UK firms are cautiously eying opportunities in Iran ahead of an expected $600bn boom in trade and infrastructure investment over the next ten years.

The Islamic Republic is embarking on an ambitious investment drive as it emerges from decades of isolation imposed by international sanctions.

The key infrastructure projects required includes the expansion of its 10,223km long state-owned rail network which supports industrial and commercial corridors and is expected to expand to over 25,000km by 2025, according to consultancy firm Ipsos.

In addition, all 54 of Iran’s airports are expected to require significant upgrades and Iran is planning to build 7 new international airports over the next decade.

The state carrier, Iran Air, has already placed orders with Airbus for 114 new aircraft and it is estimated that another 600 new aeroplanes will be needed in the next decade.

“Is there an opportunity here for UK business? Of course there is,” said the head of Infrastructure and consultancy EY.

“Deliverability is key and contracts could be won by British companies on the basis of professionalism. These skills are underpinned by high standards and regulation which means the companies are more likely to offer a robust approach to the work.

“You want to know that your investment is in good hands. It’s about de-risking the project,” she said.

However, companies will be looking carefully at the risks surrounding Iran, she added.

The latest UK government figures indicate that from January to October 2016 the value of UK exports to Iran had continued to rise and were 42pc higher than the value of exports in the same period in 2015.

Source : telegraph