Iran, the next China in economic growth

DUBAI — Iran is the next China in terms of the potential of the Iranian economy according to Graham Dreverman, Vice President of Asset Management for Majid Al Futtaim Investment.

By A Staff Reporter

Published: Wed 15 Jun 2005, 11:16 AM

Last updated: Thu 2 Apr 2015, 4:44 PM

Reverberating predictions for the economic future of Iran came through loud and clear during the keynote address given by Dreverman during the opening of the Middle East Retail Conference 2005 yesterday at the Shangri-La hotel.

According Dreverman, Tehran alone has a population of16 million people and there are no modern shopping facilities, thus it is a major untapped source of retail potential. Also being Opec's second largest oil producer and having 10 per cent of the world's proven oil reserves and having the world's second largest natural gas reserves, Iran has an excellent source of capital and liquidity, especially with the current escalation in oil prices.

Iran's economy relies heavily on oil export revenues as it is around 80-90pc of total export earnings and 40-50pc of the government's budget. Strong oil prices the past few years have helped Iran's economic situation drastically.

For 2004, Iran's real GDP posted a growth rate of around 5.8 per cent. As for 2005 and 2006, the World Bank expects it to grow around 5.4 per cent and 4.5 per cent, respectively.

In bringing to light the current prospects in Iran, Dreverman noted that Teheran has a GDP great than that of Shanghai and Beijing put together, two of the world’s most industrious cities.

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