Capital(s): Tehran Population: 68,017,860 (2007) Area: 1,648,000 Km²

Time Zone: GMT+3h30 ISO Code: IR Dialing Code: +98

Iran’s main export commodities include carpets, fruit, gases, hides and skins, iron steel, metal ores and scraps, petroleum products and synthetic lubricants, while the main imports include pharmaceuticals, plastic products, professional and scientific instruments, raw materials, food ingredients, iron steel, machinery, military equipment, mineral products and oil products.

The exchange control is vested in the Bank Markazi (Central Bank of Iran) and all foreign exchange transactions must take place through this bank or authorised banks. There are no restrictions on the import of foreign currency if declared on arrival and export of foreign currency is allowed up to the declared limit of imported goods, however all imports into Iran must be authorised by the Ministry of Commerce before being registered by authorised banks.

Several economic co-operation agreements and trade conventions were signed between Iran and the member states of ECO like Afghanistan, Azerbaijan, Kazakhstan, Kyrghistan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan. April 1995, Iran signed an economic co-operation memorandum with Armenia and Turkmenistan. 30^th July 1995, Iran also signed a trade co-operation agreement with the Kingdom of Morocco.

Iran’s main exports products include petroleum, chemical, petrochemical products. Fruits and nuts and carpets. There majority of these are exported to Japan, China, Italy, South Africa, South Korea, Taiwan, Turkey and Netherlands.

Iran imports goods such as industrial raw materials and intermediate goods, capital goods, foodstuff and other consumer goods, technical services and military supplies. Where domestic production for a particular product dose not meets the market needs within the country, special permits are granted for limited importation of certain goods. In fact this permit is a way of putting ration on importation of goods where a specified ceiling is set on the value, weight and quantity of imported goods and commodities.

The import of certain goods and materials to the country is permitted on condition that there is no domestic production for the goods and materials in question. In such cases obtaining the required certificate of “No Domestic Production” for importation of the said goods is necessary. The conditions applicable to imported goods are based on Harmonized System Tariffs.

The limitations placed on certain export goods in the country are mainly for the protection of domestic consumers and include those consumer goods or domestic industries for which there is inadequate domestic production.

The present Constitution was adopted after the 1979 revolution. Iran is an Islamic Republic, ruled according to a constitution providing for executive, legislative and judicial branches. The president is elected every four years by popular vote, although all presidential candidates must be vetted by the Guardian Council. The vali-e-faqih exercises considerable power over government functions and the conservative Guardian Council approves all legislation to ensure that it is in accord with Islamic law. Overall authority is vested in the Supreme Leader, currently Ayatollah Ali Khamenei, who is chosen by the Assembly of Experts, an elected body of 96 religious scholars chosen from all over Iran. The Supreme Leader is the Commander-in-Chief of the armed forces.

In June 2005, Iran held Presidential elections in which the conservative mayor of Tehran, Mahmoud Ahmadinejad, won a surprise victory. Ahmedinejad succeeded Mohammad Khatami, a moderate reformist, who had been President since August 1997. Ahmadinejad ran on a populist platform, pledging to fight poverty and corruption while creating new jobs in the public sector. Ahmedinejad also pledged to share the Iran’s oil wealth more broadly and to reduce the nation’s income gap between rich and poor. Since taking office in August 2005, Ahmedinejad has replaced numerous political appointees. However, as of early December 2005, the Majlis had rejected three of his nominees (Ali Saeedlou, Sadegh Mahsouli, and Mohsen Tasalloti) for oil minister, leaving the country’s all-important oil sector in limbo for the time being (and causing delays to a variety of projects). On December 4, 2005, President Ahmedinejad submitted the name of current caretaker and former deputy oil minister, Kazem Vaziri, to the Majlis. Vaziri was approved on December 12. On January 3, 2006, a shakeup at the oil ministry resulted in five new deputy ministers, including the one in charge of running the national oil company.

A decrease in oil revenues in 1991 and growing external debt, though, dampened optimism. In March 1989, Khomeini had approved Rafsanjani's 5-year plan for economic development, which allowed Iran to seek foreign loans. But mismanagement and inefficient bureaucracy, as well as political and ideological infighting, have hampered the formulation and execution of coherent economic policies. Today, Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. Former President Khatami followed the market reform plans of his predecessor, President Rafsanjani, and indicated that he would pursue diversification of Iran's oil-reliant economy, although he made little progress toward that goal.

Iranian economy faces the challenge of maintaining high growth and employment creation in a stable macroeconomic environment. The expansionary fiscal and monetary policies of recent years have maintained inflation at double-digit rates and led to a substantial reduction in the external current account surplus at a time when oil prices were high. Moreover, there is a pressing need to step up implementation of structural reforms to enhance economic efficiency and foster private sector development and growth. These include financial sector reform, privatization, further trade liberalization, and improvement of the business climate.

Real GDP grew by 6.7 percent in 2003/04 (fiscal year ending on March 20), with strong contribution from both the oil and non-oil sectors. The unemployment rate declined to 11.2 percent from 14.1 percent in 2000/01. Domestic demand continued to grow rapidly under the impetus of an expansionary policy mix, as reflected in high rates of growth of credit and money supply (M2). As a result, average CPI inflation remained at 15 ½ percent in 2003/04.

The external current account surplus declined to about 1½ percent of GDP in 2003/04 from 3.1 percent in 2002/03. Despite a significant increase in both oil and non-oil exports, imports continued to rise significantly, on the strength of domestic demand. The capital and financial account recorded a large surplus, largely on account of increasing FDI inflows—mainly in the energy sector—and short-term financing through letters of credit. Gross official reserves increased by $3.0 billion to $24.5 billion, equivalent to 6½ months of next year's imports of goods and services. External debt remained low at $11.9 billion, equivalent to 8.7 percent of GDP.

While fiscal policy was tightened in 2003/04, the fiscal stimulus was not fully withdrawn. The non-oil fiscal deficit was brought down to 16½ percent, or close to 2 percent of GDP lower than in the previous year, mainly through expenditure restraint, while non-oil revenue remained unchanged relative to GDP. The overall fiscal deficit also declined from 2.4 percent of GDP to 0.2 percent.

Monetary policy was expansionary in 2003/04. The average bank lending rates have remained broadly unchanged in both nominal and real terms. Unsterilized purchases of foreign exchange from the government by the central bank and increased central bank lending to commercial banks led to rapid growth of base money. This, together with a higher money multiplier, fueled private sector credit and M2 growth to the tune of 39 percent and 30 percent, respectively. The managed float exchange regime has continued to operate smoothly.

Iran's economy relies heavily on oil export revenues - around 80-90 percent of total export earnings and 40-50 percent of the government budget. Strong oil prices the past few years have boosted Iran’s oil export revenues and helped Iran's economic situation. For 2005 and 2006, real GDP is expected to grow by around 5.6 percent and 4.8 percent, respectively. Inflation is running at around 15 percent per year.

Despite higher oil revenues, Iranian budget deficits remain a chronic problem, in part due to large-scale state subsidies on foodstuffs, gasoline, etc. Expenditures on fuels were estimated at $4.7 billion in 2004, and the country's parliament (the Majlis) has rejected measures to raise consumer prices. To the contrary, in January 2005, the Majlis decided to freeze domestic prices for gasoline and other fuels at 2003 levels. Currently, gasoline costs less than 40 cents per gallon in Iran, far below market cost, contributing to a rapid (8-10 percent per year) growth rate in gasoline consumption. In addition, the country imports around one-third of its gasoline.

Iran is the second largest oil rich country in the world by possessing about 125.8 billion barrels of oil after Saudi Arabia. Iraq stands in the third place. Major industry sectors are oil, gas, petrochemicals, mining, power, agriculture, packing and automotive.

Iran is attempting to diversify its economy by investing some of its oil revenues in other areas, including petrochemicals. In 2004, non-oil exports rose by a reported 9 percent. Iran also is hoping to attract billions of dollars worth of foreign investment to the country by creating a more favorable investment climate (i.e., reduced restrictions and duties on imports, creation of free-trade zones). However, there has not been a great deal of progress in this area, in part due to disagreements between reformers and conservatives.

In addition, foreign investors appear to be cautious about Iran due to uncertainties regarding its future direction under new leadership, as well as the ongoing, international standoff over the country’s nuclear program. In September 2005, Iran threatened to impose investment limits on countries opposing its right to access nuclear fuel cycle technology. In November 2005, Iran rejected a proposal by Russia and the EU whereby Russia would supply it with enriched uranium, as opposed to Iran enriching the uranium itself.

The idea of having a well-organized stock market and to speed up the process of industrialization of the country dates back to 1930's when Bank Melli Iran started a study about the subject. A report completed in 1936 worked out the details for the formation of a stock market and laid down the preliminary foundation to proceed with the plan.

The outbreak of the World War II and subsequent economic and political events delayed the establishment of the stock exchange up to the year 1967 when the Stock Exchange Act was ratified. The Tehran Stock Exchange opened in April 1968. Initially only Government bonds and certain State-backed certificates were traded in the market. During 1970's the demand for capital boosted the demand for stocks. At the same time institutional changes like the transfer of shares of public companies and large private firms owned by families, to the employees and the private sector led to the expansion of the stock market activity. The restructuring of the economy following the Islamic Revolution expanded public sector control over the economy and reduced the need for private capital. At the same time the abolishment of interest-bearing bonds terminated their presence in the stock market. As a result of these events, Tehran Stock Exchange started

This stop came to an end in 1989 with the revitalization of the private sector through privatization of state-owned enterprises and promotion of private sector economic activity based on the First Five-year Development Plan of the country. Since then the Stock Exchange has expanded continuously.

United Nations Conference on Trade and Development, Islamic Development Bank, International Finance Corporation, International Monetary Fund, Organisation of Petroleum Exporting Countries, The World Bank Group, United Nations, World Health Organisation, World Customs Organisation, World Intellectual Property Organisation ::[ View All ]

Tehran Stock Exchange

IRIB Conference Center, Tehran International Fairground :[ Add More ]

Abadan Refinery, Abouzar gas field, Abuzar, Agha Jari, Amir Kabir, Amirkabir University of Technology, Angouran Mine, Arak Refinery, Axadegan, Bahregan, Bala, Bandar Abbas Refinery, Bib Hakimeh, Chadormalou, Choghart, Darkhovin, Darquain (Darkhoein), Darreh Zanjir, Dasht-e Abadan, Dez Dam :[ View All ]

Accommodation (14):	Titi Homestay, Abbassi Hotel, Ali Qapu Hotel, Ali Quapu Hotel, Arian Apartment Hotel, Chehel Panjereh Apartment Hotel, Esteghlal Grand hotel, Fajr Grand Hotel, Homa Hotel, Kian Hotel Apartment, Kish Shygan Hotel, Kowsar International Hotel, Laleh International Hotel, Razabieh Grand Hotel :[ Add More ]
Attractions (5):	Babak, Habakkuk's Burial Place, Meymoon, Persepolis, Naqsi Rustam :[ Add More ]
Restaurants:	Laybid Restaurant :[ Add More ]
Transport related (37):	Abadan Airport, Ahwaz Airport, Anzali Port, Babol Sar Airport, Bandar Abbas Airport, Bandar Abbas Port, Bandar Khomeini Port, Birjand Airport, Bushehr, Chabahar, Chah-Bahar Airport, Hamadan Airport, Imam Khomeini, Isfahan Airport, Kerman Airport :[ View All ]