Conducting Business in Iran

BUSINESS IN IRAN

DATE: October 24, 2015

Country needs foreign investment, and there is hope relationship will thaw

Nestled in rocky hills about 40 minutes from Tehran, Pardis Technology Park is supposed to be Iran's answer to Silicon Valley. But these days, Pardis is deserted and forlorn, with many buildings standing unfinished, their exposed girders rusting. Foreign companies are reluctant to invest in the Islamic Republic, and domestic outfits are cash-strapped.

Both foreigners and locals may find a new reason to move in. President Barack Obama has indicated a willingness to ease tensions with Tehran, and many Iranian businesspeople hope their leaders will engage with him. A relaxing of U.S. economic sanctions "would be a seismic shift," says Ramin Rabii, chairman of Turquoise Partners, a fund manager that invests in Iran.

Americans and other Western companies might benefit, too. Iran, after all, has 66 million people, good schools, and a diversified industrial base — with a pent-up appetite for computers, planes, aircraft parts, and knowhow for the crucial oil and gas industry. And many Iranians like the prospect of working with U.S. companies rather than the Europeans that have been the only game in recent years.

"Iranian officials believe Americans are more straightforward in business deals," says Narsi Ghorban, managing director of Narkangan Gas to Liquid, a Tehran energy company. "They get what they want and give you your due."

If businesspeople do come to Tehran, a sprawling city built on steep hills that lead up to snow-capped mountains, they will find some conditions improved. Mobile telephones from other countries finally work, and several private hotels have sprung up. Since the 1979 revolution, social life has never been more liberal. Boys and girls hold hands in public, women show some hair outside their scarves, and checkpoints where police once searched cars for alcohol have all but disappeared. But there's still enough...