Digital Business Ecosystem - By: Dr. Fereydoun Ghasemzadeh
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Iran aims to become the "Silicon Valley of the region" by developing its technology sector and attracting foreign investment. It hopes to build on existing strengths in various industries like automotive and become a leader in fields like artificial intelligence and biotechnology. However, international sanctions have hampered Iran's ability to procure advanced technologies and partner with global companies.
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- 36. v
- 49. IRAN: Silicon Valley of the Region
Editor's Notes
- Let me tell you a small true story about Iran potentials. In a formal report that was prepared by Lord Hafman and is now published, the CEO of the MTN is quoted saying in the board that “Iran is the most virgin market in the world”. The result of this attitude was investment of south African company-MTN in the largest FDI project in Iran called MTN-Irancel project in 2008 . According to Mr. Jarrahi who was chief negotiator representing local partner, the project with $1.5 B investment creates $600 M profit per year and its EBITDA is 45% which is the largest compared to other 20 countries in which MTN is operating. MTN shares price went up 15% as soon as it won the deal. The project loan is fully repaid and Iran government, other than income tax has received $5 B for granting operator license. In a win-win deal the project created 20,000 direct and indirect jobs (2,000 direct jobs) and brought the cost of simcard down from $500 to $1 in a couple of years.