UK exporters to Iran have performed remarkably well in 2009, despite continuing difficult trading circumstances. In addition a positive Foreign Direct Investment (FDI) balance indicates the importance of economic relations with Iran.

Direct exports in the first half of 2009 held position with the year before, however the world recession, a reduction in government spending in Iran and the effects of US sanctions on the financial sector has led to a slow down in the second half year.

Exporters have found difficult the continued withdrawal of banking services to Iran by a large number of banks. So a considerable part of the Chamber’s work has been in helping Members find and establish new banking relationships to enable them to be paid. Also we have sought quicker and clearer responses from Export Control Organisation to the applications of some Members for export licences, thereby helping Members to maintain markets, profitability and employment. All this may partly explain the increase in Membership during the last two years to over 120 at this point.

In November Simon Gass, HM Ambassador to Tehran, spoke to Members on a fleeting visit to the UK, updating us on bilateral relations with Iran. Already in 2010 we have heard from Rouzbeh Pirouz about investment in Iran through the Tehran Stock Exchange and the Iran Business School project. We will be receiving a delegation from IBCCIM, our counterpart chamber in Tehran, and a visit from the Ras al Khaimah Free Trade Zone to explain its services. Other meetings will update Members’ knowledge of the existing sanctions regime and at the leading industry sectors of Iran. We look forward to meeting the new Iranian Ambassador to the UK.

Despite difficult political relations, the Chamber continues to play a vital role in maintaining the network of business people and politicians in both countries who wish to foster better relations between the UK and Iran. I believe the continuing level of the economic relationship between the UK and Iran justifies the work of the Chamber.