The Realities of the Iran Nuclear Deal | Strategic Communications

The Realities of the Iran Nuclear Deal

Strategic Communications

July 16, 2015

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After months of gruelling closed-session negotiations, a comprehensive agreement to limit Iran’s nuclear capabilities was finally announced in Vienna on the morning of 14 July 2015. The 159- page deal, struck between the P5+1 (China, France, Russia, United Kingdom, United States and Germany) and Iran, was greeted with euphoria on the streets and social media platforms across Iran. Hassan Rouhani, the Iranian President, declared in a televised address that “the prayers of our nation have been answered and we now stand at a historic juncture”. For his part, US President Barack Obama described the deal a step towards a “safer and more secure world”.

Beyond the immediate media interpretation of the agreement, what does this mean for corporates with current or future interests in the region? Charles Hollis and Jackson Dunn of FTI Consulting take a look at some of the initial effects of the deal.

FTI Consulting’s view on the Iran Nuclear Deal:

  • Despite a deal being agreed, economic sanctions could be in place for another 18 months
  • The pressure is now on Rouhani to deliver the benefits of a deal to an expectant Iranian population
  • The agreement will remain subject to the domestic agendas of both Iranian moderates and hardliners
  • If the deal holds, Iran, and its need for infrastructure investment, offers significant potential for multinational corporations (MNCs) that have a clear understanding of the market

A $400 billion market for global business?

Many global executives are actively considering investment in Iran following news of the deal. It’s not difficult to understand why. Iran is a country of more than 80 million people with 60 percent of the population under 30 years old. From a consumer perspective, it is a country that has a strong affinity to Western brands, particularly US brands. The country’s $100 billion Tehran Stock Exchange offers some of the most undervalued investments in a market that does not impose limits on foreign ownership.

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