Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. The abbreviation “SME” is used in the European Union and by international organizations such as the World Bank, the United Nations and the World Trade Organization (WTO). Small enterprises outnumber large companies by a wide margin and also employ many more people. SMEs are also said to be responsible for driving innovation and competition in many economic sectors.
While the Iranian insurance market is reasonably developed based on regional standards, there is still significant potential for growth, especially in life segment and most non-compulsory non-life lines, according to BMI (Business Monitor International).
Hence, the lifting of trade sanctions should act as a spur to the growth in economy, leading to rise in household disposable income levels and its consequent positive impact on the segment’s growth, considering low insurance penetration of just 1.9%, at home, over 2014/15, when the international average standing at 6.2%.
Justice Shares Scheme in Iran
Supporting low income strata of society and improving income distribution have always concerned governments, economists, and sociologists. Not only is it an economic issue, income distribution is interpreted as one of the major social and political indices. Implementing what is called as the Justice Shares Scheme stood among one of those important attempts. According to this scheme, 40% of total value of divestible companies in each market, as the subject of the second law of Principle 138 of the Iranian constitution and Article 9 of the 4th Development Plan, were decided to be allocated to the 6 low-income categories of the country. In addition, a 50% discount in shares’ prices within a 10 year repayment period, with priority being given to villagers and nomads, was approved for the two lowest brackets.
Corporate Governance in Iran
Corporate governance (CG) is the system of rules, practices and processes by which a company is directed and controlled.
Corporate governance essentially involves balancing the interests of the many stakeholders in a company –these include its shareholders, management, customers, suppliers, financiers, government and the community.
Since corporate governance also provides the framework for attaining a company’s objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.
Age-old Inflation in Iran and its underlying constituents over approximately four decades
Written by Navid Kalhor
Iran’s economy has been undergoing decades of chronic inflation and at some specific intervals experienced hyperinflation (1995 & 2012) due to many structural and built-in economic complications and difficulties, impacted principally by windfalls of oil revenues in the course of OPEQ’s golden years in earlier years or at times of troublesome budget deficits afflicting different administrations in the past decades, remarkably high-rocketed when Rouhani’s predecessor was in charge of the country.
The average inflation in Iran generally hovered around 20% in the past 40 years. Taking into account the average growth in the general level of prices for goods and services in Iran and the major reasons behind losing purchasing power among general public, two factors are essentially deemed to explain the presence of this unwelcome phenomenon, burgeoning the monetary base across the economy.
Written by Mahdi Goodarzi & Navid Kalhor
One of the most important concerns of the foreign investors, intending to transfer their money for investment on tempting capital market of Iran is, indeed, the custodianship issue.
Agah Group, as one the forerunners in introducing the capital market of Iran to the foreign investors, is well aware of this concern and deeply appreciates this fact. The supervisory body of the capital market of Iran, itself, fully comprehends that the expansion of stock markets is not viable and practical without complete participation of investors overseas and existence of a reliable custodian is the prerequisite to that end-goal.
By Mahdi Goodarzi & Navid Kalhor
Iran is among Islamic countries enjoying immense amount of potential to develop and expand its Islamic Sukuk securities, particularly its Islamic Treasury Bills market.
Islamic finance has grown at a fast pace (average +20%) since the 2008 global financial crisis and was estimated to be worth USD2.1 trillion of assets in 2014 by the Centre of Islamic Banking and Economics (CIBE). In 2015, the Dubai-based CIBE has estimated that global Islamic financial assets will reach USD2.5 trillion, of which an expected USD150 billion will be Sukuk (Islamic bonds) issuance.
By Mahdi Goodarzi & Navid Kalhor
Have you ever wondered about investing in a market that you do not have deep information on the rules of the game in that market? Did you ask yourself where to start the journey?
As you might know, stock markets are involved with a wide range of intricacies and in this respect EPS estimate is among those underlying components that can guide or misguide you. Studying the performance of the companies on TSE in this article, we can clearly see that the projections on earnings did not come true.
By Mahdiye Rezaee & Mojde Rezaee
One way to look at the structure of an economy is to compare the shares of its three main sectors namely, Agriculture, Industry, and Services, in the country’s total output and employment.
Currency Futures Market Opening in Iran; a Force Majeure Case
Regarding the economic attractions and geopolitical location of Iran, this country has always been a magnet of interest to investors overseas when we consider the fact that Iran never had the opportunity to develop in parallel with its regional peers due to sanctions. With the landmark nuclear deal and the implementation of JCPOA, Iran is among the most intact Frontier Markets in the world with a great deal of potential to unleash.