With the lifting of sanctions, Iran becomes the biggest economy to rejoin the global trading system since the collapse of the Soviet Union. Mana Rabiee reports.
With sanctions largely out of the way, Iran's economy can expect a surge in growth. Analysts think a third of Iranian industry was left idled by sanctions over this decade .... industry that can now start churning back to life. It's a market of 80 million people with an annual output of some $400 billion. Some oil companies will rush back to Iran. And the service sector and retail firms will invest because they don't need to risk a lot of capital. Tourism will boom. But other businesses will be cautious. Iran's banks are indebted, there's a primitive legal system, corruption, and a labor market that's inflexible. Then, too, some companies will stay away in case sanctions 'snap back', if Tehran fails to continue to comply with its nuclear agreement. Still, among its first big deals, Iran says it wants to buy more than 100 aircraft from Europe's Airbus in a deal that could be worth more than $10 billion. Put simply, Iran is the biggest economy to rejoin the global trading system since the collapse of the Soviet Union two decades ago. Once a pariah state, the Islamic Republic is getting ready for a trade and investment boom that could very well reshape the economy of the Middle East.