Iran Europe Business Center`s Magazine

No. 2 & 3 October-December 2018

Iran Moves to Establish 8 New Free Trade Zones to Stimulate Economic Growth
Spring of Startups in Iran Technology startups booming in Iran despite U.S. sanctions

1
 On the Cover
SMEs that have no dealings with
the U.S. or have little share in the
American market have shown
interest to keep and develop
business with Iran. That further
highlights the role SMEs can play in
Iran-Europe business and trade
relations.

Cars drive in a rainy day

Contents
on Modarres Highway in north Tehran,
Iran, on Sunday, 25 November 2018.
(IEBD Photo)

Online Sale of Persian Why Is Trump

6 Can SPV Boost SMEs & Ample Opportunities
for Foreign Carpet in Partnership Undermining Profile:
Open New Doors in
Iran-Europe Relations? Investment in Iran’s
Pistachio Industry
with Foreign Firms
Planned
the EU? 80 Founder and Managing Director:

54
The threat from Mehdi Poshtkouhi
The new independent financial
channel will avoid involving commer- “We are in the process Trump has prompted Executive Manager: Majid Tavalla
Pistachio Exports

14
cial and central banks, who fear U.S. of launching carpet the Europeans to take bold Editor-in-Chief: Ali Akbar Dareini
Fetched houses in various collective action to boost the Deputy Managing Director:
sanctions on their operations, and $1.2 Billion But Iran
allow companies doing business with countries. They would euro and take a more Majid Ghorbani
Facing Crisis in be non-governmental organizations independent line in global
Iran to circumvent U.S. sanctions. the New Crop Year Correspondent:
promoting Persian carpet.” affairs.
Mohammad Affianian
Photographer: Reza Manavi
Art and Graphic Designer:
Iran Moves to Establish Mica Mall Mega Spring of Startups in Iran Redesigning, Packag- Iran starts selling Maryam Hemmatian
8 New Free Project, A Long Technology startups ing & Online Marketing oil to private Advertising Department:

12 booming in Iran Mehdi Rezakhani:

Trade Zones to Dream Coming True of Iranian Handicrafts firms to
Stimulate Why is Mica Mall a profitable
despite U.S.
32 Veteran handicrafts counter U.S. 84 Rezakhani@iebd.eu

sanctions
70 sanctions Address: 3rd Floor, kronenstr. 1,
Economic Growth project for foreign
investors and
producer Mohammad
Reza Mirian says foreign 10117, Berlin, Germany
Around half of Iran’s

The new FTZs will be established in the
northern, southeastern, western and
southern border regions
or sea ports of Iran.
20
an attractive tourists are not only Rouhani: “I announce that we Tel: +49 30 8049 2100-1
80-million-population is under customers of handicrafts will proudly bypass your
showroom
30, many of them with high
Fax: +49 30 8049 2102
for international but can work as ambassadors by illegal, cruel sanctions info@iebd.eu
brands? levels of education. introducing Iranian art overseas when because it’s against
www.iebd.eu
they take Persian crafts back home. international regulations.”

4 No. 2 & 3 October-December 2018


Response to Sanctions:
SMEs
Editorial
T
here is a growing recognition that Small
and Medium-sized Enterprises (SMEs) con-
tribute significantly to the economic devel-
opment of every single country. They are set
up in a wide geographical region, even in rural and
Ali Akbar Dareini semi-urban areas, and are considered a key driving
Editor in Chief force behind the development of a national econo-
my.
Economy and industry experts all agree that SMEs
contribute to employment growth at a higher rate
than larger firms. They play a significant role in every
country’s national economy by producing a diverse
variety of goods and services, creating job opportu-
nities, instigating competition for new ideas, im-
proving income distribution and offering innovation.
That means they contribute to the dynamics of the
economic domain and remarkably reduce social
and economic challenges. In industrialized nations,
over 50 percent of Gross Domestic Product (GDP)
is provided by SMEs. The significance of their social
function is documented by the fact that they pro-
vide between 60 and 70 percent of jobs.
So, there is growing evidence to prove that SMEs
are a source of employment, economic dynamism,
competition and innovation and are becoming more
and more a subject of high attention.
That’s why SMEs are seen as the engine of eco-
nomic development and play an important role in
sustainable economic growth of a country. Experts
6 No. 2 & 3 October-December 2018
see SMEs the main vector of economic progress
not only in developing nations but developed, in-
dustrial states as well.
In other words, SMEs not only form the backbone
of a market economy but also transition economies
in the long-term and this alone highlights the strate-
gic importance of SMEs in the world today.
Policymakers and professionals have traditionally
dedicated most of their efforts to attracting giant,
multinational firms and large enterprises. SMEs in
the past were considered as not being a key ele-
ment to push the economy forward. Thus, they
were seen as not worthy to concentrate state poli-
cies to them.
Gradually, their operation in crucial segments of
emerging economies in recent times encouraged
business and political leaders around the globe to
appreciate and recognize the role SMEs have in-
creasingly played in building a sustainable econom-
ic growth.
The Iranian economy is currently moving towards
greater liberalization. Creating new Free Trade
Zones and Special Economic Zones in strategic po-
sitions near sea ports and land borders suggest
that Iran’s economy is in transition and Iranian lead-
ers now recognize that there is a serious need to
give a greater share of the economy to the private
sector.
On the other hand, re-imposition of unilateral Amer-
ican sanctions against Iran has made giant multina-
tional firms to leave the Iranian market over fears
that they would be sanctioned by Washington or
their economic interests would be harmed. It’s a
fact that they cannot ignore the huge U.S. market
for the sake of the much smaller Iranian market.
But SMEs that have no dealings with the U.S. or
have little share in the American market have shown
interest to keep and develop business with Iran.
That further highlights the role SMEs can play in
Iran-Europe business and trade relations.
Many experts argue that identification of 5,000 Eu-
ropean SMEs by the 28-member European Union
(EU) capable of working with Iran has provided an
important opportunity for the Islamic Republic to
attract European investment and technology in or-
der to achieve its goal of turning into a technologi-
cal and economic powerhouse of Western Asia by
2025 under its 20-year national plan, known as the
20-year Perspective Document.
It’s in this context that IEBD is primarily addressing
SMEs and emerging businesses, rather than giant
multinational firms, to provide information on invest-
ment opportunities in Iran, and illuminate on chanc-
es awaiting SMEs in the Persian state.
Because of their private ownership and entrepre-
neurial spirit, SMEs show flexibility and adaptability
towards challenges, manufacture products whose
market size is too small for giant firms to enter, op-
erate in markets where innovative businessmen and
investors take risks, commercialize new technolo-
gies, fuel economic progress, raise the level of skills
through their flexible and innovative nature, develop
new business and produce high value added prod-
ucts.
That’s what Iran needs today to achieve its strategic
economic goals.
Iran’s economy is made up of state, cooperatives
and private sectors but the government has tradi-
tionally had the lion share of the economy.
Iran’s economy began to shift towards economic
liberalization after the 1980-88 war with Iraq, a pol-
icy crafted by the first administration of the late for-
mer President Akbar Hashemi Rafsanjani in 1989.
Since 2006, Iran has been moving _ although slow-
ly _ towards economic privatization under policies
outlined in Article 44 of its Constitution in a bid to
downsize the government and promote the private
sector’s role in the national economy. It’s also giving
the private sector a bigger share in the manage-
ment _ if not ownership _ of government compa-
nies in addition to transferring state firms to private
and cooperative enterprises.
Now, Iran is in need of foreign investment and tech-
nological innovation.
The structural shift from large, state-owned enter-
prises to private and smaller firms or cooperatives
obviously increases the number of owners. It’s an
established fact that the private sector cares more
than the government in running a business and
takes greater responsibility and commitment than
the government.
Increasing the number of SMEs will provide greater
flexibility to the Iranian economy and might facilitate
technological innovation. And this is exactly what
Iran’s economy needs today.
On the other hand, Iran has faced severe drought in
the past two decades and is already experiencing
water tension. Water shortage has forced Iran to
move towards changing irrigation systems, mod-
ernize its farming sector, rebalance output toward
dry farming and value-added crops, and go for ag-
ricultural products that consume less water.
But independent experts have long argued that Iran
needs to import modern farming technology and at
the same time speed up the process of industrial-
ization and creation of agriculture and food pro-
cessing industries.
Again, that’s where SMEs come into play. SMEs are
necessary for countries being under transition from
agriculture-oriented to industrial- and service-ori-
ented economies. They provide a significant contri-
bution in the transition of agriculture-led economies
to industrial ones by creating abundant opportuni-
ties for processing industries.
That will ultimately bring out economic and industri-
al development and a sustainable source of reve-
nue.
Research has discovered that a majority of entre-
preneurships in every country belong to SMEs and
they are seen as the starting point of development
towards industrialization. Most, if not all, of the cur-
rent big enterprises have their origin in SMEs and
began as SMEs first and then expanded their busi-
ness in four corners of the globe.
Studies show that high-tech companies in Ameri-
ca’s Silicon Valley were first established as startups
by engineers and entrepreneurs and then turned
into big firms just in a couple of few years. These
knowledge-based firms enhanced business com-
petition and subsequently helped raise the U.S.
economic growth rate.
In the same way, many giant Japanese companies
with global reach were initially set up as SMEs fol-
lowing World War II. The same is true for Taiwan
where SMEs have been the driving force behind
making the island a global supplier for a wide range
of electronic and engineering products and a global
export hub.
Energy-rich Iran, with a population of over 80 mil-
lion people, is home to 7 percent of global mineral
reserves and is a big market by itself. It enjoys a
strategic location in Western Asia and is surround-
ed by 15 land and sea neighbors. That means Iran
enjoys a unique position to serve as a commercial
and transit route for global access to Central and
Western Asia as well as the landlocked Afghani-
stan.
All that means Iran is a fertile land for foreign in-
vestment. European and non-European SMEs can
gain a lot by investing in Iran and reaping the ben-
efits both in short and long term.
7
 program, not other areas.
But all the 28-member EU member states as well as
Russia and China have staunchly supported the his-
toric deal. They’ve adopted a unified stance against Called “Special Purpose Vehicle” or SPV, the new payment
the hardline Trump administration, saying in a united mechanism is intended to serve as a “clearing house” for
voice that the JCPOA must be preserved and that transactions with Iran in euros. The new independent finan-
their nations, individually and collectively, would do cial channel will avoid involving commercial and central
all within their powers to protect it. They’ve also in- banks, who fear U.S. sanctions on their operations, and allow
sisted that Iran is entitled to benefit from the JCPOA companies doing business with Iran to circumvent U.S.
sanctions.
advantages including the lifting of sanctions as long
as it remains committed to its obligations under the
historic accord.
The International Atomic Energy Agency (IAEA), the French Finance Minister
U.N. nuclear watchdog, has repeatedly confirmed Bruno Le Maire:
“It is not up to Washington
that Iran continues to abide by the terms of the to decide whether we are
JCPOA. allowed to trade with Iran.
Are we going to allow the
In addition to re-imposing unilateral sanctions against United States to be the
Iran and banning American companies from any economic policeman of the
dealings with the Islamic Republic, the Trump admin- world? The answer is no.
Europe must provide itself
istration has vowed to punish any non-U.S. compa- with the tools it needs to
nies that invest in or continue to do business with defend itself against
extra-territorial sanctions.”
Iran.
American officials have repeatedly threatened to cut
those who transact with Iran off from the U.S. finan-

German Foreign Minister Heiko
Maas:
“As Europeans, we have clearly
told the Americans that we
consider phasing out the
nuclear deal with Iran a
mistake. Meanwhile, first U.S.
sanctions are back in force. In
this situation, it is of strategic
importance that we clearly tell
Washington: we want to work
together. But we will not allow
you act over our heads and hurt
our interests without consulting
with us.
It is therefore essential that we
strengthen European autonomy
by creating payment channels
that are independent of the
U.S., setting up a European
Monetary Fund and building an
independent SWIFT system.”
(Anadolu Agency Photo)
Can SPV Boost SMEs & Open
T
he European Union (EU) looks determined
to go its own way and set up an indepen-
dent financial mechanism to keep trade
with Iran and sidestep unilateral U.S. sanc-
tions.
Called “Special Purpose Vehicle” or SPV, the new
financial mechanism is aimed at protecting legiti-
mate trade with the Islamic Republic and shield
European business with Iran from U.S. sanctions.
The SPV is literally “a special clearing house” de-
signed to allow European companies that do busi-
ness with Iran to bypass the renewed U.S. sanc-
tions. It would actually serve as a barter exchange
not connected to the U.S. dollar-denominated in-
ternational financial system.
That means Iran selling oil or an Iranian firm selling
goods into Europe would accumulate credits that
then could be used to buy products from a differ-
ent European country or firm without money
changing hands, with the SPV serving as a
third-party entity to handle the transaction.
The United States unilaterally pulled out of the
2015 landmark international nuclear deal with Iran,
known as the Joint Comprehensive Plan of Action
(JCPOA), on 8 May 2018, with U.S. President
Donald Trump denouncing the pact as “disas-
trous,” a “horrible and one-sided deal that should
have never, ever been made” and the “worst deal
ever.”
Trump has said he seeks to force Iranian leaders
into negotiations that would include restrictions on
Tehran’s missile program and its support for its re-
gional allies. The JCPOA is limited to Iran’s nuclear
cial system, saying “anyone doing business with
Iran will not be doing business with the United
States.”
The U.S. imposed the first set of its sanctions on 6
August, targeting Iran’s automotive sector, its trade
in gold and other key metals, sale of commercial
planes to Iran and purchase of Iranian non-oil
commodities such as carpet. A second batch of
sanctions, which began on 5 November, specifi-
cally focused on petroleum-related transactions,
plus transactions with the Central Bank of Iran
(CBI).
The U.S. exit from the JCPOA and its re-imposition
of sanctions was largely opposed by the interna-
tional community including the EU.
In reaction, the Europeans began to work on an
economic package to help protect Iran’s dividends
from the JCPOA and rescue the landmark accord.
So, European experts crafted counter-measures
aimed at preventing EU companies from comply-
ing with unilateral U.S. restrictions. And at the
same time, they sat down to work out a mecha-
nism to keep the nuclear deal with Iran alive by al-
lowing trade to flow despite U.S. penalties.
That’s why they scrambled to make sure that Iran
continues to get the key economic benefits of the
JCPOA in order to convince Tehran to stay in the
deal and enable legal trade with Iran without en-
countering U.S. sanctions.
Iran has made it clear that it will preserve the deal
should it continue to reap its economic benefits,
basically meaning that Iran will remain committed
to the terms of the JCPOA _ despite U.S. with-
New Doors in Iran-Europe Relations?
drawal _ if it’s able to sell its oil and get the money back or buy
products.
Dollar banking transactions with Iran have been impossible be-
cause of U.S. sanctions. Additionally, giant European and other
major non-U.S. banks with stakes in the American market have
also refused to work with Iran, fearing U.S. punishment. And,
major multinational companies, which have extensive commer-
cial dealings with Washington, have also halted activity in Iran or
backtracked on investment plans to avoid being punished by
America.
Instead, Small and Medium-sized Enterprises (SMEs) that have
no dealings with the U.S. or have little shares in the American
market have continued to operate in Iran and other SMEs have
shown interest to enter the Iranian market.
European governments have identified more than 5,000 SMEs
that are capable of working with Iran, hoping that this will mini-
mize the adverse impact of U.S. penalties and make sure that
trade with Iran will continue.
Establishment of the new independent channel is part of seri-
ous EU efforts to demonstrate a greater level of independence
from the U.S. at a time the Trump administration pursues its
“America First” agenda.
German Foreign Minister Heiko Maas has already clarified that
the EU was working to protect economic relations with Tehran
and keep payment channels open.
In an op-ed for the German Handelsblatt newspaper on 21 Au-
gust, Mass said Europe needed its own system for cross-bor-
der payments to conduct trade with Iran in the face of U.S.
sanctions. He spoke of international payment systems like the
Society for Worldwide Interbank Financial Telecommunication
(SWIFT) more independent of America. The SWIFT system
oversees international bank transfers.
“As Europeans, we have clearly told the Americans that we
consider phasing out the nuclear deal with Iran a mistake,” he
wrote. “Meanwhile, first U.S. sanctions are back in force. In this
situation, it is of strategic importance that we clearly tell Wash-
ington: we want to work together. But we will not allow you act
over our heads and hurt our interests without consulting with
us.”
In his long column on how Europe should respond to U.S. poli-
cy under Trump, Maas insisted that Europe needs to bypass
U.S. payment systems by creating its own financial channels, a
European monetary fund and an international bank transfer sys-
tem, like SWIFT.
“It is therefore essential that we strengthen European autonomy
by creating payment channels that are independent of the U.S.,
setting up a European Monetary Fund and building an indepen-
dent SWIFT system,” he wrote.
The establishment of the new EU independent monetary chan-
nel is expected to solidify the bloc’s ability to continue doing
legal business with countries hit with unilateral economic sanc-
tions. But it obviously deepens the divide between the U.S. and
Europe.
“With Germany, we are determined to work on an independent
European or Franco-German financing tool which would allow
us to avoid being the collateral victims of U.S. extra-territorial
sanctions,” Bloomberg quoted French Finance Minister Bruno
Le Maire as saying on 28 August. “I want Europe to be a sover-
eign continent not a vassal, and that means having totally inde-
pendent financing instruments that do not today exist.”
The EU foreign policy chief Federica Mogherini shed more light
when she announced on 25 September 2018 that the new pay-
ment scheme will allow oil companies and businesses to trans-
act with Iran while avoiding U.S. sanctions.
That was the outcome of talks between foreign minister of Iran
and the remaining five JCPOA members _ Britain, France, Ger-

8 No. 2 & 3 October-December 2018 9


EU foreign policy chief Federica
Mogherini:
“In practical terms, this will
mean that EU member states
will set up a legal entity to
facilitate legitimate financial
transactions with Iran and this
will allow European companies
to continue to trade with Iran in
accordance with European
Union law and could be open to
other partners in the world.”
European Commission building
in Brussels, Belgium
Source: VideoBlocks
10 No. 2 & 3 October-December 2018
many, Russia and China _ on the sidelines of the
annual United Nations General Assembly meeting
in New York.
“In practical terms, this will mean that EU member
states will set up a legal entity to facilitate legitimate
financial transactions with Iran and this will allow
European companies to continue to trade with Iran
in accordance with European Union law and could
be open to other partners in the world,” she told
the U.N. General Assembly.
According to a joint statement released by the re-
maining JCPOA members in September, the new
mechanism will aim “to protect the freedom of their
economic operators to pursue legitimate business
with Iran.”
The statement added that the new scheme would
“facilitate payments related to Iran’s exports (in-
cluding oil) and imports.”
The SPV is intended to serve as a “clearing house”
for transactions with Iran in euros. The new inde-
pendent financial channel will avoid involving com-
mercial and central banks, who fear U.S. sanctions
on their operations.
The new euro-dominated mechanism is widely
seen as a major snub to the U.S. and a blunt show
of defiance from Europe whose leaders have fre-
quently expressed frustration at Trump’s unilateral-
ism.
The EU, along with Russia and China, also said in
their joint statement that the SPV will “assist and
reassure economic operators pursuing legitimate
business with Iran.”
“If the Italians want to buy some Iranian oil, they will
wire the money to this entity which will then handle
the financial transactions from there and vice ver-
sa,” Al Jazeera reported from New York on 25 Sep-
tember. “There will be no involvement of commer-
cial banks and central banks, both of whom are
By abandoning trade in U.S. dollars, the SPV
has the potential to reset the global eco-
nomic order. Iranian oil and other products
are exported to Europe and EU goods and
services are exported to Iran without any
U.S. dollar involvement.
terrified at the prospect of U.S. retribution if they
are seen to be going against U.S. sanctions.”
French Finance Minister Bruno Le Maire said U.S.
sanctions on Iran have created an opportunity for
Europe to develop its own independent financial
institutions.
“I am convinced that the outcome of that crisis with
Iran will be the chance for Europe to have its own
independent financial institutions so we can trade
with whoever we want,” he said at the Globsec Ta-
tra Summit conference in Slovakia’s Strbske Pleso
on 5 October 2018, according to Reuters. “It is not
up to Washington to decide whether we are al-
lowed to trade with Iran.”
Le Maire had told C News TV and Europe 1 radio
on 20 May: “Are we going to allow the United
States to be the economic policeman of the world?
The answer is no.”
He had also told Le Figaro in July that Europe
needed to react to unilateral U.S. sanctions and
protect its economic sovereignty, saying “Europe
must provide itself with the tools it needs to defend
itself against extra-territorial sanctions.”
The EU foreign policy chief and the foreign minis-
ters of Britain, Germany and France issued a joint
statement on 2 November saying they were pro-
ceeding with the work to set up the SPV, indicating
that the mechanism could incorporate a barter sys-
tem by using an EU intermediary to handle trade
with Iran. For instance, Iranian oil bought by Euro-
peans could be paid for with EU goods and ser-
vices of the same value.
Their statement said they “deeply regret” the re-im-
position of American sanctions and vowed to pro-
tect the JCPOA.
They called the nuclear deal with Iran “a key ele-
ment of the global nuclear non-proliferation archi-
tecture and of multilateral diplomacy, endorsed
unanimously by the U.N. Security Council through
Resolution 2231. It is crucial for the security of Eu-
rope, the region, and the entire world.”
They specified that “It is our aim to protect European
economic operators engaged in legitimate business
with Iran, in accordance with EU law and with U.N.
Security Council Resolution 2231” and said they
were “committed to work on, inter alia, the preserva-
tion and maintenance of effective financial channels
with Iran, and the continuation of Iran’s export of oil
and gas.”
But the bloc has been struggling to find a host for the
trade mechanism. And there has been speculation in
the mainstream Western media that no European
country had been willing to be the SPV headquar-
ters, fearing U.S. reprisals.
But The Guardian, quoting Western sources, report-
ed on 6 November that the SPV “will be set up in
Europe within months, possibly in France or Germa-
ny.”
It said candidates have come forward and details in-
cluding the structure of its board and shareholdings
were under discussion.
The Guardian added that the United Kingdom was
always unlikely to be a site for the SPV, “both due to
the legal complications of Brexit and the need for the
SPV to trade in euros.”
The clearing house, the paper said, “is seen as criti-
cal to reassuring Tehran that the EU genuinely wish-
es to reward Iran for signing the 2015 deal on its
nuclear program by expanding business with the
country.”
But a “failure to set up the SPV would be a humilia-
tion for broader advocates of greater European eco-
nomic independence from the dollar such as the
French finance minister, Bruno Le Maire. Supporters
of the SPV regard the imposition of secondary sanc-
tions on European companies in pursuit of its foreign
policy goals as an illegitimate demonstration of U.S.
economic imperialism.”
Iran has so far shown patience, waiting to see how
the new mechanism will work out, but it has ex-
pressed frustration at the slow pace with which the
SPV is being set up. Tehran had been hoping for an
announcement on the operationalization of the SPV
in early November _ just before the second round of
U.S. sanctions.
Iranian officials have hinted that Europe’s delay in fi-
nalizing and launching the SPV has begun to hurt
Iranian trust in Europe. And there are those who have
no hope that Europe _ despite its political will _ would
be technically and financially able to demonstrate its
independence from the U.S. and go its own way.
Officials in Europe have said the actual operation of
the SPV would begin in early 2019.
The Europeans, together with other remaining signa-
tories of the JCPOA, need to demonstrate their cred-
ibility and steadfastness towards the Trump adminis-
tration by standing firm in their defense of the deal.
It’s obvious that Trump’s plan to increase political
and economic pressures on the Islamic Republic _
which is aimed at destabilizing Iran _ is not only a
gross violation of the JCPOA but also a direct threat
Azadi Square in Tehran
(IEBD Photo)
The Guardian, quoting Western
sources, says the SPV “will be
set up in Europe within months,
possibly in France or Germany.”
Iran has so far shown patience,
waiting to see how the new
mechanism will work out, but it
has expressed frustration at the
slow pace with which the SPV
is being set up. Tehran had
been hoping for an
announcement on the
operationalization of the SPV in
early November _ just before
the second round of U.S.
sanctions. Officials in Europe
have said the actual operation
of the SPV would begin in early
2019.
to Europe’s economic and security interests.
Standing up to the Trump administration’s unilater-
alism _ in particular the team of avowed anti-Iran
neoconservatives that surround him _ has to in-
clude meaningful measures to strengthen Tehran’s
cost-benefit analysis for remaining in the JCPOA.
The JCPOA, for Europe, is a security deal rather
than an agreement of economic value. It will be
profoundly problematic if the JCPOA dies due to
EU inability to adopt a united stance vis-à-vis
Washington. The image of Europe caving into U.S.
pressure will profoundly undermine its position on
the international stage and will greatly damage the
EU credibility when it is most needed.
Equally important is that the fate of the JCPOA _
whether it remains alive or dies due to EU inability
to continue trade with Iran _ will be a crucial test
for Europe’s avowed policy of principled pragma-
tism.
Additionally, Washington’s use of sanctions as a
political weapon _ contrary to the interests of glob-
al security and pragmatism _ has provided a his-
toric opportunity for Europe to demonstrate its
strategic autonomy and protect the cherished Eu-
ropean values in the face of the Trump administra-
tion’s brazen unilateralism.
By abandoning trade in U.S. dollars, the SPV has
the potential to reset the global economic order.
Iranian oil and other products are exported to Eu-
rope and EU goods and services are exported to
Iran without any U.S. dollar involvement.
The SPV is virtually the “energy pool” of the ECO
(Energy Credit Obligations) monetary units, which
can be swapped for goods and services or used
for investment.
The scheme, analysts believe, would make it easi-
er for SMEs that are not exposed to the U.S. to
continue doing business with Iran. The SPV won’t
encourage big companies like Total or Shell _
which are exposed to the U.S. _ to make invest-
ment in Iran but the scheme provides extra securi-
ty and insurance for SMEs not doing business with
America to deal with Iran.
The EU’s new mechanism is not merely designed
to bypass U.S. sanctions on Iran. The deeper is-
sue is a rising Eurasia bloc, including China, Rus-
sia, Turkey and an increasing number of their eco-
nomic partners, all of whom stand with Iran and
seek to protect the JCPOA.
Mogherini’s statement that the SPV “could be
open to other partners of the world” almost cer-
tainly includes China, Russia, Turkey, India and
others who enjoy economic relations with Iran and
wish to circumvent U.S. sanctions without directly
confronting Washington.
Already, China, Russia, Turkey and Iran are reduc-
ing their dependence on dollar for trade and this
direction is gaining momentum as Eurasian and
Latin American countries show a tendency to
move away from the petro-dollar mechanism and,
instead, embrace petro-yuan, petro-ruble or gold-
backed currency for trade.
11
 Op-ed Piece
Iran Free Zones, Attractive Platforms for Foreign SMEs
T
he geostrategic position of my country,
Iran, in southwest Asia and the Middle East,
along with its capabilities, capacities and po-
tentials as well as its relative peerless advan-
tages in natural resources of energy and valuable
mines of various metals, fertile lands, four distinct
seasons of the year, cultural, historical and natural
31 Provinces touristic attractions, educated ready-to-work young
manpower, ever developing infrastructure, and,
most importantly, the security prevailing over the
whole Iranian territory, have been the main means of
• 8 Existing Free Trade Zones transforming Iran into a desirable destination for in-
• 8 Future Free Trade Zones vestment, business and tourism, in this part of the
globe.
• 26 Active Special Economic Zones The effective exploitation of those potentials, in part-
• 12 Future Special Economic Zones nership with the owners of capital, along with the
technology and international management skills, will
lead to the production and increase of wealth and
As of next issue, prosperity of all nations and investors, active in this
Iran Europe Business Digest will begin to explore all of Iran’s 31 provinces, 8 Free Trade Zones (FTZs) and country and, of course, of all Iranians.
26 active Special Economic Zones (SEZs) _ one Province and one FTZ or SEZ in each issue _ and share its In the meantime, in order to facilitate and expedite
findings with you. this process, as in many other countries, creation of
Our experienced team will travel to all provinces one by one, will unveil the existing and potential business distinct environments, with efficient and integrated
and investment opportunities and provide firsthand account of each of them to interested readers. management, free from the usual bureaucracies of
“Business Gate” will be your gateway to business in Iran. Look for it in the next edition. the mainland, with no restriction on repatriation of
capital and profits of investments and economic ac-
tivities, financial incentives and tax exemptions, for-
eign trade exchanges being excluded from the na-
tional import and export regulations, with no
requirement for pre-entry visa for foreign nationals,
and the exclusive employment, insurance and bank-
ing regulations, all of which being entitled to the
“Free Trade-Industrial Zones”, have been included in
the program of work of the Government of the Is-
lamic Republic of Iran from two decades ago.
Today, development of their domain of action, with
the purpose of boosting and facilitating production
of goods and services, and their export, alongside
assisting with and contributing to the transfer of ad-
vanced technologies, boosting and facilitating the
provision of requirements and urgent needs, as well
as provision of financial resources and fore ign in-
vestment, together with development of strategic
ties and expansion of cooperation and participation
of countries from the region and the world, have
been all emphasized at the highest levels of poli-
cy-making of the country which have also been rati-
fied by the Supreme Leader of the Islamic Republic
of Iran.
To achieve the above-mentioned objectives, the
seven Iranian trade-industrial zones of Kish, Qeshm,
Chabahar, Arvand, Aras, Anzali and Maku, located
in the northern and southern boundaries of the
country, welcome investors and international eco-
nomic activists to participate
in a variety of opportunities for
investment and business in
those free trade-industrial
zones. They are ready to facil-
itate and expedite all the rele-
vant process as they have
prepared the physical infra-
structures of utilities, trans-
portation and communica-
tions, while introducing
facilitating rules and regula-
tions beside financial and tax
incentives.
The Iranian free zones are at-
tractive and ready-to-invest
platforms for European and non-European Small
and Medium-sized Enterprises (SMEs).
As the advisor to the President of the Islamic Repub-
lic of Iran and acting as the Secretary of the Su-
preme Council of the Free and the Special Econom-
ic Zones of the country, which is chaired by the
President, as the highest executive level of the gov-
ernment, and membership of ten Cabinet Ministers,
three Vice-Presidents and Governor of the Central
Bank, we are responsible for policymaking, man-
agement and supervision of those zones.
My portfolio and the mentioned high-ranking team
welcome the presence of all investors and econom-
ic activists, in the free zones of the Islamic Republic
of Iran, as our future partners, and we assure them
that all their investments in the zones shall be pro-
tected and guaranteed by the Government of the
Islamic Republic of Iran and we will leave no stone
unturned to facilitate and create an attractive and
rich business environment in those zones.
I hope that this brief presentation of information has
been able to provide the interested parties with a
part of the capabilities and potentials of the Islamic
Republic of Iran and its Free Zones, and help them
with their decision making process for presence and
activity in these zones.
Dr. Morteza Bank
Advisor to the President of the Islamic
Republic of Iran &
Secretary of the Supreme Council for Free
Trade-Industrial & Special Economic Zones
13
Iran Moves to Establish
8 New Free Trade Zones
to Stimulate Economic Growth
T
he Iranian Parliament approved a bill on 2
September 2018 to establish 8 new Free
Trade Zones (FTZs) and 12 new Special
Economic Zones (SEZs) in Iran.
The bill, which also includes revising the status of
three existing FTZs, was passed with 161 votes in
favor, 75 against and 7 abstentions. The legislation
was approved after nearly three years of delibera-
tions and expert studies conducted by the Gov-
ernment and the Parliament’s Research Center.
The new FTZs will be established in the northern,
southeastern, western and southern border re-
gions or sea ports of Iran.
All parliamentary legislations have to be ratified by
the Guardian Council, a constitutional watchdog,
to become law. The council rejected the bill on 6
October, citing purely technical reasons. It re-
turned the legislation to Parliament for review.
It’s widely expected that the Parliament will fix the
wording to meet the council demands in order to
pave the way for its final approval.
There are currently 8 operating FTZs in Iran and
some 1,400 industrial units are active in those
zones, according to Morteza Bank, Secretary of
the Supreme Council for Free Trade-Industrial and
Special Economic Zones.
Bank, who is also an advisor to the Iranian presi-
dent, said in late August that creation of new FTZs
is a smart way to neutralize unilateral U.S. sanc-
tions and get Iran out of the existing economic
hardships.
He was quoted by his council’s news agency, freena.
ir, as saying that FTZs play a key role in Iran’s eco-
nomic development, saying the flourishment of
FTZs leads to the country’s economic growth.
Some of Iran’s border regions have long suffered
from lack of economic development. Smuggling of
goods has become acute in some border areas,
especially in Kurdish regions where local econo-
mies are in tatters.
In recent years, the country has been struggling
with the issue of kolbars or local porters, who
cross the remote mountains between Iraqi and Ira-
nian Kurdistan on foot with bulky loads of goods
smuggled on their back.
Thousands of them carry the illegal goods into Iran
from Iraqi Kurdistan for a little fee in order to make
ends meet while smuggling rings reap the benefits
most. Kolbars are estimated to have carried $3.6
to $4 billion worth of goods a year to the detriment
14 No. 2 & 3 October-December 2018
Creation of FTZs in border
regions including on the
Iran-Iraq border is aimed at
addressing the issue of uneven
economic development,
creating jobs, attracting
investment and paving the way
for the country’s economic
growth.
The government believes that
the legislation could tackle local
poverty, improve living
conditions in border regions
and, more importantly,
transform Iran’s geo-economic
map.
The existing 8 FTZs in order of creation are:
1. Kish Island in the Persian Gulf
2. Qeshm Island just at the Strait of Hormuz
3. Chabahar, a port city in southeastern Iran
4. Aras, a region in northwestern Iran on the border with Armenia and Azerbaijan
5. Anzali, a port city on the Caspian Sea in north Iran
6. Arvand, a region located in the far northern Persian Gulf on Iran’s southwestern border with Iraq
7. Maku, a city in northwestern Iran on the border with Azerbaijan and Turkey
8. Imam Khomeini Port City, adjacent to the International Imam Khomeini Airport outside Tehran
The new 8 FTZs, if the initiative is implemented, will be: The Rouhani administration and
9. Incheh Borun, a town on the border with neighboring Turkmenistan the Parliament seek to tie the
of the Iranian national economy. 10. Ardabil, a city close to the border with Azerbaijan new FTZs to the economies of
As a short term remedy, Iran opened the first 11. Baneh-Marivan, two towns in western Iran on the border with Iraq
neighboring countries, reduce
the dependence of provinces
cross-border retail market in its Kurdistan region in 12. Qasr-e-Shirin, a town on the border with Iraq on the national budget, and
February 2018 with the goal of providing safe busi- 13. Ilam, a city near the border with Iraq increase hard currency
revenues.
ness for local people and checking the risky illegal 14. Bushehr, a major port city in southern Iran
trade. 15. Jask, a port city in southeastern Iran
Creation of FTZs in border regions including on the 16. Sistan, a region on the border with Pakistan and Afghanistan
Iran-Iraq border is aimed at addressing the issue of Additionally, the legislation will allow establishment of 12 new SEZs in various Iranian provinces.
uneven economic development, creating jobs, at- Already, there are 26 active SEZs operating in different parts of Iran.
tracting investment and paving the way for the coun-
try’s economic growth.
The government believes that the legislation could
tackle local poverty, improve living conditions in bor- A large portion of the population and key
der regions and, more importantly, transform Iran’s industries _ with the exception of oil and
geo-economic map. mining industries _ are centered in Tehran
But critics argue that the existing FTZs have largely or few other major provincial capitals.
failed to achieve their goals of boosting employment, Establishment of FTZs will reverse migra-
attracting foreign technology and capital, increasing tion to big cities, will lead to a gradual
exports and improving local living conditions. decentralization and will help reduce the
Supporters, in response, argue that unemployment, imbalance in economic development.
for instance, is a national problem but the situation in
FTZs are far better than many cities in the mainland
and are relatively more developed economically.
The administration of President Hassan Rouhani ar-
gues that setting up new FTZs will greatly contribute
to the local economic and industrial development of
those regions and will increase the population in bor-
der areas. That will be a strategic gain since it will Qasr-e-Shirin
solve at least some of many national challenges,
specifically the uneven economic development.
A large portion of the population and key industries _
with the exception of oil and mining industries _ are
centered in Tehran or few other major provincial cap-
itals. Establishment of FTZs will reverse migration to
big cities, will lead to a gradual decentralization and
will help reduce the imbalance in economic develop-
ment.
Additionally, it argues that the new FTZs will be mag-
nets to attract investments, establish factories, en-
hance industrial production and create vibrant eco-
nomic centers to boost exports to neighboring
countries.
In other words, the Rouhani administration and the
Parliament seek to tie the new FTZs to the econo-
mies of neighboring countries, reduce the depen-
dence of provinces on the national budget, and in-
crease hard currency revenues.
Bank told the semi-official ISNA news agency the
same day, 2 September, that establishment of the Existing Free Trade Zones
new FTZs will impose no costs on the government
Future Free Trade Zones
since it will be developed by the private sector.
15
 I
ran has been and continues to be the world’s
biggest pistachio exporter. In the previous crop
Ample
year (September 2017-July 2018), the pistachio
industry brought in US$1.2 billion for Iran. The
industry provides work for hundreds of thousands
of people, mostly in the eastern half of the country.
Pistachio lovers from America to Europe and from
Opportunities
Africa to Asia have all got used to the delicious
taste of Persian pistachio. That’s one important
reason why Iran’s iconic snack is popular and is
eaten all over the world.
for Foreign
Iran produced around 230,000 tons of pistachios
in the last crop year, mostly cultivated and harvest-
ed in southeastern Iran. Some 130,000 tons of the
popular nibble were exported and the rest were
Investment in Iran’s
consumed domestically. Iranians are big lovers
and consumers of pistachio themselves.
Pistachio exports provide a small but important
pipeline for foreign currency revenues at a time the
Pistachio Industry
hardline administration of U.S. President Donald
Trump seeks to squeeze Iran economically.
Pistachio cultivation is the main source of income
for one fifth of the population in Kerman, a prov-
ince of 3.1 million people famed for its delicious
pistachio. Kerman is the largest province of the 31
provinces of Iran.
Pistachio Exports Fetched $1.2 Billion The pale green nuts are one of Iran’s top export
commodities outside the oil sector. In the list of
But Iran Facing Crisis in the New Crop Year Iran’s non-oil exports, pistachio is even a more
profitable product than Persian carpets and saf-
fron.
However, earning $1.2 billion from pistachio ex-
ports is a fraction of the $47 billion Iran earned
from non-oil exports last year (21 March 2017 to
20 March 2018), according to the head of Trade
Promotion Organization of Iran Mojtaba Khosrotaj.
Yet, the beloved pistachio is an attractively reliable
earner.
China is the main importer of Iranian pistachios
while other major buyers of the nut are European
countries, Brazil, India, Southeast Asian countries
and Arab states.
Pistachio Origin, Uses & Benefits
Pistachio is derived from the Persian name “pis-
teh” or “pesteh”. It’s a deciduous, long-living,
slow-growing small tree originating from Central
and Western Asia. Kerman Province in southeast-
ern Iran is the hub of global pistachio production.
Other parts of Iran where pistachios are currently
grown include the provinces of Yazd, Khorasan,
Fars, Semnan, Sistan and Baluchestan, Qazvin,
Isfahan, Tehran, Markazi and Qom, mostly in cen-
tral, southern and eastern Iran. The United States,
Turkey and China are other major pistachio pro-
ducers.
Pistachio trees are planted in orchards and take
about seven to ten years to reach significant pro-
duction. The tree is alternate bearing, or biennial
bearing, meaning that they crop heavily in one
year and then produce less the next.
Pistachio tree is dioecious. That means male and
16 No. 2 & 3 October-December 2018
female flowers are borne on separate trees. A fe-
male tree planted alone will not produce nuts un-
less a male tree is growing nearby. Therefore, both
male and female trees are required to produce
nuts.
The male trees bear the pollen and the female
trees bear the nuts. Pollen from male trees must
travel through the wind to reach female trees. One
male tree produces enough pollen for 8 to 12
drupe-bearing females. That’s why farmers ideally
place one male pistachio tree in the center of every
9 or 10 female trees. Male pistachio trees can be
easily recognized since they are usually taller and
more robust than the female trees.
Male trees don’t produce fruits. Only female trees
do. Pistachios grow in clusters, like grapes, on the
tree.
Pistachio trees generally produce good yields from
the 7th year of its age and reach the peak of pro-
duction in the 50th year. Its productive life can
reach 100 years or more.
Pistachio fruit develops in late spring. The pista-
chio kernel develops during the months of June
and July. It ripens in August or September. So,
September is the annual harvest season when
growers anxiously anticipate the fruits of their la-
bor.
After harvest, pistachios are hulled, meaning that
the outer shell is removed mechanically within a
short period of time to avoid shell staining and
product deterioration. Then, the nuts are washed,
dried and separated by size. The drying is critical
in maintaining the quality of pistachio and bringing
moisture to a standard level. The drying process
cannot be rushed nor can it be delayed.
In the next stage, they are sorted in terms of
shape, size and type. Good pistachio nuts split
open while on the tree before harvest but some 20
to 30 percent of the nuts don’t split. Open shell
pistachios are separated from closed-mouth
shells.
Opened-mouth shells are either consumed raw or
are roasted and salted before being sold, depend-
ing on the demand of customers, or processed by
special machines to produce pistachio kernels.
The closed-mouth nuts are not sold in the market.
Instead, they are opened by machine and the ker-
nel is sold. Pistachio nuts are sold both in bulk and
packages. Experts and industrialists argue
that there are ample opportuni-
In Iran, there are many local names for pistachios, ties for foreign investment in
each name representing a shape or quality type. Iran’s pistachio industry.
Setting up pistachio-related pro-
But they are categorized in three main groups: cessing industries can be a prof-
Long Pistachio (divided into Akbari and Ahmad itable business for foreign inves-
Aghaee categories), Jumbo Pistachio (Kale Ghu- tors, specifically Europeans.
chi), and Round Pistachio (Fandoghi). And each
pistachio type is subdivided into different grades in
terms of shape and quality. Kernel pistachio and
sliced kernel pistachio are offered and exported
separately.
Pistachio shells are not edible and there is no way
a person could chew pistachio shells. The edible
part is the seed or the kernel, covered by a hard,
17
thin, clear brown shell named pericarp.
Pistachio is intertwined with Iranian culture and is
present in many aspects of Iranian life. They are
as linked to the Iranian national identity as apple
pie is to Americans or feta cheese to Greeks.
Pistachio nuts have got a mention in all Iranian
literature, stories, traditions and ancient festivals
such as Nowruz, or the Persian New Year, and
Yalda Festival _ or Chelleh Night _ an ancient tra-
dition where families gather on the longest night
of the year telling stories, listening to poetry and
discussing current events.
Pistachios are widely used in Iranian food or eaten
independently as nuts at formal evening meals,
parties, weddings and funerals. No festivities and
feasts are complete without pistachios as well as
other nuts like walnuts, almond, raisin, dried fig,
dried berries and hazelnuts.
This photo shows a pistachio processing factor in Sirjan, southern Iran.
Photo: Iran Pistachio Association (IPA)
Iranians celebrate Nowruz by eating sweets, fruits
and pistachios as well as drinking tea and other
beverages. They cook special dishes at family
gatherings, formal parties or during national holi-
days and decorate them with pistachios.
Pistachios are also widely used in various Iranian
treats such as “Gaz”, one of the most popular
souvenirs of the historical city of Isfahan in central
Iran. The beloved pistachios give an unforgettable
taste to ice creams. They are also popular ingredi-
ents in confections such as baklava and halva
(traditional sweets), chocolate, pudding, desserts
and even salads.
The same way, pistachios have found an import-
ant place in global cousins and various treats
around the globe from biscuits to cookies. That’s
why the iconic snack is of strategic significance
for Iranian producers of agro products.
Although Iran exported 130,000 tons of pista-
18 No. 2 & 3 October-December 2018
Foreign investors, specifically
Europeans, can also invest in
Iran’s pistachio farming and
irrigation systems since it will
help Iran improve its agriculture
and crop cultivation systems
and at the same time allow
foreign investors gain profits.
chios in the last crop year, agro experts believe that
global demand for pistachios are rising and the
global market can even absorb over a million ton if
promoted and marketed adequately.
“Pistachio consumption is on the rise, thanks to
global awareness about the health benefits of pista-
chio, the advance of technology and production of
pistachio-derived products,” pistachio expert and
investor Mohammad Jamalizadeh told the Iran Eu-
rope Business Digest (IEBD).
Pistachio is not only tasty and delicious but healthy
and fun to eat. It’s one of the main nutrients contain-
ing great healthy fat and being a good source of pro-
tein, fiber and antioxidants. It’s also good, according
to scientists, for weight loss, heart and gut health.
2018 Is Infertile Year in Iran
Mahmoud Abtahi, the head of Iran Pistachio Associ-
ation, told the IEBD in an exclusive interview in Sep-
tember that the trend of pistachio production is not
stable for various reasons.
“It’s very difficult to accurately forecast the size of
annual pistachio crop. Since pistachio production is
alternate bearing, the harvest is heavier in alternate
years. We expect a drop in production since the cur-
rent crop year is the infertile year,” he said.
Abtahi said Iranian pistachio can be distinguished by
its taste.
“There is no doubt that Iranian pistachio has the
best taste because of Iran’s geographical location,
special climate and soil. The world-famous taste of
Persian pistachio is unrivalled. And the taste is en-
hanced by roasting pistachios. Roasting pistachios
is an art and Iranians are the best experts on this.
Additionally, Iranian pistachios offer various advan-
tages such as higher meat content that others
don’t.”
Iran’s pistachio chief said producers and exporters
expect Iran’s Foreign Ministry and Iranian embassies
abroad to help them capture new markets for the
beloved pistachio.
“We need to expand our marketing and enlarge the
list of our customers. But the private sector needs
assistance from Iranian embassies in target coun-
tries to achieve its goals,” he said.
Farmers began to harvest in September but it was
already evident that Iran’s national snack was facing
a hard time in 2018.
Mehdi Tabibzadeh, the head of Kerman Chamber of
Commerce, Industry, Mine and Agriculture, spoke of
a “crisis” in pistachio production in Iran this year and
predicted that exports are expected to sharply drop
to may be just $100 million.
“The big difference between export of over $1 billion
pistachios last year and prediction of $100 million in
the current year represents the outbreak of a crisis,”
he told a meeting of the chamber on 10 September
2018.
Overheat, Drought & Pests Are
“Axis of Evil” for Iran Pistachio
Global warming, continuous drought and pests at-
tacking orchards are the main damages to Iran’s pis-
tachio production.
Despite more lands going under pistachio cultivation
in Iran, production has not increased accordingly.
“Global warming or climate change is a universal
phenomenon. A gradual increase in the overall tem-
perature of the earth’s atmosphere harms not only
pistachio production in Iran but the entire world. It is
damaging and downgrading human life. It’s a fact
that adverse weather conditions have impacted pis-
tachio output. Shortage of water and continuous
below average rain is another challenge for Iranian
farmers. And in recent years, orchards in parts of
Iran have been attacked by pests, all contributing to
a drop in pistachio production,” Jamalizadeh said.
“They are the axis of evil for Iranian pistachio.”
The expert, who manages large pistachio orchards
through joint venture agreements, said farmers did
not see a cold winter last year. Freezing tempera-
tures in winter, he said, kill fungal diseases and bac-
terial infection in trees. Pests don’t die when winter
air doesn’t fall below the freezing point. That means
the diseases remain and subsequently weaken
trees, leaving them vulnerable to another disease or
insect attack. And pests or insects become resistant
towards pesticides after the first or second use. This
disastrous trend impedes pistachio production and
takes a devastating toll on the industry.
Likewise, hot or freezing temperatures during the
flowering can also damage the crop. Spring weather
is usually cool and wet during the bloom period. But
this year pistachio orchards in Iran faced unusually
high temperatures in April, thus damaging the flower
buds. Flowers fell due to overheat when the bloom
was taking place. In the same way, spring frost can
also damage the flower buds.
Hossein Rezaei, a senior local agriculture official in
Rafsanjan, a small town in southeastern Iran, told
reporters on 18 June 2018 that a combination of
climate change and lack of rain should be blamed
for a sharp drop in this year’s production.
“Pistachio orchards experienced a warm winter.
Temperatures didn’t reach even freezing point,
causing damage to pistachio orchards. When it
doesn’t snow or rain, heat settles in. In April, there
was no rain, causing flower buds to fall from
trees. Heat exhaustion created troubles. Tem-
perature fluctuations, unprecedented in the past
four decades, have caused problems. Many or-
chards (in Rafsanjani) don’t have a single pista-
chio,” the semi-official ISNA news agency quoted
him as saying.
He said Rafsanjan produced 65,000 tons of pis-
tachio last year but production won’t exceed
5,000 in the current year.
For Iranian pistachio farmers, the most pressing There are abundant opportuni-
problem is the crop failure in 2018 at a time of ties for foreign investment. For
instance, Italians can set up in-
growing demand from consumers in countries dustrial-scale pistachio oil and
such as China and Russia. butter production lines in Iran,
Drought is causing more and more damage to the something Iranians are weak at.
At the same time, production of
life of pistachio farmers in Iran, leading to many pistachio butter and oil are smart
jobs being lost. And a drastic fall in Iranian pista- ways to increase the added val-
ue of pistachio.
chio production means there will be a drop in pis-
tachio supply and thus a likely increase in prices
for the popular commodity in the coming months,
at least in the domestic Iranian market.
“Temperature fluctuations and fierce heat exhaus-
tion in April is the main reason behind a sharp fall
in pistachio production in the new crop year. Na-
ture was not kind to us this year but we will do
better next year,” Jamalizadeh said.
The Iranian government is already pursuing plans
to promote modern agriculture technology and
tools. It’s providing funds to farmers to change
irrigation system, encouraging them to switch to
drip irrigation and buy modern equipment but
changing ingrained attitudes can’t happen over-
night.
Entering into partnership for
US-Iran Pistachio War commercial cultivation of
The United States and Iran are the world’s largest pistachio trees and orchard
management is another
pistachio producers. The two arch rivals over- opportunity available to
whelmingly dominate the universal market in the Europeans in Iran since
nut. Together, they account for about 80 percent growing pistachio trees
commercially can be a major
of the total global production. source of income in the long
Political tensions as well as economic rivalry have term.
affected pistachio business for many years. The
hard battle over pistachio has been an endless
confrontation between Tehran and Washington.
However, contrary to general perceptions that the
re-imposition of unilateral U.S. sanctions against
Iran in the wake of the Trump administration’s
abrupt exit from the multilateral nuclear deal,
known as the Joint Comprehensive Plan of Action
(JCPOA), will affect Iran pistachio exports, rising
tensions are not expected to undermine Iran’s
pistachio trade. Overheat, drought and pests
have damaged Iranian pistachio rather than the
belligerent neoconservatives in the Trump admin-
istration.
Why?
“Because Iran has had no pistachio exports to
the U.S. for more than three and a half decades,”
Abtahi said.
Even after the 2015 nuclear deal lifted sanctions
on Iran, Iranian pistachios didn’t flood the Ameri-
can market. The U.S., according to Abtahi, had
19
imposed 300 percent tariffs
on Iranian pistachio imports
back in 1983. The decision
more than tripled the cost,
thus leading to a halt to Irani-
an pistachio exports to
America. That U.S. policy re-
mains unchanged today.
In recent years, the U.S. has
ousted Iran as the world’s
largest producer, taking
Iran’s place as the top global
leader in pistachio produc-
tion. California is the heart of
U.S. pistachio orchards.
Although areas under pista-
chio cultivation in the U.S.
are much less than Iran,
American farmers harvest
more crops, primarily be-
cause of their technological
advantage, advertising tools
and financial power. And wa-
ter shortage in the U.S. is not
as acute as in Iran. Unlike
Iran, the U.S. didn’t face heat
exhaustion during flowering
in April.
U.S. pistachio growers re-
portedly produced over
272,000 tons from their 2017
crop season while Iran pro-
duced around 230,000 tons.
But the U.S. is not the world’s
top exporter.
“The Americans have sur-
passed us in terms of pista-
chio production but not in
exports because of their
large population and high
domestic consumption,”
Abtahi said.
Iran’s pistachio boss admit-
ted that Americans harvest
more than Iran does in each
hectare of land.
“Because of their technologi-
cal advantage, the Ameri-
cans harvest up to 3.5 tons
of pistachio in each hectare
of land while in Iran we har-
vest 1 ton for the same hect-
are,” he said.
Jamalizadeh, the pistachio
expert and investor, says Iran
will never lose its share of the
global pistachio market and
is already shifting production
to other parts of Iran where
there is more water, for ex-
ample in the west.
“There are fertile lands with
20 No. 2 & 3 October-December 2018
suitable weather conditions in
the western half of the coun-
try. Farmers have already be-
gun to create pistachio or-
chards in Khuzestan, Varamin
in the outskirts of Tehran, and
Qazvin. By doing this, there
will be no fear of American
domination of the pistachio
market. The current crop year
is an exception because of cli-
mate fluctuations in April,” he
said. “American pistachio
growers might use water and
land more effectively than us
but nobody can rival the deli-
cate taste of Iranian pista-
chios.”
Abtahi, the pistachio boss,
said global pistachio produc-
tion doesn’t yet meet the in-
creasing global demand. So,
all the products can find a
market.
Opportunities for
Foreign Investors
Iranian experts and industrial-
ists argue that there are ample
opportunities for foreign in-
vestment in Iran’s pistachio
industry.
Setting up pistachio-related
processing industries, ac-
cording to Jamalizadeh, can
be a profitable business for
foreign investors, specifically
Europeans.
“Italy, Greece and Spain are
pistachio growers although
their production is very limited.
But they possess advanced
technology to produce prod-
ucts obtained from pistachio
such as pistachio oil and pis-
tachio butter,” he said.
Pistachio oil is extracted from
pistachio nuts. It’s not ideally
suited as cooking oil but it’s
used as a sauce or vinaigrette
to give food a nutty flavor. Pis-
tachio oil is widely used as
seasoning in salad dressing
and more. Pouring pistachio
oil over grilled fish makes it
delicious.
But more than anything else,
pistachio oil is used in the
cosmetics industry and skin
care products since it’s a great
moisturizer due to its antioxi-
dant and hydrating qualities.
And pistachio butter is consid-
ered one of the healthiest types
of butters although it’s pricier.
The powerful nutrition and deli- Pistachio is
cate flavor of pistachio butter
makes it worth the price. It’s
derived from the
low in calories and fat but rich Persian name
in protein. “pisteh” or
Pistachio butter is seen as a
great, healthy breakfast or eve- “pesteh”.
ning meal. Kerman Province
“So, there are abundant oppor-
tunities for foreign investment.
in southeastern
For instance, Italians can set up Iran is the hub of
industrial-scale pistachio butter global pistachio
production lines in Iran, some-
thing Iranians are weak at. It will production.
be profitable to Italians. At the
same time, production of pista-
chio butter and oil are smart
ways to increase the added
value of pistachio,” Jamaliza-
deh said.
He said foreign investors, spe-
cifically Europeans, can also
invest in Iran’s pistachio farming
and irrigation systems since it
will help Iran improve its agricul-
ture and crop cultivation effi-
ciency and at the same time
allow foreign investors gain
profits.
Jamalizadeh concluded that
entering into partnership for
commercial cultivation of pista-
chio trees and orchard man-
agement is another opportunity
available to Europeans in Iran
since growing pistachio trees
commercially can be a major
source of income in the long
term.
The Iranian government is pursuing plans to
promote modern agriculture technology and
tools. It’s providing funds to farmers to
change irrigation system, encouraging them
to switch to drip irrigation and buy modern
equipment but changing ingrained attitudes
Mahmoud Abtahi, the head of
Iran Pistachio Association:
can’t happen overnight.
“There is no doubt that Iranian
pistachio has the best taste
because of Iran’s geographical
location, special climate and
soil. The world-famous taste of
Persian pistachio is unrivalled.
Additionally, Iranian pistachios
offer various advantages such
as higher meat content that
others don’t.”
21

Mica Mall
Mega Project, A Long Dream Coming True
L
eaders of Pars Mica Kish (parsmicakish.com),
a brand in the competitive construction in-
dustry, had long dreamed of building a unique
entertainment and retail center that would be
different from the existing shopping malls on the
planet.
Their group vision was not simply to build a large
retail shopping mall but a giant and magnificent cen-
ter that would respond to the modern needs of all
visitors. That’s why the project was designed to be
more of an entertainment center than a shopping
mall.
Kish Island, an eco-friendly and tourist destination in
the Persian Gulf and a Free Trade Zone, was seen
as a promising land for the ambitious project.
The tiny island, known for its white-sand beaches,
turquoise waters, relax environment, scuba-diving,
luxury yachts and jet-skis, currently attracts 1.5 mil-
lion tourists a year. Famed as a tourist jewel with a
paradisiacal climate and landscape, Kish has be-
come a hotbed of consumerism.
Foreign tourists don’t need visa to visit the island.
The coral reefs on the island are one of the most
22 No. 2 & 3 October-December 2018
Mica Mall offers a wide variety of services to
satisfy the needs of all visitors from entertain-
ment to sports, from shopping to food and
beverage courts, from art and cinema halls to
innovative leisure facilities such as passenger
cable car, wind tunnel, rainforest, ice skating
rink, snow room, aquarium, amusement center,
bowling, gym and spa, children’s play center,
car parking, and many more.
diverse of all marine ecosystems adding to its ele-
gance. And the natural wildlife on the island is very
splendid.
With tourism development being the central policy
in Kish, most of the projects are related to tourism
and recreation.
The fabulous attractions left Pars Mica Kish leaders
in no doubt that Kish is their promised land to turn
their long dream into reality. But first, they needed to
test the waters before engaging in their grand proj-
ect. So, they began to build a magnificent adminis-
trative and residential complex in Kish in 2003.
With the project proving to be a success, then they
decided that it’s time to embark on their most ambi-
tious project of all.
The group worked hard for years to identify the
shortages and requirements in the tourist island,
studied and explored the biggest and most attrac-
tive shopping malls existing in different corners of
the planet, got the best out of them and then began
to build a recreational and shopping center with
added features that would be a new event.
23
 Entertainment Matters More Than Shopping Kish Island is an adventurous place for tourists to explore. Direct flights from Dubai,

In today’s world, a retail center alone doesn’t at- turn Mica Mall into the most popular shopping des-
Mica Mall Is Not Just a Mall Turkey, Oman and Iraq take foreign tourists to Kish.

The Mica team embarked on an
ambitious development project
that would be capable of fully
occupying the entire time a
family would spend on a
holiday; a place that will attract
all including art lovers, food
lovers, cinema-goers and
children
tract visitors anymore. Entertainment matters more
than shopping nowadays. That’s why shopping
malls have changed across the globe. The role
shopping malls play in people’s lives has been re-
shaped dramatically somehow in the same way
that Internet has transformed virtually every aspect
of our lives.
Shopping malls in Kish were merely retail centers
without any entertainment features. So, the Mica
team embarked on an ambitious development proj-
ect that would be capable of fully occupying the
entire time a family would spend on a holiday; a
place that will attract all including art lovers, food
lovers, cinema-goers and children.
The goal is to turn Mica Mall (micamall.com) a
prime destination for recreation and shopping. It
has been designed to become a retail and leisure
pioneer in Iran. It has been constructed to bring a
new meaning to business and turn Kish into a par-
adise for families and holiday goers.
“We designed to build a place that would offer ev-
erything members of a family would need during a
3-day trip to Kish and meet their shopping and lei-
sure needs. The goal is to provide customers a
memorable experience during their stay in Kish and
tination in Iran,” Omid Keshtkar, a senior Mica Mall
manager, told the Iran Europe Business Digest
(IEBD) in an exclusive interview recently in his office
in Kish.
The group began construction of Mica Mall in 2011
only after 8 years of extensive research and large-
scale planning.
“Our key target is to attract Iran’s 80-million-popu-
lation to Kish. The intention is to bring them comfort
and memorable moments,” he said. “Our scheme
was to turn Kish into a distinguished city. And the
solution was to bring splendid entertainment, plea-
sure and recreation to the tourist island.”
More than half of Iran’s population is under 35 years
of age, many of them with high levels of education.
Smart phone usage is universal in Iran while the
large youth population is in search of modern en-
tertainment. That makes Mica Mall a great solution.
Keshtkar described Mica Mall a majestic response
to what Kish Island needs today.
Iranians are fond of shopping. The absence of
high-quality shopping malls and lack of first-rate
entertainment facilities of global standards in Iran
had prompted wealthy Iranians to go abroad for
recreation and shopping.
Mica Mall is now in the final stages of construction
and will be Kish’s largest shopping and entertain-
ment center, a new event of its kind in Iran.
The entrepreneur portrays his leisure resort as a con-
sumer haven offering a wide variety of services to
satisfy the needs of all visitors from entertainment to
sports, from shopping to food and beverage courts,
from art and cinema halls to innovative leisure facili-
ties such as passenger cable car, vertical wind tun-
nel, rainforest, ice skating rink, snow room, aquari-
um, amusement center, bowling, gym and spa,
children play center, car parking, and many more.
The priority for Mica Mall leaders in this ambitious
project has been to build an inspiring structure with
global standards. The island is widely described as a natural aquarium because of the limpid and crystalline
water and colorful fishes. The coral reefs on the island are one of the most diverse of all
Mica Mall will be a unique entertainment center since marine ecosystems adding to its elegance.
most of these activities are being introduced for the
first time not only in Kish but in Iran and the entire
region.
“Our motto is this: Mica Mall is not just a mall,” Kes-
htkar said.
Iranian investors, entrepreneurs, businessmen, hotel
owners, tour operators as well as government offi-
cials all hope that the enormous Mica Mall commer-
cial and entertaining center will help reinvigorate
tourism in Kish. Kish authorities are already expand-
ing the island’s airport and have set the goal of annu-
ally attracting 5 million tourists by 2025 and Kesht-
kar’s mega project will be a hunter to achieve that
goal. Local officials admitted that the 5-million-tourist
goal could not be achieved without carrying out ad-
equate infrastructure projects and creating entertain-
ment facilities.
Development of Mica Mall is already leading to a new
wave of inward private investment into Kish, includ-
ing construction of new 5-star hotels in the tourist
island.
The real estate tycoon and his team have so far in-
vested more than 15 trillion rials ($357 million) into
the project in partnership with banks. Mica Mall has
contracted with Al Ahmadiah Contracting and Trad-
ing, a leading UAE construction company, to carry
out the monumental project. Kish Island, known for its white-sand beaches, turquoise waters, relax environment,
In addition to a team of consultants and contractors, scuba-diving, luxury yachts and jet-skis, currently attracts 1.5 million tourists a year.
McArthur Company, a branding agency specialized
in shopping malls, has collaborated with the resort,
providing management and leadership.
Keshtkar’s group has also signed contracts with
leading global companies to create its entertainment
facilities and compelling retail destinations. And
global names have subcontracted the smaller proj-
ects to favorite firms.
Mica Mall is being constructed on a land of 34,400
square meters in five levels, just 120 meters away
from the crystal waters of the beach. The 5-story re-
tail and entertainment complex has also two levels of
car parking underneath, enough space for over
1,000 cars.
Scheduled to open in 2019, the mammoth Mica Mall

24 No. 2 & 3 October-December 2018 25


Why is Mica Mall a profitable project
for foreign investors and an attractive
showroom for international brands?
has been designed by DSA Architects Internation-
al and Bentel Associates International of South Af-
rica and will feature more than 500 stores, services
and entertainment attractions.
Of a total of 202,000 square meters of project in-
frastructure, some 70,000 square meters are de-
voted to retail stores and food courts, ranging from
50 to 1,500 square meters in size each. That
means goods worth 20 trillion rials ($476) are re-
quired to fill the stores while an equal amount
worth of goods will be needed as backup for the
retail stores alone.
Over 18,000 square meters have been devoted to
entertainment alone.
In addition to offering a host of entertainment at-
tractions, Mica Mall has already contracted to
bring in international business brands, offering
wealthy Iranian families an option to do their shop-
ping in Kish rather than travelling abroad.
26 No. 2 & 3 October-December 2018
Business magnate Omid
Keshtkar says a total of 175,000
cubic meters of concrete and
iron bar were used in this
project. That’s more than three
times the concrete and iron bar
used to build Milad Tower, the
sixth-tallest tower and the
24th-tallest freestanding
structure in the world in Tehran.
A Gateway
to the Iranian Market
Keshtkar said through superb design enriched with
innovative technology, his resort has created vibrant
retail environments that will offer great experiences,
choice and distinctiveness. He argued that his grand
project brings modernization to Iran, reflecting the
promising prospects in Iran’s growing market.
“We decided to build a place that would bring in in-
ternational brands and upgrade Kish Island as a
tourist destination so that Iranians would do shop-
ping in Kish instead of going abroad,” he insisted.
Mohammad Reza Saeedi, a senior local government
official, told the IEBD that Mica Mall will be “the en-
gine of tourism” and “a tourist magnet” inviting Irani-
an and foreign tourists to the island provided that it
will carry on to employ talented experts and keep up
with the global speed in research and development
as well as marketing.
Others have described Mica Mall a “gateway” to the
Iranian market and “the heart of commerce and en-
tertainment in Kish Island.”
This photo shows the existing airport in the Kish Island in the Persian Gulf.
Currently 1.5 million tourists visit Kish every year.
The crystal blue waters, the warm sunny beach
and the silver sand create distinctive view of
the island. Under the water, tourists see a
grand luxurious museum to explore. No list of
reasons why you should invest in Kish would
be complete without mentioning its great
natural beauty, blue waters and sand beaches.
The water is so clear that fish can be seen
swimming in the sea all year long.
A new terminal is under construction in Kish. Kish authorities are already
expanding the island’s airport and have set the goal of annually attracting
5 million tourists by 2025.
Kish, an Adventurous Place
for Tourists to Explore
Kish Island is an adventurous place
for tourists to explore. Direct flights
from Dubai, Turkey, Iraq and Oman
take foreign tourists to Kish. The
crystal blue waters, the warm sunny
beach and the silver sand create dis-
tinctive view of the island. Under the
water, tourists see a grand luxurious
museum to explore.
No list of reasons why you should in-
vest in Kish would be complete with-
out mentioning its great natural beau-
ty, blue waters and sand beaches.
The island is widely described as a
natural aquarium because of the lim-
pid and crystalline water and colorful
fishes. Scuba diving provides a great
opportunity to tourists to experience
viewing corals, various colorful fishes
and aquatic species under the water
at a depth of just several meters
while other watersports such as jet
skiing, water skiing, parasailing,
windsurfing, boating, balloon play-
ing, and fishing create memorable
moments for every visitor and holi-
day-maker. The water is so clear that
fish can be seen swimming in the
sea all year long.
27
 Four-Start Cable Car Easy Rules to Do Business Vertical Wind Tunnel
From the shore, Mica Mall serves its guests. The in Kish Mica Mall’s wind tunnel is an innovative vertical tun- Easy rules, strategic location, access to free
resort’s four-star cable car picks tourists from the nel taking visitors to a fascinating experience. The international waters, closeness to ports and
beach, takes them on a bird-eye tour of the mag- Easy rules, strategic location, access to free interna- wind tunnel (in the second floor) would be a fully cities in the region, independent air lines and
nificent landscape, goes through three stations on tional waters, closeness to major ports and cities in transparent glass flight chamber for customer enter- shipping lines capable of carrying vehicles,
the route and finally enters the complex from the the Persian Gulf region, independent air lines and tainment. high level of social security and appropriate
4th floor of the mall. shipping lines capable of carrying vehicles, high level The unique wind tunnel gives adventurers the feeling intercity transportation facilities are among
of social security and appropriate intercity transpor- magnets attracting potential foreign investors
The cable car machines have been manufactured of experiencing a flight in the wind and a free fall thrill. and turning Kish into a global tourist-business
by Bartholet ‫شهربازی‬Maschinenbau AG BMF, a leading
tation facilities are among magnets attracting poten- Once you are inside the tunnel after being equipped
‫تونل باد‬ ‫تله کابین‬
‫در آسمان حرکت کنی ــد تا جزیـ ــرهی زیبای کی ــش و آبهای فیـ ـ ـ ـ ــروزهای‬tial foreign investors to Kish.
center.
Swiss company in the fields of.‫کنند‬aerial
‫ شهربازی‬،‫ از قدیمی و کودکانه تا پیشرفته و کامپیوتری‬،‫تنوع زیاد بازیها‬
cableway
‫همه میتوانند در میکامال حس پرواز را تجربه‬
The cable car doesn’t travel the with safety features, wind blows from below in a ver-
‫ رنگارنگ و امن برای تمـــامی افــــراد‬،‫میکامال را به سرزمینی هیجانانگیز‬
systems and
.‫تبدیل کرده است‬ ‫خانواده‬high-tech aerial passenger transport
‫ تونل باد منح ـ ــصر‬.‫در میکامال تجربه پرواز برای همه امکانپذیر است‬
3-kilometer-long route in a
.‫اطرافش را از چشم پرندگان ببینید‬
Expansion of Kish airport and construction of a new tical column and you will be floating in the air.
‫ حس پـ ـ ـ ــرواز و سقـوط آزاد‬،‫به فرد میکامال با استانداردهای بیـنالمللی‬ ‫ ای ـ ــن تله کابین از‬.‫ متری زمین قرار دارد‬33 ‫تله کابین میکامال در ارتفاع‬
straight line from the shores to‫طبقهی آخر‬terminal with a capacity to accommodate over 4 mil-
systems. And
‫ همانچیــــزی است که باعـ ــث میشــــود پــــدر و‬،‫لبخند و شادی کودکـان‬
the cabins have been designed by
‫را به ماجراجویانی میدهد که به دنب ــال تجربهای سرش ـ ـ ـ ـ ــار از آدرنالی ـ ــن‬ ‫ به‬،‫ کیلومتر‬2.5 ‫مجتمع شروع به حرکت میکند و پس از طی‬
the mall. .‫گردد‬It‫برمی‬ turns by‫ و‬89‫میرسد‬degrees
Aerodium, a company based in Latvia, has built the
the‫این تله‬lion passengers is just one of the modern infrastruc-
‫ برنامههایی که بــرای‬.‫مادر هم مثل کودکان اوقات خوشی را سپری کنند‬ .‫هستند‬ ‫این مسیر را‬ ‫اسکلهی تفریحی جزیره‬
،‫مهیـــجی که کودکان حس میکننــــــــد‬ Porsche
‫شده و فعالیتهای‬Design
‫کودکان تهیه‬ Studio, a‫را به‬leading
‫ بازدیدکنندهها‬،‫ ایران‬Germany ‫ س ـ ـ ـ ــالن برای اولیـ ـ ــن بار در‬com-
‫سقوط آزاد داخل‬ half
‫نفر‬ ‫هشت‬the ‫یـنها‬way
‫از این کاب‬before reaching
‫ هریک‬.‫معمولی دارد‬ ‫ کابین‬20 ،‫کابین‬ wind tunnel. It’s a world leader in the production of
‫را در خودشان جای میدهند و‬ture projects promising a prosperous future for busi-
.‫دیدن این شادی و خنده را حتمی خواهد کرد‬
pany known for its creative services. .‫نهایت هیجان و لذت خواهد رساند‬ mall.
،‫هوا‬ The
‫تهوی ـ ــهی‬ ،‫ـ ـ ــقی‬cars
‫مثل موسی‬are equipped
‫امکاناتی‬
vertical wind tunnels.
‫ سواری در این کابینها ک ـ ــه‬.‫ چهار نفر ظرفیت دارند‬،‫که با فضایی وسیع‬ness in Kish and turning the island into a global
‫ در نوع خودش اولیـــــــن زمیـن بازی تعامــــــلی در‬،‫شهربازی این مجموعه‬
ِ ‫ نصب تجهیزات‬،‫بازدیدکنن ـ ـ ــدههابعد از گرفتن دستورالعملهای ایمنی‬ with
‫دارد‬ ‫ وجود‬exciting
VIP ‫ دو کابین‬.‫است‬ features
‫ها تعبیه شده‬such
‫فای در آن‬as
‫تلویزیون و وای‬
‫ باعث میشود اطمیــنان‬،‫شهربازی‬ The
‫ این‬.‫میآید‬cable
‫ کیش به حساب‬car ‫ جزیرهی‬doesn’t travel the 3-kilometer-long
‫ وارد تونلی میشوند که هوا از پایینش در آن دمیده‬،‫ویژه و کمـی نرمش‬ thrilling light, free Internet, air
.‫حاصل کنیم که جذابیت میکامال برای خانوادهها همیشگی است‬
route in a straight line from the shores to the mall.
‫ تا‬،‫ این تجربه‬.‫میش ـ ــود و در میـ ــان زمیـ ـ ــن و هوا مع ـ ـ ــلق خواهند ماند‬
.‫ تجربهای خاص را ارائه میدهد‬،‫مجهز به آی پد و اینترنت هستند‬
conditioning, LCD screen, tourist-business center. The new terminal is expect-
‫ مــدت کوتــــاهی از نگــرانیهای روزمرهی دنیای‬.‫هم ــه دعـ ــوت هستـ ـن ـ ــد‬ .‫مدتها از یادشان نخواهد رفت‬ .‫ در نوع خودش برترین است‬،‫طراحی و ساخت این تله کابین ویژه‬
.‫قدم بگذارید‬It turns by ‫بزرگساالن‬
89 degrees half‫ـی‬the way before music and furniture‫ برعهدهی شرکت مهندسی‬،‫ساخت این ماشین‬ed to become operational by the end of 2018.
‫م ـ ــال را شرکت‬reaching
‫عجایب‬ ‫بگریزید و به دنیای‬ ‫ـوده‬ ‫ ب ـ ـ‬BMF ‫سوییسی‬
‫ طراح ـ ـ‬Aerodium ‫لیتوانیایی‬ ‫تونل سق ـ ــوط آزاد می ـ ـ ــکا‬

the mall. The cars are equipped

‫ طراحی کابینهای معمولی بر دوش استودیوی پورشه دی ـ ـ ــزای ــن‬.‫است‬
Additionally, 20-year tax exemption for any kind of
‫نظامی و همچنـ ـ ـ ـ ــین‬with exciting fea-
‫ در‬،‫ تخصص این شرکت که از دیزنیلند تائیـ ـ ــدی ـ ــه دارد‬.‫و ساخته است‬
‫ در دستان ش ـ ــرکت‬،VIP‫) و طراحی کابینهای‬Porsche Design Studio(
،‫ تفریحی‬،‫آموزشی‬ ‫اجرای تونلهای هوایی‬ ‫طراحی و‬
‫ به طور خاصـی‬،‫ سقف طبقهی چهارم میکامال‬.‫سواروفسکی بوده است‬legitimate business activity, legal guarantee for for- In addition to offering a host of entertainment attractions, Mica Mall has
tures such as thrilling light, free Internet,.‫است‬ air‫پیشرو‬ condi-
‫برای مراکز خرید‬
G+H ‫ این کار را شرکت آلمـ ـ ــــانی‬.‫در برابر صدا یا لرزش عایق شده است‬ already contracted to bring in international brands, offering wealthy Iranian
tioning, LCD screen, music and furniture. ‫ از سـ ــر و صدای‬،‫ انجام داده است تا مشتریان و فروش ـ ـ ـ ـ ـ ــگاهها‬Group
.‫بیرون مجتمع به هیچ عنوان آزار نبینند‬
families an option to do their shopping in Kish rather than travelling abroad.
Then, visitors are stunned with state-of-the-art
recreational facilities inside the climate-controlled
complex where they can go for eating or drinking,
ice skating, or riding escalators or elevators to
reach the sprawling department stores or other
entertainment facilities.

The unique wind tunnel gives adventurers the feeling of experiencing a flight in the wind and a free fall thrill.
Once you are inside the tunnel after being equipped with safety features, wind blows from below in a
vertical column and you will be floating in the air.

The cabins have been designed by Porsche Design Studio, a leading

Germany company known for its creative services.
eign investment, simple formalities for re-exports and
product transit, export of products abroad without
customs and port duties are among other advantag-
es in Kish that have turned Mica Mall into an attrac-
Smart Management System tive showroom for international brands.
The magnificent features at the resort itself are major
Mica Mall has already outsourced post-opening magnets attracting investors and those in search of
management to qualified global firms based on profitable business.
smart management systems. It will be a digital en- The complex will have 5 entrances, one being a VIP
tertainment and shopping center. From its monitor
entrance.
video walls to its digital wayfinding systems, the
resort is producing some of the most innovative Indoor Rainforst
digital features anywhere in the world.
Mica Mall’s indoor rainforest provides a special at-
The magnate calls his resort “invention of a new mosphere; with a focus on superb service and a
kind of Iranian town” and “repurposing the real es-
wide range of great facilities to satisfy all visitors.
tate.”
Penguins at Mica Mall
One captivating feature of the resort would be an exciting and delightful space
devoted to penguins where visitors can enjoy their time watching the aquat-
ic, flightless birds in a pleasant environment. Nature lovers would be delight-
ed to discover the wonders of nature and even touch the penguins.
Aquarium
Its aquarium will display a variety of enormous and mesmerizing fish, provid-
ing memorable moments for the guests. A glass elevator will take passengers
up and down in a cylindrical column providing them a chance to enjoy watch-
ing the creatures in the water from behind the glass. The aquarium contains
1.5 million liters of water. Visitors would also have the chance to swim in the
aquarium and get close to the strange creatures. The aquarium has been
designed, built and installed by Clax Italia.

28 No. 2 & 3 October-December 2018 29


Bringing Memorable
Moments for Both Fami-
lies & Individuals
‫اسپا‬
‫ مرهـ ـ ــمی بر است ـ ـ ـ ــرس‬،‫دوم و س ـ ــوم‬ ‫ در طبقات‬food
Restaurants, ‫میکامال‬ ‫اسپای‬
courts, beverage
facilities, cafes, hyper market, gym,
‫سالن‬
‫ خوشآمـ ــدگو‬،‫جزیـ ـ ـ ـ ــرهای از آرامش‬ spa‫ـت؛‬and‫سـ‬many
‫گـ ــی ا‬other
‫خست‬exciting
‫ـهری و‬and ‫زندگی ش‬
reational activities are available for
‫ــد آرامش بگیرند و ف ـ ــار غ از دنیـ ـ‬visitors
‫بخواهن ـ‬of‫که‬all‫است‬ ages‫ـدگانی‬ ‫ن ـ ـنـ ـ‬to‫بازدیدک‬
in order
them an unforgettable, pleasant ex-
.‫شوند‬
perience. ‫ دوبـ ــاره از نـ ــو ساخته‬،‫بیرونی‬
Mica Mall has a host of entertainment
attractions to suit every style of travel-
‫کیش یا یک روز خوشگذرانی با عزیز‬ ‫بعد از سفری طوالنی در جزیرهی‬
er, from couples to family groups to
‫ حضور در سـ ــال‬،‫آرامش و رفع خستگی‬
young ‫کسب‬ ‫برای‬on‫ـدم‬a ‫ـ‬budget.
individuals ‫ اولین ق ـ ـ‬،‫خود‬
The resort has designed its facilities
to make .‫بود‬
sure ‫خواهد‬ ‫میکامال‬
that visitors ‫اسپای‬
will return to
Mica Mall to enjoy life and share dis-
tinguished moments again and again.
‫در میکامال تمام خدمات مدرن اسپا از سونای آرامشبخش تا ماسا‬
.‫برای آقایان و بانوان مهیاست‬ ،‫متخصص زیبایی‬
Watching ‫سوی‬at‫مالیم از‬
3D Films
Cinema
The advanced cinema complex at
Mica Mall has been designed to bring
thrilling moments for visitors, young
and old. The 3D films showed at its
screens appear to the viewer to be
three-dimensional. Its VIP cinema hall
provides even a more relax environ-
In today’s world, a retail center ment and has amenities for the com-
alone doesn’t attract visitors fort and convenience of visitors during
anymore. Entertainment
matters more than shopping break time. The cinema complex has
nowadays. That’s why been designed by Enarmono, a Greek
shopping malls have changed
across the globe.
telecommunication service provider.
30 No. 2 & 3 October-December 2018
Spa Treatment Center Training Managers for the Future The tycoon said his resort needed to employ spe-
Mica Mall leaders are already engaged in training tal- cific technology to build a cable car turning 89 de-
Visitors can also enjoy the spa treatment center that includes ented managers for the future. grees half the way. But the bigger challenge for
massage therapy as well as beauty and nail salons. Keshtkar argues that the future of Kish will depend engineers was how to get rid of vibration as the
Spa therapy teams provide a relaxed environment for guests, on success or failure of Mica Mall. And to make sure cable car travels and arrives at the mall.
eliminating stress and bringing comfort. Their services might that it will survive the global business challenges, he It’s a fact that cable cars generate vibration and
combine several different treatments: a body scrub followed by a and his team are giving human resources a top prior- noise. Four civil engineers, according to Keshtkar,
massage and a mini-facial, for instance. ity. He believes training 40 qualified managers will worked for two and a half years to find a solution.
A specific vibration absorber technique was ap-
Olympic-Sized Ice Skating Rink insure the success of his project and Kish. His inten-
plied after “millions of computer calculations.” Ad-
tion is to turn Mica into a prestigious global brand.
Mica Mall indoor ice skating rink brings your dreams into reality if To attract more visitors, Mica Mall will be open 18 Kish Island, a tourist destination ditionally, specific elastic springs capable of resist-
you are fond of winter sports. It’s an Olympic-sized rink designed hours a day, until after midnight. That means the ty- in the Persian Gulf and a Free ing 250 tons of loading each were put to use.
Trade Zone, was seen as a
by the famed Italian company, Industrial Frigo, in partnership with coon and his group have plans for every tourist’s promising land for the project.
During building the foundation, 92 damping sys-
the Belgium-based KCC, a leading company in the entertain- dead time. Famed as a tourist jewel with a tems as well as acoustic materials were employed
ment sector. The business magnate is considering launching an paradisiacal climate and to get rid of the vibration.
landscape, Kish has become a
airline, Mica Air, and a university to teach tourism and The roof of the 4th floor at Mica Mall has been in-
Bowling Alley mall management.
hotbed of consumerism.
Foreigners don’t need visa to sulated, too, to absorb noise and vibration while
visit the island. The fabulous cable cars arrive at the mall. The advanced insula-
Its bowling alley brings enjoyable moments to families and other attractions left Keshtkar and his
groups of all ages. And its amusement park offers a thrilling en- group in no doubt that Kish is tion system has been installed by G+H Group, a
vironment to visitors, specifically children, who can engage in Mammoth Task the promised land to turn their German company known for its reliability in the
long dream into reality.
exciting activities. field.
Speaking of his construction journey, Keshtkar
The landscape lighting at Mica Mall has been designed by Light “It will be the most luxurious passenger cable car
spoke of insurmountable technical challenges his
Touch, a company based in the United Kingdom. in the Middle East,” he boasted.
engineers had to conquer while carrying out the proj-
ect.
“Concrete will lose its quality if made in temperatures
of over 32 degrees centigrade (or Celsius). In Kish,
temperatures reach even 50 degrees in summer. So,
we imported 2,000 ice blocks in two refrigerated
trucks (1,000 ice blocks in each truck) a day from the
mainland, crushed them and mixed them with ce-
ment and coarse aggregate to keep temperature
below 32 degrees and make quality concrete,” he
rec- said.
That would be an important element to build a strong
give structure resistant to earthquake, the magnate in-
sisted.
Keshtkar said a total of 175,000 cubic meters of
concrete and iron bar have been used in this project.
“It’s more than three times the concrete and iron bar
used to build Milad Tower,” he noted. Milad Tower is
the sixth-tallest tower and the 24th-tallest freestand-
ing structure in the world in the Iranian capital of Teh-
ran.
The bowling alley at
Mica Mall brings
enjoyable moments
to families and other
groups of all ages.
Mica Mall indoor ice
skating rink brings
your dreams into
reality if you are fond
of winter sports.
31
Digital Car Parking,
Mobile App
Keshtkar also spoke of the
mammoth technical chal-
lenges in building a 2-story
car parking beneath the re-
sort. Because of its proximity
to sea, water streamed out
just two and a half meters
underground. Workers need-
ed to dig the ground 9.5 me-
ters deep to create enough
space to build two levels of
car parking. That meant en-
gineers had to tackle tough
challenges since water would
pour into the workshop as
they went down.
“We dug 53 wells. And 53
pumps worked non-stop for
36 months to allow workers
and technicians to go down
and at the same time em-
ploy specific delicate tech-
niques not to allow water
back into the workshop.
Visitors to Mica Mall will
have the option to book car
parking space digitally even
before they arrive in Kish.
The resort is also planning
to launch a mobile app
loaded with features such
as a smart-park system ca-
pable of screening license
plates of users and logging
their parking space as well
as a smart-map function for
use within the mall. The mo-
bile app also allows visitors
to order food.
The fascinating features
simply demonstrate a since Iran is located on seis-
glimpse of Mica Mall’s de-
sire to invest in the digital
age since mobile app tech-
nology is turning smart-
phone users into smart
shoppers as well.
Mica Mall is also looking to
the future and has shown
interest in voice-recognition
technology since they see it
as an important technology
element in the next stage of
shopping. Launching mo-
bile apps that recognize col-
or, style, patterns and other
attributes through a phone’s
camera are also being con-
sidered.
32 No. 2 & 3 October-December 2018
Mica Mall Position on Kish Map
Mica Mall is located close to the eastern shores of the island.
The Kish island, known for its white-sand beaches, turquoise waters, relax environment, scuba-diving, luxury yachts and jet-skis, currently
attracts 1.5 million tourists a year. Famed as a tourist jewel with a paradisiacal climate and landscape, Kish has become a hotbed of
consumerism.
Base Isolation
Technique
Keshtkar also elaborated on
base isolation technique em-
ployed at Mica Mall to prevent
or minimize damage during an
earthquake. That means the
structure is built isolated from
the ground and rests on flexi-
ble bearings or pads, known
as base isolators. Instead of
being a fixed based building,
it’s a base isolated building.
The structure has been de-
signed and built to resist up to
a 7-magnitude earthquake.
That’s an important element
mic fault lines and is prone to
earthquakes.
He said Mica Mall’s above the
ground structure is made of
seven separate buildings con-
nected together through cor-
A Mall for Over 100 years Bringing a New Culture of Business
bel technique. The magnate said the wind tunnel at Mica Mall will consume one Keshtkar said between 2,000 and 2,500 people will work at Mica Mall once it
Keshtkar said engineers ap- megawatt of electricity alone. The wind will blow with a speed of opens in 2019. That means he and his team members are now preparing to
plied the arch-like corbel con- 220 to 270 kilometers per hour, using electrical engines. deliver on their goal of bringing a unique and world-class entertainment cen-
struction method to span a Some 36 air handling units equipped with sensors, 36 escalators ter in Western Asia.
space or void in the structure and 19 elevators will make sure that visitors will enjoy a comfort- “Mica Mall is bringing a new culture of business to Kish. It’s upgrading the
to make Mica Mall more resis- able stay at the mall. island’s business and recreational environment,” he declared.
tant to earthquake. All these He predicted Mica Mall’s lifetime at over “100 years.” The magnate appeared satisfied that he and his team finally are going to har-
features, he said, has effec- Some 3,000 laborers, mostly from India, worked at the complex vest the fruit of many years of hard work in 2019. The mega project is now in the final stages of construction and will be
tively turned his resort into an at its peak. Currently, some 1,000 foreign workers and 100 Irani- “A social responsibility to bring development, joy and entertainment to our Kish’s largest shopping and entertainment center, a new event of its
earthquake-resistant struc- an engineers are at work to put the finishing touches prior to in- motherland and materialize childhood dreams were a combination of our log-
kind in Iran.
ture. auguration of the complex. ic behind Mica Mall,” he said. “
33
Spring of G
lobal banks and giant multi-national firms
shun the Iranian market over fears that they
could be fined or sanctioned by the U.S.
government. Likewise, big-name Western
brands avoid showing up in the Islamic Republic.
Startups
The hardline administration of U.S. President Donald
Trump, dominated by belligerent neoconservatives,
is making every possible effort to squeeze Iran eco-
nomically.
International credit cards don’t work in Iran since Ira-
nian ATM machines are not connected to the global
in Iran
banking system. ATM machines operate within the
Iranian borders nation-wide. That means debit cards
issued by Iranian banks work online internally. That’s
why foreign visitors need to bring foreign currencies
in cash to pay their bills since there are no interna-
tional banks operating in Iran.
Technology
And there are of course no McDonald’s or KFC (Ken-
tucky Fried Chicken) American fast food restaurant
chains in Iran. Instead, there are just local brands
such as “Iran Fried Chicken.”
Also, don’t think of ordering from Amazon and eBay
startups
while in Iran. And forget about calling an Uber. They
are not available in Iran.
In their place, an amazingly active technology startup
scene has sprung up in the Persian state. Talented
booming in
young Iranians have not let U.S. government ani-
mosity keep the Islamic Republic away from the
global trends in business and technology.
True. Twitter, YouTube and Facebook are among
Iran despite
U.S.
sanctions
34 No. 2 & 3 October-December 2018
Western-originated sites blocked by authorities in
Iran. That prompted young Iranian entrepreneurs
to invent their own versions authorized and sup-
ported by the government.
While the Trump administration seeks to drive Iran
into an isolated outcast, the tech-savvy Iranians
are already turning Iran, a country of 80 million
people, into a thriving market ripe with great op-
portunities.
Among the fastest-growing firms in the digital
transformation is Snapp, a popular ride-hailing
app. It’s an equivalent of Uber. DigiKala is the Irani-
an version of Amazon. It’s the biggest e-commerce
business and a good example of how startup com-
panies are flourishing in the country.
Iran is partly turning to startups out of necessity.
Since Iranians do not have access to many of the
services available in the West or other parts of the
world such as Uber, Paypal and Amazon, startups
such as Snapp and Tap30 have been designed to
offer Iranians the same service that Uber does in
America.
From booming ride-hailing firms to e-commerce
retailers similar to their multi-national peers, Iran is
now home to many modern businesses that in-
clude “Shared Economy” and “Gig Economy.”
The administration of moderate President Hassan
Rouhani has taken startup companies seriously,
believing that knowledge-based firms give the Is-
lamic Republic the option to develop a new busi-
ness system.
Vice President for Science and Technology Sorena
Sattari leads government policy to encourage es-
tablishment of private startup firms as part of a
strategy to reduce Iran’s reliance on revenues from
crude oil exports.
The government set up Pardis Technology Park
(PTP), 20 kilometers northeast of capital Tehran, in
2005. Located at the foot of the Alborz range of Some of the most successful
mountains in an area covering 38 hectares of land, startup companies in Iran have
the PTP was created to promote the establishment been set up by Iranian
expatriates who studied abroad
of knowledge-based businesses. Now, it covers _ including Iranian entrepre-
60 hectares of land and is expandable to 1000 neurs with great achievements
in America’s Silicon Valley _ and
hectares. returned home to translate their
At the entrance of the park, visitors are attracted by ideas into action.
a big sign that reads: “Iran Silicon Valley.”
One of PTP’s responsibilities is to create a viable
technology sector by strengthening ties between
universities and industry as a smart way to engage
the educated elite and pave the way for commer-
cialization of ideas pursued by research units sta-
tioned at the PTP.
There are now 258 knowledge-based units in vari-
ous fields stationed at the PTP, according to PTP
chief Mahdi Saffarinia. He has called PTP the big-
gest startup campus in Western Asia, saying
35
there is no other place in this region where one
can find so many startups under the same roof.
Sattari has repeatedly clarified that his priority is
to encourage innovation, and one way of achiev-
ing that is to link industry and universities, and
allocate space for privately-owned startup ac-
celerators.
The PTP has been proclaimed “Iran Silicon Val-
ley” and “the region’s paradise of technology”
with the objective to change Iran’s oil-based
economy into a knowledge-based system.
That’s how the Rouhani administration seeks to
reinvent Iran for the 21st century by wooing en-
trepreneurs to Tehran.
Iran’s technology entrepreneurs are learning to
live with revived hostility in the United States.
While partnership with giant foreign startup firms
can greatly contribute to the growth of the tech
sector, the absence of U.S. giants such as Am-
azon and Uber have allowed their Iranian equiv-
alents to grow rapidly.
So, the Trump administration’s animosity could
paradoxically help further flourish the tech sec-
tor.
Sattari said in June 2018 that brain drain has
reversed because of the booming startup eco-
system in Iran, insisting that no one can sanc-
tion Iranian brain and that knowledge cannot be
sanctioned.
The technology leader portrays Tehran as a “liv-
ing lab” and a place where companies big and
small can try out new ideas. The strategy is to
turn Iran into the startup heart of Western Asia.
Around half of Iran’s 80-million-population is un-
der 30, many of them with high levels of educa-
tion. Mobile phone usage is universal in the
country and Internet penetration rate is on par
with global standards.
According to Iran’s Ministry of Communication
and Information Technology, by March 2017 the
This photo shows Tehran landscape at night with Milad Tower seen in the background. on Friday, 14 September 2018. (IEBD Photo)
No one can sanction brain
36 No. 2 & 3 October-December 2018
Vice President Sorena Sattari:
“We are currently working on
turning the entire Tehran into a
big science and technology
park. Can anyone find a better
place than Tehran? The
-16million-population living in
Tehran and Karaj provide a
fertile ground to foster startups.
One of the districts that can
work as the innovation station
is areas around Sharif
University of Technology. The
district can operate as a pilot
plant for promoting innovation.
Tehran is the best place to
carry out knowledge-based
activities. All the necessary
infrastructures are available to
create a smart and creative city
in Tehran. You will not find any
city in Iran that has as many
highly prestigious universities
as Tehran and a great market
for technological businesses.”
Internet penetration rate was around 65 percent,
one of the strongest in the Middle East and North
Africa (MENA) region. There are 80 million mobile
phones in use in Iran, about half of them smart-
phones.
Many young Iranian entrepreneurs have created
startups with great success, thanks to a 3G and
4G speed connection that has grown over the
past few years. If you walk in the streets of Tehran
and other major cities, you will notice that the pri-
mary tool of Internet use in Iran is mobile phones.
Iranian entrepreneurs agree that the rollout of 3G
and 4G mobile connections as well as high-speed
landline Internet service have fueled Iran’s technol-
ogy startup boom. Most, if not all, of them consid-
er high Internet speed as the start of a new era for
entrepreneurship in Iran.
Despite American sanctions and restrictions, ef-
forts on the part of the private sector and the gov-
ernment have garnered results. E-commerce is
growing at a rapid speed.
That explains why policy-makers came to believe
that creation of startup firms is the best solution to
fight sanctions and diversify Iran’s economy.
Sattari announced at an event in April that Iranian
startups had generated 600 trillion rials ($7.5 bil-
lion) in the year ending 20 March 2018.
Iran’s startup ecosystem has flourished since
2012, when Iran was slapped with unprecedented
sanctions before it reached a landmark deal with
global powers in 2015 that led to the lifting of
sanctions.
Industry experts, analysts and government offi-
cials all believe that sanctions did help spur entre-
preneurship in Iran by protecting them from out-
side competition.
“Sanctions are cruel, no doubt about it. I believe
that American sanctions are primarily aimed at
preventing or slowing down the growth of Iran’s
scientific advancements. But sanctions have been
a blessing in disguise. It was actually under the
previous round of sanctions that startups began to
flourish in Iran. If there were no sanctions, Iranians
would have got accustomed to widespread con-
sumption of foreign goods. There would have
been little birth of science and innovation,” said
Parviz Karami, a senior official at Iran’s Vice-Presi-
dency for Science and Technology.
He argues that economic restrictions created du-
ress and opportunity.
“The same sanctions that cut or limited Iran’s ac-
cess to global markets have been a boon for the
tech sector by limiting competition. Sanctions led
to a new generation of experts who created their
own products to replace the ones Iranians had no
access,” Karami opined. “It was under sanctions
that our startup firms produced laboratory equip-
ment and exported to China and South Korea to
everybody’s surprise. Iran has a large educated
population with a huge entrepreneurship potential.
It’s moving in the right direction towards a knowl-
edge-based economy and distancing itself from
an oil-dependent economic system.”
Karami believes that the new round of unilateral
sanctions by the Trump administration, after its
abrupt exit from the JCPOA in May 2018, is ex-
pected to further help, rather than harm, the tech
sector.
“There is a huge expanding market for startups.
That’s probably why many of the Iranian diaspora
have returned and continue to return home to set
up their own knowledge-based business,” he said.
Since 2013, the return of Iranian expatriates
accelerated as they began to look back
home and translate their creative ideas into
action. The return of educated young experts
to their motherland joining domestic talents
changed the tech scene significantly in the
Islamic Republic.
Iranian Expatriates
Look Back Home
Traditionally, Iran has had a strong engineering ed-
ucation, enabling the country to develop its own
engineering capabilities and workforce. That’s
why Iran ranks 4th in terms of educating engi-
neers in the world.
And Iranian expatriates have been among the top As the political, economic and
employees of successful startup companies in the
cultural capital of Iran, Tehran
enjoys a suitable background
United States from eBay to Dropbox, from Twitter for elite attraction. It possesses
to YouTube, and from Uber to Plug and Play Tech huge training facilities in
Center.
science and culture and is
considered a great place for
Since 2013, the return of Iranian expatriates ac- gathering creative people.
celerated as they began to look back home and These features have given
Tehran an acceptable status to
translate their creative ideas into action. The re- be converted into a creative
turn of educated young experts to their mother- city.
land joining domestic talents changed the tech
scene significantly in the Islamic Republic.
Meeting Iranian expatriates has been an integral
part of Rouhani’s itinerary in his foreign trips where
he has continuously encouraged them to re-en-
gage with their homeland.
The Iranian diaspora is estimated between 5 and
7 million people, mostly living in North America
and Europe.
Some of the most successful startup companies
in Iran have been set up by Iranian expatriates
who studied abroad _ including Iranian entrepre-
neurs with great achievements in America’s Sili-
con Valley _ and returned home to translate their
ideas into action. The tech sector attracted many
young Iranians back from the United States, Can-
ada and Europe and allowed them to marry their
experience of the startup scene with locally-edu-
cated talent.
That explains why many local versions of interna-
tional startups are now operating in Iran.
Startups have grown fast in the past couple of
years as a new branch of the Iranian economy.
Snapp the equivalent of Uber, Bamilo the equiva-
lent of eBay, Aparat the equivalent of YouTube,
Digikala the equivalent of Amazon, Cafe Bazaar
the equivalent of Google Play, and NetBarg the
equivalent of Groupon are just a few examples of
such startups.
By establishing PTP and encouraging successful
Iranian entrepreneurs to return home or re-en-
gage with their motherland, the Iranian govern-
ment is trying to revive the golden time of Persian
science and achieve the long dream of reducing
Iran’s reliance on crude oil exports and diversify its
economy.
Sattari has suggested several times that Iran
seeks to be the superpower of science and tech-
nology in the region and number one in the Islam-
ic world.
Under a national plan, known as the 20-year Per-
spective Document, Iran aims to turn into a tech-
nological and economic powerhouse of Western
37

Iranian entrepreneurs agree
that the rollout of 3G and 4G
mobile connections as well as
high-speed landline Internet
service have fueled Iran’s
technology startup boom.
Most, if not all, of them
consider high Internet speed as
the start of a new era for
entrepreneurship in Iran.
38 No. 2 & 3 October-December 2018
Asia by 2025. That’s part of Iran’s efforts to pro- alone. Major provincial capitals such as Isfahan,
duce a “knowledge-based economy” in the face of Mashhad, Shiraz and Tabriz are recording the growth
unilateral U.S. sanctions. of their startups too.
This is exactly the place where professional Iranian He boasted that Iran is a progressive nation in terms
expatriates with the right entrepreneurial attitude of new technologies, claiming the Islamic Republic
can make a real impact. ranks second in Asia in terms of online shopping.
Their startups and e-commerce apps are flourish- According to Sattari, there are well over 3,600 active
ing, driven by government infrastructure support startup companies in Iran, playing a key role in re-
and efforts by young Iranians determined to bring ducing the level of unemployment among university
modern life to their country. graduates and increasing productivity in the country.
According to Saffarinia, the PTP plan in the longer Iran is a leader in nanotechnology with more than
term is to host 11,000 knowledge-based units and 100 firms operating in the field of stem cell, of which
expand the PTP lands to 1,000 hectares. 70 are knowledge-based companies. He said efforts
Karami says Iran’s Vice-Presidency for Science have already begun to commercialize their products.
and Technology has succeeded in attracting 1,070 Knowledge-based companies, Sattari said, could
Iranian expatriates who had studied in over 100 “flourish more under sanctions.”
universities around the world in the past decade. In the minds of many people in the West, Tehran is a
Many of them, after their return to Iran, either city associated with stern-faced clerics, women in
launched their own private startup firms or were black chador and demonstrators shouting against
engaged in research and began to contribute to “the Great Satan.”
scientific institutions in the country. But there is a profoundly different face of Iran and its Two young women and a man work at the office of Aparat, a video-sharing startup company in Tehran, on Sunday, 2 September 2018. (IEBD Photo)
capital that has not been exposed to the outside
world or at least not adequately publicized. dia. But many startup companies are convinced that
Tehran, A Creative City Tehran has seen a burst of entrepreneurship, trans- Sattari said Iranian startup firms are now looking at they can gain more by entering into partnership
& Startups Hub in Iran forming the city into a hub of technology startups.
They are already fostering a different vision of what
Africa, first focusing on Ethiopia, Uganda and Ken- with giant foreign startuppers.
ya, to expand their markets. Bahram Sattari, the entrepreneurship expert, be-
Tehran is home to a population of around 8.5 mil- the Islamic Republic could be.
“That will be our first experience in Africa,” he not- lieves that there are great opportunities for Europe-
lion in the city and over 14 million in the larger met-
ed. an and other foreign Small and Medium-sized En-
ropolitan area of Greater Tehran. It is the most pop-
Saffarinia told an annual festival of the best PTP terprises (SMEs) in Iran’s emerging market through
ulous city in Iran and Western Asia. Time to Focus on Global Markets units on 28 August 2018 that the companies sta- partnership or joint ventures.
As the political, economic and cultural capital of Entrepreneurs and business experts argue that Irani-
tioned at PTP exported products worth US$24 mil- He said foreign professional entrepreneurs can link
Iran, Tehran enjoys a suitable background for elite an startup companies have focused too much on the
lion in the last Iranian calendar year of 1396 (21 with their Iranian peers without the fear of being
attraction. It possesses huge training facilities in domestic market and are suffering from lack of ac-
March 2017 – 20 March 2018), the semi-official exposed to unilateral U.S. sanctions. And foreign
science and culture and is considered a great cess to global markets. Iranian startup firms have been
ISNA news agency quoted him as saying. He clar- startup firms with no stake in the American market bolstered partly because of
place for gathering creative people. These features Entrepreneurship expert Bahram Sattari _ not related
ified that it included 52 knowledge-based products will find Iran a golden opportunity that should not sanctions. Although they see
have given Tehran an acceptable status to be con- to Iran’s Vice President _ believes there is a link be- the lifting of sanctions as an
exported to 12 countries. be missed. opportunity rather than a threat,
verted into a creative city. tween the limited global reach of Iranian startups and Karami says it’s the government policy to help the “Competing with local entrepreneurs isn’t easy. En- the absence of giant Western
Iranian state media quoted Sattari as saying on 19 their concentration on the domestic market. startup companies in Iran
private startup firms expand their markets. That’s tering the Iranian market has its own challenges.
August 2018 that Tehran could turn into a Silicon “More than 90 percent of Iranian startups are only means they seize the market
why representatives of startup companies accom- It’s wise to say that local entrepreneurs understand and find a more powerful place
Valley in Iran with the prestigious Sharif University focusing on local markets while the opposite is true
pany Iranian ministers and government delegations those challenges better than foreign entrepreneurs in the startup ecosystem.
of Technology being the pilot platform. in Southeast Asian countries like Singapore where in foreign trips to market their products abroad. and handle them more efficiently,” he said.
“We are currently working on turning the entire 70 percent of their target market is outside of their
“We have our export pavilions in China, South Ko- Based on rankings from Global Entrepreneurship
Tehran into a big science and technology park. borders,” he told Iran Europe Business Digest (IEBD).
rea, Russia, Iraq and Oman and are now in the pro- Monitor and the Global Entrepreneurship and De-
Can anyone find a better place than Tehran? The Sattari, a frequent speaker in startup events nation-
cess of entering the African market,” he said. velopment Institute, Iran is ranked 23 in terms of
16-million-population living in Tehran and Karaj wide, urged the Iranian government to adopt policies
startups, which is almost on par with Australia and
provide a fertile ground to foster startups,” he told that lead to the entry of Iranian startups in other
China.
state media. “One of the districts that can work as countries, especially neighboring and regional states. Opportunities for “For instance, should global top e-commerce firms
the innovation station is areas around Sharif Uni- “We are seeing the rapid growth of startups in Iran.
versity of Technology. The district can operate as a But players in the startup ecosystem should also Foreign Investment want to operate in Iran, they will have to compete
with big-name local startups like Digikala because
pilot plant for promoting innovation.” step up their game and become determined to ven- Iranian startup firms have been bolstered partly be- the Iranian e-commerce business has already been
Sattari said some 450 knowledge-based compa- ture into global markets,” he said. cause of sanctions. Although they see the lifting of able to dominate the market and built trust with its
nies operate in the vicinity of the university. That Iranian startuppers have gone beyond the local mar- sanctions as an opportunity rather than a threat, customers. So, the best option for global brands is
can be a productive ground for the emergence of ket but their overseas business is yet very limited. the absence of giant Western startup companies in to enter a joint venture with successful local startup
new startup businesses and fostering creativity Vice President Sattari said on 19 August 2018 that Iran means they seize the market and find a more firms,” Sattari said.
among the citizens. knowledge-based products have largely been ex- powerful place in the startup ecosystem. Karami says developing a knowledge-based econ-
“Tehran is the best place to carry out knowl- ported to China and Southeast Asia, as well as Iraq It has been due to the absence of Uber that Snapp omy and boosting the country’s scientific abilities is
edge-based activities. All the necessary infrastruc- and Afghanistan, Iran’s western and eastern neigh- and Tap30 have flourished. And the absence of Iran’s priority. Thus, startup firms have a bright fu-
tures are available to create a smart and creative bors. Amazon in Iran has allowed its Iranian equivalents ture in Iran.
city in Tehran. You will not find any city in Iran that “We could not believe the day we shipped the first to grow rapidly. “When investors, foreign or Iranian, ask me what is
has as many highly prestigious universities as Teh- product to China, but now we have two pavilions in Now that some of them have turned into big names the best performing sector in Iran for the next de-
ran and a great market for technological business- China that operate in the field of nanoscience, bio- in Iran, even foreign startup firms will find it difficult cade, I name e-commerce and the tech sector
es,” he said. technology and medicinal plants,” he told state me- to compete with them if they decide to set up a without any hesitation. Knowledge is not just an
But Iranian talented professionals are not in Tehran business in Iran. asset but a new type of economy,” he said.
39
Here are
20 Iranian startup companies, out of many
1. Digikala.com
Iran’s Biggest E-Commerce Startup
Iran is an emerging e-commerce market. One of the startup
companies that stand out in the local market is Digikala.com, the
Iranian equivalent of Amazon. Established in July 2006, Digikala.
com was originally an online retail website for digital goods. It
quickly rose to prominence in less than a decade. Currently, it
ranks as the third most visited website in Iran and the most pop-
ular startup firm in the country.
After its launch, Digikala expanded the categories of goods avail-
able for purchase and now sells everything from smartphones to
books, sports and leisure, healthcare and beauty, household
items and artistic products, and even cosmetics. As of 27 Au-
gust 2018, Digikala’s global ranking was 261 based on data
published by Alexa.com.
Digikala was founded by twin brothers Hamid and Saeed Mo-
hammadi in 2007 with just $20,000. It raised additional funds via
Sarava, the country’s top venture capital fund and Digikala’s
main shareholder. Sarava is 45 percent owned by foreign inves-
tors.
Digikala now accounts for more than 85 percent of Iran’s online
retail market.
With a staff of over 900, Digikala was estimated to be valued at
$150 million in 2014, $500 million in late 2015 and over $1 billion
in 2018.
The company offers same day delivery in Tehran and the nearby
city of Karaj, and offers next day delivery in 20 other cities.
Mohammadi brothers, both of them engineers, were motivated
to set up Digikala after they could not find online information
about a new camera they were searching to buy.
So, they made a decision to set up a homegrown version of
40 No. 2 & 3 October-December 2018
Amazon. They quit their jobs,
sold a car and put their entire
$20,000 savings to establish
their company. With their ex-
perience in web programming
and graphic design, the two
established Digikala.
Soon, they began selling digi-
tal cameras and mobile
phones online in their small
rented office in Tehran with a
group of just seven people. Af-
ter a decade, they now offer
thousands of products with a
daily average income of
$400,000 and shipping more
than 4,000 orders each day. It
has over two million visitors
per day and more than 2 mil-
lion subscribers.
Saeed told the IEBD that their
Internet behemoth includes
companies that provide ser-
vices in different sectors of in-
formation technology and
communications. Among its
main subsidiaries are the on-
line store Digikala, e-book and
audio book store Fidibo, Digi-
kala Fresh and the payment service DigiPay as well as con-
tent-producing and logistic services.
He said following the launch of Danesh Fulfillment Center by their
group, Digikala was turned into the biggest fulfillment house in
the Middle East. The center has the capacity to hold four million
goods and provide services on 300,000 goods on a daily basis.
With 23 distribution centers across 23 provinces, Digikala has
made it possible to deliver goods the same day in Tehran and the
next day in other cities.
“Companies of the [Digikala] group have experienced an average
annual growth of 100 percent. Should we keep this trend, a bril-
liant future will be awaiting Digikala in Iran and the region,” Saeed
said.
He noted that the primary goal of Digikala group is to provide a
variety of online services with high technology and world-class
standards. This vision also seeks to make Digikla’s subsidiary
companies the top choice of customers in the MENA region.
“In Digikala, the focus is on building the future and developing
markets that we have already tapped,” he said.
Now, Mohammadi brothers are thinking beyond Iran’s domestic
market.
“Digikala plans to expand its operations to a number of Middle
Eastern countries in order to expand its operations beyond Irani-
an borders and brace itself to face powerful international com-
petitors,” Saeed said. “Even today, we are facing foreign compe-
tition, including from the [German-based] giant Rocket Internet,
which has invested in different countries including Iran.”
2. Aparat.com
A Video-Sharing Web
The Iranian equivalent of YouTube, the video-sharing website
Aparat.com has come a long way since it was first created in
2010.
Aparat.com allows Iranians to upload video similar to Google’s
YouTube, which is blocked in Iran.
Aparat.com is said to be the sixth most popular website in Iran.
It has over one million visitors a day.
According to Mohammad Javad Shakouri Moghaddam, the
company’s CEO and co-founder, he and his two partners made
their foray into online business some 15 years ago. As he put it,
“at the time not much was going on in the Dot com world, but
the global atmosphere showed that certain things were happen-
ing and it would spill over to Iran. Therefore, we took on this
work.”
“First we launched an online survey which failed, and then we
started cloob.com, a social network, at a time when Myspace
was the dominant social network and it was well-received,”
Moghaddam told IEBD.
Three years later, they purchased Mihanblog, a blogging site and
turned it into a popular platform.
For years, according to Moghaddam, Mihanblog and Cloob.com
were among the three most-visited websites in the country.
Then, they decided to test the waters in video sharing. That was
Aparat. With YouTube blocked in Iran, they saw an opportunity
but Moghaddam never imagined that the website would become
as popular as it is today.
Mohammad Javad Shakouri Moghaddam, the CEO and co-founder of the video-sharing
website Aparat: “We would have never launched Aparat.com if YouTube had been
allowed to operate in Iran. The absence of YouTube has helped us to grow.” (IEBD Photo)
“We never thought that it would become this successful, given
government controls and the network situation in the country
at the time,” he said. “But after a while, we noticed an expo-
nential growth.”
Moghaddam claims that Aparat is now the most visited Web-
site in Iran (after Google) with 33-36 million unique monthly
visitors from Iran and other Persian- speaking countries like
Afghanistan and Tajikistan.
“15 percent of our traffic comes from overseas,” he said. “Ev-
ery month, 450 million videos are streamed by Aparat.com.”
In 2015, Moghaddam and his team launched filimo, a Video on
Demand (VOD) service like Netflix which now accounts for
more than 65 percent of the country’s video streaming market.
The company is now venturing into content production with
one series coming out in December and three others for the
next Iranian calendar year that begins on 21 March 2019.
They also own a digital advertising subsidiary called Saba Vi-
sion, which Moghaddam says is almost “the biggest digital
advertising agency in the country” because it has the largest
media source at its disposal. The entity is run by Moghadd-
am’s brother.
Flilimo has 450,000 paid subscribers which Moghaddam
hopes to increase to 800,000 by the end of the year.
There are 12 other players in the area of VOD but he claims
that Aprat is by far leading the field.
Moghaddam, a graduate of the prestigious Amir Kabir Univer-
sity of Technology in Tehran, acknowledges that had YouTube
not been blocked in Iran, they would not have started Aparat
in the first place “because at the beginning, it is not possible to
fight successful American firms, not even Europeans.”
But he considers iflix, a Malaysian-based subscription VOD,
and icflix, a MENA VOD platform, as Aparat’s rivals in Asia.
“What we are doing is to shape the behavior of the people to
demonstrate that it is possible to watch films for four hours
non-stop without buffering,” he said.
Moghaddam explained that he and his co-founders put their
own money to launch Aparat.com, saying “We started out by
one of us selling one of his cars.” But he added that “Fimilo is
the platform that needs more cash to be invested and this is
the area we might choose to attract investment.”
As part of its expansion scheme, filimo is planning to enter the
Arab market by producing content suitable for the local culture
41
and fill the gap that exits both in content and services there. A
sharp fall in the value of rial, Iran’s national currency, in recent
months has provided even more incentives to Aparat.com and
filimo to look overseas for currency income.
Moghaddam and his team started their work at a time when
online cultural businesses were perceived with great suspicion
by the country’s Islamic authorities who were concerned about
a Western “cultural onslaught.” They were afraid that Western
presence might erode revolutionary values.
In the words of Moghaddam, online film business was looked
at “even worse that narcotics trade.” But things changed soon
with senior government officials encouraging domestic Inter-
net startups to thrive and challenge their foreign rivals.
“Our biggest success has been in the last couple of years”
when the attitude toward online businesses changed.
The veteran believes that the entrepreneurship landscape in
Iran has greatly improved.
“The difficult current economic circumstances, whether it’s
due to sanctions or mismanagement, is somehow prodding
people to leave the country in search of a better life elsewhere.
It’s the opposite of what happened in the last couple of years
when Iranian expatriate entrepreneurs started to pour in from
abroad,” he said. “But I see things differently. To me, the over-
all situation is in favor of entrepreneurship and officials have
become friendlier toward the virtual space and startups have
kept burgeoning day by day.”
Moghaddam said he is planning to expand into the Middle
East market and beyond, using a network of producers creat-
ing original content. But he credited part of Aparat’s success
to sanctions.
“We would have never launched Aparat.com if YouTube had
been allowed to operate in Iran. The absence of YouTube has
helped us to grow,” he admitted.
3. Tap30.ir
A Ride-Hailing Startup App
Tap30 is among several startups that have scrambled in recent
years to tap the burgeoning ride-sharing business. Its found-
ers, Milad Monshipour and Hooman Damirchi, were living and
studying abroad when they decided to return to Iran, a vast
country they saw as a fallow ground ready to be cultivated.
Monishpour was living in Canada and Damirchi in the UAE.
However, while ideas percolated in their mind, it took 4 to 5
years before packing up to return home.
After toying with the idea of establishing a luxury fashion brand,
they abandoned that in favor of an initiative that would truly
“impact” the society.
With the ride-hailing startup Snapp having acted as trailblazer,
the two friends decided to establish their own ride-hailing firm.
With assistance from Rocket Internet, a German-based Inter-
net company, Tap30’s first trip was launched in 2016, turning
the newcomer company into a serious rival for the bigger and
older ride-hailing app Snapp.
Known as one of the fastest-growing companies in the digital
42 No. 2 & 3 October-December 2018
transformation field in the Middle East, Snapp was launched in
February 2014 in Tehran. It very quickly expanded its market size
from just 100,000 runs per day in Tehran in January 2016 to near
1 million runs now.
According to Shahram Shahkar, the CEO of the company who
was educated in Canada, Snapp employs more than 600,000
active drivers and more than 1,000 personnel. It reportedly car-
ries over 1 million passengers per day. The company has been
valued at over US$1 billion. It operates in Tehran and 24 other
provinces, out of Iran’s 31 provinces.
Let’s return to Tap30.
Tap30 is the second major ride-hailing app in Iran that connects
you to drivers through the mobile app and the corporate panel.
The price of the trip is set beforehand, to eliminate haggling.
Monshipour and Damirchi had initially set the goal of reaching
10,000 rides per day within the first year of their work but they hit
that landmark just within a few months. That, according to Mon-
shipour, is evidence of “public acceptance” of the program.
At that point, Careem, a Dubai-based transportation network
company, offered to purchase Tap30 but was rebuffed.
As a second major player that challenged the traditional taxi
companies in Iran, Tap30 faced strong opposition from Taxi Driv-
ers Association.
“This view still exists but is now in new disguise,” Tap30 co-found-
er Damirchi told the IEBD. “Two or three years ago, when we
were a small company, we had small opponents like the associ-
ation of traditional cab drivers but now we face resistance on a
higher level from the Interior Ministry and Municipalities, which
continue to look at new entities with traditional mindsets.”
During those difficult times, Monshipour says, his company was
encouraged by tech-friendly government officials including Vice
President Sattari and Minister of Information and Communica-
tions Technology Mohammad Javad Azari Jahromi.
As a bigger, stronger entity, Tap30 now finds itself more open to
foreign investment and possible tie-ups.
“This is a business of scale. The bigger it is, the better the econ-
omy of scale,” Damirchi says, citing as an example the merger
between Uber and China’s Didi Chuxing and Russia’s Yandex.
“Therefore, Iran is no exception and the short answer to whether that could be thought of (for-
eign partnership) is yes. But when and how or with whom, that is not known as of yet.”
Presently, Tap30 is active in 15 major cities and 24 towns. Over 450,000 drivers have been re-
cruited and 1,000 people are directly employed by the startup.
“Currently, taxi-hailing firms only account for 30 percent of the market. Therefore, there is a huge
potential for Tap30 to grow,” he adds.
This is how Damirchi envisages his company’s plans: “Our vision is to turn Tap30 into a transpor-
tation hub in line with our motto ‘freedom of movement’ at low cost and for people to meet all
their transport needs is a one stop shop. This vision is aimed at making trips so convenient and
affordable that people will no longer have incentive to possess a personal car.”
Just two years after creating Tap30, its founders feel satisfied with what they have accomplished
and believe that they have, to a large extent, realized their goal of “impacting the society” but for
them dreaming never stops.
4. Avatech.ir
Iran’s Leading Startup Accelerator
Avatech is often described as Iran’s leading startup accelerator, providing entrepreneurs with the
necessary elements to flourish. It offers support and advice to fledging companies with a new
business idea or newly emerged business ventures that seek to meet market needs, especially
in the tech sector.
“We provide aspiring entrepreneurs with mentorship, entrepreneurial training, seed funding and
a creative workspace,” the company proclaims.
5. Felexa.com
A Tourism Social Media Platform
Felexa.com is a social media platform in the field of tourism. It provides useful information to
tourists visiting Iran, specifically information on the country’s tourist attractions all around the
country.
The website calls itself “a comprehensive information bank of Iran’s tourism attractions.” Since
the information is updated by locals and tourists, felexa believes the information is always up-to-
date.
Tourists can share their experiences, photos and videos of their travel.
“We are reaching out to residents across towns and villages to provide local services to tourists.
That helps reduce the costs. At the same time, it helps development of local communities by
generating income through the tourism industry,” Felexa founder Mohammad Abumaash told
the IEBD.
He says tourists can benefit from such services through felexa and receive all the information
they need for free, including information on each and every tourist attraction across cities and
towns.
“Our website also provides information on the local culture, traditional games, music and archi-
tecture,” he says.
Tourists can select their tour guides (which include both men and women) from the website.
They have included exclusive tours in their website like cave expeditions and desert expeditions.
“Expanding tourism and travelling stand tall at the heart of felexa’s vision,” Abumaash insists. “It
provides opportunity for inbound tourists to obtain their required information about touristic ac-
tivities and attractions in Iran. It also helps entrepreneurs and business people to present their
services in a better, more creative way. Felexa seeks to introduce Iran’s unknowns to the world
by connecting tourists with locals.”
6. Shab.ir
A Hospitality Service Web
It operates as an online hospitality service accessible through its website and mobile apps. It’s
the Iranian equivalent of Airbnb which leases private homes or places to stay inside Iran, even
homes or villas in rural areas and forests, for both Iranians and foreigners.
Members can be both guests and hosts. They have the option to arrange or offer lodging, pri-
marily homestays, or tourism experiences.
Founders of the startup have listed 2,500 homes in 28 provinces (out of 31 provinces) in Iran.
Their website has been growing at a monthly rate of 30-35 percent.
“Our focus is on the quality of homes because this market existed before in Iran but was not in its
best shape in terms of prices and quality,” says Taha Razavi, the 28-year old founder of shab.ir.
43
Through their android and iOs apps, shab.ir team
plans to expand into other markets by both bringing
in foreign visitors and sending Iranians abroad.
Guests can search for lodging. Users must provide
personal and payment information while booking a
place to stay. The company also provides travel
guides or information about the chosen neighbor-
hood.
Hosts provide prices and details _ and photos _ for
their rental properties or event listings. Pricing is set
by the host, with recommendations from shab.ir.
Couple guests must provide identification docu-
ments to comply with Iranian laws.
7. Tripsaz.ir
A Traveler & Tour Guide Site
In Tripsaz, one person can be both a traveler and a
tour guide through one single account and make
money.
Imagine that a family wants to travel to a particular
place. They choose the purpose of their trip as either
“nature exploration,” “gastronomical exploration” or
“city exploration.” They ask for a guide who is fluent
in English and has a car as well as a tourism card.
Tripsaz sends the requests to all the guides in its list
and they offer their rates, giving the travelers a vari-
ety of choices _ unlike hailing apps where you have
no say is choosing your driver.
The startup was co-founded by two young engi-
neers Mehrdad Nateghi and Maryam Saberi. They
say their startup gives applicants a custom-made
trip, free of trials and errors.
Four days into launching their application, they got
120 registered users.
For now, they have focused on the local market.
They are planning to attract foreign tourists next, and
finally take Iranians abroad through their app.
8. Navaak.com
A Music Streaming App
The music streaming app and website was
launched in 2014. They have recently launched
android TV. So far, they have had 800,000 installa-
tions and now boast 150,000 active users.
Navaak is the local version of Spotify. It provides
content from record labels and media companies.
“Because copyright is not practiced in Iran, we are
trying to promote that culture through our work,”
44 No. 2 & 3 October-December 2018
Iranian entrepreneurs agree
that the rollout of 3G and 4G
mobile connections as well as
high-speed landline Internet
service have fueled Iran’s
technology startup boom.
Most, if not all, of them
consider high Internet speed as
the start of a new era for
entrepreneurship in Iran.
says Ruhollah Khoshnejad, manager of Navaak’s
customer affairs.
“The physical market for selling music is shrinking
and we intend to be a social network where us-
ers are not just listening to music but are also
sharing their views,” he said.
Their content includes music licensed by the
Ministry of Culture and Islamic Guidance and
Western Classical music.
9. Skyroom.online
An Online Communications Platform
Skyroom is an online communications platform.
It’s web-based and needs neither a particular
application nor a flash player.
According to Mohsen Dehnavi, the company’s
sales manager, the platform has a very simple lan-
guage, has many features like sharing your desk-
top with others, allows you to watch your users
chatting online and save the chats in the end.
Skyroom can also be used as a tool for organiz-
ing educational programs or conferences and
webinars.
“What distinguishes Skyroom from its rivals is
the good online support from 8:00 am to 10:00
pm. And the website’s language is in Farsi which
makes it all the more convenient for less
tech-savvy users in Iran,” he said.
The platform is being utilized by overseas users
including two professors based in Argentina and
Canada, who employ the platform to teach on-
line course at Isfahan University of Technology.
10. Zemestan Rasaneh
Paya Arts and Culture Insti-
tute, Producer of Computer
Games
The main goal of the institute is to produce
computer games. Since last year, they have be-
come active in the area of mobile games.
Their first serious mobile game was “Sniper: Re-
venge Operation.” It was released last year in
Café Bazaar (the Iranian equivalent of Apple
Store) and was well-received by game enthusi-
asts.
“The game has had 100,000 active installations
and more than 500,000 downloads. It’s about
the Islamic State of Iraq and Syria (ISIS), a Salaf-
ist militant group following an extremist doctrine
of Sunni Islam originating in Saudi Arabia. The
game was a hot subject when it was released
because it coincided with supporters of the ter-
rorist ISIS group attacking the Iranian Parliament
building in central Tehran,” says Abolfazl Sajjadi,
manager of the institute.
Operations in the game take place in Iraq, Ye-
men and the littoral Persian Gulf Arab states.
Creators of the game are planning a second
version to release.
itals.
While discount sites in the United States and other parts of the
world have faced problems, Netbarg seems to be doing fine
despite competition from other Iranian group buying portals
such as Takhfifan.
11. Bamilo.com
An online shopping site
Bamilo is an e-commerce marketplace startup in Iran. It’s an-
other local version of Amazon. Bamilo is the first and largest
venture of the Iran Internet Group (IIG), backed by MTN Group.
The startup site competes against Digikala. The site sells every-
thing from scissors to laptops, from cosmetics to clothes, from
bags to detergents, from shoes to shampoos, from sunglasses
to fire extinguishers, and from kitchen supplies to cellphones.
Afshan Samani, Bamilo’s chief product officer, studied at Shiraz
University in Iran before heading to Sweden for her master’s
degree. Later, she got her doctorate in Canada and worked
there for four years but returned home after hearing that start-
ups have begun to mushroom in Iran.
“I’ve been in Iran for two years now. Many people ask me: Why
did I return to Iran? I came back because there are a lot of op-
portunities here. I don’t regret my decision to return home,” she 13. Keshmoon.com
told Sharif University of Technology students at a gathering on
5 July 2018. An Online Saffron Marketplace
Samani said she smelled opportunity in Iran and she loved chal- Keshmoon is an online marketplace for purchasing saffron, the
lenge. world’s most expensive spice. It connects saffron customers
Bamilo has described its mission as: “creating a better future for with farmers, getting rid of the middlemen.
Iranians; learn from our mistakes; there is nothing we can’t The online e-commerce site was established in June 2017 by
achieve as a team.” Qaempanah brothers, Mohammad and Hamzeh, and their
The online shopping site’s vision is: “It doesn’t matter you are close friend, Siamak Khorrami, all residents of Qaen, a small
the buyer or the seller. We diligently hope that electronic trade town in South Khorasan Province in eastern Iran, near the bor-
becomes part of your daily life.” der with Afghanistan. But they practically began business in
March 2018.
Iran is the world’s biggest saffron producer and Qaen is a bub
for production of saffron, also known as “red gold.”
Mohammad Qaempanah told the IEBD that his 15-member
team seeks to provide buyers with the chance to purchase
good quality saffron directly from farmers at lower prices by
12. Netbarg.com
A Group Buying Portal
Netbarg is the Iranian equivalent of Groupon. It’s a group buying
portal. The discount site offers a wide variety of deals from
restaurants and hotels to health centers and photo shoot stu-
dios, from coffee shops to hairdresser clubs and from theater
houses to sports clubs.
Netbarg is considered as one of the fastest growing and profit-
able startups in Iran. The company was launched in early 2011
by cousins Ali Reza Sadeghian and Saman Sadeghian. The dis-
count site has grown enough that the two cousins are now
leading teams behind a couple of new online ventures in Iran’s
emerging startup market.
Netbarg is considered to be one of the startups that shaped
Iran’s startup ecosystem. Since its birth, it has driven Iran’s
group buying industry forward, connecting hundreds of mer-
chants and service providers with thousands of users in Iran.
People can buy online coupons on Netbarg to receive dis-
counts from a selection of merchants. The group buying portal This photo shows young men and women leaders running Keshmoon online saffron
also offers “last minute” coupons with more discounts. In addi- marketplace in Qaen, a small town in South Khorasan Province in eastern Iran.
(Photo: Keshmoon)
tion to Tehran, Netbarg operates in several other provincial cap-
45
 months. We have set far reaching goals to pursue,”
he added. “Our website has around 5,000 visitors
per day.”
Keshmoon is now looking at markets in Europe and
elsewhere.
“Soon, we will launch our European branch to help
connect saffron consumers in Europe directly to saf-
fron growers in Iran. We are in the process of open-
ing our store in Berlin, Germany to respond to the
needs of the European market. That will be a begin-
ning to launch our legal and financial infrastructure in
Europe,” Qaempanah said.
The entrepreneur is also open to partnership with
foreign, specifically European, investors.
“We are open to partnership with European and oth-
er foreign investors,” he declared.
Keshmoon aims to take 1 percent of Iran’s saffron
market on its first anniversary in March 2019. Irani-
ans consume 50 tons of saffron a year.
According to official reports, Iran exported over 222
This photo shows Azadi Tower, or “Freedom Tower”, one of the landmarks in Tehran, Iran, on Friday, 9 tons of saffron worth more than $309 million during
November 2018. (IEBD Photo)
the last Iranian calendar year 1396 (21 March 2018 _
20 March 2018). Iran is the world’s biggest producer
removing dealers. of saffron. More than 90 percent of the world saffron
The environment-friendly Keshmoon promotes or- is produced in Iran.
ganic farming, encourages farmers to avoid using
chemical fertilizers and pursue water-saving prac- 14. Cloob.com
tices.
The entrepreneur warns that the water sources An Online Social Media Platform
Iranian farmers rely on have gradually been drying Cloob.com is a Farsi-language social media and so-
up including water wells and qanats due to exces- cial networking service platform. It’s another local
sive consumption of water, endangering the life of version of Facebook. It boasts to have 2.5 million
the future generation. users.
Qanat is a gently sloping underground channel to The platform was launched in 2004 to “meet the
transport water from a water well to surface for ir- modern needs of Internet users in Iran” and connect
rigation and drinking. That has been an important Persian-speaking people from all over the world. Ap-
source of water for Iranian farmers in regions with plicants have to be over 18 years of age to become
hot and arid climates for centuries. a registered user of Cloob.com.
Given the worsening water crisis and continuous The online site can be accessed from a wide range
drought in Iran, Keshmoon encourages farmers to of devices with Internet connectivity, such as lap-
replace cultivation of big water-consuming crops tops, desktop computers and smartphones.
like watermelon with saffron, which consumes little
water. That’s part of Keshmoon’s water conserva- 15. Sheypoor.com
tion initiatives. By doing so, farmers can earn more
from selling saffron than selling watermelon or oth- An Advertisement Site
er water-intensive crops. That obviously leads to Sheypoor.com is a leading Iranian online classifieds
decrease in water consumption while a profitable marketplace where anyone can buy, sell and search
crop has been produced at the same time. goods and services free of charge. It’s the Iranian
“Watermelon consumes a lot of water but saffron version of Craigslist, a U.S. classified advertisements
needs little water. At the end, farmers can earn website.
more by reducing water consumption and cultivat- One will find everything on Sheypoor.com from lap-
ing saffron instead of watermelon. That leads to a tops to property, vehicle, cellphone, furniture, an-
new crop pattern. It’s a step towards protecting tique, rug, clothing and much more.
nature and the environment. It’s also important be-
cause a healthy and dynamic agricultural sector is 16. Mamanpaz.ir
an instrumental basis for rural development,” he
A Homemade Food Delivery Network
said.
Qaempanah said his business is growing at a rap- Mamanpaz is a Tehran-based online delivery service
id speed. for home cooking.
“We had a growth of 1,000 percent in the past 8 It connects hungry workers with housewives selling
months. Our sales have increased 1,000 percent, home-cooked meals. It actually delivers Iranian meal
meaning that our sales rose 10-fold in the past 8 home-cooked by real mamas. Customers can order
food with a click of a mouse over the Internet or cell
46 No. 2 & 3 October-December 2018
phone. inally launched in early 2011 by a
Young female entrepreneur Tabassom Latifi founded her compa- group of talented Sharif University of
ny in 2014, and now she has more than 50 women cooking for Technology graduates and students.
Mamanpaz.ir in Tehran. It gets over 1,000 orders per day. Each Among them were Reza Mohammadi
cook earns the equivalent of up to 1000 euros a month - a good and Hesam Armandehi. It has now a
income in Iran. pool of enthusiastic IT experts and
Latifi says her love for authentic Persian food such as saffron-in- developers providing digital distribu-
fused rice served with marinated lamb or chicken kebabs or the tion services mainly to Persian-speak-
herbal stew Qormeh Sabzi _ not fast-food _ was the key driver ing Android users.
encouraging her to develop the business. Cafe Bazaar offers more than 25,000
The entrepreneur migrated from Khorramabad in Lorestan Prov- downloadable Iranian and interna-
ince, western Iran, to Tehran to study electrical engineering at tional apps for gaming, social media,
Sharif University of Technology away from the family but she messaging and other uses. Roughly,
missed the taste and flavor of the delicious food her mother had it gets around 20 million visits a week.
cooked for years. And she had no love for fast food. She wanted Cafe Bazaar has grown in the ab-
to get the same food mothers cook at home. sence of competitors such as Google
“My mother is a great cook, but we live in two different cities. Play. Additionally, the dramatic ex-
After I moved from Khorramabad to Tehran in 2004, there was pansion of mobile app and the game
no more homemade food for me. That was when I thought there industry as well as enthusiasm show
might be many other people who, like myself, might love home- by Internet-savvy young Iranians Parviz Karami, a senior official
made food but just can’t have it,” she had earlier told the Finan- have paved the way for its growth. at Iran’s Vice-Presidency for
Science and Technology:
cial Tribune, an Iranian English-language daily. Café Bazaar boasts of its services “When investors, foreign or
That’s how Latifi began to seriously think of launching Maman- such as “locally developed apps and Iranian, ask me what is the best
paz.ir in 2013 and translated her dream into action in 2014. games which support Persian”, performing sector in Iran for the
next decade, I name
The popularity of Mamanpaz.ir has spread only by word of “easy-to-use, local payment meth- e-commerce and the tech
mouth and it now has over 15,000 customers. ods” and “hand-picked contents by sector without any hesitation.
Customers need to register their request at least a day earlier. Cafe Bazaar’s editorial team.” Knowledge is not just an asset
but a new type of economy,” he
They can select the appetizer, the main dish or dessert of their said.
choice. The name of the housewife cooking the food is men-
tioned in the list. But Mamanpaz.ir does not offer fast-food such
as pizzas and burgers.
The food is priced by the cooks themselves but must fall in a
range set by the Mamanpaz.ir team in advance. For every order,
Mamanpaz.ir gets about 30 percent of the bill.
The moms “are classified according to the ratings they receive
from customers,” Financial Tribune quoted her as saying. “I’m
happy our project is helping women.” 18. Takhfifan.com
Mamanpaz.ir independently tests the quality of the mothers’
cooking in various ways such as snap inspection of their kitch- A Discount Site
ens. At the same time, it seeks customer’s feedback via text Takhfifan.com is another Grou-
message, email or phone call. pon-type discount site.
The business network currently operates in Tehran only, but It’s famed as the deal-of-the-day web-
plans to expand to other cities soon. site, offering discounts in various cate-
gories from restaurants and coffee
shops to theatre and concert tickets,
from sports clubs to beauty salons, Young female entrepreneur
and from entertainment centers and Tabassom Latifi founded her
medical clinics to air and train tickets. company in 2014, and now she
has more than 50 women
Takhfifan.com was launched in 2011 cooking for Mamanpaz.ir in
by Nazanin Daneshvar, a young fe- Tehran.
male entrepreneur dedicated to pro- Latifi says her love for authentic
Persian food such as
moting tech startups in Iran, and her saffron-infused rice served with
sister. It has more than a million email marinated lamb or chicken
kebabs or the herbal stew
subscribers.
The goal of Takhfifan.com is to “turn
Qormeh Sabzi _ not fast-food _
was the key driver encouraging
17. Cafebazaar.ir into the biggest business and publicity her to develop the business.
platform in Iran” and connect busi-
A Digital Distribution Service nesses with customers through digital
Cafe Bazaar is the Iranian equivalent of Google Play. Cafebazaar. commerce.
ir is a leading Android marketplace in Iran, allowing users to Daneshvar is one of many young Irani-
browse and download applications. ans who left Germany to return home
The digital distribution service is owned by Hezardastan Informa- and become an entrepreneur in her
tion Technology Development Group. But Cafe Bazaar was orig- homeland.
47
 19. Talenteem.com
A Human Resources Service
Talenteem.com is a human resources services
platform.
It was established by Reyhaneh Khalilpour in
2016 to offer skills and expertise in human re-
sources to companies, specifically startups
and growing businesses.
Khalilpour argues that she founded Talenteem.
com after working at local and multi-national
companies inside and outside Iran as a talent
management leader and human resources
chief because she found out that many busi-
nesses and organizations don’t have access to
the necessary HR leadership to make them
competitive from a recruiting, retention, and
motivation standpoint, resulting in wasted time
and money, disengagement, and ultimately the
loss of valuable employees.
Talenteem.com has been created to provide in-
novative, scalable solutions to companies and
insights on people practices that have the
greatest impact on organizational performance.
It’s a platform using innovative technologies to
enhance business performance.
Khalilpour moved to Canada in her childhood
but returned home to set up her startup busi-
ness.
“Our mission is to become a pioneer and trust-
ed managed HR Services partner for startups
and small growing businesses in Iran,” Talen-
teem.com declares in its website.
20. Pelak.com
An Online Home Services Platform
Pelak.com is an online home services platform,
providing a wide range of services such as cleaning
service, laundry, water-less carwash, etc.
Babak Moghaddam founded Pelak.com in March
2017. He was the marketing manager of Digikala
before launching his independent platform.
Over 1,400 people, most of them women, work as
Pelak.com agents while the startup company has a
25-member team in its office. The platform’s goal is
to take one percent share of Iran’s US$20 billion
home services sector. Moghaddam says he wants
to turn Pelak.com into a new Digikala.com.
Moghaddam was the regional manager of Renault,
the French automobile manufacturer, at Jebel Ali
commercial port in the UAE before returning home
in 2015. Upon his return, he joined Digikala as the
company’s marketing promotion manager.
For every order, Pelak.com gets 12 percent of the
bill.
In addition to Tehran, Pelak.com offers home ser-
vices in Shiraz, Isfahan and Karaj.

Babak Moghaddam founded Pelak.com in March 2017. He was the

Startups have grown fast in the
marketing manager of Digikala before launching his independent platform.
past couple of years as a new
branch of the Iranian economy.
Snapp the equivalent of Uber,
Bamilo the equivalent of eBay,
Aparat the equivalent of
YouTube, Digikala the
equivalent of Amazon, Cafe
Bazaar the equivalent of
Google Play, and NetBarg the
equivalent of Groupon are just
a few examples of such
startups.

48 No. 2 & 3 October-December 2018 49

Prominent
Mining Expert:
SMEs, the driving force
behind Iran’s mining sector
Shakouri: “There is 0.2 percent
copper and zinc in our [some of
our] mines or there is also gold
and iron or silver in it but since
we lack the knowhow we
cannot extract it. Thus, we treat
them as waste. But the new
technology can extract the 0.2
percent of your copper. Then,
the 100 million tons that are
considered waste can be
turned into a mine itself.
Therefore, our wastes become
mines and this can naturally
increase our reserves.”
50 No. 2 & 3 October-December 2018
• Where does Iran stand in terms of mines and minerals in the
world?
According to the World Economic Forum, the value of our natu-
ral resources stands at $27.3 trillion including oil, gas, forests
and finally minerals. A major portion of our natural resources are
comprised of minerals.
The value of our mineral resources now stands above
$1,500 billion. The variety of our mineral resources is
also significant with close to 57 billion tons of miner-
al reserves.
We are located on a copper belt. For several min-
eral resources, we have good rankings in the
world. In the field of copper, zinc, iron ore and
even rare earth elements like lithium, vanadium
I
and aluminum _ especially now that the world
ran sits on vast reserves of mineral wealth, a significant portion of which still remains untapped. This is moving toward electric cars and batteries
bonanza was among the areas that stole the attention of foreign mining companies after the signing with longer lives and the use of these rare el-
of the historic Iran nuclear deal with world powers in July 2015. ements like vanadium and lithium in their
As part of its initiative to reduce Iran’s reliance on oil revenues, the country has set hopes on the production has increased _ Iran possesses
mining sector. Iran has set the ambitious goal of doubling mineral exports to $18 billion by 2021 and these minerals.
increasing mining and mining industry’s share of GDP to 8 percent from the current 6 percent.
That objective is beset by a litany of challenges both on the macroeconomic and inter-sector levels. A • What are the attractions of Iranian
recent report by the Iranian Parliament’s Research Center, the legislative body’s think tank, urged the mines including their appeal to foreign
government to speed up exploration if it wants to fulfill its 2021 vision, warning that the depletion of investors?
existing mines’ reserves are rapidly unfolding. This underscores the need for Iranian firms to tie up In the economy, there are 6 key factors
with foreign counterparts in order to benefit from modern exploration technology. and any country that possesses them
In order to explore the current circumstances in Iran’s mining sector, Iran Europe Business Digest will have advantage over other coun-
(IEBD) interviewed Bahram Shakouri, President of Mining and Mining Industries Commission at Iran tries. In my view, one of the advantag-
Chamber of Commerce, Industries, Mines and Agriculture. He is also Managing Director of Mobin es of Iran is the possession of resourc-
Mining & Road Construction, a company active in the mining sector with nearly 3 decades of experi- es and reserves.
ence. Right now, we have one percent of the
As one of the most recognized names in the industry, Mobin has earned the distinguished achieve- world’s territory, one percent of the
ment of having stripped and extracted one billion tons of minerals during its lifetime. world’s population but we possess 7
Shakouri has 25 years of management experience in Iran’s private sector and is a frequent keynote percent of the world’s mineral reserves.
speaker in domestic and international seminars on mining and marketing. Certainly, this has been through a 7 per-
Mindful of the effects of unilateral U.S. exit from the multilateral nuclear deal with Iran _ known as the cent discovery, which have been mostly
Joint Comprehensive Plan of Action (JCPOA) _ in May, Shakouri vows to be committed to fulfilling his on the surface, but if we continue this and con-
vision of developing current and future mining projects through the acquisition of cutting-edge tech- duct explorations all across the country _ which natu-
nology and tapping the local workforce. rally foreigners can help a lot by providing modern
In 2016, his company won a bid to develop a part of Mehdiabad’s lead and zinc mine through a 24- equipment in the area of explorations _ if we use that,
year contract. The project aims to turn Mehdiabad _ located in central Iran _ into the biggest zinc then our 7 percent share will increase 3-4 times more.
concentrate producer in the world in 10 years. This shows that Iran has investment advantages that
Here’s the full text of our interview with Shakouri: many others don’t when it comes to reserves and re-
sources.
51

One of the advantages of Iran is
the possession of resources
and reserves.
We have one percent of the
world’s territory, one percent of
the world’s population but we
possess 7 percent of the
world’s mineral reserves.
52 No. 2 & 3 October-December 2018
• How do you assess Iran’s export
market for minerals and processed
mining products?
Politics in our country is not at the
service of economy. Unfortunately,
the economy is at the service of poli-
tics and international relations have
not been so good.
After Iran and world powers achieved
the Joint Comprehensive Plan of Ac-
tion (JCPOA) in 2015, good things
were happening but unilateral U.S.
withdrawal from the nuclear deal has
cast some doubt over participation of
Western firms in Iranian projects. This
also affects Iran’s mining sector.
But the mining sector has many po-
tentials and one of the attractions for foreign inves-
tors is the huge consumption market.
We are located in a region that has 8 percent of the
world’s population and 12 percent of the world’s
economy. So, a population of 600 million lives in
our region and we have a very good advantage in
terms of proximity and access to this big market.
Minerals are the base for production of many
goods in the world such as mobile phones. There-
fore, the consumption market is one advantage.
And another advantage is Iran’s human resources
and abundance of educated human work force.
So, with foreign technology and investment com-
ing into Iran, this skilled work force could be very
useful, especially in the field of engineering, since
Iran has one of the biggest number of engineers in
the world at costs lower than the global average.
This can be a good advantage for foreigners to
come and invest in Iran.
And one of our advantages is abundance of ener-
gy at low cost. For example, natural gas plays a big
role in the production of steel. Iran is home to the
world’s fourth largest proven oil reserves and the
world’s second largest natural gas reserves.
You see that in the world they buy gas, condensate
it and turn it into LNG and transport it at high costs
to their countries and then use it in production of
many products including steel but in our country,
luckily, we have the advantage of cheap natural
gas. We neither pay the cost of transportation nor
the cost of LNG, not even taxes. This can be a very
good advantage for foreigners to come and make
investments.
But since we have poor political ties with the West
and are at odds with their foreign policy, this has
unfortunately affected our economy. One of its ef-
fects has been that, first, we have not been able to
import and use modern technology, and, second,
find a good consumption market for our products
in global markets, and, finally, we have somehow
been deprived of foreign finance to implement de-
velopment projects.
I was talking to a German company. They have a
pre-sorting facility. What does this pre-sorting do?
Before we take the soil of the mine in order to use
Iran Europe Business Digest (IEBD) correspondent Mohammad Affianian
(left) interviews Bahram Shakouri, President of Mining and Mining Industries
Commission at Iran Chamber of Commerce, Industries, Mines and
Agriculture (right), in Tehran, Iran on Wednesday, 30 May 2018.
(IEBD Photo)
it in the production process, pre-sorting device sep-
arates the waste from the minerals. By doing that,
we don’t carry the waste with us which will spare us
costs. It, at least, doubles the quality (composition)
of the soil. When you double the quality of your soil,
you will increase the economic value of your product.
This is very significant for our country which has wa-
ter shortage and our mines are located in areas that
are water stressed. As a result, processing factories
that need water can employ pre-sorting technology
without a need for water and enhance the quality of
soil at the same time.
So, instead of transferring water to the factory, you
can transport the minerals to areas close to water
and do the remaining processes there.
These emerging technologies, which we describe as
the fourth wave of technology, can help us a lot to
turn many of our uneconomic mines into profitable
ones. The new technologies can turn very low quality
soil, which we now consider waste, into high quality
ones _ something that we do not have the knowl-
edge _ and if we obtain the knowledge and technol-
ogy, we can increase our reserves by about 40 per-
cent.
Let me give another example. There is 0.2 percent
copper and zinc in our [some of our] mines or there
is also gold and iron or silver in it but since we lack
the knowhow we cannot extract it. Thus, we treat
them as waste. But the new technology can extract
the 0.2 percent of your copper. Then, the 100 million
tons that are considered waste can be turned into a
mine itself. Therefore, our wastes become mines and
this can naturally increase our reserves.
• How things changed after the JCPOA for Iran’s
mining sector?
The JCPOA changed the world’s attutude toward us.
Although sanctions were lifted but some U.S. restric-
Bahram Shakouri, President of
Mining and Mining Industries
Commission at Iran Chamber of
Commerce, Industries, Mines
and Agriculture, speaks to Iran
Europe Business Digest (IEBD)
in his office, in Tehran, Iran on
Wednesday, 30 May 2018.
(IEBD Photo)
tions remained in place. The JCPOA led to direct
contacts with foreigners and this significantly
brought down our costs. Foreigners showed inter-
est in investing in Iran. Negotiations began and
many foreign delegations came to Iran. Banking
relations were not fully established partly because
of our own problems in the banking sector and a
need for greater transparency in banking opera-
tions.
But U.S. exit from the nuclear deal somehow
changed the circumstances. Europeans and oth-
ers are standing firm and believe that the deal
must be preserved. But let’s not forget that the
U.S. has 25 percent of the global trade and many
European companies and others that work with us
have also interests in the U.S. or their shares be-
long to Americans. And once America asks them
to either work with Iran or with them, this will have
an impact. Therefore, they can easily put Iran
aside. Only companies that have no interests in
the U.S. market stand firm to work with us.
• Does it mean that only smaller European firms
will stay in Iran following the return of unilateral
U.S. sanctions?
Yes. Big companies have said they would leave
Iran. Giant firms that have big commercial dealings
with the U.S. can’t jeopardize their interests in the
U.S. market because of Iran.
But this does not apply to all companies. There are
We are located in a region that has 8
percent of the world’s population and 12
percent of the world’s economy. So, a
population of 600 million lives in our
region and we have a very good advan-
tage in terms of proximity and access to
this big market.
53
many companies [in Europe] that basically do not
have any ties with the U.S. and have the most
transactions with East Asian countries and the
Middle East.
Anyway, we have to continue life and find a way to
achieve our goals.
• What’s the share of the private sector in Iran’s
mining projects?
The share of the private sector in Iran’s economy
has been scant. Authors who wrote the Constitu-
tion in the early days after the victory of the 1979
Islamic Revolution had leftist tendencies. They split
the country’s economic system into three sectors:
governmental, private and cooperatives.
They handed over more than 90 percent of eco-
nomic activities (all large-scale and mother indus-
tries) to the government, distribution to the coop-
eratives and the useless part to the private sector.
It was in 2004 that state-owned companies began
to be transferred to the private sector under Article
44 of the Constitution to increase the share of the
private sector in Iran’s economy in order to facili-
tate economic growth.
Yet, only 17 percent of government companies
were genuinely transferred to the private sector
while a major part went to semi-state public com-
panies, which are neither private nor govern-
ment-owned such as foundations, Social Security
Organization, etc.
54 No. 2 & 3 October-December 2018
Shakouri: “In the world, they
buy gas, condensate it and turn
it into LNG and transport it at
high costs to their countries
and then use it in production of
many products including steel.
But in Iran, luckily, we have this
advantage of cheap natural
gas. We neither pay the cost of
transportation nor the cost of
LNG, not even taxes. This can
be a very good advantage for
foreigners to come and make
investments.”
So, one of the problems in this country is that the
share of the private sector is very low _ 10 to 15
percent of the overall economy.
Iran’s private sector has proposed that the best way
for the government is not to hand over ownership
but transfer management to the private sector.
But it’s important to note that in the mining sector,
98.3 percent of Iran’s mines are operated by Small
and Medium-sized Enterprises (SMEs). They include
both private and government-run firms.
This shows that the share of SMEs in the mining sec-
tor is very significant. This 98.3 percent account for
65 percent of the overall output in the mining sector
and 85 percent of employment. And it shows that
the added value produced by the private sector is at
times double or triple the state sector.
• Can revenues from Iran’s mining sector replace
oil income?
Under its 20-year plan _ known as 20-Year Perspec-
tive Document _ Iran has set the goal of producing
55 million tons of steel, 800,000 tons of copper and
10 million tons of gold annually.
Under the plan, Iran seeks to turn into a technologi-
cal and economic powerhouse of western Asia by
2025.
That can cover 60 percent of Iran’s oil income. But
the truth is that tourism has the potential to generate
revenues twice the oil income if appropriate mea-
sures are taken to make that happen.

President of Iran National Carpet Center (INCC)
Fereshteh Dastpak
Iran National Carpet Center Chief:
Online Sale T
he Persian carpet is a recognized international
brand. Iran stands on the top of the list of
hand-woven carpet producers and exporters
in the world.
of Persian
The United States is the biggest buyer of Persian car-
pets but re-imposition of unilateral U.S. sanctions in
early August is expected to harm, at least temporarily,
the Iranian carpet industry.
Carpet in
At the same time, Iran is after capturing new markets.
And global studies show that there is an increasing
demand for carpets around the globe and that the car-
pet industry is one of the fastest growing segments in
the home textile market in the world.
Partnership
According to Lucintel, an international market research
firm, the global carpet industry is expected to reach an
estimated US$39.1 billion by 2021. The major growth
drivers for the global carpet market are growth in the
with Foreign
construction _ particularly expansion of the housing
sector _ and transportation industries and increase in
renovation activities in different parts of the world.
Iran Europe Business Digest (IEBD) spoke with
Fereshteh Dastpak, the Head of Iran National Carpet
Firms
Center (INCC), on her center’s plans to capture new
markets and promote the Persian carpet.
Dastpak was advisor to the Governor of North Kho-
rasan Province on women affairs. Also, she had served
Planned
as a senior manager of technical and vocational de-
partment and led the handicrafts department in the
same province, in addition to other positions she had
held for several years, before moving to the INCC.
Destpak briefly served as Deputy Head of INCC prior
to being appointed as its chief.
Here’s the full text of our interview with Dastpak:
• How is the current state of Iran’s carpet industry?
56 No. 2 & 3 October-December 2018
Iran Europe Business Digest’s (IEBD) Editor-in-Chief Ali Akbar Dareini (left) interviews President of Iran National Carpet Center (INCC) Fereshteh Dastpak (right) in her office, in Tehran, Iran
on Sunday, 30 September 2018. (IEBD Photo)
What are your plans to promote the export of Persian carpet?
Persian carpet is famous worldwide for its premium quality and
texture. Iran has been and continues to be a pioneer in the export
of hand-made carpets. It controlled more than 30 of the world-
wide export volume in 2017. Carpet and pistachio are the two top
non-oil export commodities from Iran.
Over 80 percent of the hand-woven carpet manufactured in Iran
is exported. People around the world are attached to Persian car-
pet since it’s lively and pacifying. It’s a rich Persian art that portrays
paradise.
Carpet production has directly or indirectly employed 2.5 million
people in Iran. It’s Iran’s flag at the international stage. Persian
carpet is the symbol of Iranian cultural and artistic diplomacy. It’s
a representation of Iran’s rich culture and civilization.
Weaving carpet is a job-creating industry. Around 99 percent of
the materials are procured locally. We only import a portion of the
silk we need from abroad.
We are in the process of launching carpet houses in various coun-
tries. They would be non-governmental organizations promoting
Persian carpet.
The United States, Germany, Lebanon, United Kingdom and Ja-
pan are major buyers of Persian carpet. Italy, France and Switzer-
land in Europe and the UAE, Kuwait and Qatar in West Asia are
other traditional customers.
We are actively seeking to promote online sale of Persian carpets
to replace the traditional business marketing. And we welcome
partnership with foreign marketing firms as well as startup com-
panies willing to engage in online sale of rugs outside Iran. It’s a
great chance for professional Internet marketers to create sustain-
able income for themselves through digital marketing of the Per-
sian carpets.
• The United States has been the largest importer of Persian
carpet. What harm does the re-imposition of U.S. sanctions
inflict on the Persian carpet business? What are your plans to
contain the damage and fill the gap?
The first step by the Trump administration in re-imposing sanc-
Over 80 percent of the hand-woven
carpet manufactured in Iran is exported.
It’s Iran’s flag at the international stage.
Persian carpet is the symbol of Iranian
cultural and artistic diplomacy. It’s a
representation of Iran’s rich culture and
civilization.
tions against Iran was to revoke license for the imports of Persian
carpet. It was aimed at undermining the Iranian economy and
provoking dissatisfaction among Iranians.
Hand-woven Persian carpet belongs to the Iranian people. It’s
different from other products. It has nothing to do with politics.
We are in the process of making final consultations to file a lawsuit
with international tribunals against U.S. sanctions on the import of
hand-woven rugs because art should not be sanctioned. It’s a
symbol of culture and intellectual property of the Iranian people.
The re-imposition of U.S. sanctions may create fluctuations in our
carpet business in the short term but it won’t stop the American
people from buying Persian carpets indirectly. The love of Ameri-
can people for Persian rug is there and will remain there.
Trump can’t resist the Persian carpet. At many of his meetings
with global leaders, Persian carpet covers the floor. When he
shook hands during a summit meeting with North Korean leader
Kim Jong-un in June 2018 in Singapore, it was a woolen Persian
carpet in the room covering the floor.
At the same time, we are already in search of new markets. The
whole world is our target, even Africa.
• How is the INCC going to expand markets for Persian car-
pet?
We look at China, Russia, South Africa and some Latin American
countries as important emerging markets for Iran’s hand-made
rugs. We are conducting scientific studies to expand our markets.
There are clear indications that global demand for carpets is on
the rise. This creates potential opportunities for Iran’s business
community to seize the chance and move forward.
At the same time, we have to compete with rivals who have
worked to increase their influence in Iran’s target markets.
We have drawn up a publicity campaign, with Europe being in the
center of this strategy.
However, we need Iranian and foreign private firms _ specifically
European companies _ to jump into the wagon to promote the
Persian carpet. So, we welcome those willing to join this business
campaign and reap the economic benefits.
57

Photo: Iran National Carpet Center (INCC)
Persian Carpet
in Search of New Markets
Following Unilateral U.S. Sanctions
Carpet designs generally consist of a border, a pattern in
the center and an inner field. The border of the carpet is a
kind of frame or cornice on the building in order to
highlight the field.
58 No. 2 & 3 October-December 2018
M
agnificent Persian carpets cover the
floors from Sultan Qabus Azam Mosque
in Muscat, Oman to royal courts in Japan
and from the home of former U.S. Presi-
dent Bill Clinton and state buildings in the United
States to the royal Buckingham Palace in London,
from the halls of the United Nations headquarters in
New York to state palaces across Europe including
the office of Austrian President Alexander Van der
Bellen in Vienna.
Iran has a universal reputation in carpet weaving. The
global audience recognizes Persian carpet as a ma-
jestic piece of art. The delicate and beautiful hand-wo-
ven Persian carpet is a valuable Iranian export com-
modity.
The iconic carpet industry employs hundreds of thou-
sands of skilled weavers alone and is an important
non-oil export product. It’s a valuable source of foreign
currency income at a time the country is in need of
boosting exports to earn the much needed hard cur-
rency and capturing new markets.
Iran is the biggest exporter of hand-woven carpets in
the world and carpet weaving is an essential part of
Persian culture and fine Iranian art.
Contrary to many other sectors, manufacturing hand-
made carpet is not dependent on imports of raw ma-
terials.
“We are almost entirely self-sufficient in supplying the
raw materials required for carpet-weaving. And the
needed skills and workforce is also abundantly avail-
able,” producer and exporter of hand-made carpet
Abbas Jannati Kashani told the Iran Europe Business
Digest (IEBD).
Following the lifting of economic sanctions against
Iran in January 2016 as an aftermath of the historic
nuclear deal signed in July 2015 between Iran and
world powers, known as the Joint Comprehensive
Plan of Action (JCPOA), Iranian carpet business
picked up. Exports rose and steadily increased year
on year. Iranian producers and exporters could direct-
ly tap the huge U.S. market and sell their artworks.
Iran exported 5,399 tons of hand-woven carpets,
earning $424.4 million in the last Iranian calendar year
of 1396 (20 March 2017 – 21 March 2018), according
to data released by the Iran National Carpet Center
(INCC). The country had fetched $359.8 million in the
year before that.
The United States is the biggest importer of Persian
carpets, standing on the top of the list of Iran’s cus-
tomers. Of $424.4 million exports, some $126 million
worth of carpets were sold to the Americans. That
means the U.S. accounted for about 30 percent of
Iran’s total hand-made carpet exports.
China, Europe, Japan and Arab states are other major
buyers of Iranian carpets.
Within the first four months of the current Iranian cal-
endar year 1397 (21 March 2018 – 22 July 2018) Iran
exported over $100 million worth of carpets, some
$39 million of it earned from the U.S., showing a sig-
nificant increase in exports to America.
That was just before the hardline administration of
U.S. President Donald Trump began to re-impose the
(IEBD Photo)
Hand-made Persian carpets,
whether produced by nomads
or made in rural and urban
areas, are known for their
longevity, grand appearance,
strong colors, and elaborate
designs. They are characterized
by natural dyes, traditional
patterns as well as modern
designs, but old techniques.
A woman weaves a carpet in a workshop in Tehran, on Tuesday, 2 October 2018. (IEBD Photo)
first round of its unilateral sanctions against Iran on
7 August targeting Iran’s automotive sector, its
trade in gold and other key metals as well as the
carpet trade and commercial aviation.
That means unilateral U.S. sanctions harm carpet
more than any other Iranian non-oil commodity
since America is the biggest market for Iran’s mas-
terful works of art.
“Losing such a big market greatly harms our carpet
industry, at least in the short term,” Kashani admit-
ted.
Carpet weavers, exporters, artists and art lovers all
consider carpets and rugs more than just a com-
modity. Almost all of them believe that U.S. sanc-
tions on the carpet industry are an assault on the
beautiful art and an attack on Iran’s cultural identity.
“Weaving carpet is a delicate art. Producing even a
small carpet requires months of patient work, using a
variety of tools and masterly techniques. Carpet
weavers sacrifice their eyes to demonstrate their art
and make all human beings enjoy it,” said Akhtar
Boroumandi, a female carpet weaver in Mashhad, a
city in northeast Iran. “Imposing sanctions on carpet
is equal to fighting fine art. It’s not a civilized behavior.
Rugs represent Iran’s rich culture and sanctions on
rugs are tantamount to an assault on our culture.”
The carpet industry is important for the Iranian
economy as it is one of the largest employment
generators. According to official data, some 2.5 mil-
lion people _ carpet weavers, businessmen and
exporters _ are employed directly and indirectly in
the hand-woven carpet sector.
An average investment of 4 billion rials ($52,424) is
needed to create a single job in Iran but one needs
just 400 million rials (one-tenth) to create a job in the
carpet industry.
“The first two items Americans imposed sanctions
on were the purchase of Persian carpet and the
sale of civilian aircrafts to Iran. This shows that the
Trump administration is showing enmity towards
Iran’s entire 80-million-population and their national
art, not the ruling system alone,” Kashani said.
Iran is estimated to produce 3 million square meters
of hand-made carpets annually, two-thirds of which
are exported and the rest is sold in the domestic
market.
59
Gardens of Heaven in Persian Carpets
Traditionally, Persian carpets
are weaved by hand to portray
Persian gardens. Many believe
that Persian garden truly
resembles the paradise on
Earth. The scene makes a
harmony between nature and
humans. The garden is a
symbolic demonstration of
Heaven in Persian tradition.
Women are a work weaving a carpet in Iran. Photo: Iran National Carpet Center (INCC)
60 No. 2 & 3 October-December 2018
Carpets and rugs are decorative textiles made up of
thick material. They are generally used as full or par-
tial floor covering at homes to provide warmth and
comfort, or used as wall hanging for beauty. Office
spaces are also decorated with carpets to provide
an encouraging work environment.
Carpeted floors dampen noise. Carpet is perfect for
cushioning our footsteps, reducing slips and falls,
and minimizing injuries when falls do occur. It pro-
vides safety protection for the entire family, but spe-
cifically for toddlers and older individuals.
In today’s life, there are noises all around us. Com-
puters, sound systems, speaker phones, TVs and
radios make our homes noisy places. Carpet helps
to absorb these sounds. It also works as a sound
barrier between floors by helping to block sound
transmission to rooms in the level below.
And carpet gives prestige and elegance to every
space.
Carpet designs generally consist of a border, a pat-
tern in the center and an inner field. The border of
the carpet is a kind of frame or cornice on the build-
ing in order to highlight the field.
Persian rugs are basically divided into two main
groups in terms of design: Those with floral design
and those with geometric design.
Floral rug is the more formal design, consisting of
gardens, flowers, trees and their branches and
leaves connected artistically to form a wonderful
harmony. In majority of these carpets, the most
common motif is a large center medallion surround-
Carpet-Weaving, Labor of Art
Tabriz, Isfahan, Qom, Nain, Kashan, Mashhad and
Kerman are major centers of carpet production in
ed by a variety of flowers both throughout the field and
Iran. The small town of Sardroud near Tabriz is the
the border of the rug. Some of them demonstrate var- global hub of carpet tableaux production. More
ious legendary animals, such as deer, lions and tigers than 80 percent of Iran’s carpet tableaux are
or birds. It’s interesting to note that no two medallions produced in Sardroud. Persian carpets and carpet
are ever exactly the same. tableaux are among the best souvenirs to take on
Traditionally, Persian carpets are weaved by hand to tours to Iran. There is a vast variety of style and
portray Persian gardens. Many believe that Persian design to satisfy all tastes.
garden truly resembles the paradise on Earth. The
scene makes a harmony between nature and humans.
The garden is a symbolic demonstration of Heaven in
Persian tradition.
It displays an elaborately fertile garden, filled with di-
verse plants and animals, enclosed by a wall. The wall
symbolizes the separation between Heaven and
Earth. The masterly scenes illustrated on the carpets
provide the viewer with splendid details to discover.
Rugs with geometric design are decorated with linear
elements composed of vertical, horizontal, and diago-
nal lines. These rugs are woven mostly by nomadic
tribes. Their specific motifs help identify their geo-
graphical origin.
Carpet is one of the main features of nomadic culture.
It’s the narrator of their arts, traditions and lifestyles.
Hand-made Persian carpets, whether produced by
nomads or made in rural and urban areas, are known
for their longevity, grand appearance, strong colors,
and elaborate designs. They are characterized by nat-
ural dyes, traditional patterns as well as modern de-
signs, but old techniques.
Carpet-weaving is among the most complex and la-
bor-intensive handicrafts in the world.
In tribal regions of Iran, the industry begins with no-
mads making threads from the wool by hand. Then,
they twist it with their fingers. The finished threat is
bundled up and then dyed, using natural ingredients
taken from plants like pomegranate peels for deep
red, walnut shells for brown and leaves of berry tree
for green.
The threads are boiled in a large pot on wooden fire
for up to several days. Then, the threads are left to dry, An Iranian man counts Iranian currency notes in his shop with dyed threats hanging on the wall. Photo: Iran National Carpet Center (INCC)
exposed to air and sunlight, before use.
In urban areas, usually ready-to-use materials pro-
duced in factories are put to use. In nomadic life, mothers train en, spend months or even a his or her call on what colors to hand or machine before being
Wool, silk and cotton are the main materials used for their daughters to use the ma- year or more to produce a sin- knot and where. sent to the market for sale.
weaving carpets. Silk is the most expensive material terials and acquire weaving gle rug. They usually sit on a Some carpet weavers pro- That explains why Iran is
and has been used for representative carpets. skills while fathers train their horizontally-placed or vertical- duce a carpet based on orders known worldwide for its iconic
Wool for the carpets is shorn by local men. Sheep sons in shearing wool and ly-placed loom and bent to from customers. Others follow hand-made rugs because of
shearing is done in spring or autumn. Experienced making looms. work, stringing and knotting established designs and some their delicate designs and
men then construct the carpet loom – a horizontal or Only after this long process thousands of threats. The lead create their own. masterly quality.
vertical frame placed on the ground – while women does the weaving start. Carpet weaver reads loudly from a Once the carpet is finally done, Sanctions imposed by Wash-
convert the wool into yarn on spinning wheels. weavers, most of them wom- map and other weavers follow it is cut. Then, it’s polished by ington are intended to deprive
61
Iranian carpet weavers of income and American
families of art.
“Carpet-weaving is a labor of art and love,” Borou-
mandi said. “The latest American sanctions are an
attack on the very fabric of Iranian culture and iden-
tity. It’s an attempt by the insane Trump administra-
tion to create troubles in paradise.”
Iran exported a giant hand-woven carpet to cover
the floor of Sultan Qabus Azam Mosque in Muscat,
Oman in 2000. The carpet, with a surface of 5,000
square meters (6,000 square yards) and weighing
22 metric tons (24.2 tons), was made of 1.7 billion
knots. It worth $ 5.2 million and was the largest of
its kind at the time. The carpet, hued mostly in blue,
yellow, white and khaki, was shipped in 42 pieces.
Iranian artists were dispatched to Oman to connect
the pieces.
In 2006, more than 1,200 village women in Bagh-
shan, a village outside Nishabour in northeast Iran,
began to weave a giant carpet worth $8.5 million for
the United Arab Emirates (UAE). The carpet, com-
missioned for the Sheik Zayed Mosque in Abu Dha-
bi, was claimed to be the world’s largest hand-wo-
ven floor covering. The carpet, with a surface of
6,000 square meters, was made of 2.2 billion knots
weighing about 48 tons.
History of Persian Carpet
The history of Persian carpet dates back at least to
more than 2,500 years. The beginning of carpet
weaving remains unknown but it is believed that the
art was introduced into Persia under Cyrus the
Great, the founder of the magnificent Achaemenid
Empire. And some assume that it’s very likely that
Persian nomads knew about the use of knotted
rugs even before his time.
Now, there is evidence based on radiocarbon test-
ing to prove that the oldest knotted Persian carpet
was made in the 5th century BC. It was discovered
in 1949 in the Pazyryk valley, about 5,000 feet up
on the Altai Mountains in Siberia.
The complex techniques used in the Pazyryk car-
pet, its fine weaving and elaborate pictorial design
suggest that carpet-weaving had gone through a
long evolution and that carpet-weaving had
reached an advanced stage at the time of its pro-
duction. The wool carpet, with a surface of 183 by
200 centimeters, is now on display in the State Her-
mitage Museum in Saint Petersburg in Russia.
The art of carpet-weaving in Iran reached its zenith
during the reign of the Safavid Dynasty in the 16th
century, specifically during the reign of Shah Abbas
(1587 - 1629).
During this era, Shah Abbas established court
workshops where skilled designers and craftsmen
created splendid specimens. His administration en-
couraged contacts and trade with Europe.
Persian carpets in Safavid period were famous for
their elaborate colors and spectacular artistic de-
signs. This era marks one of the greatest periods in
62 No. 2 & 3 October-December 2018
Iran exported 5,399 tons of
hand-woven carpets, earning
$424.4 million in the last Iranian
calendar year of 1396 (20
March 2017- 21 March 2018),
according to data released by
Iran National Carpet Center
(INCC). The country had
fetched $359.8 million in the
year before that.
Persian art, including carpet weaving.
During various periods, Persian carpets have experi-
enced changes in style and design and Iranian rug
weavers have combined new, innovative ideas with
old styles.
Tabriz, Isfahan, Qom, Nain, Kashan, Mashhad and
Kerman are major centers of carpet production in Iran.
In 2010, the “traditional skills of carpet weaving” in
Fars, in southern Iran, and Kashan, in central Iran,
were inscribed to the UNESCO Intangible Cultural
Heritage of Humanity.
Sardroud, Capital of Carpet Tableaux
East Azerbaijan Province in northwestern Iran _ and its
provincial capital of Tabriz _ is a pole in carpet produc-
tion in Iran.
The geographically strategic province, which shares
border with Armenia and Azerbaijan, accounts for 35
percent of Iran’s total hand-woven carpet production,
according to Esmaeil Chamani, Chairman of Tabriz
Hand-made Carpet Producers Association.
The carpet industry has created 500,000 jobs in the
province, which has a total population of 3.7 million
people.
The small town of Sardroud near Tabriz is the global
hub of carpet tableaux production. More than 80 per-
cent of Iran’s carpet tableaux are produced in
Sardroud.
The land of the dragon, China, is a major importer of
Iranian carpet tableaux, followed by the U.S. and Eu-
ropean countries.
Persian carpets and carpet tableaux are among the
best souvenirs to take on tours to Iran. There is a vast
variety of style and design to satisfy all tastes.
Machine-made Rugs
In addition to hand-made carpets, Iran stands among
the six leading manufacturers of machine-made car-
pets and exports to 60 countries. The country ex-
ported $400 million ($335 million) of machine-wo-
ven carpets to the world markets last year (20
March 2017 – 21 March 2018) and aims to improve
the figure up to $500 million per annum.
Some 600 small and large machine-made carpet
factories operate in Iran. Kashan is the hub of ma-
chine-made carpet production in the country.
Veteran hand-made carpet producer and export-
er Abolfazl Rajabian calls machine-made carpets
“a totally separate industry.”
“Machine-made carpet is a totally separate indus-
try. Those types of carpets have their own inter-
national market and customers. It’s harmful to the
hand-woven carpet industry although its impact
is limited.”
He also lamented that some of the designs and
patterns of hand-woven carpets are copied by
machine-made producers.
Tapestry or Kilim Weaving
Kilim is a simple flat tapestry-woven rug. It’s a car-
pet without pile. The technique of flat weaving
consists of strands of wool, animal hair or vegeta-
ble fibers which are interwoven and which might
have been created according to the basic needs
of the early civilizations for covering, shelter or
storage as well as for simple convenient means of
life.
Based on historical records, kilim along with jew-
elry, clothes, tent furnishings, and animal trap-
pings are the identities of Iranian nomads.
The raw materials for kilim weaving are sheep
wool, goat and horse hair, and cotton. The appli-
cation of different dyes in kilim weaving is notice-
able.
Modern kilims are popular floor-coverings in
Western households.
Finding New Markets
The residential end user sector makes up the major-
ity of the global carpet and rug market. And it is
expected to remain the largest and fastest growing
segment by value and volume over the next years,
according to Lucintel, a global market research firm.
The growth in demand for carpets and rugs is large-
ly attributed to housing renovation and new residen-
tial construction. Veteran hand-made carpet
That means the future of the global carpet and rug producer and exporter Abolfazl
market looks good with opportunities in the residen- Rajabian, who specializes in
carpet exports to Southeast
tial, office and transportation segments. Asian countries, names Brazil,
Consumers, according to Lucintel, are moving to- Russia, and South Africa as
new markets with high
ward bold, attractive colors and non-geometrical potentials for the iconic Iranian
designer patterns for carpet and rugs. industry.
With the return of unilateral U.S. sanctions, Iranian “They are taking an interest in
Persian carpets. These
carpet businessmen and exporters have to find new countries are among new
markets for their beloved commodity to compen- markets that are keen on
Iranian rugs,” he says.
sate the expected drop in U.S. exports.
Additionally, they have to handle the growing com-
petition from low-cost rugs made in other countries.
India, Pakistan, Afghanistan, China, Turkey and Ne-
pal are major rivals for Iran’s hand-woven carpets.
But rising global demand for carpet is an opportuni-
ty for carpet weavers and exporters in Iran to seize
the moment and increase their share of the market.
Persian hand-woven carpets are exported to about
80 countries. While the United States, Germany, It-
aly, the United Kingdom, France, Switzerland, Swe-
den, Lebanon, UAE, Kuwait, Qatar, Canada, Aus-
tralia and Japan have been traditional buyers of
Iranian carpets, new customers have emerged in
recent years namely China, Russia, South Africa,
Latin American states and Southeast Asian coun-
tries.
Kashani says Iran is in dire need of a comprehensive
program to expand the list of its customers and tap
into new markets. He says carpet exporters need
government support to capture new markets but
that’s lacking.
“Iranian businessmen, relying on their individual ca-
pabilities and marketing, have their own personal
plans to increase exports. I, for instance, have fo- Veteran carpet producer and
cused on the Chinese market for the past 15 years exporter Hassan Mohammadi
Parvizian, 85, says the pattern,
and have got a good knowledge of the customers’ color combinations and quality
taste. The Chinese are fond of importing different make hand-woven Persian
carpets different from their
types of goods from Iran other than oil such as lux- rivals. The key to success,
ury goods and carpet. However, difficulties in han- Parvizian says, is to discover
dling financial transactions are hampering our work,” the taste of customers. A
carpet selling big in America
he said. may not sell well in China or
Veteran carpet producer and exporter Hassan Mo- other parts of the world.
hammadi Parvizian, 85, blames poor diplomatic and
economic relations between Iran and the United
States as one major reason behind decrease in Ira-
nian carpet exports to the international markets and
empowering rivals such as India and Pakistan to
take a portion of Iran’s share with their cheaper cop-
ies.
He owns wool spinning factory and carpet work-
shops, producing 1,500 tons of hand-woven carpet
63
per year.
Parvizian, who is the Chairman of Hand-Woven
Carpet Exporters Guild in East Azerbaijan Prov-
ince, believes that low-cost rugs produced in rival Veteran carpet producer and exporter
AITO
Azadi International Tourism Organization
countries are a threat but can’t compete with Ira- Hassan Mohammadi Parvizian says the
nian hand-woven carpets at the end. China, a pattern, color combinations and quality
carpet producer itself, is a major importer of Irani- make hand-woven Persian carpets
an carpets, specifically carpet tableaux. different from their rivals. The key to
The veteran exporter says the pattern, color com- success, he says, is to discover the
taste of customers. A carpet selling big
binations and quality make hand-woven Persian in America may not sell well in China
carpets different from their rivals. The key to suc- or other parts of the world.
cess, Parvizian says, is to discover the taste of
customers. A carpet selling big in America may
not sell well in China or other parts of the world.
“Europeans are big fans of tranquility. Thus, they
like cool color in small sizes while Arabs look for
large-sized and thick carpets,” he said.
Prices of Iranian hand-woven carpets range from
$100 per square meter to $100,000 depending
on the materials used _ wool, silk or cotton _ and
the weaving quality.
Rajabian, another veteran carpet manufacturer
and exporter, shares Parvizian’s views and says
Iranian carpet has its own unique history, spirit
and identity, factors that its rivals cannot copy or
reproduce.
He specializes in silk carpet exports to Southeast
Asian countries, majorly Japan. His carpet work-
shops are scattered in different villages near Qom,
a holy city 130 kilometers south of capital Tehran,
and has employed 500 to 600 carpet weavers.
Rajabian brand is well-known due to its “Rose
Flower” design, which has been registered at the
World Intellectual Property Organization (WIPO).
He says there is no doubt that the consequences
of U.S. sanctions on Iranian carpets will be felt

AITO
across the Iranian economy and further afield in
the short term but carpet traders won’t stay idle
and will look for new markets.
The veteran said Iran is managing to push its car-

IRAN
pets into other parts of the world. He names Bra-
zil, Russia, and South Africa as new markets with
high potentials for the iconic Iranian industry.
“They are taking an interest in Persian carpets.
These countries are among new markets that are

Tours
keen on Iranian rugs,” he says.
Rajabian agrees that U.S. sanctions are damag-
ing but says Iran’s iconic industry is not facing a
disaster. Instead, he believes, the threat must be
turned into an opportunity.
He says one way of bypassing U.S. sanctions is
to take the advantage of re-exporting Persian car-
pets from other countries although it will have its
own costs. FLIGHTS
“American sanctions are blows but not devastat-
ing. They are painful but we need to find a way.
The solution is to find new markets and at the
same time get around the sanctions,” he said.
“We know how to defeat Trump’s Iran-bashing VACATIONS
scheme.”
www.aitotours.com
Photo: Iran National Carpet Center (INCC)

HOTELS
64 No. 2 & 3 October-December 2018
 Handicrafts Chief Pouya Mahmoudian:

ICHTO Planning to
Open New Permanent
Stores in Europe

Handicrafts representing all 31 provinces

in Iran are on display at Iran’s Cultural
Heritage, Handicrafts and Tourism
Organization (ICHTO) building in Tehran,
on Saturday, 22 September 2018.
(IEBD Photo)

I
ran is one of the top three producers of handicrafts in
the world. Export of Persian handiworks show a
steady increase in the past five years. And the Iranian
government has given it a priority to help expand the
size of markets for Iranian artifacts as part of efforts to
restore the global glory of Persian handicrafts, create
jobs and reduce unemployment.
The handicrafts sector is an increasingly important
source of employment creation and sustainable in-
come generation. It makes a substantial contribution
to the country’s exports.
Iran’s Cultural Heritage, Handicrafts and Tourism Orga-
nization (ICHTO) has drawn up a wide range of plans
to promote Iran’s handicraft business both at home
Deputy Head of Iran’s Cultural Heritage, Handicrafts and Tourism Organization (ICHTO),
and abroad. Pouya Mahmoudian signs papers in her office in Tehran, on Saturday, 22 September
Iran Europe Business Digest (IEBD) spoke with 2018. (IEBD Photo)
Pouya Mahmoudian, Deputy Head of ICHTO, about
her organization’s roadmap for the handicrafts industry
and its future plans.
䄀爀琀漀渀攀愀琀Ⰰ 愀 渀攀眀 挀漀洀瀀爀攀栀攀渀猀椀瘀攀 猀漀氀甀琀椀漀渀 昀漀爀 洀愀爀欀攀琀 搀攀瘀攀氀漀瀀洀攀渀琀 漀昀  Mahmoudian leads the handicrafts branch at ICHTO.
愀甀琀栀攀渀琀椀挀 愀渀搀 搀椀猀琀椀渀最甀椀猀栀攀搀 䤀爀愀渀椀愀渀 挀爀愀昀琀猀 愀渀搀 挀愀爀瀀攀琀猀 椀渀 䔀甀爀漀瀀攀
圀栀漀氀攀猀愀氀攀     伀渀氀椀渀攀 爀攀琀愀椀氀     䌀漀氀氀愀戀漀爀愀琀椀漀渀 眀椀琀栀 搀攀猀椀最渀攀爀猀⸀     䄀甀挀琀椀漀渀猀
67
眀眀眀⸀愀爀琀漀渀攀愀琀⸀攀甀
 She is a veteran who has led operations at ICHTO
for long years including heading ICHTO’s Handicraft
Exports Department.
The veteran holds Master of Business Administra-
tion (MBA) degree from the prestigious Sharif Uni-
versity of Technology in Tehran and Doctor of Busi-
ness Administration (DBA) from University of
Bordeaux in France. In addition to her native Farsi
language, she speaks English and knows some
French.
Here’s the full text of our interview with Mahmoud-
ian:
• Development and promotion of handicrafts are
the responsibility of ICHTO. What are your plans
to promote handicrafts and increase exports?
The ICHTO has pursued a wide range of policies to
ICHTO building in Tehran, on Saturday, 22 September 2018. (IEBD Photo)
support artisans and promote handicrafts including
marketing support, design and technology upgra-
dation, export promotion, research and develop-
ment, and training.
Providing low-interest rate banking loans and life in-
surance protection are just two examples of many
measures implemented by ICHTO in support of art-
ists.
Apart from those measures, ICHTO is pursuing a
‘commercialization plan’ that seeks to encourage
commercialization of designs, promote brands and
upgrade packaging of Iranian handicrafts to improve
competitiveness in the global market and create
new sources of revenue and employment.
68 No. 2 & 3 October-December 2018
Registering villages, towns and regional clusters where
handicrafts are produced is one of many plans pur-
sued by ICHTO to promote brands and commercialize
Iranian handiworks.
For instance, the village of Kalporegan in Sistan and
Baluchestan Province in southeastern Iran has been
named the Global Village of Pottery. This has helped
the ancient village to be recognized globally as a center
of pottery production in Iran. Now, Kalporegan is a
brand name in pottery and business has improved
there.
So, popularizing the products is among specific mea-
sures being taken by the government for promotion
and development of handicrafts.
Every year, favored villages and cities across the coun-
try with celebrated craft products are selected and
named to the global audience as part of efforts to
make them known to the world and popularize their
products.
Handicraft exports fetched $281 million in the last Ira-
nian calendar year, ending 20 March 2018, showing a
considerable increase on the year before that. This in-
dicates that Iran is gradually taking a bigger share in
the global handicrafts market. An ever expanding siz-
able increase in handicraft exports since 2014 shows
Iran’s increasing impact in the global markets.
Iranian craftsmen and craftswomen participate in more
international exhibitions and in greater numbers than
before. That has helped Iranian artisans and business-
men to be seen by the global audience.
Additionally, the ICHTO has supported
establishment of websites to help pro-
mote handicraft electronic business.
Now, there are more than 200 websites
promoting Iranian artistic works and sell-
ing online.
We are also encouraging producers and
exporters to improve packaging for their
products. For instance, we provide 30
percent discount (bringing down costs of
exhibition participation) to those with best
packaging designs at exhibitions since
packaging handmade products in a cre-
ative and professional manner creates an
unforgettable unboxing experience for
customers and helps artisans expand
their business. Attractive packaging adds
value to their products. Iranian artists
have now learned that packaging mat- An interior design that revolves around ‘Iranian Home’ as its theme
ters and people notice it. (ICHTO Photo)
Publicity packages, including films and
video clips, have been prepared to intro-
duce Iran’s handicrafts to the outside world. nent handicrafts exhibition in Tehran. However, two
districts in the capital have been turned into a hub
• Exporters complain that there is no permanent ex- for handicrafts and walking places for foreign tour-
hibition or stores in foreign countries to display their ists. One is Nejatollahi Street, also known as Villa
handiworks. What have you done or you are going Street, and the other is Oudlajan neighborhood,
to do to get the global population familiar with Per- both in central Tehran.
sian handicrafts? Both districts are permanent handicraft market-
This has been ICHTO policy to locate permanent places. Handworks from all 31 provinces in Iran are
handicraft stores in major cities across the globe to on display in both districts. Tourists visiting Iran may
extend Iran’s reach to the international markets. not be able to visit all 31 provinces but they can see
We opened our first permanent handicrafts store in artistic works representing all parts of Iran in one
Leiden, Netherlands, in 2016. It was set up with the marketplace. Deputy Head of Iran’s Cultural
private sector investment. It’s fascinating to note that The new designing and popularizing scheme is ex- Heritage, Handicrafts and
Tourism Organization (ICHTO),
the Dutch people have shown a great interest in Irani- pected to boost the two districts. Oudlajan, one of Pouya Mahmoudian speaks to
an pottery, specifically handmade flower pots and Tehran’s oldest neighborhoods located in the heart Iran Europe Business Digest
(IEBD) in her office in Tehran, on
vases. of the city, is becoming an attractive tourist destina- Saturday, 22 September 2018.
We are already planning to set up more permanent tion. Restoration and beautification projects _ such (IEBD Photo)
marketing and exhibition centers selling Iranian hand- as rebuilding and restoring old houses as well as “We opened our first
permanent handicrafts store in
made crafts in other parts of the world. We are already pavements using traditional materials _ are tremen- Leiden, Netherlands, in 2016. It
in the process of finalizing talks to set up handicraft dously changing the landscape in the district. Or- was set up with private sector
investment. It’s fascinating to
showrooms in Spain and Berlin in Germany. ganizing colorful events, festivals and package note that the Dutch people
Our showroom in Germany will be on the basis of a tours is expected to make Oudlajan a striking des- have shown a great interest in
deal to be signed soon with the Berlin-based Iran Eu- tination and a walking tour for both Tehran resi- Iranian pottery, specifically
handmade flower pots and
rope Business Center (IEBC). dents and foreign visitors. vases,” she said.
Touring & Automobile Club of the Islamic Republic of Another plan under study is to set up an open-air
Iran is planned to be an Iranian agent abroad selling night handicrafts market in the capital.
Persian handicrafts. We have also taken other measures to support art-
We embrace with open arms any investor, Iranian or ists. Exporters were previously required to ex-
foreign, to set up permanent stores to sell Iranian change their foreign currency earnings at the Forex
handmade crafts across the globe. Management Integrated System (locally known by
The ICHTO is now considering opening a permanent the acronym Nima). That means they would get the
handicraft marketplace in neighboring Iraq, one of the equivalent in rials at government-authorized rate.
biggest buyers of Iranian artworks. But now, they are allowed to sell their foreign cur-
• Some Iranian artists complain that there is no rency earnings at the unofficial open market rate
large showroom in Tehran dedicated to handicrafts (which is sold nearly double the Nima rate).
for domestic audience and foreign tourists or for- Additionally, we have banned the import of for-
eign trade delegations visiting Iran. What have you eign-made handicrafts to support Iranian artists to
done to respond to this call? push up domestic sales of craftworks.
There are efforts already underway to set up a perma- Import of foreign handicrafts has always been one
69
of the main concerns for Iranian artisans. Banning
importation of foreign handicrafts has greatly eased
their concerns.
• Have Iranian embassies _ cultural or commer-
cial attaches – been required to help promote Ira-
nian handicrafts in countries and cities of their
residence?
Yes. As part of structural changes at the Foreign
Ministry, a new economic department was created
in January 2018 to help promote Iran’s internation-
al trade. It was aimed at giving more importance to
economic diplomacy.
A tourism desk was set up at the department. Pro-
motion of handicrafts is part of responsibilities of
the tourism desk.
Promoting non-oil exports is a key responsibility of
the economic department at the Foreign Ministry
and handicrafts is part and parcel of that.
• Where do women stand in Iran’s handicrafts
business?
More than 70 percent of Iranian handicrafts are
produced by women. They also play an important
role in Iran’s tourism sector. The ICHTO seeks to
empower women in the IT (Information Technolo-
gy) and ICT (Information and Communications
Technology) sectors.
• What have you done to help capture new mar-
kets?
Our policy is to preserve and deepen our presence
in the existing markets and tap into new markets.
Our studies have traditionally been based on the
marketing experience our exporters and business-
men achieved in global business. But lately, we
have been carrying out academic, professional
studies as part of stepped up efforts to expand our
handicraft business.
We are now involved in a research and develop-
ment scheme. The basic goal of this scheme is to
create a regular system of obtaining feedback on
economic, social, aesthetic and promotional as-
pects of various craft goods. Carrying out field
studies will help planners and artisans to learn
about customer prefer-
ences in various countries Iran Europe Business Digest’s (IEBD) Editor-in-Chief Ali Akbar Dareini (left) interviews Deputy Head of Iran’s Cultural Heritage, Handicrafts and
Tourism Organization (ICHTO), Pouya Mahmoudian, (right) in her office, in Tehran, Iran on Saturday, 22 September 2018. (IEBD Photo)
and produce artistic works
on the basis of those find-
ings.
As part of a plan to cap-
ture new markets, we
have concentrated on the
five emerging economies
_ Brazil, Russia, India,
China and South Africa
(BRICS) _ and there are
clear indications that these
countries are waking up to
the Persian handicrafts.
The BRICS market is of
special significance for us.
We participate in exhibi-
70 No. 2 & 3 October-December 2018
“Iranian home” is a living place
equipped and decorated by
handicrafts excluding electronic
devices. From kitchen
appliances to furniture and from
dinner table to internal designs
and everything else _ excluding
electronics _ are handmade
works.
tions in these countries with smart plans.
We are attaching special significance to wealthy peo-
ple in Russia and China to meet their demand for lux-
urious handicrafts.
Iranians living abroad are the honorary ambassadors
of Iranian handicrafts in foreign lands. They can put
handiworks on display in their pages and places of
work in order to help promote the business.
• The ICHTO has lately been publicizing the idea of
“Iranian home.” What’s that?
The idea basically is to promote usage of handicrafts
in the construction industry. “Iranian home” is a living
place equipped and decorated by handicrafts ex-
cluding electronic devices. From kitchen appliances
to furniture and from dinner table to internal designs
and everything else _ excluding electronics _ are
handmade works.
The goal is to promote use of handicrafts in modern
homes through presentation of their usefulness in
practice. Our motto is embedding traditional handi-
crafts in modern homes.
We are planning to set up “Iranian home” in other
parts of the world and put it on display to captivate the
heart of visitors. There are very luxurious handmade
artistic products in an “Iranian home” for wealthy peo-
ple. And there are also lower-cost artworks in an “Ira-
nian home” for the middle class families.
We opened the first “Iranian home” in Tabriz, in north-
western Iran, earlier this year and are planning to set
up at least one “Iranian home” in each provincial cap-
ital in Iran.
Additionally, the ITCHO is also encouraging designers
and architects to use traditional handicrafts in deco-
rating high-rise buildings, hotels and homes. Handi-
crafts can contribute greatly to the construction in-
dustry by creating lavishly decorated structures and
apartments.
We are also getting handicrafts into Iran’s car industry
as well as the toy and doll industry, meaning that
handmade works will be among their features.
At the same time, the ICHTO is taking measures to
turn historical houses into handicraft marketplaces
across Iran.

A Profitable Business Project for Foreign Investors:
Redesigning, Packaging
& Online Marketing of
Iranian Handicrafts
G
iven its rich culture, ancient civiliza-
tion and geographical location, Iran
plays a key role in the world of arts
and handicrafts.
Every corner of the vast country is specialized in
certain craftworks. Handicrafts are in fact one
of Iran’s tourist attractions. Tourists visiting Iran
face a wide variety of options to choose from
and take with them to their homelands as sou-
venirs. In major tourist cities of Isfahan, Shiraz,
Yazd and Tabriz, foreign tourists are attracted to
the appealing artistic works.
Iran earned $281 million from the export of
handicrafts – excluding carpets _ in the last Ira-
nian calendar year of 1396 (21 March 2017 –
20 March 2018), according to Ali Asghar
Mounesan, Iran’s Vice President and the head
of Iran’s Cultural Heritage, Handicrafts and
Tourism Organization (ICHTO).
That doesn’t include handicrafts bought by for-
eign tourists visiting Iran _ known as the suit-
case trade _ nor does it include domestic sales.
“Iran hosted some 5 million tourists last year. If
each of them purchased $50 worth of handi-
crafts, it means Iran has also earned about
$250 million in addition to direct exports,” he
told his organization’s website (ichto.ir) on 5 Au-
gust 2018. Domestic sales of handicrafts also
generated over 14 trillion rials ($1.7 billion).
The value of handicraft exports registered at the
Islamic Republic of Iran Customs Administra-
tion (IRICA) reached just $112 million in the year
ending 20 March 2014. It amounted to $174
million in the year ending 20 March 2016. And it
was around $200 million in the year ending 20
March 2017, showing a steady increase year
on year.
Handicrafts have become increasingly popular
in the global market. Iranian government offi-
cials have estimated that foreign currency reve-
nues from IRICA-registered exports will annually
surpass $1 billion by 2025 ($2 billion if handi-
crafts purchased by tourists visiting Iran are to
72 No. 2 & 3 October-December 2018
be included).
Major export destinations for Iranian handicraft
items are Europe, Japan, Canada, Australia,
Arab countries and Iran’s immediate neighbors.
There are over 295 types of handicrafts pro-
duced in Iran, each having its own customers
and usage. That places Iran third in the world in
terms of producing handicrafts. China and India
stand first and second respectively.
Persian handicrafts are many but the best
known and most popular artistic works in Iran
include engraving, weaving, enameling, pottery,
ceramics, tiles and mosaic, metalworking of
dazzling colors, woodworking, mat weaving,
miniature painting, calligraphy, glassware and
specifically glass candlesticks, hand-printed
textiles and scarves, traditional musical instru-
ments and jewelry.
The handicrafts sector is emerging as an im-
portant platform for generating self-employ-
ment opportunities. The segment employs
more than two million people directly and indi-
rectly.
“The handicrafts sector is significant for the Ira-
nian economy as it is one of the largest employ-
ment generators and accounts for a sizable
share in the country’s exports. Regional clusters
contribute significantly to handicraft export,”
handicrafts producer and exporter Mohammad
Elmieh told Iran Europe Business Digest (IEBD).
The Iranian handicrafts industry is fragmented,
with over two million rural and urban artisans
and thousands of production houses promot-
ing regional art and craftsmanship in the do-
mestic and global markets.
Government authorities are pursuing plans to
launch handicraft chain stores across the coun-
try and the globe as part of efforts to create jobs
and reduce unemployment.
While an average of 4 billion rials ($50,000) is
needed to create a single job in Iran, one can
create a job in the handicraft sector by just 400
million rials ($5,000). That’s one-tenth.
Publicity & Marketing Are novative packaging are the response to boosting
exports of handicrafts,” Mirian said.
Big Challenges for Iran Handicrafts The artisan, who has 28 years of experience be-
Experts believe that one important way of increasing hind him, believes that Iran needs to increase its
the sale of handicrafts is promotion of tourism and market development efforts with the adoption of
hosting more tourists in Iran. appropriate strategies to tap into new markets for
“Handicrafts of every country are the first representa- its art works beyond its traditional customers.
In July 2018, an Iranian firm for the first time ex-
tion of that country’s culture for tourists. Therefore,
ported mat weaving products to the United Arab
they are very important,” veter-
an handicrafts producer Mo-
hammad Reza Mirian told the
IEBD. Handicrafts are on display at an exhibition in Tehran, on Thursday, 30 August 2018.
(IEBD Photo)
Another method is organizing
exhibitions in major cities
around the globe in order to
make the world familiar with
Iranian handicrafts, as well as
opening showrooms and even
warehouses in target countries
on the basis of their market
size. He said it does worth the
investment since the handi-
crafts sector can bring in hard
currency and create jobs.
“Establishment of websites
creates a permanent place to
display the works of craftsmen
and facilitate their export. And
boosting exports encourages
craftsmen and craftswomen to
expand their business and
produce more artifacts. That
means creation of more jobs,”
he said. “Increasing inflow of
tourists, expansion of retail
business, increased use of In-
ternet and e-commerce prom-
ise well for the handicrafts sec-
tor.”
Mirian, 48, has a workshop in
the historical city of Isfahan in
central Iran (mirianhandicrafts.
ir) producing a wide range of
artworks but concentrates on engraving work, khat- Emirates (UAE) and Qatar. The shipment, accord-
am work (marquetry) and turquoise tattoo. ing to the semi-official Mehr news agency, con-
The businessman said foreign visitors are not only tained more than 800 mat products, traditional
customers of handicrafts but can work as ambassa- handicrafts native to southern Iran. The products
dors by introducing Iranian art overseas when they were mostly made of leaves of palm trees.
take Persian crafts back home. That’s an improvement but much more is needed
Business experts believe both producers and ex- to be done.
porters need to invest in research and development Most producers lack the financial means to adver-
in order to learn about foreign markets, upgrade their tise their products or go around the world looking
capabilities and produce a variety of products in or- for new markets and showcase their crafts.
der to respond to all tastes and sell good. Addition- Handicrafts expert Hossein “As producers, we are equipped with the know-
ally, they need to showcase their work around the Bakhtiari says the wide variety how of production but don’t have the necessary
of Iranian handicrafts means
globe. Iran has the capacity to export marketing skills nor do we have the financial ability
“Promotion methods such as building brand image, its artifacts to all countries in to advertise our beloved products. This is where
holding craft festivals in target countries, organizing the planet, including African
states.
the government must step in. We need state sup-
exclusive exhibition of Iranian handicrafts in select port to open the way for promotion of our business
cities across the world, publicity through attractive abroad,” Mirian said. “Commercial and cultural at-
display and employment of marketing tools, and in- taches in Iranian embassies abroad are expected
73
 to promote Iranian handicrafts and assist us in
finding markets. Publicity and marketing are the
top two challenges for producers. Finding news
markets will inject new blood to the veins of the
handicrafts industry.”
Zhaleh Salehi, a handicraft producer that runs
Zhaleh Art Gallery in Isfahan, says handicraft re-
flects the culture and heritage of a country and
Iran has been weak in presenting and promoting
this rich heritage. She argues that producers of
Artisan Mohammad Reza artifacts need ICHTO’s help to find new markets
Mirian: and this is where the organization can step in and
“As producers, we are
equipped with the knowhow of
help uplift the industry.
production but don’t have the Salehi is an expert in Minakari, or Enamelling, and
necessary marketing skills nor she has found her own way of marketing to get
do we have the financial ability
to advertise our beloved handicrafts to art lovers across the globe.
products. This is where the She has identified Iranian expatriates living in var-
government must step in. We
need state support to open the
ious countries, specifically students studying in
way for promotion of our foreign universities, to sell her artifacts and earn
business abroad.” hard currency.
“I have contacts in different countries. They are
Iranian expatriates. They take our artifacts to the
country they live and sell it to make money. We
share the profit. It’s profitable for both of us. I’ve been
unable to market my handiworks independently and
this is the solution I’ve found,” Salehi told the IEBD.
“I can’t simply limit my sales to foreign tourists visit-
ing Iran. I’m in touch with my contacts, specifically
Iranian expatriates living in Canada, Australia and the
United Kingdom, through social media networks
such as Instagram or Telegram. The handicrafts my
contacts take abroad are not registered with the IRI-
74 No. 2 & 3 October-December 2018
CA and are considered suitcase trade.”
BRICS Member States,
An Emerging Market for Persian
Handicrafts
Research carried out by international experts on the
global handicrafts market show a 12 percent growth
between 2015 and 2019. The minimum initial invest-
ment required for creation of job, low-pay labor and
abundant raw materials are the primary drivers for
the growth of this market.
High global demand for home accessories, jewelry,
glasswork and other fashion accessories such as
handbags and belts are contributing to market
growth. Growth in international tourism is seen as
another reason behind the growth of the handicraft
market.
These telling findings show what Iranian artisans and
exporters need to do. Craftsmen and craftswomen
across Iran are in dire need of market opportunities.
Holding expos in the world’s five major emerging
economies _ Brazil, Russia, India, China and South
Africa (BRICS) _ is seen by experts as an important
initiative aimed at tapping into new markets for Irani-
an handicrafts.
“While the European Union (EU) countries, Japan,
Arab states and Iran’s neighbors have been major
destinations for Iranian handiworks, BRICS member
states are among new markets that appear to be
keen on Iranian handicrafts,” Hossein Bakhtiari, Sec-
retary of Iranian Handicraft Exporter Association told
the IEBD. “There is an appetite for handcrafted Irani-
an products there. Our yet limited but increasing ex-
ports show that BRICS countries are waking up to
the Iranian handicrafts since Persian artifacts offer
uniqueness in craftsmanship, quality and display.
The opportunities are endless there. We need to
send our marketing people there to study and pave
the way for expansion of market openings.”
Bakhtiari said the wide variety of Iranian handicrafts
means Iran has the capacity to export its artistic
works to all countries in the planet, including African
states.
Handmade table cloth items are on display at an exhibition in Tehran, on Thursday, 30 August 2018.
(IEBD Photo)
An Iranian woman and her husband point to a
copper handicraft item displayed for sale at a
shop in central Tehran, on Wednesday, 3
October 2018. (IEBD Photo)
“Persian handicrafts have a history of several thou-
sand years but we are young in marketing and have
been unable to capture markets adequately. We
need to draw up defined plans for each region and
each country. That’s still missing. This is one reason
why we have not been able to capture too many
markets. Both the government and the private sec-
tor have failed to address this key issue appropriate-
ly. We need to learn about foreign markets and edu-
cate our artisans to produce artifacts to meet market
requirements,” he said.
That may partly explain why, for instance, the Omani
market reportedly has been inundated with Chinese
and Indian handicrafts while Persian artifacts have a
minimum share.
“A veteran artisan that produces a masterpiece is not
necessarily a good businessman. Business experts
are needed to do the marketing. That’s what we
need to concentrate on more than before. An artisan
produces artwork on the basis of his or her own
taste or preference but we need to produce handi-
crafts to meet the taste of customers,” he said. “You
can’t sell the same handicrafts Chinese buy to Brazil-
ians. If we are after success, we are required to carry
out field studies and learn about customer prefer-
ences in different countries and then produce works
on the basis of our findings.”
Going forward, Bakhtiari suggested, Iran should
Increasing handicraft exports
and creating new market
opportunities for Iranian
artisans are also in line with the
state policy of developing an
“economy of resistance”, a
strategic goal aimed at
diversifying exports, boosting
domestic production, reducing
dependence on crude oil
revenues and sales of other raw
materials, and promoting
knowledge-based high-tech
industries.
Revenues earned from the
export of handicrafts are
among smart solutions to
reduce Iran’s reliance on oil
revenues and achieve those
goals.
seek to make further inroads into global markets and
focus on Latin America and Southeast Asia.
Increasing handicraft exports and creating new mar-
ket opportunities for Iranian artisans are also in line
with the state policy of developing an “economy of
resistance”, a strategic goal aimed at diversifying ex-
ports, boosting domestic production, reducing de-
pendence on crude oil revenues and sales of other
raw materials, and promoting knowledge-based
high-tech industries.
Revenues earned from the export of handicrafts are
among smart solutions to reduce Iran’s reliance on
oil revenues and achieve those goals. Some experts
call handicrafts a “hidden treasure” that can save
Iran’s faltering economy.
Creating an export terminal specifically devoted to
75
handicrafts in order to facili-
tate and speed up the pro-
cess of exporting artifacts
and a national showroom in
Tehran to display handi-
works to foreign tourists
and trade delegations visit-
ing Iran are among mea-
sures already being ad-
dressed by the ICHTO.
A sharp decline in the value
of rial, Iran’s national cur-
rency, against the U.S. dol-
lar and other foreign curren-
cies in recent months has
even encouraged Iranian
artists to utilize the abun-
dantly available domestical-
ly-produced raw materials
and double their efforts to
increase their exports. They
can gain more profits by
selling their products in for-
eign currencies and then
change it back into rials.
Exporter Elmieh looks be-
yond traditional customers
of Iranian artifacts.
He names Argentina as a
potential new market for Ira-
nian handicrafts. However,
he admits that entering new
markets is a high-cost pro-
cedure which can be facili-
tated by e-commerce and
government support.
Elmieh, CEO of the private
Handicraft Global Research
(HGR), began his business
in the handicraft sector in
2014. His HGR, he said, has
created 1,200 jobs with
some 300 skilled artists pro-
ducing pottery works and
more than 200 artisans in-
volved in miniature and small
paintings alone.
He underscored a dire need
for proper marketing and
promotion in a bid to im-
prove exports.
“In many countries, Iranian
handicrafts are not known to
the public. That’s why there
is a serious need to attend
exhibitions in various coun-
tries, organize showrooms
and even set up retail shops
in major cities across conti-
nents to make the world fa-
miliar with Iranian handi-
crafts,” Elmieh insisted.
76 No. 2 & 3 October-December 2018
A Profitable
Business
Plan for Foreign
Investors
Business developer Mostafa
Salehirad says Persian handi-
crafts are suffering from lack of
adequate designing, packag-
ing and online marketing and
this is exactly where foreign
investors, particularly Europe-
ans, can jump into the market.
“Most Iranian handicraft artists
still maintain a traditional mind-
set, which is a big challenge
for development of the sector.
Some 90 percent of handi-
works they produce are deco-
Glazed pots are on display at a shop in Iran.
Pottery products are available both in glazed and unglazed forms of various sizes and
shapes. Ceramic glaze is the most common form of pottery decoration.
Pottery work is one of the top five popular Iranian handicrafts. There are a wide variety of
them from earthenware vessels suitable for holding liquids, bowls, plates, flower vases to
candle holders and many more.
rative, not practical, items be-
cause they produce works
without studying the target
countries. That’s why we have
failed to capture a big size of
the global handicraft market,”
he said.
Salehirad, manager of ar-
toneat.eu handicrafts, is in the
process of launching his online
handicraft business in Berlin
on the basis of a deal he has
signed with the Iran Europe
Business Center (IEBC). His
artoneat.eu will be launched in
December 2018 with four ma-
jor goals:
1.It is intent on turning its Ber-
An Iranian woman weaves a basket mat as she sits surrounded by baskets
woven from palm tree branches.
The handicrafts sector is emerging as an important platform for generating
self-employment opportunities. The segment employs more than two
million people directly and indirectly.
lin space into a retail handicraft
marketplace with online sales
across Europe. That would be
Business to Customer (B2C)
sale too.
2. It is planning Business to
Business (B2B) sale. That
would be wholesale business.
It means artoneat.eu will sell
previously-ordered handiworks
to chain stores, commercial
and professional business us-
ers or to other wholesalers.
3. It is working to develop con-
cepts, seeking to revolutionize
Persian handicrafts through re-
designing to meet the taste of
customers in target countries.
He says employing Iranian students abroad to sell
handicrafts is neither professional nor sustainable in
Handicrafts Sell
the long term. Instead, he believes, an IT-based infra- Good Domestically
structure together with professional marketing and
online sale is the way to help boost the export of Sale of $1.7 billion worth of handicrafts in the do-
mestic market last year shows that the industry is
handicrafts.
“At least 57 percent of Europeans favor online shop- selling relatively good at home with a population of
ping since electronic commerce allows consumers 80 million people.
to directly buy goods over the Internet by using a But there is still a lot of room for improvement. Tra-
web browser. This’s what we are planning to activate ditional artists in rural areas or small towns have
to promote Iranian handicrafts. And that’s why we little access to high-speed Internet or online sale.
Business developer Mostafa
are opening a marketplace in the heart of Europe, Salehirad, a veteran in Many of them even don’t use Internet at all. That
Berlin, and are going to engage in online sale,” he handicraft business, argues partly explains why they want permanent show-
that Persian handicrafts will get rooms in the capital Tehran to sell their works.
said. a boost should they be
The business developer wants artoneat.eu to be a redesigned and marketed “We need a permanent location to sell in Tehran,”
pioneer in online sale of Persian handicrafts and is
online. one potter from Lalejin said at the annual handi-
“We need partners in Europe
already in talks with digital marketing firms in Europe who are experts in digital
crafts exhibition in Tehran this summer. “Holding
to sign partnership agreements. marketing and online sales,” he an exhibition is good but it is only for a few short
“We need partners in Europe who are experts in dig-
says. days.”
Salehirad argues that Iranians
ital marketing and online sales. We are also ready to are strong artists but are weak
raise funds jointly with European firms to promote
in marketing. This is where Experts believe one important way of
Europeans can jump into the
Iranian handiworks,” he said. business and make use of their increasing the sale of handicrafts is promo-
Salehirad argues that Iranians are strong artists but expertise in redesigning and tion of tourism. Another method is organiz-
Holding expos in the
packaging as well as online ing exhibitions in major cities around the
are weak in marketing. This is where Europeans can marketing and reap the globe in order to make the world familiar
world’s five major emerging jump into the business and make use of their exper- financial benefits.
economies _ Brazil, Russia, with Iranian handicrafts, as well as opening
tise in the field of redesigning and packaging as well showrooms and even warehouses in target
India, China and South as online marketing and reap the financial benefits.
Africa (BRICS) _ is seen by countries on the basis of their market size.
experts as an important
initiative aimed at tapping
into new markets for
Iranian handicrafts.
4. It is planning to enter Eu-
rope’s auction market. He says
Iranians have neglected the
potentially significant auction
markets outside Iran and that
his artoneat.eu is determined
to offer only luxurious and
splendid artworks at auctions
twice a year in Europe.
“Our plan is to turn Persian
handicrafts into practical items
based on the demand of cus-
tomers rather than selling
them as decorative items. Our
goal is to match artworks with
modern design and capture
the global markets. That’s why
we have been conducting
market research before
launching our new business,”
he said.
Salehirad, a veteran in handi-
craft business, argues that the
export of Persian handicrafts
will get a boost should they be
redesigned and marketed on- Handicrafts are on display at an exhibition in Tehran, on Thursday, 30 August 2018.
(IEBD Photo)
line.
77

UNESCO Seal
of Excellence for Iranian Handicrafts
The United Nations Educational, Scientific and Cultural Orga-
nization (UNESCO) annually awards Seal of Excellence to se- Khatam
lect handicraft products submitted by producers around the Khatam, described by many
world.
Handicraft products are considered unique expressions of a
artisans as the most popular
Iranian handicraft, is an an-
community or culture. Submitted products are judged by an
international panel of experts selected by UNESCO, the spe-
cient Persian technique of in-
laying.
cialized agency of the United Nations based in Paris.
Awarding Seal of Excellence to selected products are aimed at
In other words, it’s the Persian
art of marquetry wherein the
promoting the handicraft sector and encouraging artisans to surface of wooden articles is
produce artistic works using traditional skills, designs and
ideas while employing innovative methods.
decorated with delicate pieces
of wood, bone, and metal,
In 2010, a total of 65 selected Iranian handicrafts including which are already cut precisely
enamel, tile, metalwork, leatherwork and wood carving re- in a variety of shapes and de-
ceived the UNESCO Seal of Excellence. signs. The pieces are laid side
In 2016, a total of 10 high-quality works by Iranian artisans, by side, glued together in
ranging from potteries to hand-woven products, were granted stages, smoothed, oiled and
the prestigious award. polished.
Isfahan, the cradle of Iranian handicrafts, has won over 100 Designing of inlaid articles is a
UNESCO awards so far alone. In total, Iranian handicrafts have highly elaborate, labor-inten-
so far received 273 UNESCO Seals of Excellence, the highest sive and delicate process. In
number of awards accorded to any country. just one square inch, there are
more than 400 pieces in a
Here are some of the most popular Iranian Khatam work of average qual-
handicrafts to name a few: ity. That alone speaks of its
precision. And that’s why inlaid
work requires a great deal of
proficiency, precision and pa-
tience.
Khatam work, also known as
incrustation work, is mostly
used to coat boxes, cases and
frames. Khatam work is also
used in doors and windows,
mirror frames, holy book box-
es, jewelry boxes, pen and
penholders, inlaid boxes,
home accessories, dinner ta-
bles and even large chande-
liers.
The ornamentation of the
doors of holy places predomi-
nantly consists of inlaid motifs.
Samples of Khatam work can
be observed in the cities of
Mashhad, Qom, Shiraz, and
Tehran. The inlaid-ornamented
rooms at the Sa’dabad Palace
and the Marble Palace in Teh-
ran are among masterpieces
of this art.
78 No. 2 & 3 October-December 2018
The typical items utilized in the
construction of inlaid articles
are gold, silver, brass, alumi-
num and twisted wire. Khatam
art flourished in the Safavid era
(1501 to 1722) as artists creat-
ed precious artworks.
Moarragh or
Wood Carving
Moarragh or wood carving _
also referred to it as marquetry
_ is another type of inlaying on
wood. It’s actually the craft of
applying pieces of veneer into
a context to form decorative
patterns, designs or pictures.
This type of art is the making
of designs and motifs by edge
cutting and combining colorful
pieces of wood on wood base
dyed with polyester color.
Iranian handicrafts have so
far received 273 UNESCO
Seals of Excellence, the
highest number of awards
accorded to any country.
Monabat or
Fretwork
Monabbat is ornamental de-
sign in wood. It’s an interlaced
decorative design that is either
carved in low relief on a solid
background, or cut out with a
fretsaw.
The art is another type of wood
carving. It’s one of the most
delicate Iranian handicrafts
that use a combination of art
and the pleasure of artisans to
create valuable products.
Artists engaging in Monabat
hammer on the wood, engrav-
ing their minds with beautiful
lines, motifs and flowers.
Based on the existing evi-
dence, the history of this art-
work reaches more than 1500
years in Iran.
Painting and decorative work
to make the painting more
beautiful is the final stage of
the work. Painting and finish-
ing decorative work not only
adds to the beauty of the art-
work but also keeps the wood
from moisture, heat and ero-
sion.
Abadeh and the historical city
of Shiraz in south Iran are the
main centers of Monabat
work.
Monabat is widely used for
decorating furniture or as an
artwork in the form of tab-
leaux.
Qalamzani or
Engraving
Qalamzani or engraving, also
known as toreutics, is one of
the traditional handicrafts of
Iran dating back to 5,000 to
7,000 years. It’s artistic metal-
working by hammering gold,
silver, copper or brass.
In other words, engraving is
the practice of incising a de-
sign onto a hard, usually flat,
surface by cutting grooves into
it with a burin or carving into it
by chisel.
Burin is a steel rod with a
square or lozenge-shaped
section and a slightly bent
shank and chisel is a tool with
a shaped cutting edge of blade
on its end.
To engrave, the artisan first
covers the back side of the
work by tar. That’s done to
prevent loud noise while doing
engraving and avoid the metal
from getting punctured as a
result of hammering.
Then, the craftsman begins to
engrave the chosen designs or
patterns on the work, using
hammer and different types of
chisels. The deeper it pene-
trates into the metal, the wider
the line.
Once the engraving is done,
tar is removed from the back
of the work and the chiseled
areas are covered with char-
coal powder and black lubri-
cating oil. Finally, the work is
cleaned off and the black lines
of the engraved designs ap-
pear on the surface of the
work. The engraved lines are
so sharp and clean that assert
themselves brilliantly on the
surface. The result is a deco-
rated engraved work.
It takes years and years of
practice and hard work to fully
learn engraving techniques
and produce a masterpiece. It
also requires a degree of ex-
pertise to distinguish hand-
made engravings from ma-
chine-made works.
Copper-plate engraving is the
most common craftwork in
Iran.
Some hand engraving artists
nowadays employ a combina-
tion of hand push, pneumatic,
rotary and chisel methods at
work.
Minakari or
Enamelling
The art of Minakari, or
Enamelling, is the decora-
tion of metal and tile with
mina glaze. It is the art of
painting, coloring and orna-
menting the surface of met-
als and ceramics (porce-
lains) by fusing a thin layer of
powdered glass to the ob-
ject with a combination of
brilliant colors.
That layer of glass is called
Mina or Vitreous Enamel. It’s
a durable coating made of
melted and fused glass
powder.
In this technique of decora-
tive art _ which is also called
Porcelain Enamelling and
Vitreous Enamelling, enamel
in the form of a powder or
paste is applied to a metal or
ceramic surface and then
subjected to intense heat.
The fire (usually between
750 and 850 degrees Cel-
sius) melts the enamel turn-
ing it into a brilliant glass-like
substance. That’s why some
call the work “the Miniature
on Fire.”
After cooling, it gives the
metal, glass or ceramic a
hardened, long-lasting sur-
face.
The art of decorating metal
or ceramic surface with
glowing color was known in
Iran from early times. The
discovery of a knife handle
decorated with enamel be-
longing to the first millenni-
um BC point to the ancient
origin of this art in Persia.
Iranian craftsmen during the
Sassanid era (224 to 651
AD) extensively employed
this art. Later, Mongol invad-
ers spread this magnificent
art to Central and East Asia.
The paintings or patterns
used for enamel works in
Iran are traditional designs
depending on the taste and
preferences of the artist or
orders from customers.
79
 In the Iranian version of enameling, copper and silver
are the most dominant metals used while ceramic
enameling has also flourished.
There are special tools used in this ancient artistic
endeavor such as kiln or furnace, pliers, clamp and
brush. Isfahan is the center of enameled work in Iran.
There are a wide variety of enamelled works available
in Iranian bazaars from bowls, plates, pitchers, tea
and beverage serving sets to decorative pieces such
as flowerpots, home accessories, candle holders,
jewelry boxes and wall decors or items such as pho-
to frames, photo albums, ashtrays, and pipes. One
can also find cute Minakari earrings, necklace sets
and rings. Should artisans want to overdo them-
selves, they combine Minakari with Khatam works to
make it more appealing to buyers.
Velvet Weaving
Velvet is a kind of piled silk fabric in which cut threads
are evenly distributed, giving it a distinguished,
unique soft feel.
Due to delicacy in its design, form, and softness in its
texture, velvet is regarded as the climax of textile art
having a variety of categories, the most beautiful of
which is the embossed velvet.
Velvet was initially used to make clothes for the aris-
tocrats, curtains and upholstery in palaces, and to
make coverings for the Holy Koran, and praying
mats. It’s based on historical facts that historians
suggest velvet weaving dates back to the early Is-
lamic period.
Although historical record of velvet weaving in Iran is
not precisely known, weaving various silk types of
fabric has been popular in different parts of Persia
since the Sassanid period.
The art of velvet weaving reached its peak during the
Safavid Dynasty, thanks to the flourishing textile in-
dustry. In the Safavid era, velvet was widely used to
decorate the imperial court. The artwork was mostly
Persian Silk Brocade
viewed as Iran’s primary souvenir at the time.
Yazd and Kashan are major velvet weaving centers in
Iran.
80 No. 2 & 3 October-December 2018
Brocaded silk weaving is one of the Iranian national
arts dating back to the Achaemenian era (550 and
330 BC). Weaving curtains and brocaded silk woven
fabrics flourished during the Sassanid period and
were mostly used to decorate royal palaces.
Brocade fabric is a class of richly decorative shut-
tle-woven fabrics. It is considered a supplementary
weft technique. The work mainly consists of solid or
multi-colored silk threads, usually combined with
gold or silver metallic threads.
This traditional fabric is composed of two groups of
warp and weft threads. In traditional brocaded silk
weaving, both the thread of warp and the thread of
weft are of pure silk. Once the fabric is woven, it en-
joys special sheerness and softness.
Brocaded silk creates the illusion that the weave has
been embossed into the fabric, or embroidered on
top of it.
Iranian colored silken fabrics have long enjoyed spe-
cial fame in Asia and Europe.
Pottery
Pottery is one of the oldest human inventions. It’s
basically clay that artisans turn into pottery wares.
It’s actually fired ceramic wares containing clay.
In other words, pottery is made by forming clay into
objects of various shapes through a variety of tech-
niques and heating them in a kiln to remove the
moisture from the body of the clay. The clay body
can be decorated before or after being fired.
Evidence of a painted-pottery civilization around
Susa, in southwestern modern Iran, dates back to
5,000 BC.
The village of Kalporegan in Sistan and Baluchestan
Province in southeastern Iran is home to the ancient
art of Persian pottery. The village is known as an
open pottery museum.
According to local elders, manufacturing practices
dating back between 4 and 6 thousand years ago
still remain intact.
But Lalejin, a small town in Hamedan Province in
western Iran, is an expanding pottery hub in Iran. It
hosts numerous pottery workshops and is celebrat-
ed as the World Pottery Capital. The town has a
global reputation for its potteries. Pottery handicraft
has made Lalejin a center of tourism in the province
and tourists _ both Iranian and foreign _ buy pottery
as souvenirs to adorn their homes.
Meibod, a town in Yazd Province in central Iran, is
another center of pottery and porcelain.
Pottery products are available both in glazed and un-
glazed forms of various sizes and shapes. Ceramic
glaze is the most common form of pottery decora-
tion. Pottery products in both cities feature delicate
flowers, birds and more complex geometric pat-
terns, derived from Persian traditions and culture.
Pottery work is one of the top five popular Iranian
handicrafts. There are a wide variety of them from
earthenware vessels suitable for holding liquids,
bowls, plates, flower vases to candle holders and
many more.
An Iranian worker uses a pottery
wheel to construct pots, at a
pottery workshop in Lalejin, a town
in western Iran.
The town has a global reputation
for its potteries. Pottery handicraft
has made Lalejin a center of
tourism in the province and tourists
_ both Iranian and foreign _ buy
pottery as souvenirs for use at their
homes.
Zhaleh Salehi, a handicraft
producer in Isfahan, has identi-
fied Iranian expatriates living in
various countries, specifically
students studying in foreign
universities, to sell her artifacts
and earn hard currency.
Mat Weaving
Mat weaving is the art of weaving strips of organic
fibers into mats. Actually, a mat is a piece of fabric
material made of lengthy dried leaves of trees,
specifically palm trees, that normally is placed on
a floor or other flat surface.
Mat weaving in Iran is done manually, mostly by
women in rural or tribal regions. The art is a source
of income for many families in rural areas.
There are a wide variety of products from door
mats to baskets used to store and transport light
materials while shopping, as well as housewares,
shoes, handbags, and even hats generally used
An Iranian woman weaves a
as protection against scorching sunlight. basket mat as she sits
The main materials used by mat-weavers across surrounded by baskets woven
Iran vary on the basis of geographical diversity. from palm tree branches.
Mat weaving in Iran is done
These materials generally include palm tree leaves, manually, mostly by women in
straws found in marshlands in tropical zones, rural or tribal regions. The art is
a source of income for many
wheat straw and many more. Mats made of or- families in rural areas.
ganic fibers are cool and suitable to the hot tropi- Mat products have gained
cal climate. global attention in recent years
as many countries and
These products have to be kept away from fire, businesses ban plastic straws
pressure and strike by sharp or cutting objects. since most end up in landfills or
floating out in the ocean.
They can be washed using tepid water and ordi-
nary detergents.
Gilan Province in north Iran and Homozgan Prov-
ince in south Iran are the main centers of mat
weaving in the vast country.
Mat products have gained global attention in re-
cent years as many countries and businesses ban
plastic straws since most end up in landfills or
floating out in the ocean.
Environmentalists say using organic materials and
letting go of a single piece of plastic could be a
first step to change behaviors in the world and get
people to start thinking about the global plastic
pollution problem.
81

Many political scientists argue
that Trump seeks to take the
world to pre-World War II stage.
He is trying to once again split
the world into two traditional
spheres of influence with
Russia. Trump’s foreign policy
strategy is at odds with
alliances. His administration
has opted for unilateralism and
is opposed to multilateralism,
global integration and formation
of regional alliances. So, he
doesn’t care if the EU is
eliminated.
82 No. 2 & 3 October-December 2018
Why Is Trump
Undermining the EU?
T
rump’s “America First” mantra and his
administration’s actions has left nobody
in any doubt in Europe that America’s na-
tionalist president wants the European
Union (EU) to fall apart.
Washington’s stance on global trade, Trump’s
approach on funding for the NATO Western mili-
tary alliance, America’s exit from the Paris climate
agreement and its unilateral withdrawal from the
JCPOA are few examples showing that Trump has
split with America’s European allies on a number of
key global strategic issues.
The Trump administration’s decision to impose
new steel and aluminum tariffs is enough evidence
to prove that the White House wants a bigger profit
in everything and this policy of making others pay
more applies to both friends and foes. It argues
that foreign countries, allies and adversaries alike,
have been taking advantage of the U.S. and now
things must change in America’s favor.
The U.S. wants to pay less for everything and
instead wants the world to pay more because it
believes America is superior and thus must gain
more. That’s why Trump has told some of Amer-
ica’s closest allies that they might lose access to
the U.S. market if they don’t reduce tariffs on U.S.
Photo: Bundesregierung
goods.
That comes from the mentality that the United States
is the center of the globe and God has chosen Amer-
ica to lead the world. So, in this self-serving mentali-
ty, America is a God-chosen country standing above
other nations of the world.
Many political scientists argue that Trump seeks to
take the world to pre-World War II stage. He is try-
ing to once again split the world into two traditional
spheres of influence with Russia. Trump’s foreign
policy strategy is at odds with European allies, China
and others.
“Trump has opted for unilateralism and is opposed
to multilateralism, global integration and formation of
regional alliances. So, he doesn’t care if the EU is
eliminated. And he has already made it clear that he
would be even happy to see that happen,” political
scientist Ali Adami told the IEBD.
Trump’s strong support for UK exit from the EU, he
added, is one piece of evidence revealing America’s
approach towards the bloc. That shows why Trump
is so quick to attack pro-EU leaders such as German
Chancellor Angela Merkel. And Washington’s deci-
sion on 8 May to unilaterally pull out of the JCPOA
was a particular major blow for U.S.-European rela-
tions.
The Trump administration’s unilateralism and na-
tionalistic agenda has unmasked the growing di-
vide between Washington and its European allies.
All these issues have fueled a rethink about EU de-
pendency on the U.S. financial system.
America’s exit from the JCPOA was a violation of an
international deal achieved after 12 years of delicate
and complex negotiations between world powers
and Iran. The move angered America’s allies and
the deal’s remaining five signatories. They all have
since been searching for ways to enable their com-
panies to continue doing business with Iran and
avoid confrontation with the U.S. at the same time.
All of the JCPOA’s remaining members engage in
trade with Iran, particularly for its oil.
People within the Trump administration have clari-
fied that Trump is at odds with virtually all of Ameri- Macron warned in a major speech on 27 August 2018 in Paris that Europe “can no longer rely on the United
ca’s European allies because he believes the direc- States for its security. It is up to us today to take our responsibilities and guarantee our own security, and
thus have European sovereignty.”
tion the EU is taking is not to America’s favor and, Trump aims to break the EU apart. He is an EU opponent and wishes it harm. (AFP Photo)
thus, is dangerous.
Trump looks at Europe as a scary continent overrun by immi- ership,” it wrote.
grants. He has repeatedly accused EU leaders of destroying The offer to Macron clearly was aimed at destroying the EU
their culture and identity by allowing in millions of migrants. and this is an enormous damage Trump is doing to U.S.-Eu-
Also, he believes that America can’t defend forever a continent rope relations. Trump’s intentional actions to weaken the EU
that refuses to pay more for NATO to defend itself. And he has are widely seen as a blatant attempt to undo the strategic in-
clarified that Europeans need to increase their defense spending frastructure between the two sides.
if they want to have the U.S. on their side. It was based on the Trump administration’s actions that Ma-
To Trump, the days of EU is over. cron warned in a major speech on 27 August in Paris that Eu-
The American president might not say it so openly this way, but rope can no longer depend on the United States for its security
this is both what he is saying and what he is doing. and military defense.
Trump disagrees with the path that Europe is on and looks at Then, he called for a new European security policy in the face
Brexit, and ultimately the disintegration of the EU, as a better of rising American nationalism and extremism.
world. To Trump, NATO and the EU are opponents, if not en- The pro-European Macron told an assembly of diplomats that
emies, and he has dedicated his political career to destroy the Europe “can no longer rely on the United States for its securi-
bloc. ty.” CNN reported. “It is up to us today to take our responsibil-
The American president is not undermining the European alli- ities and guarantee our own security, and thus have European
ance because of personal enmity but because he is basically sovereignty.”
opposed to regional alliances and doesn’t see them to benefit The French centrist president insisted that communication
America. with Washington must remain open and constructive but Euro-
The Washington Post reported on 28 June that Trump has pean states need to work together to come up with solutions
urged French President Emmanuel Macron to quit the EU in re- of their own.
turn for a bilateral trade deal. It quoted two European officials as Trump aims to break the EU apart. He is an EU opponent and
saying that Trump, during a private meeting at the White House wishes it harm. Both Trump and Russian President Vladimir
in late April, was discussing trade with Macron. At one point, Putin plot the EU’s demise since it will serve their own political
he asked the French president, “Why don’t you leave the EU?” interests.
and said that if France exited the bloc, America would offer it a By promoting unilateralism and undermining multilateralism,
bilateral trade deal with better terms than the EU as a whole gets Trump is seeking to change the face of the post-World War II
from the U.S. order, sending it back to the years before the war. That’s why
The offer was consistent with Trump’s wider suspicion of interna- he has clearly targeted the EU unity, something that is a pri-
tional organizations and treaties. ority of the EU member states. And that’s why Europeans are
“This is an instance of the president of the United States offer- increasingly coming to believe that the U.S. and Britain may no
ing an incentive to dismantle an organization of America’s allies, longer be completely reliable partners.
against stated U.S. government policy,” it wrote. The threat from Trump has prompted the Europeans to take
The Post added that “Trump has been publicly trashing the EU bold collective action to boost the euro and take a more inde-
and NATO” since he began his campaign for U.S. presidency pendent line in global affairs.
and quoted him as saying at a rally in North Dakota in June: “The Now, it’s in the interests of the EU to protect itself and stand up
European Union, of course, was set up to take advantage of the to Trump’s bullying in favor of multilateralism that it has always
United States, to attack our piggy bank.” cherished.
“European officials no longer believe Trump’s words can be dis- Establishing an independent payment mechanism to keep
counted. They don’t see the alliance rift as routine or temporary. trade with Iran is part of wide-ranging efforts by the EU to
They don’t believe it’s possible to repair the transatlantic bridge maintain its political independence, promote multilateralism,
in the middle of a Trump-sized earthquake. European countries protect free international trade and defend legitimate business
have no choice but to hedge and seek alternatives to U.S. lead- with Iran.
83

UN Court
Issues Interim
Order to US to
Lift Some
Iran Sanctions
T
he International Court of Justice
(ICJ) ordered the United States on
3 October 2018 to lift some sanc-
tions against Iran, including those
linked to humanitarian goods and civil avi-
ation.
“On humanitarian grounds, the U.S. must
remove by means of its choosing any im-
pediment to the free exportation to Iran of
goods involving humanitarian concerns,”
the ICJ said in its ruling.
The interim order by the United Nations’
highest court came in response to a law-
suit filed with the ICJ by Iran in July 2018
over re-imposition of unilateral U.S. sanc-
tions by the Trump administration against
Iran in the wake of Washington’s abrupt
exit from the JCPOA.
The court interim order, unanimously ap-
proved by its 15 judges, was handed
down because the judges recognized the
urgency of Iran’s petition at this stage of
the proceedings. The ruling seeks to put a
hold on U.S. sanctions temporarily while it
hears Iran’s case in full, a process that
could take years.
The ruling said sanctions must not affect
export of goods to Iran required for hu-
manitarian needs such as foodstuffs, agri-
cultural commodities, and goods required
for the safety of civil aviation.
Banning export of Iranian carpets to the
U.S. and sale of passenger planes to Iran
were among the first measures taken by
the Trump administration against Iran in
August.
Rulings by the ICJ, which is based in The
Hague in the Netherlands, are legally
84 No. 2 & 3 October-December 2018
Iran Parliament
Approves Anti-Terror Finance Bill
I
ran’s Parliament on 7 Octo-
ber 2018 approved a land-
mark bill that allows Iran to
join the U.N. convention
that aims to cut off terror fi-
nancing.
The moderate administration
of President Hassan Rouhani
hopes the new measure
against money laundering and
funding terrorism will move
Iran closer to global norms and
This undated photo shows the International Court of Justice, or World Court, in The Hague, Netherlands.
avoid from being added to in-
The interim order by the United Nations’ highest court came in response to a lawsuit filed with the ICJ by Iran vestment blacklists as it faces
in July 2018 over re-imposition of unilateral U.S. sanctions. re-imposition of renewed U.S.
sanctions.
binding and obligatory for each member 1955 treaty. The legislation, which was
of the U.N. but it has no power to enforce Iranian legal experts argue that the lawsuit fiercely opposed by hardliners,
them. The interim order by the ICJ, which against the U.S. is an opportunity to rec- was passed by 143 votes in
settles disputes between nations, was a ognize economic war as an example of favor, 120 votes against and 5
rebuke of the Trump administration for im- the use of force. abstentions.
posing unilateral sanctions against Iran. Others believe that the ruling makes things The legislation has to be rati-
Iran said the ruling vindicated the Islamic easier for the EU to implement its inde- fied by the Guardian Council, a
Republic. pendent monetary mechanism to main- constitutional watchdog, to
“The decision proved once again that the tain trade with Iran and keep the channel become law. Should the coun- This photo shows the Iranian Parliament in central Tehran, Iran.
Islamic Republic is right and the U.S. of commercial transactions open. cil reject it and the Parliament
sanctions against people and citizens of “The court ruling is a diplomatic victory for once again approve it, it will go
our country are illegal and cruel,” the For- Iran and a public diplomacy coup in for- to the State Expediency Coun-
eign Ministry said in an official statement eign relations in a high-stakes dispute be- cil for final decision-making.
released to the media. tween Iran and the United States. And it The bill, which was approved fact become more vulnerable FATF standards or face conse- Mohammed Javad Zarif said
The United States had argued that the was a psychological triumph for the Irani- after months of intensive and to American sanctions and quences that could further compliance with FATF stan-
quarrel was not within the court’s jurisdic- an people at home. The ruling demon- hot debates, was aimed at would hamper Iran’s financial stop investors from doing dards would serve Iran’s na-
tion but the court ruled that it was compe- strated the legitimacy and rightfulness of bringing Iran in line with global aid for its allies such as Leba- business with Iran. The deci- tional interests, would facili-
tent to handle the case. the Iranian people and government at the standards on countering the non’s Hezbollah, which the sion bought the Rouhani ad- tate interaction with other
Iran had argued during court hearings in international stage,” prominent analyst financing of terrorism (CFT) United States has classified ministration time to push for its countries and would take
August that the re-imposition of unilateral Saeed Leilaz told the Iran Europe Busi- and anti-money laundering. the group as a terrorist organi- approval at the Parliament. away future excuses from
U.S. sanctions violated the terms of the ness Digest (IEBD). The standards against money zation. Iran considers Hezbol- The FATF cannot independent- the U.S. to tighten the
1955 Treaty of Amity signed before Iran’s Leilaz said the interim ICJ ruling is not ex- laundering and the funding of lah members freedom fighters ly impose sanctions, but indi- screws on Iran.
1979 Islamic Revolution. Iranian lawyers pected to change Washington’s course terrorism have been set by the resisting against Israeli occu- vidual member states have “Today, the Parliament faces
also contended that U.S. sanctions were but it has provided an important opportu- Financial Action Task Force pation and aggression. used the group’s reports to a historic decision ... to take
“naked economic aggression” because nity for the Trump administration to do (FATF), an intergovernmental The Paris-based FATF said in punish countries refusing to away future excuses from
they have prompted many foreign firms to damage control and improve the tense organization founded in 1989 June that although it was “dis- comply with the standards. the United States,” Zarif told
stop doing business with it, undermining situation if there is a political willing in on the initiative of the G7. appointed with Iran’s failure to It appears that a consensus is the chamber. “Neither I nor
and damaging its economy, and hamper- Washington to do so. The Rouhani administration implement its action plan to being shaped within Iran’s rul- the President can guarantee
ing free international trade. “The ruling has given the Trump adminis- has sought to implement the address its significant AML/ ing system about the signifi- that our problems will go
Lawyers for the U.S. had argued that the tration a chance to change the game standards but it faced strong CFT deficiencies” but “in view cance for the Islamic Republic away by joining the Conven-
ICJ was not competent to handle the ground. The U.S. can now allow the sale resistance from opposition of the Iranian government’s to comply with the standards tion for Combating the Fi-
case and that it will not recognize the of commercial planes to Iran, improve its factions, leading to prolonga- continued efforts to finalize to avoid further complicating nancing of Terrorism, but we
court’s jurisdiction on U.S. foreign policy. worsening global image, flag a green light tion of debates in the Parlia- and pass amendments to its its business relations with the can assure you that not join-
But the court clarified that it had the man- to Tehran and show to Europe that it ment. AML and CFT laws” the group outside world. ing the convention will pro-
date and powers to handle the lawsuit. doesn’t want to disrupt everything and The issue had become a bone decided to continue suspen- Addressing the Parliament’s vide the United States with
In response to the ICJ ruling, U.S. Secre- push things to a point of no return,” he of contention, with hardliners sion of its counter-measures. open session before the vote, an important pretext to in-
tary of State Mike Pompeo announced said. saying that by accepting the At the same time, it said Iran which was broadcast live on crease our problems.”
that the United States would cancel the FATF standards, Iran would in had until October to approve state radio, Foreign Minister
85
 • How can the European
Union (EU) member states as we were going to press, on 2 November.

Iran
President of Iran-Italy Joint Chamber of Commerce Ahmad Pourfallah
maintain ties with Iran under

T
and are aimed at stopping Those exempted are Chi-
he specter of unilateral re-imposition of U.S. sanctions the current circumstances? Iran from exporting oil. na, India, South Korea, Ja-
against Iran in the wake of President Donald Trump’s Europe can only encourage Private buyers purchased as pan, Italy, Greece, Taiwan
Small and Medium-sized En-

starts
abrupt decision to pull his country out of the 2015 nucle- much as 280,000 barrels of and Turkey. The European
ar deal (JCPOA) largely hangs on the future of trade be- terprises (SMEs) and its small oil _ out of 1 million barrels Union (EU), which has an-
tween Iran and Europe. banks that have little depen- offered on the energy bourse nounced that it was in the
Just as Iran was about to bask in boosted trade ties with the dence on the U.S. dollar to _at an average price of final stages of creating an

selling
outside world and restore it to the level enjoyed before the sanc- keep their ties with Iran at a 74.85$in the first day of independent financial
tions, America’s rash decision was like cold water on that pros- level that would prevent a dis- trading ,according to the offi- channel to continue trade
pect. connect from occurring. cial IRNA news agency. with Iran and bypass U.S.
But both Iran and Europe are nevertheless bent on keeping their Activating trade credit insur-

oil
Those buying the oil would sanctions, was not among
trade ties alive. In September, EU foreign policy chief Federica ance companies to cover the have to pay 20 percent of the those receiving waivers.
Mogherini said that the foreign ministers of the remaining JCPOA possible risks of doing busi- total value of their purchases Analysts believe the an-
signatories had agreed to create a Special Purpose Vehicle (SPV) ness with Iran would be bene- in Rial, Iran’s national curren- nouncement on waivers
that would facilitate trade between European companies and ficial, which Iran and Europe cy, and the remaining pay- shows the inability of the
Iran.
Mogherini noted that the legal entity would be established to en-
should strive to achieve.
to private ments would need to be
made in foreign currencies
administration of U.S.
President Donald Trump to
able European companies to continue legitimate transactions
with Iran in accordance with the EU legislation.
• When it comes to SMEs,
how would these ties be pro-
firms to after loading. rally the world in creating a

Iran and Italy’s trade and cultural ties are centuries old and has moted? Has the Iranian pri-
vate sector taken any action
stood the test of time. Ahmad Pourfallah, a veteran businessman
and a well-known figure in the two countries’ business commu- regarding the 5,000 SMEs
nity, currently serves as President of Iran-Italy Joint Chamber of identified by Europe to work
Commerce. with Iran?
A key solution to keeping up
counter U.S. According to Ali Hosseini,
Managing Director of Iran’s
sanctions Energy Bourse, oil sales
would be carried out at least
once a week.
Iran is looking at various
consensus against Iran.
Meanwhile, Iranian Presi-
dent Hassan Rouhani said
on 5 November that the Is-
lamic republic “will proudly
bypass America’s cruel

I
Pourfallah is of the belief that SMEs should be a focal point for ways to keep exporting its sanctions.”
Iran and Italy if the two countries are serious in preserving their trade relations is to focus on ran started selling crude crude oil to beat U.S. sanc- “I announce that we will
economic and commercial relations. In an interview with the the capacities of SMEs. Given oil to domestic and inter- tions after Washington told proudly bypass your illegal,
IEBD, he laid out his thoughts for the future of Iran-Europe trade the fact that Italy is one of the national private compa- its allies to cut all imports of cruel sanctions because it’s
relations in the coming months. leaders and at the forefront of nies through its energy Iranian oil from November. against international regu-
Here’s the full text of our interview: establishing SMEs, business bourse on 28 October The U.S. government has al- lations,” Rouhani said in a
people from both countries ,2018part of a strategy to ready announced that it will televised speech.
• How do you assess the current level of trade between Iran pay attention to this potential counter the renewed unilat- grant 6-month waivers to The president added: “We
and Italy? capability and work to utilize eral U.S .sanctions. eight buyers of Iranian crude are in a situation of eco-
Since trade and industrial relations between Iran and Italy are old these possibilities to a maxi- American sanctions came should they cooperate with nomic war, confronting a
and deep-rooted, these ties are still in place. But given the new- mum. into effect on November,4 Washington to bring Iranian bullying power … I don’t
President of Iran-Italy Joint ly re-imposed [U.S.] restrictions, the level of ties between the two
countries has declined compared with the past. Bilateral trade • How are banking relations
between Iran and Italy at the
Chamber of Commerce: between Iran and Italy has dropped from 7 billion euros in 2011,
to about 1.7 billion euros today. moment? Do you think the

Iran-Italy
scheme to set up an alterna-
• How were Iran-Italy ties improved by the JCPOA? tive payment system for
Italy has for long been Iran’s top trading partner in Europe and Iran-Europe transactions can
still holds that spot (despite the tangible decline in trade that has become successful?
Certainly, we are witnessing a

Business
occurred) and is among the countries that was interested to
boost cooperation with Iran after the lifting of sanctions. It was significant drop in the level of
also the first big and internationally important country which sent trade between the two coun-
a big delegation to Iran at prime minister level. tries. European governments
may be interested to stay in

Continuity Lies
Thousands of business people and hundreds of commercial and
industrial enterprises came to Iran from Italy and a significant the JCPOA but companies
number of Iranians also went to Italy after the nuclear deal. abide by the private sector’s
system of business.
Governments can merely rec-

in SMEs
• What are the challenges for Iran-Italy trade ties in the wake Rouhani: “I announce that we will
of U.S. pullout from the nuclear deal? ommend that these compa- proudly bypass your illegal, oil exports to “zero.” think that in the history of
The first challenge would be for Iran to get disconnected from nies continue their business cruel sanctions because it’s
“These concessions are criti- America, someone has en-
against international regulations.”
the financial messaging network SWIFT (Society for Worldwide with Iran. Creating a bank to cal to ensure that we increase tered the White House who
exclusively work with euro and

Power
Interbank Financial Telecommunication) and the second chal- our maximum pressure cam- is so against the law and
lenge would be the fear of major European companies to do currencies other than the U.S. paign and accelerate towards international conventions.”
business with Iran because of the threat of penalties from the dollar and concentrating on zero,” U.S. Secretary of State
U.S. government. And the third challenge is uncertainty around clearing and barter systems Mike Pompeo told reporters
the future of political and economic relations with Iran. can be effective in containing
the crisis.

86 No. 2 & 3 October-December 2018 87

Can America Bring Iran Oil
Exports to Zero?
A
merican officials have vowed to bring down
Iran’s crude oil exports to zero as part of the
Trump administration’s all-out campaign to
squeeze Iran economically.
The first set of renewed U.S. sanctions against Iran
came into effect in August and a second batch, that
specifically targets Iran’s energy sector, will be enact-
ed on 4 November 2018.
The U.S. has not been a buyer of Iranian oil for about
four decades but Washington has threatened other
countries with sanctions if they don’t cut off Iranian oil
imports by early November.
China and Russia have outright rejected Trump’s
campaign to cut Iranian oil and gas exports to zero.
While Japan and South Korea have shown to be
complying with American sanctions, other buyers of
Iranian crude oil may reduce but won’t stop their pur-
chases of Iranian crude. Or they may totally ignore
Washington’s demand. China, India and the EU are
the biggest buyers of Iranian oil.
The EU has crafted counter-measures intended to
prevent European firms from abiding by Trump ad-
ministration’s unilateral restrictions.
Iranian President Hassan Rouhani declared on 4
September that Iran will continue exporting its oil de-
spite U.S. pressures.
“We will continue by all means to both produce and
export” oil, he said in a speech broadcast on state TV.
“Oil is in the frontline of confrontation and resistance.”
Iran’s Oil Minister Bijan Zanganeh was quoted by his
ministry’s website, shana.ir, on 24 September 2018
as saying that the U.S. “dream” of halting Iran’s oil
exports won’t be materialized.
“The U.S. dream of getting Iran’s oil exports (effec-
tively) to zero won’t come true,” the website quoted
him as saying.
Zanganeh said such a plan wasn’t possible though
the Trump administration appears determined to at
least symbolically cut Iran’s crude exports “even if for
just a month.”
But he confirmed that South Korea has already
stopped buying Iranian oil.
However, it’s not yet clear how far other countries will
comply with the U.S. sanctions targeting Iran’s oil
sector on 4 November.
While Zanganeh and other Iranian officials have re-
fused to give figures about Iran’s crude oil exports,
Reuters, quoting Refinitiv Eikon data, reported on 8
October that Iran’s crude oil exports have fallen to 1.1
million barrels per day in the first week of October.
That’s, it added, down from 2.5 million barrels in April
before the U.S. exit from the JCPOA.
88 No. 2 & 3 October-December 2018
Analysts have suggested that the second wave
of American sanctions would cause Iranian oil ex-
ports to fall between 500,000 and 1 million bar- Iran’s Oil Minister Bijan
rels per day. Zanganeh: “The U.S. dream of
getting Iran’s oil exports
The Times of India reported on 20 September (effectively) to zero won’t come
that India will settle payments for Iranian oil using true.”
rupee through local banks starting in November
because U.S. sanctions will make it difficult to
settle trades through European banks.
India has been looking to revive its rupee pay-
ment mechanism with Iran. During the previous
sanctions in 2012, India had adopted a barter-like
scheme to buy Iranian oil while Iran used rupees
to import goods from India for about half of the
trade while the remaining half was paid in euros.
UCO Bank and IDBI Bank, according to Press
Trust of India (PTI), have been identified to route
the payment as the two have no exposure to the
U.S. financial system.
Zanganeh has already said that “we are trying to
find new customers.” He has also clarified that
there are many ways for Iran to preserve its out-
put and that the Islamic Republic has prepared
itself for a “worst scenario” but refused to specify
what those ways are.
Iran has reportedly not cut production as it ap-
pears to be storing more oil on ships at sea as it
did during sanctions applied until the 2015 nucle-
ar deal.
Meanwhile, Indian Oil Minister Dharmendra Prad-
han confirmed on 8 October that India will contin-
ue to purchase Iranian crude, saying two Indian
oil companies _ Indian Oil and Mangalore Refin-
ery and Petrochemicals _ have placed orders to
import Iranian crude in November in defiance of
the U.S. call.
China, the biggest buyer of Iranian crude, has
also clarified that it will continue to purchase oil
from Iran.
91