Iran was a reliable credit partner that kept agreements as a rule, says Germany’s visiting Eco¬no¬my Minister Sigmar Gabriel
Berliner Unternehmerreise in den Iran
Iran: Business Roundtable öffnet Türen
Iran is after Saudi Arabia the second largest oil producer in OPEC and has 133.3 billion barrels, with over 10% of proven oil reserves in the world. Iran also has the second largest gas reserves after Russia. The energy sector of Iran is by far the most important branch of the Iranian economy. Its contribution to nominal gross domestic product (GDP) is about 10-20%, and about 80% of export revenues in recent years came from the sale of oil and gas. The trade balance therefore depends crucially on the price of oil on the world market.
With a population of over 70 million and considerable revenue from oil and gas reserves, Iranis one of the most important Middle Eastern markets. As purchasers of capital goods, the country is also a non-negligible long-term business partner. Embeddedin a region with some 300 million inhabitants, adjacent to various CIS countries and the countries in the reconstruction of Afghanistanand nascent (restricted) Iraqthis market offers exceptional growth potential.
The Western-oriented Iranian customers and the affluent upper class guarantee for the future a continuous demand. These are high demands on technology and quality general constants, which speak for the preference of western products. Traditionally, this resulting benefits for German products enjoy high reputation because of advanced technology. Competition comes from neighbouring European countries (Italy, France, etc.), but also by suppliers from Eastern European countries (Poland, Russian Federationand others), which act as "dumping" prices.
German foreign trade promotion:
Promotion of foreign trade remains important. Germany is the second largest trading nation in the world. Only the German exports have now reached a volume of around € 600 billion and is growing continuously. One out of three jobs is related to the export. The export growth contributes significantly to creating and securing jobs and the economy currently sustains Germany’s economic cycle as so often before. In no other major trading nation, the economy itself contributes so much to the financing of the system as in Germany.
The most important support that the political economy of international business can give sounds just as provocatively as easy: that policy is not needed when it comes to business. The main task of the policy is and will continue to create an international framework in which entrepreneurs and their employees are responsible for their own success or failure of their actions. This also means that the politics, if it is still not the real business, has to provide a basis for a successful step into foreign markets in the context of foreign trade promotion, and especially in financial terms. Promotion of foreign trade is an investment with a positive return on investment.
We are pleased to advise you about the current funding of the German state.