A huge potential and a need for caution
EKF underlines that companies who are interested in Iran should reflect carefully and seek relevant advice.
”Iran is a very interesting market with a huge potential, but it is definitely not an easy market. For this reason, EKF has classified Iran in risk category 7, together with for instance Ethiopia and Pakistan. Risk category 7 contains the most risky countries in the world. Companies need to address that risk, and EKF can be one of the tools to handle the risk,” says Jørn Fredsgaard Sørensen.
In EKF’s opinion, the Iranian risk is more political than economic. The key economic indicators are fundamentally sound, but the political situation is uncertain, and sanctions may quickly be reimposed. Another challenge is that many Iranian companies do not have any history of payment or credit rating. The lack of payment experience mars the current picture. However, EKF expects the situation to improve quickly.