1. Iran capital market as an untapped market for foreign investors2. Iran capital market as one of the cheapest capital markets in the world

3. Iran capital market as the oldest capital market in the region

4. Attractive interests and dividends for foreign investors

5. Diversity of investment instruments like stocks, Sukuk, ETFs, mutual funds, derivatives, commodities, Islamic treasury bills…

6. Separate and demutualized exchanges; one main exchange (TSE), one innovative/mid-cap exchange (IFB), one commodity exchange (IME) and one energy exchange (IRENEX)

7. Globally-Standardized rules and regulations in the capital market including those of IOSCO

8. Promising prospects awaiting foreign investors in post-sanction era

9. Good business relationship between Iran and other countries

10. Regulatory and supervisory support for foreign investors (FIPPA & SEO Bylaw)

11. Iran as one of the most investor-friendly countries in the MENA region

12. Iran as a new emerging market with the population of around 80 million 13. Richness in commodities

14. Iran enjoying a lot of high potential sectors for investments, like logistics, industries, health, machinery, IT, agriculture, …

15. A very stable political situation in the region (no war for decades)

16. Iran enjoying a long history of civilization and culture

17. Plenty of free trading zones offering interesting incentives and investment diversity

18. CIP services for foreign investors

19. Strong support for foreign investors by the authorities

20. Tehran as a metropolis comparable to other international cities, among the safest ones

21. Plenty of exhibitions with a high standard for international visitors

22. Customs and tax incentives for foreign investment

23. Developed economic infrastructures

24. Transparency and fairness in rules and regulations

25. Easy and quick process in foreign investment (easy KYC, bank account opening, and transactions account opening)

26. Stability in the rate of foreign currencies

27. Iran capital market having a great portion in Iran GDP (almost a quarter) 28. Over 600 listed companies in the capital market, both in TSE and IFB; one of the lowest P/E ratios in the world (around 6)

29. A wide range of industries in the capital market (over 40 industries)

30. A fully Sharia compliant capital market

31. Full ownership of securities for foreign investors

32. The most diversified commodities market in the region (IME) which trades in all types of contract (spot, futures, credit, forward and options); an export ring in Kish Free Zone

The following chart shows the procedure for foreign investors to enter the Iranian capital market.

There are four exchanges including two equity markets, i.e, the TSE and IFB, and two commodity markets, i.e, the IME and IRENEX. The following chart in brief demonstrates these markets and instruments and products traded in them.

Tehran Stock Exchange

  • Equity Share
  • Right Offering
  • Sukuk
  • Derivative (Futures, Embedded put options)
  • ETF

Iran Fara Bourse

  • Equity Share
  • Right Offering
  • Sukuk
  • Derivatives
  • Housing Mortgage Right
  • ETF
  • Intellectual Property

Iran Mercantile Exchange

  • Industrial
  • Oil & Petrochemical
  • Agricultural
  • Futures  on Commodities

Iran Energy Exchange

  • Electricity
  • Oil & Gas
  •  Other energy carriers

Internationalization and as a result getting linked to important organizations and associations and also compliance with the globally accepted standards have been on the top of the agenda of the SEO international relations over the last years. The SEO has approached this point in different ways, one of which has been endeavors to get an active member of internationally acclaimed associations including IOSCO. In March, 2016, the SEO met the requirements of IOSCO and became a member of this international organization. So far, the SEO has signed 14 Memoranda of Understanding and three agreements of cooperation and in addition it has been in touch with some of its top counterparts in other countries.