The talks between Iran and the six world powers (USA, Germany, Great Britain, France, Russia, China) are progressing. If the current negotiations succeed to the satisfaction of the world powers, it may be time to invest in Iran. According to an article in Reuters, the U.N. nuclear chief had a useful visit to Iran.
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Iran has given a firm commitment to cooperate with a U.N. nuclear watchdog investigation into suspected atomic bomb research, the head of the agency said after what he described as a “useful” visit to Tehran on Sunday.
The sanctions on Iran have largely crippled its oil exportation and caused hardship on its population. This could be a good example of so-called blood-in-the-streets investing. Iran has great resources and an educated population.
Foreign Direct Investment
Foreign direct investment in Iran could be lucrative if the nuclear standoff is finally resolved.
Foreign direct investment is done by folks with lots of money, the intention to stay the course and the intent to make a profit. If you are looking for offshore investment ideas, take a look at where foreign direct investment goes year after year after year.
For a snapshot of where foreign direct investment is going today talk a look at the foreign direct investment article.
Invest in Iran
Providing that the nuclear development standoff is resolved, what does Iran have to offer an investor? According to the CIA World Factbook, Iran has the fourth largest proven oil reserves in the world, at 154.6 billion barrels.
Crude oil – production:
3.594 million bbl/day (2012 est.)
country comparison to the world: 6
Crude oil – exports:
2.445 million bbl/day (2011 est.)
country comparison to the world: 3
Crude oil – imports:
15,600 bbl/day (2010 est.)
country comparison to the world: 71
Crude oil – proved reserves:
154.6 billion bbl (1 January 2013 est.)
country comparison to the world: 4
Iran has been dealing with shortages of even the basics as the sanctions levied by Western powers have taken hold. They are basically unable to sell their oil abroad and are running short of hard currency reserves. This will be quickly remedied if they come to an agreement to open up their nuclear program to inspection. The cash from a viable oil export program will pay for development in industries and businesses across the board.
Iranian President Hassan Rouhani
Things have changed with Iran ever since the country elected a new president. Hassan Rouhani has taken a more moderate approach in dealing with the West. It has been since his election that talks with the six major powers have advanced. According to the head of the U.N. inspection team Iran has agreed verbally to implementation of the so-called framework for cooperation between Iran and the International Atomic Energy Commission. Basically this has to do with proving that Iran is not using its nuclear enrichment program to develop nuclear weapons. Those who wish to invest in Iran as it sees sanctions lifted will want to watch the progress of further talks which are scheduled to resume in November of 2014. And they will want to follow the drama in Iran between religious hardliners and those who want to take a more businesslike approach to dealing with the rest of the world.