As a diverse country consisting of people from various religions and ethnic backgrounds cemented by the Persian culture, Iran is the most populous country in the Persian Gulf region and its largest economy in terms of GDP (Purchasing Power Parity). It is one of the richest and oldest cultures in the world. For over three thousand years, it was a melting pot of civilizations and demographic movements between Asia and Europe. Iran became an Islamic Republic in 1979; and thereafter its institutional system has comprised a popularly elected President and Parliament (the Majlis).
With the world's second biggest proven oil and gas reserves and considerable mining resources, a dynamic and entrepreneurial middle class, and a well-educated labour force, Iran's economic potential is considerable. Iran is in transition to a market economy, and in this regard significant advances have been made in recent years in opening up the economy to international trade and foreign direct investment, encouraging the private sector, removing exchange restrictions, reforming the tax system, and enhancing macroeconomic management. Iran’s economic infrastructure has been improving rapidly over the past two decades. Strong oil prices over the past few years have boosted the country’s oil export revenues which have helped Iran's economic situation and as a result the country has experienced an accelerated economic growth of 6.1% in 2004, 6.3% in 2005 and 6.9% in 2006.
Iran continues to increase its cooperation with other developing economies, including Syria, India, Cuba, Venezuela, and South Africa. Currently, the country’s major business partners are China, UAE, Germany, Turkey, South Korea, France, Japan, Russia and Italy. The country has also increased its economic and trade ties with Turkey and Pakistan and shares with its partners the common goal of creating a single economic market in West and Central Asia, much like the European Union called ECO. |
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