The Economist Intelligence Unit estimates the consumer goods market in Iran to be worth $95 billion (Dh348.7 billion), and forecasts it to grow to $166 billion by 2020. Foods and beverages is estimated to account for just under 50 per cent of the total value, a sector that is dominated by local brands.
However, unlike the UAE, the retail structure in Iran is dominated by traditional trade, which accounts for over 90 per cent of sales value. Also, with its much larger area (19 times the size of UAE) and high population dispersion, retailers could face challenges with regard to coverage and distribution.
Local retailers are outraged. According to secretary of food wholesalers union Ali Karbasi, 30% of wholesalers in one market neighborhood in downtown Tehran have shut down and more businesses are likely to go to the wall with the opening of new foreign shops such as Turkey’s BIM.
“Hyper Star, Canbo and BIM have harmed many supermarket owners and food distributors and according to some officials, sales of local trade units in this field have dropped about 50%,” Amin Rostampour, a food distributor in Tehran province, told Jam News monitoring website.
Abu Issa Holding, one of the largest retail and luxury goods firms in the Middle East, plans to expand into Iran next year and open stores in Tehran selling watches and confectionery as the market opens up after sanctions.
Presidential elections are scheduled to be held in Iran on 19 May 2017, However, they might be held earlier under exceptional circumstances, such as the deposition, resignation or death of the President. It will be the twelfth presidential election in Iran.
Post-nuclear deal progress in doubt as US bellicosity triggers surge of uncertainty
FULL ARTICLE https://www.ft.com/content/09d4abbe-eebd-11e6-ba01-119a44939bb6
Business leaders also take solace from the fact that Iran’s $16.6bn deal for Boeing jets remains on track. Five days before Mr Trump’s inauguration, Iran was celebrating the arrival of Iran Air’s first new aircraft — an Airbus jet — in 23 years, a symbolic moment in a country desperately in need of investment.
There are no signs that French companies such as Airbus and Peugeot are under pressure to reconsider deals they reached with Iran in the wake of the nuclear agreement. However, it emerged last night that the oil company Total made its decision to invest in Iran conditional on the Trump administration’s renewal of US sanctions waivers by the summer.
Steven Daines, chief executive of new businesses at Accor Hotels, says the French group is not altering its plans to operate hotels in Iran. But on a visit to Tehran this week, he acknowledged that “we are finding it more difficult than anticipated because of concerns of instability both domestically and internationally [about investing in Iran]”.
38 pages, Jan 2017