Iran Country Briefing

Iran offers compelling reasons to do business but only solid preparation will lead to success.
This following guide to doing business successfully, will provide you:
Greater awareness of what motivates Iranian business counterparts
Iranian social and business etiquette
Tips to ensure successful business relations with your Iranian colleagues, clients and
suppliers

Official name
Capital city
Official language
Currency
Population
GDP
GDP per capita
President of Iran

Islamic Republic Of Iran

Tehran
Persian
Iranian Rial (IRR)
79,2 million
$419.643 billion
$13,300
Hassan Rouhani

Iran is the second largest economy in the Middle East after Saudi Arabia. It has the second
largest population in the Middle East after Egypt with around 80 million people. Over 60% are
estimated to be under 30 years old and the workforce is highly educated. Due these facts, today
Iran attracts a lot of international investment.
Any organization wishing to successfully conduct business with Iran needs to understand and
consider the mixture of traditional and modern influences which have an impact on Iranian
business and social culture.

Although Iran is considered a part of the Middle East, it is important that you do not confuse
Iranians with Arabs. Both have different languages, cultures and histories.
Islam Approximately 98% of the Iranian population is Muslim and adheres to the Shia branch
of Islam making it the only Shiite theocracy in the world. Iran is a conservative society where
Islamic traditions and values play an important role in everyday life. These traditions also affect
business so it is important to be aware of them when doing business with your Iranian
colleagues.
Indirect Communication Iranians tend to have a very indirect communication style and rely
heavily on nonverbal signals and figurative forms of speech. This is a means of saving face when
communicating and maintaining individual honor. This aspect of Iranian culture has to be
carefully considered when doing business because a direct refusal, for example, can be
interpreted as rude and impolite.
Hospitality Middle Easterners are renowned for their robust generosity and cordial welcoming.
Youre likely to be showered with treats, gifts, and delightful experiences when visiting the
region. Reciprocity is a human instinct; therefore, you will want to be equally thoughtful in
kind. Otherwise, it can be interpreted as a severe loss of honor for the person you are doing
business with.

Iran Country Briefing

Time Time moves differently in IRAN. There is a relax, itll get done mentality. People from
USA may expect or want things to happen instantly. Its most likely that things will take longer
than expected. Businesses have to be prepared for this, and factor it into their plans and
strategic objectives.

Working practices in Iran

The working week in Iran begins on Saturday and ends on Thursday. Friday is a Muslim
holy day for Iranians which should be respected when scheduling meetings. Working
hours tend to be from 9.00 to 17.00.

Muslims will pray five times a day. This routine may interrupt business schedules so
consider this when making business appointments with your Iranian colleagues.

There are a few key times to avoid in Iran. No-Rooz is New Year celebration. Its a major
holiday for Iranians. All offices, businesses, shops, etc will close for 2-3 weeks. Be aware
of Muslim holidays like Ramadan and schedule business meetings around them.

Punctuality in Iran is rare. However, it will be expected of you.

Decision making can be slow. Iranians are astute businesspeople. They enjoy haggling
and getting concessions, so be prepared for long negotiations.

Structure and hierarchy in Iranian companies

In Iran most companies have a top down hierarchy. Decisions are made by directors and
initiative and input from employees is not always welcomed.

When meeting someone for the first time, it is crucial to use the correct title and to be
formal. The appropriate title for men is agha followed by the last name while women
should be addressed with khanoom and the last name. Once the relationship becomes
less formal, your Iranian counterpart will probably call you by your first name.

Working relationships in Iran

Business is personal in Iran. Personal relationships are very important in Iranian

business culture. The first meeting should be focused solely on getting to know each
other. Once a relationship has been established, you can safely move on to business
matters.

Today, an increasing number of women are working at all levels of business in Iran but
there is still a very traditional understanding of gender roles which should be considered
when doing business as a woman.

V.

Doing business in Iran: Business Practices in Iran

Greetings in Iran are most of the time initiated with a handshake between men. If a
woman is present, you ought to hang on until she initiates a handshake. Salam
Alaykum (may peace be upon you) and the response Alaykum As-Salaam (likewise) or
the short form Salaam are common greetings in Iran.
When exchanging business cards with Iranian colleagues, it is important to use your
right hand or both hands as the left hand is considered unclean. When given a business
card, review it carefully and say a compliment before putting it away.

Iran Country Briefing

Like in any other country, in business meetings in Iran decisions are made by the
directors of the company. The decision making process can take long time due to their
indirect style of communication. Avoid putting pressure on the decision making process
as this can be counter-productive and comprise deals
By and large, business dress in Iran is quite modest. Men wear suits and a shirt, no ties
are requested. Women dress conservatively and when in public it is advisable to wear a
scarf to cover their hair. Foreign women should dress accordingly.

DO try to get to know your Iranian business partner personally in your first meeting. As
in all Muslim countries, establishing trust and a good personal relationship is of major
importance in Iranian business culture.
DO avoid topics like Iranian foreign policy and politics and also avoid criticising Islam as
this can offense local people. Try not talking about the female relatives of your Iranian
colleagues.
DO be aware that typical physical distance maintained when communicating in Iran is
closer than in many western countries. Although you may be embarrassed with this
close distance, it can be seen as a rude attitude if you back away.
DO show respect towards your Iranian business associates. In the Muslim tradition,
drinking alcohol and eating pork are strictly prohibited, therefore be aware not ask for
this kind of food while in business lunches. Likewise, avoid passing something around
with the left hand.
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DONT criticise your Iranian counterparts behaviour in presence of other business

partners as this may cause inconvenience and harm their sense of honour.
DONT schedule business meetings during the holy month of Ramadan which is a major
Islamic tradition that includes fasting for an entire month. As a result, activity is
significantly reduced.
DONT give the thumbs up sign while in Iran as this is considered to be an offensive
gesture.
DONT display emotions or affectionate behaviour to people of the opposite gender in
public. This is very uncommon in Iran due to religion and can cause embarrassment. In
contrast people of the same gender often display affection in public and it is not rare to
see two men holding hands.

Iran Country Briefing

False/ True statements

1. In Iran, women take their children to work.
2. It is not uncommon for men to walk hand in hand while in public.
3. In Iran, sitting with crossed legs is very common.
Answers
1. False. Various institutions provide day care services so employees have the option to
have their children looked after while working.
2. True. Holding hands is a sign of friendship
3. False. It is considered a harsh offense in Iran when the soles of your shoes are shown.
The best way to sit is with both feet on the floor.