Industry Spotlight: Technology Sector

Industry Spotlight: Technology Sector

By Sarah Bryn Witmer, Research Associate

There are many factors that have led to a thriving tech industry in Iran, including abundant resources, lifted sanctions, and a youthful, highly educated population.  Perhaps somewhat surprisingly, the industry has also benefited in large part due to active support from the Iranian government. Over a decade ago in 2005, the Islamic Republic released a “20 Year National Vision” statement, known as Vision 2025, describing the state’s intentions to achieve “first place in the areas of economy, science, and technology in the Western South Asia region,” specifically in “high tech [software knowledge] production.”  More recently, President Rouhani’s administration has categorized the tech sector as one of the nation’s top three priorities in a shorter five-year plan.  Pursuant to this goal, the administration has released an unprecedented budget for communications and internet infrastructure. The government has also reversed decisions that limited internet speeds for residential users, and has issued 3G and 4G licenses to Iran’s main mobile operators. Today, many Iranians own smartphones (primarily Androids), and approximately 47 million people - nearly half of Iran’s population - use the internet.  

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Industry Spotlight: Literature

Industry Spotlight: Literature

By Sarah Bryn Witmer, Research Associate

From ancient poetry to modern graphic novels, Iranian literature has been shaped over the millennia. Combining this extensive history with a national literacy rate of nearly 90%, literature remains important to the country's psyche and a great source of national pride.  

In addition to its cultural significance, Iran’s book industry also plays a role in the economy and in matters of public policy.  In 1992, the Ministry of Culture and Islamic Guidance commissioned the creation of the Iran Cultural Fairs Institute in order to establish book fairs across the country and around the world.  As part of this directive, in May 2017 Tehran will host its largest literature-related event of the year, the 30th annual Tehran International Book Fair (TIBF).

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Industry Spotlight: Automobiles

Industry Spotlight: Automobiles

By Ariane Gottlieb, Research Associate  

After oil and gas, the automobile industry is Iran’s third largest, accounting for approximately 10% of the country’s GDP and employing about four percent of the country’s workforce.  Despite setbacks from sanctions, which saw Iran pull back as the number one automobile developer in the Middle East to second place behind Turkey, the auto industry has been growing.  The past decade has shown a six fold increase in production, fueled by both domestic and foreign demand.  Today, the industry produces around 1 million cars each year.

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MYTH vs. FACT: Iranians & Terrorism

MYTH vs. FACT:  Iranians & Terrorism

MYTH: Iranians are likely to carry out terror attacks against the United States, and are properly included in the Trump administration’s travel ban.

FACT: Iranians are not likely to carry out terror attacks against the United States.  Indeed, this myth has no factual basis whatsoever.  More than any of our other Myth vs. Fact articles, this is an extremely serious charge and it requires an even more in-depth look into the factors that are contributing to this misperception.  We hope this article will be informative and widely shared.

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Industry Spotlight: Construction

Industry Spotlight: Construction

By Sarah Bryn Witmer, Research Associate

Iran’s construction industry, currently valued at about $154 billion, is central to the country’s economy and promises steady growth. While the construction industry was in decline before international sanctions were lifted, it has made a quick turnaround: output value is expected to rise at a compound annual growth rate of 6.34% through 2020.  Investment opportunities are also increasing as the country opens up to more international markets and new infrastructure is needed.

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Industry Spotlight: Environment

Industry Spotlight: Environment

Iran has long had its share of environmental issues including air pollution, water management, and the effects of climate change. But in 2016, major developments in environmental policy in Iran helped boost the country’s “green” status. For instance, Iran passed the Clean Air Bill, imposing fines on excess air pollution, and became the 106th nation to ratify the Paris Agreement in early November 2016.  Additionally, the Iranian Department of Environment endorsed several successful environmental campaigns such as “Car-Free Tuesday” and a plan to protect the Persian Leopard.

Since implementation of the JCPOA, Iran’s environmental protection sector has also seen an increase in foreign investment.  For example, in 2016, Iran and Germany signed a memorandum of understanding to construct environmentally friendly housing in Hashtgerd and Isfahan.  Member of the Board of Instructors at Düsseldorf University in Germany Fereydoun Bodaghi says that Iran could soon attract over $20 billion in investments, and notes that  the environmental protection sector seems one of the most promising areas.

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Industry Spotlight: Tourism

Industry Spotlight: Tourism

Iran may not be high on most Americans' lists of top tourist destinations, but the tourism industry there has been doing quite well.  Home to a rich cultural and historical heritage, Iran contains architectural remnants that date back over 2000 years with 19 major archaeological sites having been named UNESCO World Heritage Sites.  After implementation of the JCPOA, the number of tourists visiting in Iran rapidly increased, with Iran currently generating some $8 billion from tourism.  The country expects that number to jump to $30 billion by 2025, with nearly 20 million tourists visiting annually and providing over 1.9 million Iranian jobs.

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MYTH vs. FACT: Iran Tourism

MYTH vs. FACT: Iran Tourism

MYTH:  Iran is a dangerous place where Western tourists – and particularly Americans – are neither welcomed, nor permitted to visit the country

FACT:  Iran is a safe country where Western tourists - including Americans - are warmly and enthusiastically welcomed. Furthermore, it is a wonderful place to explore, full of extraordinary history, amazing architecture, diverse landscapes, delicious food and a vibrant and engaging culture.

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Industry Spotlight: Advertising & Marketing

Industry Spotlight: Advertising & Marketing

Over 60 percent of Iran’s approximately 80 million people are under the age of 30. Since this is the preferred demographic for marketing, it is no surprise that international and local brands alike are competing to reach untapped markets among the nation’s growing youth.  Indeed, the advertising industry in Iran has already grown into a 600-million-dollar giant. Moreover, since Iran has the largest internet and smartphone penetration rate in the Middle East, “Advertising Technology” (AdTech) now plays a major role in modernizing marketing and advertising strategies in the previously economically isolated nation.

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Industry Spotlight: Electronics, Computers, and E-Commerce

Industry Spotlight: Electronics, Computers, and E-Commerce

Iran fosters a thriving domestic tech scene that hosts multi-million dollar companies like Café Bazaar and Aparat and appears ripe for further growth after sanctions relief from the JCPOA.  Around two-thirds of Iran’s population is under the age of 35, while 42% are under 24. In addition to a sizeable young, tech-savvy population, there are roughly 56 million Internet users in Iran, forming a substantial potential customer base for cutting-edge tech startups.

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Industry Spotlight: Banking and Insurance

Industry Spotlight: Banking and Insurance

Prior to the implementation of international sanctions, over 57 private and public foreign bank branches operated outside of Iran, with that number declining until all were eventually closed. With sanctions lifted in January 2016, over 50 new branches are expected to open internationally. There are currently requests by several banks to open branches and resume business within Iran, though some have already begun to handle customers’ transactions within the nation.

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MYTH vs. FACT: Women in Iran

MYTH vs. FACT: Women in Iran

MYTH:  It is a pervasive belief that women in Iran are voiceless victims of the patriarchy, bereft of intellectual energy or otherwise barred from making genuine contributions to Iranian society

FACT:  It’s easy to think that all women in the Middle East face the same set of circumstances. But, in Iran, the state of women’s rights is less a static condition than an evolving reality. They do face serious discrimination, in private and in public – but they have benefited extensively from education and family planning programs. And, today, they are not voiceless. They are the champions of their own cause, well-positioned to make lasting progress.

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Industry Spotlight: Automobiles 2016

Industry Spotlight: Automobiles 2016

“The government will never be a good manager in industry, including the car industry. The sector should be completely privatized and competitive. The partnership [with foreign carmakers] will drive us ahead.” 

With these words, President Hassan Rouhani, in a nationally broadcast speech, invited foreign investment to participate in Iran’s auto industry. Following years of devastating sanctions on manufacturing, analysts believe Iran’s auto parts industry, the nation's second largest economic sector, is ripe for growth

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MYTH vs. FACT: Jews in Iran

MYTH vs. FACT: Jews in Iran

MYTH: It is commonly believed that Iranians hate Jewish people, thanks to their government’s anti-Zionist statements. 

FACT:  The truth is more complicated. Iran boasts the largest community of Jews outside of Israel, and Jews in Iran enjoy various protections under the law, access to synagogues and schools, and political representation. And, while they do face discrimination from the state, Iranian Jews generally live comfortable, middle-class lives – and they have long been a part of the Iranian story.

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Industry Spotlight: Healthcare

Industry Spotlight: Healthcare

Iran’s hospitals are undergoing rapid development.  In 2012, the Ministry of Health and Medical Evaluation initiated an evaluation system for hospitals in Iran to bolster the quality of services provided. And, in 2014, the Iranian government announced a new program to extend health insurance coverage to all Iranians, in the fashion of “Obamacare” in the United States.  Under the new Tarh-e Salaamat health plan, the state pays for 90% of patients’ medical bills in hospitals. Thus, while Iranian hospitals do face challenges in structural support and resources, there are significant opportunities for growth in the country’s medical sector.

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Industry Spotlight: Telecommunications

Industry Spotlight: Telecommunications

Following last year’s implementation of the nuclear deal, companies around the world have taken a serious interest in the Iranian telecommunications industry.  The population of Iran, the second-largest in the Middle East, is mostly young – over 60% of Iranians are below the age of 30 – and, therefore, more likely to consume new technologies, cellular devices, and electronics. Thanks to deregulation, the introduction of 3G and 4G network services, and a robust start-up culture, Iran’s telecom industry offers a promising, and highly lucrative, new frontier for the global economy.   

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MYTH vs. FACT: The History and Culture of Iran

MYTH vs. FACT: The History and Culture of Iran

MYTH:  Iran has contributed little in the way of culture or history

FACT:  Nothing could be farther from the truth. Iranians are heirs to some of the world’s largest and most extraordinary civilizations, and their cultural roots stretch all the way back to ancient history. After the expansion of Arab kingdoms in the medieval period, Iranians continued to make indelible contributions to humanity, with their effulgent poetry, religious traditions, and art. Today, Iranians are among the world’s best filmmakers, poets, and novelists.

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