Iran: The New Normal

Analysis

For many years, the potential of the untapped Iranian market was viewed as an enticingly juicy apple that was just of reach. With the lifting of sanctions following Implementation Day, the opening up of an untapped and diverse economy with attractive demographics is an enticing opportunity. We discuss the legal factors that investors should take into account when planning a market re-entry strategy.

A world of possibility awaits

Much of the focus in recent months has been on the impact that the lifting of sanctions will have on the oil and gas sector. Yet the impact will be no less significant in other sectors including agriculture, pharmaceuticals and metals. In fact, these industries may feel the benefit of the lifting of sanctions more quickly. We summarise below the progress which has been made in reconnecting Iran to the global economy.

• The EU's "nuclear" sanctions and US secondary sanctions have been lifted

• Legal restrictions on doing business in Iran's oil, gas, petrochemical and shipping sectors have been lifted

• Iran can sell its oil on the open market and repatriate its foreign currency earnings