INTRODUCTION

The Islamic Republic of Iran has long served as a nexus for trade and culture between East and West. Among the largest, most populous and strategically important nations of the region, it harbors within its borders an amazing assortment of climates, landscapes and ethnic cities.

Iran's role as a major trade route can be traced as far back as the 4th century B.C. when during what was known as the persian Empire, the forerunner of modern Iran, the Silk Road was established linking Iran with China, Europe, Asia and the Middle East. Since then, throughout the centuries, Iran has undergone many changes, as has the rest of the world, yet, despite the changes, Iran has retained its unique characteristics and culture. Those who, with courage and resourcefulness, explored the Silk Road's original path are the ancestors of present day Iranians who remain as innovative as their forefathers. Always known for its rich culture and abundant resources, Iran's geographic position has always placed it as a primary link between civilizations.

The Iran of today possesses the largest market in the Middle East. Its population exceeds the combined total of all the countries in the Persian Gulf region. It shares borders of over 1,600 km. with the newly independent nations of the Caucasus and serves as a gateway via Turkmenistan to the Central Asian Republics. To the east, lies Pakistan and Afghanistan, and to the west Turkey and Iraq with the Persian Gulf states to the south, providing access to a total combined market of over 300 million people. The location of Iran, along with its many resources, raw materials, industries, educated and disciplined

workforce, rapidly developing financial infrastructure and an entrepreneurial class that has been involved in international commerce for over 5,000 years, has led once again to the re-emergence of Iran as a bridge between the East and the West as it was during the legendary days of the Silk Road. This re-emergence thus merits a more in-depth study of today's Islamic Republic so as to determine how its markets and resources can be coordinated with those of other nations in today's global economy.

In sum, those who come to Iran are not only touched by the legendary gracious hospitality of its inhabitants, scenic beauty and value-based traditions, but also by a country linked by cross country rail lines, highways, modern office blocks and a state of the art telecommunications system buoyed by intelligent networks, fiber optic links and satellites. The Iran of today has now emerged as a hub of buyers, sellers, producers, and consumers strategically positioned in the heart of the Eurasian continent , providing both local and international business easy access to a rich, vibrant national, regional and global market. These businesses are an integral part of the community that is Iran - a country that is taking its rightful place as a leader in the global economic community that is the world - as Your Partner in Trade.

II. GEOGRAPHY AND CLIMATE

The Islamic Republic of Iran covers a span of over 1,648,000 square kilometers and is strategically located between Pakistan, Afghanistan, Turkmenistan, Azerbaijan, Armenia, Turkey, Iraq, the Persian Gulf and the Sea of Oman. It is five times the size of Italy, and equals the total areas of England, France, Germany, Belgium, Holland, and Denmark combined.

Iran shares over 1,600 km. of its northern border with the nations of Central Asia and Caucasus region, some 650 kilometers of which comprise the southern coast of the Caspian Sea. The Azerbaijan highlands divide Iran from Turkey, its neighbor to the north west while further to the south the Zagros Mountains tower over Khuzestan, Iran's rich oil producing region. To the east, the vast Dasht-e-Kavir and Dasht-e- Lut deserts sweep into Afghanistan and Pakistan.

Tehran, the Capital of Iran is comprised of an intriguing combination of the old and the new and is rapidly gaining due international recognition as the region's foremost business center (see accompanying side box). Tabriz, the provincial seat of Eastern Azerbaijan Province, was once the overland trade route between India and Europe and today it leads trade with the newly independent oil rich nation of Azerbaijan while also earning the distinction of being one of Iran's foremost industrial centers. Isfahan, which previously served as the national capital until 1788, is famed for its classic Persian architecture and high quality carpet and textile industry. To the south west, the port-city of Abadan houses one of the largest oil refineries in the world.

Iran is ringed by two major mountain ranges, the Alborz in the north and the Zagros to the west. The Alborz, separates the central region of the country from the fruitful Caspian plains and among its peaks stands Mount Damavand, Iran's highest mountain at 5,699 meters.

Tehran: The Re-emergence of an

International Business Center tehran-business

Companies looking to set up a regional center for their business activities need to look to at least three primary business functions: headquarters, back office operations and geographic proximity to intended markets. An additional factor is the comfort of life in the prospective location.

For a company seeking all of the above and wishing to position itself for success in the midst of one of the largest consumer markets in the world need not look any farther than Tehran. Not only would a company gain the advantage of location in a fascinating and cosmopolitan capital city, but also would be backed by an intelligent support network in the logistical heart of the Middle East / Central Asia that is surrounded and connected to several large modern free trade zones with large scale distribution facilities and direct, speedy connections to road, rail and air networks.

Tehran's positioning as a major business center will be further buoyed by the establishment of the Tehran World Trade Center (pictured to the right). Having a 430m high communications tower, making it among the worlds tallest towers, the Trade Center which is 60% complete, is expected to be completed by the year 2001. Among its facilities, the Center will have a five star hotel, a fully equipped 8000 Sq.m business center, a 40,000 Sq.m Exhibition Center a 16,000 Sq.m Administrative complex and 152,000 Sq. meters of business support facilities inclusive of printing shops, travel shops, post offices, gymnasium, restaurants and convenience stores.

Furthermore, Tehran has a young, well-educated multi-lingual workforce groomed by Iran's top notch university system and has some of the region's lowest tax, energy and personnel costs.

In sum, the city's position at the apex of a major international trade route , combined with its developed capital markets, strong infrastructure, low business costs, educated workforce and cultural acceptability leads to the fact that Tehran stands alone among its neighbors in the region as a modern city serving as the hub of one of the globe's largest markets.

Due to its vast area, the country is subject to a broad array of climatic conditions varying from the sub-tropical to the sub-polar. The country's diverse climate can be categorized within the following climatic zones:

1- The lush Caspian littoral with its heavy rainfall and deep hardwood forests. The Caspian Sea, with a surface area of 424,240 sq. km is the largest landlocked body of water in the world. The Caspian is rich in fish and several major ports are situated along its coast, including Anzali, Noshahr and Turkman.

2- The snow covered mountainous regions which are subject to extreme cold and are centered around a triangular  central depression. The western mountains of Iran, known as the Zagros range , run from the northwest to the southwest and span over 992 km length and 192 km in width. Below the pastures on the higher slopes of these mountains are dense forests of oak, walnut, almond and pistachio. Lower down in the high valleys, produce as diverse as pomegranates and figs are grown as well as extensive cultivation of wheat and barley. The northern part of the triangle is covered by the Alborz mountain range, of which its highest peak, Mount Damavand, stands at some 5,699 meters. The Alborz range separates the northern coastal areas of the Caspian Sea with its lush vegetation from the desert regions of the interior. From the western end, the Alborz range reaches Iranian Azerbaijan , a densely populated area with fertile valleys where wheat, cotton, rice and tobacco are cultivated. To the east, the Alborz range forms the mountains of Khorasan, wherein lie exceedingly fertile valleys in which wheat, barley, rice and cotton are grown.

3- The climate of the southern coastal region of the Persian Gulf which is characterized by its palm groves, low rainfall, high heat and humidity levels and moderately warm waters. The Persian Gulf extends from the Hormuz Strait sweeping in a northwesterly direction. Extending some 800 km., it covers an area of some 250,000 sq. km. and is at some points some 100 meters deep. Important islands in the Persian Gulf include the free trade zones of Qeshm and Kish (which will be explored in Chapter 3 in this book), the oil terminals of Khargh, Lavan and Sirri and the islands Greater and Lesser Tumbs. The Sea of Oman, which is in fact an extension of the Indian Ocean, joins and becomes the Persian Gulf at the Hormuz Strait.

4- The climate of the central plateau with lengthy hot and dry periods and barren, salty stretches of deserts. Two great deserts occupy the central plateau and are characterized by extensive deposits of minerals, including chlorides, sulfates and carbonates.

Tourism

Home to 15% of the worlds registered historical sites, Iran's geographic splendor and diversity combined with over 2,500 years of history has led to the emergence of tourism as a major source of income in Iran. As one of the major cradles of civilization, Iran' s numerous archeological sites, mosques, palaces and museums combined with Iran's top graphical and geographical diversity has led to a growing increase in the number of foreign tourists visiting Iran. From 1997 to the present, tourism has increased by more than 85%, generating revenues which are expected to top over $1 billion. Given the fact that further development and improvement of the country's tourist attractions, increased participation by the private sector and other steps can further expedite growth in this sector, tourism has been afforded a special priority in Iran's forthcoming Third Five Year Plan.

III. DEMOGRAPHIC AND EDUCATIONAL TRENDS

Following an unprecedented population growth rate of 3.28% between 1976-1986, the population of Iran doubled from approximately 30 million inhabitants to a current population level of 61 million. The widespread and effective implementation of family planning programs have now reduced population growth to less than 1.7% annually with a resultant drop in average fertility from 6.4 births per woman in 1975-1985 to approximately 3.3 births in 1995. However, Iran has now emerged as the most populous country in the Middle East, and its population is now symbolized by its youth with some 45% of the population under the age of fourteen with a further 26% between 15 and 30 years of age.

Concurrent with the demographic shifts in Iran's population, the effective implementation of rural health programs and the expansion of trained medical services in semi-urban areas has led to:

* Reductions in infant mortality from 78 deaths per 1000 live births from 1980 - 1985 to 22.5 in 1995.

* A decrease in maternal mortality from an estimated 200 deaths per 100,000 live births in 1974 to approximately 50    deaths   per 100,000 live births in 1995.

education

The successes of family planning and rural health programs are a microcosm of a broader national health agenda encompassing immunization, disease control, national vaccination programs and the like. By way of example, in 1979 only 2,500 community health centers existed in rural areas. Following the Islamic Revolution, the number of rural health centers have grown by 484% and now number 14,600. Such steps, among others, have had correspondent effects on factors such as life expectancy which has increased from an average age of 55 in 1979 to an average of 68.5 years today. Measures such as these have won international recognition and praise for Iran from a broad amalgamation of international agencies among them the United Nations Population Fund ( see corresponding side box).

These demographic trends have also been followed by marked shifts in literacy since the 1979 Revolution. From a literacy level of approximately 20% in 1970, the provision of widespread access to public education has now brought literacy levels to over 70%. Unlike the pre-Revolutionary days, access to university level education is now widely available across Iran including rural areas. The Islamic Azad University, which is responsible for the provision of half of the nation's higher education in Iran, has seen student enrollment rise from less than 2,500 students in 1983 to some 700,000 today, with a concurrent rise in campuses from 9 to 134. Over 450,000 graduates of this University are now active in the workforce. Vocational training has also received considerable attention, including the provision of key computer and technical skills. Foreign language training is widely available and many Iranians are at least partially fluent in a second language.

Nowhere are the results of these demographic and educational trends as apparent as their effect on gender equality. Concurrent with the above mentioned achievements in maternal mortality and literacy, access to higher levels of education have opened new windows of opportunities to women of all segments of society. In 1976, the number of Iranian women aged 15 years and older stood at 9.2 million, of which, 1.2 million or 13.4% were economically active. By 1986, the number of women in this age bracket had increased by 44% to 13.2 million, but the number of economically active women had actually decreased by 49,000. This decline however, is misleading, as upon closer scrutiny, the decrease in the number of economically active women primarily took place in the 15-29 age bracket, whereas the number of economically active women in the age bracket of 30 - 34 had concurrently increased by a whopping 56%. Upon further study, it was shown that the decrease of economically active women in the 15-29 age bracket and the subsequent increase in the 30-34 age bracket was primarily correlated to the increased numbers of women who were pursuing higher education and thus entering the workforce at a later age.

Further analysis of the number of women active in the professional sector confirm these findings, especially when comparing pre-Revolution and post-revolution trends. In 1976, thirteen percent of all economically active females held professional occupations. By 1986, this percentage had risen to 32.8% and by 1991 had further increased to 39.7% . These gains are further bolstered by Iran's institutional framework. The Iranian Constitution particularly provides for the important role of women in all aspects of society and the economy. Women's rights are further bolstered by Iran's Labor Laws and Codes which comply with all international norms pertaining to women's rights in the workplace. As a result, women are active in all fields of the economic and political spectrums. These activities cover a broad range of professions ranging from the legal and medical fields to serving as members of Iran's police forces. Of particular note is the ever increasing presence of women in the political arena. These strides are witnessed not only by a formidable number of female Parliamentarians in the Majlis (Parliament), but also as Mayors, Deputy Ministers and Council Women. These steps have culminated in the first ever appointment of a female Vice President (see side box)

WOMEN IN THE ISLAMIC REPUBLIC OF IRAN

Iran's First Female Vice President

Iran's first female Vice President, Dr. Masoumeh Ebtekar is one of seven Vice Presidents in President Khatami's Cabinet. A 37 year old University Professor with a Ph.D. in immunology and mother of two, Dr. Ebtekar holds the portfolio of environmental affairs and manages a staff of three thousand personnel at the Environmental Department. In a recent interview, Dr. Ebtekar outlined the background of her rise to one of Iran's highest cabinet positions stating " I think that it was not a superficial decision" and that "Its something based on the natural evolution of thoughts and issues within the Revolution".

Self - Employment Training & Micro-credits for Rural Women.

Iran's Ministry of Construction Jihad (Crusade) is laying the groundwork for the implementation of a broad based program to teach rural women the skills needed for self-employment. It is foreseen that initially some 50,000 women will take part in the program and will be taught skills ranging from needlework to food processing. This program complements a program already under implementation by the Agricultural Bank of Iran (Bank Keshavarzi) for the provision of non-collateral loans to rural women so as to enable them to enter into economic activity.

Iran's First Female Mayor

Mrs. Zahra Sadr-Azam Nouri first gained recognition for her years of social and cultural activities in the lower income regions of Tehran which eventually culminated with her appointment as the Mayor of the Seventh District of Tehran, one of the city's key districts. A Philosophy graduate, ten to twelve hour days are the norm for Mrs. Nouri, with the distinction that any person wishing to have direct access to the Mayor can do so in her office during working hours. Key items on the Mayors agenda include resolving traffic problems in her district and the development of cultural and sports centers.

Entry requirements: Travel regulations should be checked before traveling.

Passport: Required by all except certain sea men.

Visa: Required by most nationals and must be obtained in advance from a Consulate General.

Currency: No currency restrictions on entering. Credit and charge cards are

accepted. The Dollar, Sterling and the D-Mark are the most easily traded.

Weight and measures: Metric system.

Health precautions: Details of health requirements should be checked before traveling.

Mandatory: Cholera and yellow-fever certificates likely to be required if traveling from infected area.

Advisable: Typhoid, paratyphoid and cholera inoculations advisable. AIDS certificate if staying more than three months.

Air access:

National carriers: Iran Air, Asseman

Other airlines: Aeroflot, Air India, Alitalia, Austrian, British Airways,

Emirates, Gulf Air, Lufthansa, MAS, PIA, Swissair, Syrian Arab, Turkish.

International airports: Mehrabad (Code: THR), 12 Km west of Tehran, with

duty-free shop, buffet restaurant, bank post office, shops; Shiraz

(Code: SYZ), 15Km From city, with buffet, post office, shops; Bandar Imam

Khomeini (Code: BND); Isfahan.

Surface access: There are roads from Iraq, Turkey, Afghanistan, Pakistan, Armenia, Turkmenistan and Azerbaijan via 15 border roadways.

There are rail lines from Turkey, and Turkmenistan.

Main ports: BandarShahid Rajai, Bandar Imam Khomeni (containers), Bandar Bushehr, Bandar Anzali, Bandar Chahbahar, Bandar Nowshahr, Khorramshahr (the main port), and Khargh Island (Oil terminal).

Electricity supply: 220v AC, 50 cycles.

Car hire: International driving license (along with two photographs) required.

City transport:

Taxis: Taxis are not metered and frequently shared.

Those hired by telephone or by hotels are more expensive. Tipping is not expected.

National transport:

Air: Iran Air, Asseman and several private airlines run frequent services between most cities and Tehran.

Road: Surfaced roads serve main centers and total network comprises 140,000 km.

Buses: Scheduled long-distance coach services available including Tehran-Anzali, Khorramshahr Bandar Imam Khomeini, Tehran-Zahedan and all other main cities and towns.

Rail: Rail service on 6,000 km network with three classes of service past, with sleeping accommodations, air-conditioning and restaurant service available.

Public holidays:

Fixed dates: 11 February (Victory of the Islamic Revolution), 19 March (Petroleum Nationalization Day), 21-24 March (Nowruz, the Iranian New Year), 1 April (Islamic Republic Day), 5 June (Passing away of Imam Khomeini)

Variable dates: Exact dates of Islamic religious festivals are determined by the lunar Calendar, Birth of Prophet Mohammad (P.B.U.H), Eid-e-Qorban, Eid-e-Qadir, Tasua & Ashoura, Imam Ali's Martyrdom, Birthday of Twelfth Imam and other religious holiday in Iran; Thursday is a half day for offices only-shops and markets are open.

Working hours:

Government and business: 0700/0800 - 1500/1600 (closed Fri.)

Banking: 0800-1600;(Thu) 0800-1130 (Closed Fri).

Telecommunications:

Telephone: Dialing code for Iran, IDD Access code +98 followed by area code (631 for Abadan, 31 for Isfahan, 51 for Mashhad, 71 for Shiraz, 21 for Tehran).

Telex and telefax: There are telex and telefax service at major hotels in Tehran and at most post offices across the country.

E-mail and Internet services are also widely available.

Banking:

Central Bank: Bank Markazi Jomhouri Islami Iran.

Main Center: Tehran.

Head offices: Agricultural Bank of Iran, Bank of Industry and Mines, Bank Mellat, Bank Melli Iran, Bank Refah Kargaran, Bank Saderat Iran, Bank Sepah, Bank Tejarat, Export Development Bank of Iran.

Foreign Representative Offices: ABM Amro Bank, Banca Commerciale Italiana, Banque Nationale de Paris, Deutsche Bank, Dresdner Bank, Grindlays Bank, Llyods Bank, Creditbank, Societe Generale, Bank of Tokyo.