Iran plans to purchase 114 civil aircraft from Airbus, signalling a trade and investment boom in the Middle Eastern country after lifitng the sanctions. That business boom is seen to bring a $50 billion per year worth of foreign investments.
Reuters reported Sunday that transport minister Abbas Akhoondi said Iran plans to buy 114 civil aircraft from Europe's Airbus. This deal is valued at a catalog price of $10 billion. This investment could help reshape the future of Iran's economy.
Right after world powers lifted the international sanctions on Tehran after it agreed to curb nuclear projects, President Hassan Rouhani tweeted, "The legs of Iran's economy are now free of the chains of sanctions, and it's time to build and grow."
According to Bloomberg News, Iran's central bank governor Valiollah Seif said the removal of sanction could lead to at least $50 billion per year worth of foreign investments. This would help the country's economy to rebound after suffering from oil slumps. He said, "Our country can absorb a great deal of foreign investment, considering its potential."
Now that Iran is out of isolation, a wave of interested foreign investors has seen the $400 billion economy a big opportunity. Iran is home to some of the world's largest fossil-fuel reserves and it has massive untapped resources due to its pariah status which lasted for more than ten years.
BBC wrote that there have been a lot of companies planning for their return to Iran after its sanctions were removed. There are still US sanctions imposed on Iran, which means Asian and European companies will get a head start in investing in the Middle Eastern country.
However, there are other analysts who warn that investors should still be cautious due to the country's bureaucracy and political stigmas. Corruption is still a big challenge in the country. Meanwhile, its commercial and labor laws are already outdated. Legal issues will also take very long to resolve since Iranian courts are infamous for being very slow.
Join the Conversation