Ambiguity over doing business with sanctions-free Iran

Dubai: It is unclear what type of business companies are now permitted to do with Iranian firms following Saturday’s lifting of international economic sanctions against Iran.

The US, EU and Iran announced that economic sanctions had been lifted with Tehran having met its obligations under last year’s nuclear accord.

Still, British, German, American and Emirati companies told Gulf News on Sunday they’re not sure what they can and cannot do when it comes to Iran.

“It’s a very expensive proposition setting up a business in a new country and we want to make sure we are fully compliant with all UK and EU regulations,” Mark Horton, Middle East Regional Sales Director for British company G4S, told Gulf News at security exhibition Intersec in Dubai.

UK Trade and Investment, a UK government department assisting British companies overseas, was unable to clarify what has changed for British companies doing business with Iran when asked by Gulf News.

Meanwhile, German multinational Bosch is planning to host an “open day” for Iranian companies at its Dubai offices this Thursday. But it won’t be signing contracts until guidance is given by the German government, an executive insisted.

“We are carefully preparing our next steps towards the huge opportunity awaiting us in Iran,” Baraa Dakhel, a Middle East regional manager, told Gulf News.

Amir Salimzadeh, an Iranian businessman, was at Sunday’s exhibition looking to form partnerships with western companies following Saturday’s historic announcement.

“This is the first time I give them my business card directly,” Salimzadeh, Chairman of Namad, a Tehran-based ICT company, told Gulf News.

But he soon found out that caution remains the watchword with one Italian firm declining to speak to him, fearing they might be breaching sanctions.

Sorana Parvulescu, Director Global Risk Analysis at Control a Risks Middle East, told Gulf News by email that while most of the financial and economic sanctions have been removed, others related to human rights and financing haven’t.

“Companies looking to seize these newly available opportunities will need to conduct thorough due diligence and seek legal advice to ensure that they are compliant with remaining sanctions,” Parvulescu said.

Meanwhile, Bill Klink, Vice-President Global Sales at American company Flir, said it is “unclear” what is now allowed after the lifting of sanctions.

Mahendra Godwani, Managing Director of UAE-based Preview General Trading, said he will wait for guidance from the UAE government.