All in Economy

Iran Air Expands Routes Amid Uncertainty

◢ Despite recent uncertainty surrounding the 2015 nuclear deal, Iran Air has been moving forward with its expansion efforts, drastically changing its face in the airline industry.

◢ Iran Air's network has grown significantly since 2015, but remains much smaller than that of a decade ago. In 2002, the airline was serving 18 European destinations, compared to today’s 13 destinations.

LaLiga and MTN Irancell Team Up to Bring Global Football to Iran

◢ Spanish football league LaLiga held a three-day football clinic in Tehran in late February, welcoming 90 children for a day of coaching and friendly competition at the Olympic Football Complex.

◢ The clinic was delivered as part of a partnership concluded between MTN-Irancell and LaLiga in December 2017, which covers joint broadcasting and marketing activities. Irancell is one of the most active companies in sports marketing in Iran. 

To Transform the Fortunes of Iran’s Saffron Farmers, a Commitment to Technology and the Environment

◢ Keshmoon, an Iranian startup, connects carefully selected saffron farmers engaged in sustainable agriculture with premium consumers. The company has recently gained acclaim for its combination of ecommerce and "agritech" solutions. 

◢ Starting with an initial cohort of 30 farmers in the town of Qaen in Khorasan Province, Keshmoon is encouraging a move to sustainable agriculture. The goal is to reduce water usage through means that also help the farmers improve their livelihoods. 

Total CEO Pouyanné Considers Measures to Protect European Business in Iran

◢ In a major interview given to French newspaper Le Monde, Total CEO Patrick Pouyanné was asked about the “American threat” to the company’s “important gas project” in Iran.

◢ Pouyanné’s forthright response marks perhaps the first time that a major European executive has publicly called for a diplomatic intervention to protect commercial interests in Iran. He points to the 1990s blocking statutes and sanctions waivers as a potential tool in the current environment. 

As Delays Mount in Iran, Executives and Employers Face Tough Career Choices

◢ In multinational companies, the prospect of earning a promotion is largely tied to the ability to meet targets and hit milestones with speed. For exectuives, working on Iran-related projects in the present environment makes this difficult to do.

◢ For employers, longer project timeframes make management and staffing more difficult. In the current environment, the main concern around human resource management is not recruitment, but retention. To improve retention, companies finding ways to encourage and reward persistence

Iran's Entekhab Set to Acquire Dongbu Daewoo In a Tale of Unfinished Business

◢ Iran’s Entekhab Industrial Group is reportedly poised to acquire majority ownership of Dongbu Daewoo, a manufacturer of appliances and consumer durables, beginning a new chapter in an already complicated saga.

◢ Entekhab, Iran’s leading appliance manufacturer, first sought to acquire Daewoo in 2010 for USD 513 million. Eight years later, a new bid has been made, reportedly for USD 188 million. If the deal goes through, it would be a rare example of an Iranian firm on the buy-side of cross-border M&A. 

Iran's E-Commerce and App Store Giants Continue March to Unicorn Valuations

◢ Two new investments by a Dutch-registered company have pushed Digikala and Café Bazaar to historic new valuations. Iran's e-commerce leader and largest app store are no longer the visionary startups of a few years ago, but rather ambitious and established enterprises. 

◢ The investments were completed discretely, but point back to Sarava, which has reportedly raised new capital in Europe. The venture capital firm is poised to further expand its dominance in Iran's tech sector.

Iranian-Made Exoskeleton Highlights Potential for Hardware Start-Ups

◢ A new crop of entrepreneurs are making Iran into a hub for hardware development, drawing on the country’s deep pool of mechanical and electrical engineering talent.

◢ One such company is Pedasys, which has designed and manufactured a lower-body exoskeleton to allow paraplegic or elderly individuals who are lower-limb disabled to walk. The company is backed by Shenasa, the venture fund of Pasargad Financial Group.

Iranian Protests And The Working Class

◢ There is growing consensus that the core constituency of the recent wave of protests in Iran is working class youth who feel "forgotten" in the country's economic plan. 

◢ The expected post-sanctions windfall has yet to materialize and the Rouhani administration will need to decide whether it will compromise on its austerity-type budgets in order to offer some near-term economic relief. 

Australia's MRC to Spend $2.4 Million on Further Iran Mining Exploration in 2018

◢ Mineral Commodities Limited, a listed Australian junior mining company, has entered the Iranian market. MRC has signed agreements that give it rights to majority stakes in two mining projects producing gold and copper in the northwest of Iran. 

◢ The company has reviewed thirty projects so far, and has earmarked a USD 2.4 million dollars for further exploration in 2018. 

Unilever and Golestan Strike New Joint Venture As Iran’s FMCG Market Accelerates

◢ Unilever has entered into a new joint venture with Iran's Golestan Company. The partners will develop and manufacture new food brands and product lines for the Iranian market. 

◢ The decision to enter into a joint venture reflects a rising trend among international FMCG companies active in Iran. A combination of political circumstances, commercial drivers, and consumer preferences have encouraged ownership of local manufacturing interests. 

Autoneum Deal Underscores Huge Potential in Iranian Auto Parts Industry

◢ Swiss auto parts company Autoneum has entered into a new license agreement with Ayegh Khodro Toos to manufacture components for a new locally-produced Peugeot SUV beginning in 2019.

◢ The deal points to the potential in Iran's auto parts sector, where private sector companies, which are often SMEs with specific areas of expertise, dominate. Projections suggest exports of Iranian auto parts could rise to USD 6 billion by 2025. 

American Medical Company Second Sight Enters Iranian Market

◢ Second Sight has entered the Iranian market with two procedures in Shiraz. Patients were implanted with the Argus II system, which provides an artificial form of useful vision to those suffering from degenerative loss of sight. 

◢ The company entered into a partnership with Iranian firm Arshia Gostar Darman in 2016 and holds a license from the U.S. Department of Treasury that permits the sale of its devices Iran. 

Oil Giant Total Takes to Twitter to Underscore Iran Commitment

◢ In a series of tweets published on Tuesday, Total's press office pushed back on reports that the company is rethinking its Iran strategy in light of pressure from the United States. 

◢ The tweets emphasize that Total CEO Patrick Pouyanné sees no political barriers to the South Pars gas deal, and is simply waiting to see whether following Congressional action legal conditions will allow the deal to move forward. 

Iran Starved of Investor Capital Needed to Fuel Extensive Privatizations

◢ Morteza Lotfi, the newly appointed head of SHASTA has recently announced a new effort for SHASTA to divest from a large portion of its portfolio, offering a second chance at the privatizations pursued a decade ago. 

◢ But political barriers and a dearth of capital, particularly from foreign investors, risks rendering SHASTA's plan dead on arrival as Iran seeks to liberalize without crucial liquidity.

Majority of Business Leaders Blame Trump for Slow Iran Investments

◢ A new survey by Bourse & Bazaar and IranPoll finds that business leaders believe Trump's rhetoric has slowed the pace of trade and investment by multinational companies in Iran.

◢ However, the results come at a time when the underlying commercial momentum seems strong. This suggests that Trump's words are having an impact not on those most directly working with Iran, but on the stakeholders on whom they rely. 

New Survey Examines Iranian Attitudes Towards Foreign Investment, Multinational Companies

New survey conducted by IranPoll in partnership with Bourse & Bazaar looks at Iranian attitudes towards economic reform and foreign investment with new detail. Iranians demonstrate high degree of openness to foreign investment and the economic reforms necessary to facilitate that investment. But they want multinational companies to do more to localize their offerings effectively.