TEHRAN- In recent years, the global economy has been seeking new investment opportunities and expanding commercial production.

With its vast natural resources, educated workforce, and strategic geographical location, Iran has the potential to be one of the best destinations for foreign investment. 

With the lifting of sanctions and the establishment of favorable economic conditions, investing in Iran will not only be feasible but also cost-effective and profitable. 

One of the key indicators for justifying foreign investment is labor costs, which, compared to leading production countries such as China and India, make Iran a competitive option.

1) Affordable Labor: A Primary Incentive for Foreign Investment

One of the most important criteria for investment in manufacturing industries is labor costs. 

Studies indicate that, despite domestic inflation, labor costs in Iran remain more affordable than in many Asian countries.

In past decades, China has been known as the worldís factory. However, with economic growth and an improved standard of living, labor costs in the country have increased significantly. Currently, the average monthly wage of a Chinese worker in the manufacturing sector ranges between $600 and $800, a substantial rise compared to previous years.

India is also a key investment destination in the manufacturing sector. Labor costs in India are lower than in China, yet an Indian worker still earns an average of $300 to $500 per month.

In Iran, however, given the current exchange rate, wages are relatively lower than in both China and India. The average monthly wage of an Iranian worker in the manufacturing sector, depending on the type of job, ranges between $200 and $350. This makes Iran one of the most attractive countries for foreign investors.

Furthermore, Iran has one of the youngest workforces in the region, with many individuals possessing university degrees and technical skills. Unlike some developed countries facing an aging population, Iran benefits from a young, dynamic, and highly productive workforce. Foreign investors can leverage this affordable yet skilled labor force to reduce production costs and increase profitability.

2) Natural Resources and Cheap Energy

Iran is one of the largest holders of oil and gas reserves in the world, and the cost of energy production and distribution in the country is significantly lower than in many industrialized nations. 

This provides a competitive advantage for energy-intensive industries such as petrochemicals, steel, and automotive manufacturing. 

Foreign investors can benefit from inexpensive electricity and gas to reduce operational costsóa challenge in countries like China and India due to increasing demand.

3) Iranís Geopolitical and Strategic Location

Iran is situated at the crossroads of three continentsóAsia, Europe, and Africaóand offers rapid and cost-effective access to major global markets through the Silk Road, international railways, southern ports, and the North-South Corridor. 

This strategic position makes Iran a regional trade and transit hub. 

Investors can use Iran as a production base for exports to surrounding markets, including the Persian Gulf countries, Russia, Europe, and Central Asia.

4) Developed Industrial Infrastructure

Iran has over 500 industrial parks, strategic ports, and an extensive transportation network. Its roads, railways, and international airports enable fast and cost-effective exports. Additionally, Iran has a long history of production and exports in various industries, including automotive, petrochemicals, mining, and agriculture. These infrastructures, combined with low production costs, make Iran an ideal destination for foreign investors.

5) A Large and Growing Domestic Market

With a population of over 85 million, Iran represents one of the largest consumer markets in the region. 

This vast domestic market creates numerous opportunities for foreign companies looking to introduce their products to Iranian consumers. Additionally, the expanding middle class and modern lifestyle trends in major cities have increased domestic demand for high-quality goods. 

Investors can take advantage of this domestic market for product distribution and re-export to regional countries.

Conclusion: IranóOne of the Most Affordable Destinations for Commercial Production

Considering the factors mentioned above, Iran can be one of the most cost-effective destinations for commercial production. If international agreements are reached and sanctions are lifted, Iran could become one of the most attractive centers for production and investment worldwide.

There are also numerous other advantages, including access to rich mineral resources, low land and industrial property rental costs, well-equipped industrial parks across the country, low taxes, special incentives for foreign investors, access to regional and international markets through global corridors, the development of the technology and startup sector, high agricultural potential, and secure investment opportunities in infrastructure and energy. These factors make Iran a highly attractive option for foreign investors.

If economic and political relations with the world improve, Iran could be recognized as a production and trade hub in the region and even globally. 

When international financial and banking restrictions are lifted, the time will come for global investors to turn their attention to Iran and seize the countryís unique opportunities for business expansion and profitability.