LONDON / NEW YORK:
A few foreign investors are racing to establish funds for Iran following last week’s nuclear deal with world powers, many others tapping into multinationals already present in the $400 billion economy, reportedly.
The agreement has made some seek a foothold in Tehran’s $100 billion stock market even before sanctions are lifted, although others are taking a more cautious approach.
Classified as an upper-middle income country, with a population of 78 million and annual output higher than that of Thailand or the United Arab Emirates, Iran is set to be the biggest economy to re-join the global trading and financial system since the break-up of the Soviet Union over 20 years ago.
Brokerage Renaissance Capital predicts $1 billion will flow into Iran in the first year after sanctions end, although that is not likely to happen for months and may not occur in one go.