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Entering Iran Without a Trusted Network Is Risky
The Iranian market, with all its potential, is like entering an ancient, intricate city whose maps never show the full picture. Identifying a reliable partner, agent, or supplier without knowledge of domestic business networks and unwritten rules is like walking in the dark.
In reality, many foreign companies, on their first attempts, end up dealing not with genuine businesses but with intermediaries offering flashy yet hollow opportunities. Without thorough Vendor Due Diligence and careful Supplier Sourcing, these first steps often lead to costly failures.
Business relationships in Iran go beyond contractual terms
Local suppliers and partners often have decades-long ties with their counterparts and rarely open up to newcomers without a credible introduction. Entering this circle requires understanding the hidden layers of trust and influence in Iran’s business culture.
Real‑World Example & Risks of Skipping Due Diligence
A European manufacturer of industrial components spent several months negotiating directly with a prominent Iranian factory. At the final stage, contract terms were abruptly changed. The reason? A lack of insight into the legal and commercial reality behind the brand. The same project, when introduced through the right local channels, closed successfully within two weeks.
In Iran, checking a company’s past is not limited to legal paperwork. Industry reputation, family ownership structures, local alliances, and informal networks all determine whether a partnership will work. A flawless contract on paper often crumbles without that deep contextual knowledge.
Smart investors start their journey by securing mutual trust from the outset — trust that lays the foundation for sustainable success in Iran.