As Iran sanctions end, boon awaited for Swedish business
Sweden, which has been exporting about SEK 2 billion worth of goods a year to Iran, could see its exports to the country increase by ten-fold as a consequence of the EU, US, and UN lifting sanctions against Iran.
Over the weekend the UN atomic watchdog said that Iran has complied with the nuclear deal sealed in Vienna last summer by Tehran and major world powers. It called for Iran to scale back its nuclear program dramatically in exchange for having sanctions lifted.
Without the impediments to business The Swedish Trade and Invest Council, Business Sweden, now predicts trade with Iran to skyrocket. It estimates that exports to Iran could reach SEK 15-20 billion yearly and hopes to open an office in Iran this spring.
"There will be a ramping up of exports," Business Sweden's region manager for the Middle East and Africa, Cherif Sayed, told Radio Sweden. He explained that by looking at how much Sweden exports to other countries that have "the same common denominators as Iran", it's possible to predict how much potential business with Iran could be worth.
Today, Swedish exports to Saudi Arabia are worth about SEK 12 billion. They're worth about SEK 12 or 13 billion to Turkey.
"We see, of course, Iran having a larger potential, due to the fact that the population is around 80 million, and a fairly young population with high education levels," says Sayed.
"Something that is extremely unique for Iran if you compare it to Middle Eastern and African countries, is that it has an extremely wide base of production today, and they have the manpower also for production and for re-export to different countries to Africa, the Middle East and southeast Asia," he continues.
He said that in terms of major industry, Swedish exports to Iran are currently concentrated on telecom equipment and health care.