BRASIDAS GROUP AG
T +41 55 442 81 73 F +41 55 442 81 74 [email protected]
Opportunities for FDI in the Iranian Healthcare Sector Key
words: Healthcare, Iran, Investments, Pharmaceutical,
Manufacturing, Construction
The Ministry of Health and Medical Education of the Islamic
Republic of Iran has ramped up plans for
investment in its healthcare system, presenting significant
opportunity for foreign investors to take part in the
considerable money to be spent bolstering this system. As the
second-largest economy in MENA with a
population of close to 80 million, all in need of expanding
healthcare services, Iran presents a goldmine for
investment in the mid- and long-term. The current government has
made clear its objective of attracting
foreign investment, seeking to implement numerous incentives
favorable to such investors and underscoring
its wish for mutual cooperation in diverse niches of the
healthcare industry. Opportunities are especially rife
in the following:
Manufacturing: Iran is in need of diverse products to support
its healthcare system, ranging from simple
hospital beds and ambulances to high tech medical devices, such
as CT and MRI machines. Import of such
manufactured items is twice as high as domestic production, and
opportunity for increased imports of such
products originating from foreign firms is extant.
Construction: The Ministry of Health and Medical Education has
outlined its need for the construction of
cancer, imaging, and dialysis centers, medical laboratories, and
emergency centers, with specific targets
outlined for each.
Pharmaceuticals (Biotechnology Drugs): The Iranian
pharmaceutical market has grown exponentially in
recent years, with expansion favoring imported medicines. This,
coupled with increasing total medicine
consumption, presents a significant opportunity for investors
who can partner with domestic importers.
These opportunities for investment are bolstered by the
loosening of sanctions and the ongoing liberalization
of Irans economic policies. With its large domestic market,
developed infrastructure, high quality yet
competitively priced manpower, and strategic location, Irans
attractiveness will only become more
pronounced making it an opportune moment to explore options in
the market. Moreover, potential
investors can capitalize on attractive tax schemes and
incentives; customs exemptions; free trade zones; no
BRASIDAS GROUP AG
T +41 55 442 81 73 F +41 55 442 81 74 [email protected]
limits on investment volume, equity percentage, or types of
capital imported; and three-year multi-entry visas
or residence permits, making Iran even more promising for
investment and helping facilitate a smooth process
for investors.
With two types of investments availabledirect investment through
equity participation, open to all areas of
the Iranian private sector, as well as investment through
contractual agreements in non-equity forms,
available for buy back arrangements, civil partnerships, and BOT
(build-operate-transfer) schemesclients can
choose the right structure for their investments, in concert
with the right risk mitigation strategies.
While there are undoubtedly significant opportunities worth
exploring in Iran, every potential market entrant
needs to become familiar with the unique business environment
that has developed within the country during
its three decades of isolation from the West. Market entrants
must be aware of the complex multi-layered
political machine that directly influences the domestic
commercial landscape, which includes the Supreme
Leader, Guardian Council, President, Majlis, Basij, and the
Iranian Revolutionary Guard Corps (IRGC). These
government armscomposed of sub-groups of key personalities,
their informal relationships with other
individuals and power centers, and the institutions with which
they are associated influence and dictate the
direction of industries and ultimately decide policy.
This is where Brasidas Group AG, a Swiss-based consultancy, can
step in, with our proven track record and
years of experience working both on the ground in Iran and on
behalf of foreign investors. With both
Farsi-speaking analysts and sources on the ground, Brasidas
Group not only has the means to help investors
identify where the opportunities are, but we can also help in
the procurement of relevant foreign investment
licenses and permits, as well as with final implementation of
investment projects. With the insight gained
from our industry landscaping and market studies, coupled with
our familiarity with governing Iranian
regulations and legislation, clients can make informed and
intelligent decisions about where, when, and how
to invest in Iran.
Mina Djuric Nikolic
Director of Operations, Belgrade
Deputy Director of Global Research
Brasidas Group AG
