Iran Economic Statistics

Silvia Andreoletti

Silvia is a Reporter at Trade Finance Global. She is also currently finishing her BA in Philosophy, Politics, and Economics at New College, Oxford, with a focus on financial markets, game theory, and international relations.

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Importing from Iran

Iran’s most important exports are raw metals, ethylene polymers (a type of plastic), and chemicals like acyclic alcohols and fertilisers. Iran is an important member of OPEC, and is the 9th largest oil producer in the world, with the world’s 3rd largest crude oil reserves. Its main import sources are China, India, and neighbours Turkey and Kuwait. Iran is one of the most populous countries in the Middle East, with a stable and resilient economy that is boosted by but not reliant on oil growth. 

Iran is subject to expansive sanctions by the EU, UK, and US due to its refusal to halt its uranium enrichment program and, more recently, for supporting Russia in its war against Ukraine. The sanctions prohibit trade with specific individuals and entities as well as in entire industries or classes of products. Iran is also one of only 3 countries on the Financial Action Task Force blacklist, a list of countries the international body deems “non-cooperative” in the fight against money laundering and terrorist financing. 

Internally, Iran is a partially democratic country with regular elections for a president and parliament who work under the control of an unelected supreme leader. While the political situation is stable, frequent unrest and protest movements can be disruptive and lead to instability. Iran is close with Iraq politically and largely reliant on China as an export market, as well as Chinese investments. If there was further instability in the Middle East, or an external shock impacting the Chinese economy or oil prices, Iran would bear much of the brunt. Conversely, if sanctions were lifted because of a decrease in tensions, Iran could become an incredibly attractive trading partner for much of the West and its economy would flourish. 

Importing from Iran: What is trade finance?

Trade finance is a revolving facility in which lenders offer financing options – it enables businesses to purchase products and can help ease the pressure from working capital issues.

Generally, an export finance bank will fund up to 100% of the cost of the products, including charges (e.g. insurance costs).

Trade finance offers upsides over more traditional bank financing, for example bridging mortgages or loans. Trade finance provides quick funding without affecting existing bank relationships.

How does it work?

If you’re a business importing or exporting goods around the world, then a trade finance facility would assist your company through offering a letter of credit (LC) or some form of cash advance.

I’m looking to import from Iran, how can Trade Finance Global help, and how does it work?

If you’re looking to import inventory from other countries, you may require import finance, which is an agreement between yourself (the importer) and the foreign exporter. A non-bank lender will act as the intermediary, paying the foreign exporter on your behalf until you get the products and have then sold them to your buyer. Repaying the financier then occurs over an agreed period of time.

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