Strong demand at trade fairs in Iran
The time for waiting is over
After the easing of sanctions on January 16, 2016, Iran is becoming the preferred trading partner in almost every industry. The prospect of lucrative deals that Tehran can make after the unfreezing of funds coupled with an almost decade-long investment backlog puts Iran, with its population of 80 million inhabitants, in worldwide focus as a trading partner. This is also confirmed by the international exhibition company IMAG from Munich as an organizer or partner of six trade fairs in Tehran.
Internationale Messe- und Ausstellungsdienst GmbH (IMAG) assists companies from around the world in refreshing their connections to business partners in Iran as well as in making new ones. Foreign trade fairs provide an ideal platform for buying and selling, investment and cooperation abroad, and are also of outstanding importance as an information and contact forum.
Trade fairs in Iran are in demand
"Regardless of whether a company is specialized in the processing of crude oil, in the automotive industry or in environmental technology, the interest in Iran regarding expertise and products from abroad is tremendous at this time," says Peter Bergleiter, Managing Director of the Messe München subsidiary IMAG.
Many companies have already recognized this and present themselves locally at one of the trade fairs. "At many trade fairs, the area at our disposal is not enough," says Bergleiter. This is particularly true for the Iran Oil Show, to be held in Tehran from May 5th to 8th. That is not surprising, because Iran has the fourth largest oil reserves and the second largest gas reserves in the world. According to Iranian information, investments of 185 billion US dollars are planned over the next five years in the oil sector.
Positive development expected in the construction and mining industries
In addition, the interest in trade fairs where construction machinery and mining are in the foreground (like at the IranConMin, being held in November 2016 for the twelfth time) is growing steadily. After January 16th, needed investments in the Iranian construction industry are now possible again. Equipment needs to be modernized in the Iranian construction industry, while in the traffic infrastructure, there is great need for investment in road construction as well as for the expansion and modernization of airports, ports and rail mass transit and mainline systems.
The mining sector is also regarded as a sunrise industry because of Iran's resource wealth. Since the Near Eastern country wants to extensively expand its metal industry, this will require a comprehensive expansion of mining. For example, Iran has large deposits of iron ore, copper and zinc. The extraction of marble also plays an important role.
An important prerequisite is personal contact
"Companies that are not here as an exhibitor at one of the trade fairs yet due to insufficient exhibition space, too little experience with Iran or no scheduled budget are traveling as visitors to Tehran to try to talk locally in person," Bergleiter explains. That is a good idea, because personal contact is irreplaceable in building mutual trust – a basic requirement for business.
"You should first inform yourself in advance about the cultural characteristics of Iran, because not every successful concept from the home country also works here. We're glad to advise our clients, so that being courteous doesn't become a challenge," says Bergleiter. In Iran, for example, women should wear a head covering, men and women should cover their arms and legs, by tradition, only contact persons of the same gender are expected to shake hands. Moreover, while English can be assumed to be used as a language of business, informational materials in the local language Farsi would nevertheless be highly advantageous. The use of alcohol is forbidden in the Islamic Republic. A good bottle of wine as a gift is therefore rather out of the question.
On location for 56 years
IMAG has already been active in Iran for a long time. Already in October 1960, the company organized the first collective exhibition of German companies in Iran at the German industrial exhibition. Over the decades, IMAG has organized exhibitions regarding various topics in Tehran. In 1990, the company invested in the "German Hall", which is still the preferred location for international trade shows today. Since 1994, IMAG has been organizing IranConMin, the successful international trade fair for construction machinery, mining, construction systems and the natural stone industry.
IMAG in Iran
- 1960: First German Industrial Exhibition, forerunner of today's T.I.I.E., 468 exhibitors presented their innovations on approximately 18,500 square meters. As a result, the fair was one of the largest industrial fairs worldwide.
- 1990: Support of the first all-German trade fair participation abroad after the fall of the wall – in Tehran. IMAG also invested in the construction of a new exhibition hall, Hall 38 ("German Hall"). The architecture of the hall was extremely modern, with a clear structure and high altitude, but with few buttresses. It is still the home of many international trade fairs today.
- 1994: First IranConMin (trade fair for construction machinery and mining), the organizer is still IMAG.
- 2005: In this year, the World Mining Congress & Expo was held in Tehran. In cooperation with IranMineHouse, IMAG took on the organization and implementation of the exhibition which accompanied the congress, involving 319 exhibitors from 19 countries. There were group pavilions from Great Britain, India, Poland, Russia, Spain, South Africa and Germany. There were approximately 30,000 visitors.
- 2016: IMAG is involved in six trade fairs in Iran (see below)
- IMAG also frequently organized the official participation of Germany in trade fairs in Iran, like for IranConMin, IranMed, T.I.I.E., IranPlast, Environment, the Automotive Exhibition TIAF and the International Trade Fair with sometimes more than 100 German exhibitors and business delegations.
Iran fairs with IMAG participation
Iran Oil Show, May 5-8, 2016
In May 2016, the Iran Oil Show is being held for the 21st time. About 2,000 exhibitors and 100,000 visitors are expected. With 46,000 square meters, it is the largest trade fair in Iran.
WATEX, September 25-28, 2016
The leading Iranian trade fair for the water and wastewater industry, Water and Wastewater Exhibition of Iran (WATEX), will be held in September 2016 for the twelfth time. About 300 exhibitors are expected.
Tehran International Industry Exhibition (T.I.I.E.), October 5-8, 2016
The T.I.I.E. is the leading exhibition for capital goods in Iran. It is specialized in manufacturing and machine tools. The show has been held annually under different names since 1960. In 2015, 800 exhibitors presented their products on 23,000 square meters of exhibition space.
IranConMin, November 6-9, 2016
IranConMin is the largest and most international construction trade fair in the region. It is taking place in 2016 for the 12th time. The first event was in 1994. Since 2014, the cycle has been annual (previously every two years). In 2015, approximately 200 exhibitors (half of them from abroad) presented their new products. Around 19,000 professional visitors came to find out about developments in the industry.
Tehran International Auto Parts Exhibition (IAP), November 16-19, 2016
In 2015, the IAP already took place for the tenth time on the International Permanent Fairground in Tehran. Automotive parts and components are presented at the fair every year. In 2015, more than 900 exhibitors presented their products on 25,000 square meters of net area.
Enviro/IES, Spring 2017
From February 29 to March 3, 2016, the environmental fair Enviro Fair and the fair for renewable energy IES took place simultaneously on the International Permanent Fairground in Tehran. The next edition of the fair is planned for the spring of 2017.
IranConMin is the largest and most international construction trade fair in the region. It is taking place in 2016 for the 12th time. The first event was in 1994.
In 1990, IMAG invested in the construction of a new exhibition hall on the exhibition site in Tehran. Hall 38 ("German Hall") is still the home of many international trade fairs today.
In 1960 already, IMAG organized the first German Industrial Exhibition in Iran.
Personal contact is irreplaceable in building-up business contacts. This also applies for Iran. But outside their own family, men should not touch women.