World Business and Economic Analysis
World Business and Economic Analysis
Iran paid its debt to the German Euler Hermes credit institution, Islamic Republic’s ambassador to Berlin said, IRIB news reported on Sunday.
“There are no more barriers on the way of German banks and companies’ cooperation with Iranians,” Ali Majedi said, “and the company will offer insurance to Iran as of Tuesday.”
As reported, Iran owes Germany about €500 million ($578.90 million) under so-called Hermes covers.
Hermes cover is a common way of referring to an export credit guarantee (ECG) by the German government. These guarantees are an important part of German foreign trade policy and protect German companies in the event of non-payment by foreign debtors. The export credit guarantees of the Federal Republic of Germany offer an array of insurance options which are mainly targeted at exports to developing countries and emerging markets.
Iranian banks and companies faced difficulties for transferring money during the sanctions’ era and foreign credit insurance agencies had to cover Iranian banks’ and companies’ due payments and now the government has to settle all the outstanding debts to foreign firms.
Debts to foreign insurers like Sace and Coface and Hermes had stopped them from opening new credit lines for Iran.
The Malaysian capital of Kuala Lumpur is slated to host an international conference in late July to discuss investment opportunities in Iran after the removal of anti-Tehran sanctions.
The International Conference on Investment Opportunities during Post-Sanction Era in Iran is planned to be held on July 27 and 28.
University of Tehran’s Faculty of Entrepreneurship, University of Technology Malaysia (UTM), the Malaysian Ministry of Finance as well as entrepreneurs and investors from ASEAN (Association of Southeast Asian Nations) countries will jointly organize the international event.
The conference is aimed at achieving several important objectives, including introduction of investment opportunities and economic projects in Iran to ASEAN member states.
The international event will come against the backdrop of a new wave of interest in ties with Iran after Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 reached a conclusion over the text of a comprehensive 159-page deal on Tehran's nuclear program and started implementing it on January 16.
The comprehensive nuclear deal, known as Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions imposed on Iran.
The future of Iran is intertwined with its new economic zones. These, in turn, benefit from the country’s political stability that raises investor confidence
Traditionally, Iran has virtually bled natural resources; its main exports have been in the form of raw, unprocessed materials with minimal value addition.
President Hassan Rouhani dictates increasing the role of private sector in economic development , which will in turn generate thousands of jobs, attract the transfer of new technologies, and greater wealth in the form of higher export earnings and increased foreign direct investment.
Invest in Iran
The objective of the Special Economic Zones (SPZ) is to attract and promote investment for export-led industrialization and the processing of local raw materials, including leather, textiles and garments, lapidary, wood, and fish.
There are several advantages and incentives for members of these schemes. Investors enjoy exemption from corporate tax and withholding tax on rent, dividends and interest; remission of all taxes on raw materials and capital goods; exemption from taxes and levies imposed by local government authorities on products produced in SPZs; and exemption from VAT on utility and wharfage charges.
Beyond fiscal incentives, another benefit of exporting from Iran lies in the country’s that goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.
If the processing of imported goods i changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
If you need Investment consultancy on investing in Iran Special Economic Zones please send your enquires to :This email address is being protected from spambots. You need JavaScript enabled to view it.
