The prospective lifting of Iran sanctions will significantly boost its economy and positively affect the neighboring Arab economies, especially the UAE, according to experts.
Members of the Institute of Chartered Accountants in England and Wales and guests recently gathered at Jumeirah Emirates Towers in Dubai, UAE, to discuss the impact of lifting Iran’s sanctions, Trade Arabia reported.
Panelists included Dr. Theodore Karasik, geo-strategic and political economic analyst; Parham Gohar, co-founder and partner at Frontier Partners; Ali Borhani, founder and chief welding officer at Incubeemea; and Sheila Shadmand, partner-in-charge at Jones Day.
The participants advised investors looking to do business in Iran to seek the legal advice to understand what opportunities and risks may exist in a post-deal world.
Iran’s economy is expected to grow rapidly over the coming years. This should help the Islamic Republic become an attractive destination for foreign investors in the medium to long term. Arab economies, particularly the UAE, would be positively affected by sanctions relief and are expected to play significant roles in terms of investment and trade flows to Iran.
According to Iran’s Vision Plan, the Islamic Republic is expected to attract $1 trillion of investment between now and 2025.
“Initially, the UAE could play a similar role to that which Hong Kong plays regarding China. It has the potential to become the gateway to the Iranian market thanks to its historical trade relations with Iran, world-class infrastructure and best-in-class logistics,” said Michael Armstrong, ICAEW regional director for the Middle East, Africa and South Asia.
“Investor confidence would be boosted by the fact that the UAE has always been a trusted business partner. Although businesses will eventually go directly to Iran, without requiring any intermediary, this is unlikely to change the UAE’s position as a vital trade hub for the region.”
Oil, gas, mining, petrochemicals, infrastructure and manufacturing will all be among the fast-growing sectors in Iran after sanctions are lifted.