“Hesabdar” Magazine recently conducted an interview with Abdol-Rasoul Dorri-Esfahani, in which they asked Mr. Dorri to comment on details of the JCPOA and any potential implications for the financial services sector in Iran.
By Nigel Dudley – Agah Group
Iran’s capital markets, like those of the rest of the world, are going through extremely difficult times as prices plunge in response to growing concern about the state of the global economy, combined with a slow-paced recovery from the impact of sanctions imposed on the country.
However this cannot disguise the fact that, now the nuclear agreement with the West has been finalised, the underlying prospects for Iran’s debt and equity markets are stronger than for many years.
Western embassies are re-opening, while trade missions and the bosses of investment funds are queuing up to visit Tehran, all keen to take a stake in what is considered the last significant emerging market from which westerners have been excluded.
In our latest blog post we provided a review of Iran’s economy and its capital markets. Of course you need more specific information to actually start investing specially as a foreign investor. That is why we have tried to cover the steps you need to take. We at Agah Group get so many questions all the time sent to our mail box. Although you can always feel free to ask us for more information , we have tried to answer many of the questions on how you can invest in this post. Please ask us for more by dropping us an email
You may have spent a lot of time searching for the world’s best investment destination for the years to come. In this post we have provided some background information on the Iranian capital markets that you need to know before becoming an investor. We will provide a brief review of Iran’s economy and then we will get into more detail on the market such as structures, terms, instruments and commissions. If you are already familiar with the market, please head to How to Invest in Iran’s Capital Markets to find out what your investment options are. As always, please feel free to drop an email to ask for more.
By Nigel Dudley – Agah Group
Iran is on the verge of an ecommerce boom which will offer considerable business opportunities to international and local investors, as well as to those financial institutions prepared to finance these projects.
At present ecommerce is in its infancy, accounting for only 0.7% of GDP, but the potential is enormous. The consumer market is strong, with per capita GDP higher than India, and disposable income remains relatively high.
Moreover, there is a young population (70% are under the age of 35), which is technologically sophisticated; the penetration rates for internet (55%) and mobile phones (126%) are among the highest in the Middle East. Broadband subscriptions have been doubling every year since 2005. And the country has the highest share of engineering graduates in the world.
By Soroosh Mohammadi
For over half a century, many have immigrated to developed countries in hopes of a better future to nations with more sound and established ecosystems, and among these migrants are some of the smartest and most talented individuals. According to an article written by Frederic Docquier from IZA World of Labor, the proportion of foreign-born people in developed countries has tripled since 1960.
The question is where does this talent go?
By Nigel Dudley – Agah Group
The framework nuclear agreement between Iran and the major western powers has generated an unprecedented level of excitement from international investors, who believe that, once a final deal is reached, there will be a flood of money into what is one of the last great untapped emerging markets.
The level of pent up enthusiasm has already been demonstrated by the enthusiastic response of the dozens of potential investors from all round the world who have been visiting Tehran in recent months.
These include the French government and there has been much speculation that Renault and Peugeot will be among the first to invest in Iran once sanctions are lifted.
By Saeedeh Fakhim, Mahdi Goodarzi & Omid Q. Rose:
Mutual Fund is a type of financial institution which invests funds received from investors in a set of negotiable papers. Mutual funds have been established since 2008 in Iran. The SEO (Securities & Exchange Organization) issues licenses for establishment of mutual funds. Three main elements of each mutual fund in Iran include manager of fund, trustee and guarantor. Considering high validity of these companies and also careful supervision of the stock exchange on them, money default risk of the investors in mutual funds has reached approximately zero. Reception by the shareholders and considerable growth of mutual funds of Iran on the one hand and enactment of Law for Development of New Financial Instruments and Institutions in February 2010 on the other hand increased hope for increasing development of these funds. In this paper, we introduce and review return of Agah fund in Iran capital market.
Agah Mutual Fund
Based on paragraph 20 of article 1 of stock exchange law enacted in December 2005, Agah Mutual Fund started its activity by receiving license from stock exchange under registration No. 10616 as mutual fund on 13 July 2008. Performance of this fund is based on provisions of the articles of association and prospectus and based on the related laws and regulations.
After enactment of two very important laws in Iran including Stock Exchange Act, 2005 and the Law for Development of New Financial Instruments and Institutions, 2009, Iranian legislator has taken an important step in development of Iran’s capital market and coordination of this market with pioneer financial markets.
Therefore, Iran’s capital market entered a new phase in which the legal context was provided for activity of new financial instruments after enactment of the two mentioned laws. One of the instruments which had been commissioned even before enactment of the Law for Development of New Financial Instruments and Institutions in Iran’s capital market was mutual funds so that the first mutual fund started working in July 2007 and stock funds started working in early 2008 besides fixed income funds. The first exchange traded fund (ETF) was commissioned in September 2013.