ATLANTA, Oct. 09, 2015 (GLOBE NEWSWIRE) -- Is the Iran nuclear deal currently being negotiated between Iran and western nations a positive for corporate real estate? A new research paper released today by CoreNet Global and Source8, a UK-based global provider of corporate services in real estate, technology and risk management, examines the potential for new investment if the deal becomes finalized.
“Iran is the biggest economy to open up since the fall of the Soviet Union in 1991,” according to the white paper, The Iran Nuclear Agreement: Opportunities and Risks for Foreign Investors Eyeing Iran. “With its young and well-educated population, a diverse manufacturing base and vast oil and gas reserves, Iran offers immense opportunities in various industries including oil and gas, automotive, aviation, consumer goods, telecom and real estate.”
“While the deal is being scrutinized from many potential angles, we believe this is the first comprehensive study to examine it from the perspective of potential growth in corporate real estate investment and expansions,” said Tim Venable, Senior Vice President at CoreNet Global.
The report details how Iran is currently one of the largest and most westernized economies in the Middle East. And it lists several instances of potential growth and expansion in Iran:
- Business leaders from the Dutch oil company Shell, French company Total, and Italian company ENI each held business talks in Iran prior to the nuclear accord.
- Foreign companies will also be interested in exploring export opportunities in South Pars, the largest gas field in the country.
- Government officials from Germany, France, South Korea, Pakistan, India and Turkey expressed support for companies from their respective countries that want to do business in Iran.
- The lifting of the sanctions will enable Iran to import more automotive parts and attract investment not only from French car makers such as Renault and Peugeot, which have previously dominated the country’s car market, but also from U.S. and Japanese manufacturers.
- Boeing is again selling parts in Iran after an interim nuclear agreement was signed in late 2013, and is bidding for more business.
- Several western retailers have presence in Iran and have been relatively successful; they include British multinational retailer Debenhams, Spanish clothing retailer Mango, Italian fashion brand Benetton, and luxury designer Escada. With the lifting of the sanctions, western fashion brands will have access to a large untapped market.
“There are of course significant risks to moving forward,” said Sam Pickering, Senior Director with Source8. “Several sectors of the economy are owned by the government, so companies doing business in Iran will have to be wary of the restrictive legal framework and the reputational risks that might develop. Additionally, if Iran is later to be found in violation of the agreement, the sanctions will be reinstated. And there will continue to be exceptions; those companies and entities that have been identified as supporters of terrorism or human rights violations will continue to face sanctions.”
About CoreNet Global
CoreNet Global is the world’s leading professional association for corporate real estate (CRE) executives with strategic responsibility for the real property used by multinational corporations for their own operations. CoreNet Global’s more than 9,500 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit www.corenetglobal.org.
Source: CoreNet Global