EMB
LESSONS FROM
JACK &
the Beanstalk
A
s the lifting of Western sanctions announced
in mid-January 2016 gets underway, investing
in Iran is emerging as a golden opportunity for many
companies and investors on the international circuit.
The nation has cash, natural resources, human
capital and cheap currency, not to mention a perfect
geographical location—the modern manifestation of
ancient trade routes render the country as strategically
valuable as ever to both business and politics. But the
picture is not all rosy and Iran’s golden opportunity is
not without risk.
We all remember the favorite children’s bedtime story of
Jack and the Beanstalk. The image of a young boy scaling
the sky-scraping foliage to steal treasures from an angry
giant’s castle has enthralled youngsters for centuries.
But from a business and economics perspective, what
Jack did up there in the castle was wrong, and it is
precisely that scenario that the international business
community should seek to avoid with Iran.
Currently, Iran is like that fairytale giant. The Persian
country was sanctioned to stay in its own castle for
decades, yet it has managed to sustain a large and
diverse economy with golden investment opportunities
across multiple sectors. The question now for companies
and investors from the outside world is how to seize
them. The fact is, investors will not be able to operate
alone in the Iranian castle; as with Cuba, they will be
forced to invest ‘with’ the giant. It is his castle after all.
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