Iran's SME sector.
The outcome of the February 26 parliamentary election signaled support for President Hassan Rouhani's policy priorities of striking a nuclear deal with the West, and pushing ahead with plans to revitalise the economy. Following the lifting of sanctions in January, a more supportive parliament will help Rouhani introduce much-needed reforms to promote job growth, encourage start-ups, and expand exports. The changes will benefit Iran's SMEs in the real private sector.
Investors will find best growth potential in hi-tech, pharmaceuticals, petrochemicals, renewables, agribusiness and high-end luxury sector.
Access to finance will be a particular constraint on SMEs, but will ease when the government repays its debts to companies and local banks.
Growth of the SME sector will bolster the non-oil economy, reduce unemployment and strengthen moderate and centrist political forces.
It will also see an increase in female employment, and in pressure for social liberalisation.
