The Iranian market was discussed in all its aspects at the OSTİM Foreign Trade Meetings Program. In the program, organized online by the OSTİM Organized Industrial Zone Foreign Trade Coordination Office, Tehran Commercial Attaché Bülent Orhan Türel and Deputy Commercial Attaché Güner Gençer provided participants with information about the Iranian market and its opportunities.
Deputy Trade Counselor Güner Gençer, in his presentation, provided information on Iran's economic outlook, imports, and exports. Gençer noted that the US sanctions do not cover all trade with Iran, and emphasized that Iran holds significant market potential for Turkey. (Detailed information on US sanctions against Iran can be accessed at https://ticaret.gov.tr/yurtdisi-teskilati/guney-asya/iran/raporlar/musavirlik-raporlari/abd-yaptirimlari).
Sharing the information that Iran has the world's largest proven reserves, Güner Gençer said, "We see that oil exports have increased after the Russia-Ukraine war. It is estimated that exports have recently approached $30 billion. Due to the increase in oil exports, there has been an increase in economic data in the last year. There is an increase in purchasing power and per capita income. Inflation remains stable at around 40-45 percent. The unemployment rate is below 10 percent. Employment is encouraged by the state. The Rial has not shown any depreciation against the Dollar in the last 6-7 months."
Iran's import bans
Güner Gençer stated that Iran has imposed import bans on certain finished textile products such as trousers and shirts, as well as various products such as perfumes and cars, and noted that the list of banned products can be accessed on the Turkish Ministry of Trade's website at [https://ticaret.gov.tr/yurtdisi-teskilati/guney-asya/iran/raporlar/musavirlik-raporlari/iranin-ithalat-ve-kambiyo-duzenlemeleri].
Gençer stated that Iranians feel closer to Turkey, emphasizing that Iranians prefer Turks to Chinese. He noted that there is potential in every sector in Iran, and with a little work and sufficient effort, and the establishment of the necessary mechanisms, very good trade can be conducted.
Gençer pointed out the high average age of the automobile and machinery fleet, stating that there is an increasing need each year for automotive spare parts, construction and earthmoving machinery and spare parts, and mining machinery and spare parts.
Analysis of Turkey's export potential to Iran
At the meeting, where detailed information about the Iranian market was presented, a SWOT analysis outlining Turkey's export potential to Iran, including strengths, weaknesses, threats, and opportunities, was also shared with the participants.
The SWOT analysis is as follows:
Strengths: The unwavering perception of Turkish goods as high-quality in the Iranian market. Low transportation costs. Turkey being seen as an economic and cultural model by some segments of the population. The sense of closeness stemming from tourist travel between the two countries. The network created by many Iranian-owned companies operating in Turkey. Turkey's integration into the global economy and its production at world standards. Easy access due to proximity.
Weaknesses: Turkish companies' banks believing that doing business with Iran is absolutely impossible due to the sanctions against Iran, a lack of understanding of the unique conditions of the Iranian market or insufficient effort in market research, a shortage of Turkish citizens trained within the Turkish system who are fluent in Persian, and the inability of Turkish companies to accurately and adequately understand the consumption habits of Iranian society and the needs of Iranian industry. The sanctions against Iran also lead to third-party companies acting as intermediaries in trade and money transfers, increasing commercial risks.
Opportunities: The difficulty for Iran to find world-class goods due to sanctions means this gap can be filled by Turkish companies; there is a desire to do business due to a sense of affinity with Turks; and the possibility of utilizing reputable members of the Turkish-speaking population in the country for trade and networking purposes. Furthermore, there is the continued demand from established consumer habits in Iranian society and the relatively developed Iranian industry.
Threats: Iranian banks being excluded from the SWIFT system, international companies not insuring shipments through Iranian territory, sanctions making trade through banking channels difficult, Iran's unique practices allowing it to suddenly halt trade, discrimination against foreign companies in some cases, and the inability to use letters of credit, making payments and trade somewhat dependent on trust, thus creating fertile ground for fraud.
Detailed information about Iran can be accessed at: https://ticaret.gov.tr/yurtdisi-teskilati/guney-asya/iran/genel-bilgiler.
Additionally, you can access detailed information about countries and their conditions through the Turkish Ministry of Trade's "Consult an Advisor" application. The application address is: https://musaviredanisin.ticaret.gov.tr/
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