Country risk rating

D4

HIGH RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD191.72bn (World ranking 50, World Bank 2020)
Population 83.99mn (World ranking 18, World Bank 2020)
Form of state Theocratic Republic
Head of government Ebrahim RAÏSSI (President)
Next elections 2025
  • World’s second largest known natural gas reserves and fourth largest oil reserves, which will last over 100 years at current rates of extraction (according to the government)
  • Large domestic market
  • Large FX reserves, currently providing 9 months import cover.
  • Very low external debt obligations
  • Occasional conflict between the twin pillars of power – the government and the theocracy.
  • Imposition of sharp sanctions and secondary sanctions by the U.S. after Iran withdrew from the Joint Comprehensive Plan of Action (JCPOA), known commonly as the Iran nuclear deal. This has raised the already high level of geopolitical risk for the region (e.g. a more radical stance of Iran on Israel and Saudi Arabia)
  • Regional dynamics are negative. Neighbors include Iraq, Afghanistan and Pakistan. The Syrian conflict and IS activities provide further uncertainties. Moreover, Israel is perceived as a security threat
  • Risk of domestic social unrest and a harsh response by the authorities
  • Very high exchange rate vulnerability. Black market rate is about 3-4 times above official rate
  • High double-digit inflation

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 26.3%
1
26.1% China
Iraq 12.9%
2
13.6% United Arab Emirates
Taiwan 12.0%
3
9.7% India
Turkey 6.4%
4
7.3% Turkey
India 6.4%
5
5.4% Germany

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 37.0%
1
9.8% Cereals and cereal preparations
Plastics in primary forms 9.0%
2
8.0% Road vehicles
Vegetables and fruits 8.3%
3
8.0% Other industrial machinery and parts
Organic chemicals 6.1%
4
5.9% Electrical machinery, apparatus and appliances, n.e.s.
Iron and steel 5.9%
5
4.5% Iron and steel
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