Tuesday, 16 October, 2018

Iran allows KFC to enter market

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After the nuclear deal, Iran is developing trade relations with Western countries. However, a report alleges that relations had begun to develop even before the nuclear deal was reached.

According to a story released by Iranian news agency Tasnim, Iran allowed Kentucky Fried Chicken (KFC) to open a branch in the country on May 10 on condition that they use a name “Iranian Halal KFC.”

Moreover, Iran allowed Burger King, another American fast-food chain, to operate in the country.

Iran is preparing for a trade and investment boom that could reshape the region after agreeing with world powers to curb its nuclear program, paving the way for sanctions that have stifled its economy to be lifted, according to Reuters.

With just under 80 million people and annual output of some $400 billion, Iran is set to be the biggest economy to rejoin the global trading and financial system since the break-up of the Soviet Union more than two decades ago.

Economists estimate that a third of Iranian industry may have been idled by the sanctions, which the U.S. Treasury estimates cut Iran’s gross domestic product (GDP) by a fifth; much of this could now revive as trading ties with the West are re-established. Iran’s trade with the European Union last year totaled 7.6 billion euros. In 2011, before banking sanctions hit, it was 27.8 billion euros.

Further out, many firms are likely to establish a presence in Iran through representative offices, partnerships and franchise agreements. Some Western fast-food and clothing franchises are already present, operating via Turkey, according to Tehran businesspeople.

Large-scale foreign direct investment may take at least a year or two; big Western firms will want banking networks to be rebuilt first, and will be wary of provisions for sanctions to “snap back” if Tehran is seen to violate the agreement.

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2 Comments

  1. Guest

    October 27, 2015 at 11:44 am

    This is sadly a terrible news. Iran should not be exposing its market to consumer products which do nothing for the country or its citizens nor economic growth and development. Sign of modernization and globalization does not mean seeing McDonald’s at every corner or KFC or Burger King. Let’s see if there are real intentions of transferring knowledge, technology and services which actually add value to Iran’s economic growth and development.

  2. Bagher Khakpour

    October 28, 2015 at 1:37 am

    It is so sad to see how Iranian people’s health is being sacrificed . Kentucky fried chicken, McDonald and Burgerking? What is so good about them?

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