A pot of gold in the Middle East

If Iran’s sanctions are lifted under the new nuclear deal, a huge opportunity awaits Lebanon

Iran is the hottest emerging market in waiting. It possesses the most expansive industrial base within the region, including one of the biggest auto-manufacturing industries. And despite crippling sanctions, it has managed to place itself on the map among the world’s leading countries in cutting-edge sciences with advances in nanotechnology and stem cell research. Its energy projects are worth over $160 billion according to MEED, the business and intelligence consultancy. It’s a goldmine waiting to be explored.

A SANCTION-FREE IRAN

Over the past year, there has been a lot of noise surrounding the Iran deal. The sanctions are set to be lifted by early next spring, and Iran will be free to take its place in the international community as a leading country in science, technology and medicine. The sanctions sought to isolate Iran economically, and weaken its trade with other countries, devastating Iran’s financial and oil sector. In other words, the sanctions found Iran’s Achilles’ heel and brought the country to its knees.

These sanctions were allegedly meant to stop Iran from building a nuclear bomb. The sanctions also targeted Iran’s financial and banking systems, seeking to isolate the latter from the international community. They curtailed the oil revenues which account for half of the government’s revenue, placed an embargo prohibiting American firms from trading with Iran, and froze assets as well as sanctioning any individual assisting Iran in weapons development. The UN sanctions included an embargo on materials and technology used in uranium production. The European Union also froze assets of individuals and entities that worked with Iran’s nuclear program, blocked transactions with Iranian banks, and restricted trade.

To ensure that the deal goes forward, Iran has to abide by some agreements. It has to limit uranium enrichment activities, including research and development, for eight years. It has to meet international standards for nuclear fuel produced, keep its stockpile under 300kg and sell excess quantities in return for natural uranium.

Significantly, lifting sanctions would enable the Iranian economy to run more efficiently by increasing productivity. It could also gain access to cheaper and easier intermediate goods and technology. On a global

THE SANCTIONS FOUND IRAN’S ACHILLES’ HEEL AND BROUGHT THE COUNTRY TO ITS KNEES