According to the science of target market research, knowing business partners and target market activists is one of the most efficient steps in business development. It is necessary to conduct market research on the Iranian market and identify potential investors and business partners of the Islamic Republic of Iran to enter the Iranian market, make investments there, and conduct business with Iran in general. Knowing business partners enables foreign investors and business people from various nations to gather sufficient knowledge about the v. Stay with GTG until the end of the article if you also want to make investments in the Iranian market. You can determine business expectations and expand business with Iran by learning more about the nation’s biggest business partners. Iran has two types of business partners: importers and exporters. Iran’s top business partners include China, the United Arab Emirates, Turkey, Germany, Switzerland, Afghanistan, Iraq, and India. We present six of Iran’s most significant business partners in this article.
1. China: Iran’s largest business partner
China has become Iran’s top business partner over the past 20 years, with the average annual trade between the two nations exceeding $20 billion. China is Iran’s significant economic and business partner in the Middle East. China and Iran have had commercial ties ever since the first century BC when the Silk Road was first constructed. In recent years and during the development plan of bilateral economic cooperation between the two nations, this history of trade with Iran has expanded significantly.
Business opportunities between China and Iran can be broken down into three categories: exports to Iran, imports, particularly those of energy, and the significant market for foreign investment and construction projects in Iran. In 2019, these two nations exchanged 23.02 billion dollars worth of goods.
China is regarded as one of the Islamic Republic of Iran’s main industrial suppliers. China is a major source of imports for Iran, particularly machinery and industrial equipment. Nine of the most significant Chinese imports to Iran are listed below:
– Machinery, nuclear reactors, steam boilers
– Electronic and electrical equipment
– Buses and cars, both public and private
– organic chemicals
– iron and steel
– Plastic and plastic equipment
– Iron and steel products
– Pasteboard paper, paper pulp & cardboard products
– Car tires
In 2019, the value of imported goods from China decreased by about 31.6% to about 9.59 billion dollars, according to statistics released by the Chinese media. Iran’s contribution to China’s international import trade, in contrast, is much smaller; in 2020, it accounted for just $6 billion of China’s total foreign trade, which totaled more than $2 trillion. By offering fresh approaches, the Islamic Republic of Iran hopes to raise this number to a suitable level.
2. Iraq: Iran’s Second largest business partner
The Islamic Republic of Iran places a high priority on the growth of trade with the nations in the region, particularly with its neighbors. The development of comprehensive strategic ties, boosting Iran’s competitiveness in the region, economic growth, and dynamism, and lowering economic vulnerability can be seen as the main drivers of this issue’s significance for the Iranian government. Iraq is regarded as one of Iran’s most significant targets in this regard.
Iraq, a nation in Southwest Asia, is one of the Islamic Republic of Iran’s main regional target markets because of its shared borders with Iran and its sizable market.
3. United Arab Emirates: third rank
Currently, one of Asia’s richest and most developed nations is the United Arab Emirates. Oman, Saudi Arabia, and Iran all share a land border with the United Arab Emirates. Qatar and Iran share a maritime border. Iran has a great potential to conduct trade exchanges thanks to its proximity and maritime connection. Due to the Corona epidemic, UAE exports in 2020 fell to more than half of their export earnings in 2019. The UAE exported goods worth 154,797,163 dollars in 2020, a significant drop from the 315,942,728 dollar total for 2019.
Fossil fuels, pearls, precious stones, precious metals, and plastic are the United Arab Emirates’ top export items to various nations around the globe.
The UAE, on the other hand, imports technology from various nations, including televisions, mobile phones, laptops, and tablets, as well as machines and mechanical equipment, nuclear reactors, and automobiles.
The following 7 products can be used to express the main exports of the UAE to Iran as of the data available through 2019:
– Network equipment
– Frozen beef
– Fabric textile
– Household appliances like a television, refrigerator, washer, and air conditioner
– Car tires
– Computer, mobile phone, and tablet
Iran’s top exports to this nation are crude oil, fruits and vegetables, building supplies, iron, steel, and raw lead.
4. Turkey: A major Partner
Turkey, one of Iran’s northern neighbors, shares a border with the Islamic Republic of Iran of more than 600 kilometers. It has been 400 years since Iran and Turkey first established diplomatic ties. Due to their proximity, shared religious and historical beliefs, and appropriate customs, Turkey and Iran have always had good trade relations, making Turkey one of Iran’s main business partners.
One of Asia’s most robust economies is that of Turkey. This nation exported 169,657,940 billion dollars in 2020, a decrease from 180,870,841 billion dollars the previous year thanks to the spread of the Corona disease. Turkey’s imports increased from 210,346,890 billion dollars in 2019 to 219,514,373 billion dollars in 2020.
This volume of imports demonstrates the enormous potential of the Turkish market for other nations, particularly Iran. It’s interesting to note that this nation’s top imports in 2020 were automobiles, iron, steel, and mechanical and electrical machinery and equipment, which, given Iran’s production potential, indicates that this nation has strong commercial capacities.
5. Germany; Iran’s largest Business partner in the European Union
You can see that Germany and Iran have always had close economic ties by looking at the history of those relations in the business world. Germany produces about 30% of Iran’s industrial infrastructure. Iran’s top trading partner in the EU at the moment is Germany.
However, Iran’s economic situation has been significantly impacted by the US withdrawal from the JCPOA, which Trump announced on May 8, 2018, and the reim position of secondary US sanctions. Trade between Germany and Iran totaled 1,722 million euros in 2019, a 45% decline from 2018. In 2020, trade between Germany and Iran increased once more and reached 1.8 billion euros, according to data from the Federal Statistics Office. Germany exported 1546 million euros to Iran, and it imported roughly 275 million euros from Iran. In 2021, Iran wants to expand trade with Germany.
Machines, mechanical equipment, nuclear reactors, boilers, grains, pharmaceutical and medical products, and electronic equipment like televisions are the most significant exports from Germany to Iran. On the other hand, Iranian carpets, organic chemicals, and fresh and dried fruit are the country’s top exports to Germany.
6. India; exceptional potential
India ranks as Iran’s sixth-largest Business partner. India currently holds the 14th spot among the world’s export markets, and it holds the 20th spot among exporting nations, according to international statistics. India has a very high economic potential, as evidenced by its export volume of 275,488,745 dollars in 2020, a decrease from 2019’s export value of 323,250,726 dollars. However, with imports of 367,980,363 dollars in 2020, India has one of the most lucrative export markets in the entire world.
But how much do Iran and India exchange internationally? In response to this inquiry, it should be noted that in 2020, India exported goods to the Islamic Republic of Iran for a total value of $2,243,733. This amount represents the Islamic Republic of Iran’s one percent share of the total value of India’s exports to the nations of the world.
Iran exported only 297,122 dollars to India in 2020, on the other hand, a negligible amount. Currently, India’s exports to Iran have increased from 4.37 billion rupees in September 2021 to 4.43 billion rupees in October, according to World Trade Statistics. The Islamic Republic of Iran hopes to expand its international trade with India given its population, which offers Iran a very suitable market in many areas.
GTG Trading Company, Successful international business with Iran
We made an effort to give you relevant and accurate information about the biggest trading partners of the Islamic Republic of Iran in this article. One of the most reputable businesses in this industry, GTG Trading Company has years of experience in the business. Contact GTG Trading Company to learn more about the most recent developments in Iran’s international trade, Iran market research, company registration in Iran, and profitable investments in Iran. Your business dealings with Iran will be guided and supported by our experts at GTG at every stage. In addition, GTG Trade provides services for the export of high-quality Iranian stones to all parts of the world