 "Parviz Aghili")
Lifting of economic sanctions on Iran, which could be announced soon, will open huge business opportunities for investors across the world. India is best-suited to grab these, says Parviz Aghili, MD, Middle East Bank (MEB), Iran’s largest private bank, in an interview to Rajesh Bhayani. The bank will have an office in Mumbai and has formed a joint venture with IndAsia Fund Advisors, a corporate finance and investment advisory firm run by Pradip Shah, to facilitate trade and investment flows with Iran. He is in Mumbai and meeting Indian companies. Excerpts from the interview:
What kind of opportunities are emerging in Iran after sanctions are lifted?
Iran has been facing sanctions for five-six years. But in the past three years, they were stringent, as banks were included, though there were no sanctions against MEB. Now, an atmosphere has emerged and sanctions could be lifted soon. Once that happens, business opportunities worth $150-billion will open up for foreign investors. Iran has money as it has huge crude oil, natural gas, petrochemicals and minerals for exports and is dependent on imports to feed its population. There can be joint ventures or trade opportunities in infrastructure development, pharmaceuticals, automobiles, consumer goods and many other items. You put a figure on a list of businesses and Iran will provide opportunity in that area. However, Indian companies can look forward to opportunities in water, minerals, etc. also. Iran has developed water purifying techniques, especially for industrial use, conservation of water, etc., which Indian companies can import. Iran also produces surplus copper and iron ore, which it exports.
India might face competition from Chinese companies to get Iranian business?
I heard from Iranian companies that their experience with Chinese companies post-sanctions days was disappointing because, according to them, the Chinese took advantage of the situation. However, I hope things will improve now. This is an opportune time for Indian companies to expand business ties with Iranian firms. As far as competition is concerned, companies across the globe will be eager to grab the emerging opportunities in Iran. One multinational trading firm has already set up office in Dubai to be ready when Iran opens up after sanctions.
In that case where does India stand?
Geographically, Iran is best placed from Indian companies’ perspective, as from there they can deal with central Asian countries and CIS countries, Afghanistan, etc. Iran has also proposed a preferential trade agreement with India and it is developing a port there. Besides, India has expertise in hotel and hospital management, very good potential to export agri commodities to Iran. Consumer goods, menthol and pharmaceutical products are other areas.
You must be meeting Indian companies…
We are meeting a few pharma companies, a couple of fertiliser makers, and automobile companies, among others and the response has been good. Two fertiliser companies have already expressed their interest in exploring opportunities in Iran. India has huge potential to import fertiliser from Iran and Indian companies can consider joint ventures for Iranian companies. India can import polymers and petrochemicals, as Iran is making these with several special-grade items which India need.
But Iran’s political climate could be an area for concern for Indian companies?
Not really. Iran welcomes foreign investments. Iran has passed an Act called Foreign Investors Protection Act to protect foreign business houses coming to Iran. Iran has money and needs expertise. What is required to be watched is how quickly sanctions are lifted. Whether these are lifted at one go or in phases, whether there will be limited co-operation and so on.
