Social Factors Influencing Investments in Iran

Social Factors: Influence on FDI climate in Iran

Age Structure:

Currently, 46.1% of the population is between the ages of 25 and 54. This indicates that a significant chunk of the population is engaged in the labour force. A promising sign for Iran is that 18.7% of the population is between the ages of 15 and 14. Furthermore, 23.7% of the population is between the ages of 0-14. These are good indicators for investors looking to invest in the long run due to the existence of a large work force. Only 11.5% of the population is over the age of 55. However, if the population growth stagnates, problems would arise due a major chunk of the population now moving into the retirement. Population stagnation is often found in economies that are in a dire state.

Income Distribution and Standard of living.

The most visible sign of disparity in income distribution can be noticed in the divide between urban and rural areas. Standard of living is comfortable in urban areas but the condition is quite bad in rural areas. However, it should be noted that the condition in rural areas is improving significantly and recent statistics the World Bank indicate that there has been good improvements in sanitation and water requirements in rural areas. This is a good sign for the economy.

Literacy and Education

Totally 85% of the population is educated and around 89% of males and 80% of females.  Education spending is around 3.7% of the GDP. All these factors are extremely positive when it comes to opportunities for investment. Furthermore, even though Iran is an Islamic country, female population is the workforce is extremely high compared to other countries in the Middle Eastern region.

Culture and Work Ethic

Although Islamic traditions have a strong influence on the culture in Iran, it can be said that Islamic culture is rather progressive as compared to its neighbours. Women are encouraged to participate in the workforce. Furthermore, in contrast to past elections, the recent one was fought only on the basis of economy. Hassan Rouhani campaigned only on the basis of a better economy and won a significant mandate. This indicates that the major concern in the minds of the Iranian population is the economy and surveys indicate they are ready to work extremely hard to bring the country out of its current situation.