Germany expects Iran exports to double with lifting of sanctions

German industry is expecting business with Iran to surge over the next five years following the lifting of international sanctions on Tehran.

"We believe that it is realistic to expect exports to double over the next five years from their current level of about 2.4 billion euros (2.6 billion dollars)," said the head of the Federation of Germany Industry (BDI) Ulrich Grillo on Monday.

Grillo said there was enormous pent-up demand for modernizing infrastructure in Iran as a result of the sanctions, which were imposed on the nation over the last decade for its nuclear programme.

Germany has a long-standing expertise in the development of infrastructure programmes.

The economic sanctions imposed on Tehran were lifted on the weekend after the International Atomic Energy Agency confirmed that Iran had scaled down its nuclear programme and fulfilled its obligations under a July nuclear deal with six world powers.

The BDI now sees opportunities for German business in the modernization of Iran's oil industry along with the nation's automotive industry, the chemical sector, health services as well as developing renewable sources of energies.

"I appeal to the German government and the governments of the Gulf region to create the conditions for a lasting peace," said Grillo.

Underlining Germany's economic hopes for Iran - one of the Middle East's biggest economies - German Economic Minister Sigmar Gabriel was one of the first western political leaders to visit to Tehran following the July nuclear deal.

Daimler Trucks, the world's leading truck manufacturer, said on Monday it planned an early return to the Iranian market, having signed letters of intent with its local cooperation partners - Iran Khodro Diesel and the Mammut Group.

"Daimler commercial vehicles have always had an excellent reputation in Iran," said Daimler trucks chief Wolfgang Bernhard. "And right now, there is a huge demand for commercial vehicles, especially trucks.

"We plan to quickly resume our business activities in the market there," he said.

Last update: Mon, 18/01/2016 - 17:25
Author: 

More from Europe

Merkel faces toughest challenge yet as she looks to win fourth term

Angela Merkel is set to secure the backing of her conservative party at its conference next week for a fourth term...

Armed robbery at Paris travel agency ends without casualties

An armed robbery on Friday at a Paris travel agency has ended without casualties.

Iceland president asks Pirate Party to attempt to form government

Iceland's president on Friday gave the leader of the anti-establishment Pirate Party the task of forming the next...

Italy referendum campaign ends amid claims of postal vote fraud

Italy's political leaders entered their final hours of campaigning on Friday in a constitutional referendum whose...

Gate stolen from former Nazi concentration camp "found" in Norway

German police are investigating whether a gate bearing the sign "Arbeit macht frei" (work sets you free) that was...