A large part of the economic sanctions against Iran have been lifted, and that means opportunities for Dutch companies. 40 of them recently participated in a trade mission to Iran. In the last five years the number of Dutch companies trading with the Islamic Republic was almost halved. 500 companies exported their products to Iran in 2015. That might well change, because there were a striking number of agricultural and horticultural companies accompanying Minister Henk Kamp of Economic Affairs.
Trading still a challenge
In spite of the Iranian market being closed for a couple of years, it offers many opportunities for Dutch entrepreneurs. Over 60% of the 80 million inhabitants are under 35 years old and interested in Western products. Trading remains a challenge, for example because the banks are not yet connected to the international banking system.
So it would be smart to find a reliable local partner who knows the market and has good contacts. "There probably won’t be any immediate concrete deals. This will probably be different during the trade mission next year," according to a Ministry of Economic Affairs’ spokesperson.
Susanna Terstal, the Dutch ambassador in Tehran says that there are opportunities for Dutch companies in water management and agriculture, among others: "Thirty percent of the food disappears before it lands on the table. And there is a serious water shortage."
Risks may pay off
Horticoop, specializing in horticultural supplies and cultivation technique, is carefully considering the possibilities. Export manager Geert-Jan van der Zon: "How big is the market? That’s what we want to know. Iran can offer decent opportunities because its government invests heavily in horticulture. In addition, the quality of local products is still not high, which is where we can help out."
Although the risks are greater when departing from the beaten track, Van der Zon sees potential. Being the first, they find the market still wide open. And there’s also a chance for Dutch companies to share their knowledge. He thinks this increases customer satisfaction beyond just selling products: "We can really take horticulture in Iran to the next level. We prefer to look for opportunities to be a knowledge partner. So we’re also speaking to people in the water industry. Greenhouses also use water and we can look at how much can be saved."
"Trade Mission opens doors"
The ministry prides itself on opening doors that would otherwise stay closed. The participating companies confirm that this is really the case. Marijke Everts from VanDrie Group: "Contacts are made more easily with government. It’s more difficult as a company but during a trade mission everything is better organized and there’s a large group of entrepreneurs."