Iran Nuclear Deal Talk In Tehran

Alisher Ali, the founder of Mandalay Capital, a Maltese company, said his firm had already invested in a number of banks and holding companies listed on the Tehran stock exchange. “I think Iran represents the biggest opportunity in frontier markets globally,” he said. “Out of 40, 30 frontier market countries, Iran is the most attractive.

On 18 October, dubbed the adoption day, Iran will begin taking steps to meet its obligations under the nuclear accord and the US will issue some waivers with respect to sanctions. But the defining moment is what has become known as the implementation day, when the International Atomic Energy Agency verifies that Tehran has taken the necessary steps.

The implementation day is when EU sanctions will be lifted and US sanctions suspended. Iranians hope that date to be as early as the beginning of 2016 but Americans are sceptical it will happen that early. Sceptics believe it might take Iran up to six months to meet its obligations.

On implementation day, western firms will have the green light to conduct business in Iran, according to Abdulrasoul Dorri Esfahani, senior adviser to the governor of the central bank of Iran. “Iran is now there for you as a partner,” Esfahani said.

Giulio Haas, Swiss ambassador to Tehran, said westerners need to take caution when dealing with Iran. “One thing is clear, there are a lot of opportunities in Iran,” he said. “But you have to go after them carefully. This is not North Korea, but the key problem is international financing.” For some banks, it doesn’t make sense to have all the hassle, he said.

There are European banks who can deal with Iran even now,” said Andreas Schweitzer from Arjan Capital, a Maltese company involved in the wind power industry in Iran. “Small banks which have no business with the US work with Iran. Big banks in theory can operate too but they have reputation issues.”

There are more Iranian projects than international money to invest, Schweitzer said, but more international money to invest than Iranian projects that qualify under international standards. “Iran now has the characteristics of East Germany in 1989 because it had to operate within itself. The end of sanctions in effect is Iran’s Berlin Wall moment,” he said.