Market Overview

Investors Look To Iran With An End To Sanctions In Sight

Investors Look To Iran With An End To Sanctions In Sight

Although President Obama's efforts to make a deal with Iran on the nation's nuclear development program is under heavy pressure from critics around the world, many are expecting the two sides to iron out the details of the agreement in time to meet their summer deadline.

If a formal agreement is made, the U.S. and the EU will lift their sanctions, which have stifled Iran's economic growth for nearly a decade. Investors are already looking to Tehran's share markets in preparation for what many believe will be a flood of foreign traders once the sanctions are lifted.

Opportunities In Iran

Iran has enormous potential in the eyes of foreign investors as the nation has a population of more than 77 million people and a well-developed share market. The Tehran Stock Exchange is made up of 300 publicly traded companies and has a market cap of 160 billion dollars.

After lawmakers announced they had agreed to a preliminary deal, the market gained 7.8 percent in anticipation of an official confirmation in June.

Related Link: A Nuclear Energy ETF To Look At Amid Iran Agreement

Charlemagne To Be First

London-based asset manager Charlemagne Capital is already setting up funds that will invest in Iranian securities. The company is planning to launch the funds before the sanctions have even been lifted.

Charlemagne has partnered with Tehran's Turquoise Partners for the project and says it could have a fund ready as early as the next few weeks.

Ethical Questions

Not everyone is on board with investing in Iran. Some question whether or not it is ethical to invest in a nation that has been heavily involved in terrorism.

However, others say that the U.S. government's decision to lift the sanctions would indicate that investing in Iran is safe.

Image Credit: Public Domain


Related Articles

View Comments and Join the Discussion!

Posted-In: Charlemagne Capital Iran President ObamaPolitics Global Top Stories Markets Trading Ideas Best of Benzinga