
Bank Sepah Allocated $11b  From NDFI Forex Resources
Bank Sepah allocated $11.17 billion from the National...
Serbia Abolishes Visas for Iranians
The Serbian government on Tuesday passed a decision on the...
The Austrian software update will take until spring next year.
Austria’s Transport Minister Joerg Leichtfried said he had...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus