LA REPUBLIQUE ISLAMIQUE D’IRAN

1. LA REPUBLIQUE ISLAMIQUE D’IRAN جمهوری اسلامیايران ATHENA TEAM 7th of December 2009

2. Our contact • Mr Fabiani • Has been in Iran 4 yearsbefore and 4 yearsafter the revolution (1979) • Chiefexecutive of Total exploration and production in Iran • Contributed to the consortium => 6 millions bariles/day • Worked in refinery and marketing in China (1978), Indonesia (1987)

3. SUMMARY SITUATION IRAN FROM THE INSIDE CULTURE RELATIONS INSIDE THE COMPANY TOTAL IN IRAN FOREIGN COMPANIES IN IRAN

4. Situation SURFACE:18th POPULATION: 71 M TEHERAN PERSIAN RIAL (IRR) ALI KHAMEINI AHMADINEJAD

5. Culture • Communication : Initial contacts, mores… • Verywelcoming • Really positive about European • Never show the richness • People focus on logic (really important)

6. Culture • Religion and politics • Majority : Muslim (but not Arab, 50% are persian) • 80% of chiites 20% of sunnites • Never represent the prophete Word of God • Theycanrepresent Imams Coran : mohamed and hisprophet • (messianique principe)

7. Culture • Religion and politics • Verycomplex • Ayatollah + Board of experts (80p) • AhmadinejadfollowsYazdi (terrorist) • Everyone has a chief, everydecisioncanbereconsidered

8. Culture • Social aspects •  Reallysafe country : everythingiscontrolled • Women : not a lot of freedom • Education : veryhealthy

9. CultureEconomics - economic situation • Growth rates : 6,4% of the GDP on average • Large inflation level over 30% • International sanction on basic foods • Rise of international food and energy import prices • 12,5% unemployement in 2008

10. CultureEconomics - economic sectors • 2ndlargestproducer in OPEC • Economyisdependent on oil • Agriculture • Caviar • Steel • Largestproducer of steel in the Middle East but.. net importer • Automotives • Largestautomakeramong the M-E • Petrochimicals • 2ndlargest manufacturer in the M-E • Financial Sector • Privatization and liberalization of fianncialsectors.

11. CultureEconomics - International Trade • International sanctions • Iran enjoysgowing and positive trade balance in goods • Exports: Oil and Gas (80%), petrochimical, carpets… • Imports: Gasoline, rawmaterials, food, consummerproducts • Tradingpartners

12. CultureEconomics - Economic policy Un-targeted and innefective • Shift its state dominatedinto a market-orientedeconomy • Liberalization, diversification and privatizationtake place under 1997-2005 • « Bring the oil money to people’s tables »Ahmadinejad • Fiscal policy • Cash handouts to the poor • Monetarypolicy • Lowinterestloans for agriculture, tourism

13. Culture From Wikipedia, the free encyclopedia • Geopolitics • Power structure

14. Culture National legislative body 290 representatives Actually: 125 conservative party 35 reformers 10 independent From Wikipedia, the free encyclopedia • Geopolitics • Power structure

15. Culture Executive function, subordinate to the supreme leader, signs treaties, international agreements, national planning, budget, appointing ministers, governors, ambassadors that have to be approved by the parliament From Wikipedia, the free encyclopedia • Geopolitics • Power structure

16. Culture 86 Mujtahids (Islamic scholars) that elect and remove the supreme leader and supervises his activities From Wikipedia, the free encyclopedia • Geopolitics • Power structure

17. Culture 6 Islamic jurists selected by the supreme leader among juridical power’s list. Interprets constitution, supervises elections, approves candidates From Wikipedia, the free encyclopedia • Geopolitics • Power structure

18. Culture Ministers From Wikipedia, the free encyclopedia • Geopolitics • Power structure

19. Culture Highest ranking political and religious authority of the nation, more powerful than president. Commander armed forces, director of medias, religious fondations From Wikipedia, the free encyclopedia • Geopolitics • Power structure

20. Culture From Wikipedia, the free encyclopedia • Geopolitics • Power structure

21. Culture From Wikipedia, the free encyclopedia • Geopolitics • Power structure

22. Culture • Geopolitics • Relation withforeigncoutries • Twostrategicprinciples : • Eliminatingoutside influence • Alliances with non alignedcountries • Foreign embargo • Petrol (recentlyreconducted) • Weapons

23. Relations inside the company • Team management • Education isvery good but theoretical, mostemployeeslack of practicalexperience for management • Security : a lot of training needed, not natural

24. Relations inside the company • Thingsyoushould do : • Use a lot written documents • Use logic to convince • Thingsyoushouldn’t do : • Employforeigners (experienceis not recognised)

25. FOREIGN COMPANIES IN IRAN • Statistics of foreign investments • Laws • two types of laws concerning foreign companies • FIPPA - Foreign Investment Promotion and Protection Act– address foreign companies directly • Eg . The investment leads to economic growth, promotes technology, promotes quality of products, increases employment opportunities, increases exports and entering the international market • Laws - certain articles or by-laws address foreign companies

26. FOREIGN COMPANIES IN IRAN • Advised to adopt a medium- to long-term strategy for the Iranian market • The setting-up of an enterprise in Iran seems to be difficult • Long negotiations • Need of • Knowledge of the structure • Friends

27. FOREIGN COMPANIES IN IRAN • Possiblestrategy • JV – JointVentures • Buy-Back • BOT - Build-operate-transfer

28. MrFabiani’sexperience He didn’t received any special formation before coming. Very interesting as a multicultural experience but disappointing as intellectual one. Iranian workers need practical formation at the beginnings – in university: only theorical formation. Big problems with security in work lands – “Un homme ne s’accroche pas”. If you want to work in Iran, go with a big group, don’t go alone: “lemon technique”! Listen, be patient, respect the other, learn logic and be open mind.

29. Iranian way of life “In Iran all is forbidden but there is always a solution.” Homosexuality is forbidden / 1st World position in transsexual operations and imen reconstruction. “If you are a good musulman you have to help always another one” imen operations. 365 death sentences per year (drugs, homosexuality, thefts,…). Men have to become musulman to marry an Iranian woman. In the other way it’s not necessary. If you renounce to the Islam  Fork. Woman at university: 65%  It could be higher but there is a new law.

30. Thankyouforyourattention!