U.S Sanctions & Embargoes against Iran

Exclusive Order OF President Clinton Issued May 6, 1995

Iran and Libya Sanctions Act of 1996

Iran: What You Need to Know About U.S. Economic  Sanctions U.S.

[An overview of O.F.A.C. Regulations involving Sanctions against Iran]

Business Environment and Investment Opportunities in Industrial and Mineral Sectors of the Islamic Republic of Iran

The tables below provide a snapshot of the business climate in Iran by identifying specific regulations and policies that encourage or discourage investment, productivity, and growth. Key indicators are used to help measure the ease or difficulty of operating a business: starting a business, hiring and firing workers, enforcing contracts, getting credit, and closing a business. To compare the business climate of Iran with that of other economies, click on the topic name. Regional and OECD averages are provided for each topic for comparison. Economic characteristics of Iran used in the analysis are in the last table. Starting a Business (2003) The challenges of launching a business in Iran are shown below through four measures: procedures required to establish a business, the associated time and cost, and the minimum capital requirement. Entrepreneurs can expect to go through 9 steps to launch a business over 48 days on average, at a cost equal to 6.6% of gross national income (GNI) per capita. They must deposit at least 7.4% of GNI per capita in a bank to obtain a business registration number, compared with the regional average of 1,104.3% of GNI and the OECD average of 61.2% of GNI. Indicator Iran, Islamic Rep. Regional Average OECD Average Number of procedures 9 11 7 Duration (days) 48 50 30 Cost (% of GNI per capita) 6.6 54.5 10.2 Min. Capital (% of GNI per capita) 7.4 1,104.3 61.2 Hiring & Firing Workers (2003) The flexibility or rigidity of labor regulations and laws in Iran is shown below, using three indices. Conditions covered by the indices include: availability of part-time and fixed-term contracts, working time requirements, minimum wage laws, and minimum conditions of employment. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The overall Employment Laws Index is an average of the three indices. For Iran, the overall index is 52, compared with the regional index of 48 and OECD average of 45. Indicator Iran, Islamic Rep. Regional Average OECD Average Flexibility of Hiring Index 33 42 49 Conditions of Employment Index 77 65 58 Flexibility of Firing Index 47 35 28 Employment Laws Index 52 48 45 Enforcing Contracts (2003) The ease or difficulty of enforcing commercial contracts in Iran is measured below, using three indicators: the number of procedures counted from the moment the plaintiff files a lawsuit until actual payment, the associated time, and the cost (in court and attorney fees). An overall index of the procedural complexity of contract enforcement is calculated by averaging four sub-indices related to dispute resolution. The index varies from 0 to 100, with higher values indicating more complexity in enforcing a contract. The Procedural Complexity Index for Iran is 67, compared with the regional average of 61 and the OECD average of 49. Indicator Iran, Islamic Rep. Regional Average OECD Average Number of procedures 23 25 17 Duration (days) 150 298 233 Cost (% GNI per capita) 5.8 15.6 7.1 Procedural Complexity Index 67 61 49 Getting Credit (2003) Two sets of measures on getting credit in Iran are constructed: indicators on credit information sharing and an indicator of the legal protection of creditor rights. A Public Credit Registry Index covers credit information coverage, distribution, access and quality for public registries. The index ranges from 0 to 100. Higher values indicate that the rules are better designed to support credit transactions. Iran has a value of 45, compared with the regional average of 43 and the OECD average of 58. For private credit registries, a coverage indicator is reported. An indicator of creditor rights in insolvency is also provided. A minimum score of 0 represents weak creditor rights and a maximum score of 4 represents strong creditor rights. Iran has a score of 2, compared with the regional average of 1 and the OECD average of 1. Indicator Iran, Islamic Rep. Regional Average OECD Average Public Credit Registry operates? Yes     Year Public Credit Registry established 1990     Public Credit Registry coverage (borrowers per 1000 capita) .. 3.8 43.2 Public Credit Registry Index 45 43 58 Private Credit Bureau operates? No     Private Bureau coverage (borrowers per 1000 capita) 0 14.9 443.5 Creditor Rights Index 2 1 1 Closing a Business (2003) The ability of courts to resolve insolvencies in Iran is shown below. A Goals of Insolvency Index is calculated by averaging the cost and time associated with resolving an insolvency, the observance of absolute priority of claims, and the outcome (reorganizing viable companies and closing down unviable ones, for example). The Goals of Insolvency Index ranges from 0 to 100. Higher values indicate a more efficient insolvency system. The Goals of Insolvency Index for Iran is 84, compared with the regional average of 47 and the OECD average of 77. An indicator of the power of the courts during the insolvency process is also provided. A higher value indicates more court involvement in the process, usually an impediment to insolvency resolution. Iran has a value of 67, compared with the regional values of 57 and the OECD average of 36. Indicator Iran, Islamic Rep. Regional Average OECD Average Actual time (in years) 1.8 3.7 1.8 Actual cost (% of estate) 8 13 7 Goals of Insolvency Index 84 47 77 Court Powers Index 67 57 36 Economy Characteristics Variable Iran, Islamic Rep. Regional Average OECD Average Region Middle East & North Africa     Income category Lower middle income     Legal origin English     GNI per capita (US$) 1,710 5,151 23,135 Informal economy (% GNI) 18.9 27.5 16.8 Population 64,528,160 19,907,722 41,068,094 Courtesy  of  World  Bank

^{Iran Chamber of Commerce, Industries & Mines}

 

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