Iran Country profile

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Country risk in Iran is moderate to high with an OECD country credit grade of 5. This is akin to a speculative grade sovereign rating, which indicates a moderate to high likelihood that Iran will be unable and/or unwilling to meet its external debt obligations.

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The World Bank gives Iran an ease of doing business rank of 124 out of 190 countries. It outperforms the region on starting a business, enforcing contracts, getting credit, registering property and dealing with construction permits. But lags in all other areas.

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Risk of expropriation in Iran is high. The Iranian revolution in 1979 and the incoming regime led to widespread expropriation of foreign owned assets and businesses. This aligns with the poor scores from the ease of doing business scorecard.  

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Political risk in Iran is elevated. Iran scores poorly on the World Bank’s governance indicators. It is in the bottom quartile on most measures and scores particularly poorly on regulatory quality and ‘voice and accountability’.Government mismanagement, inefficiencies and a burdensome regulatory environment are particular drawbacks.

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