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| Maria Mahmoudian |
Drawing from historical context, comparative regional models and economic forecasts, it argues that liberalization in these areas could significantly boost Iran’s GDP, generate employment and reshape its geopolitical positioning. However, such progress is contingent on internal reforms, the resolution of international sanctions and broader sociopolitical openness.
The Islamic Republic of Iran holds vast untapped potential in both the tourism and technology sectors. Historically constrained by geopolitical tensions, sanctions and domestic regulatory barriers, Iran remains an underdeveloped player in industries where it could thrive. This column explores the conditions under which Iran could open these sectors and outlines the likely economic and strategic outcomes.
Tourism sector: A sleeping giant
Cultural and natural assets: Iran is home to 24 UNESCO World Heritage Sites and possesses a geographically diverse landscape ranging from lush forests and snow-capped mountains to arid deserts and pristine coastlines. Its cultural history, rooted in Persian civilization, offers immense potential for attracting global tourism (UNESCO, 2023).
Economic impact: A liberalized tourism sector could generate up to $30 billion annually, according to projections by the World Travel & Tourism Council (WTTC, 2024). This would represent a dramatic increase from the current estimated $4–5 billion annual intake, largely limited to religious tourism and domestic
Dimitrios Karamitros: ISTOCKPHOTO.COM
Infrastructure and investment needs: To realize this potential, Iran would need significant upgrades in hospitality infrastructure, including modern hotels, efficient airports and tourist-friendly transportation networks. Foreign direct investment (FDI), conditional upon regulatory transparency, could accelerate this development.
Technology sector: A gateway to modernization, Iran graduates approximately 450,000 engineers annually, placing it among the top countries in STEM education (World Bank, 2023). Despite international isolation, local entrepreneurs have built resilient startups in fintech, cybersecurity and biotechnology.
Market potential and innovation: The Iranian tech ecosystem remains largely insulated. However, with regulatory reforms and the lifting of sanctions, the sector could attract substantial investment from multinational corporations. Iran’s large, youthful population — over 60 per cent under the age of 35 — presents a ready market for digital services.
Infrastructure requirements: Investment in digital infrastructure, including high-speed internet, data centres and smart city initiatives, would be essential. Liberalizing telecommunications and ensuring net neutrality could facilitate innovation and integration into global markets.
Diaspora contributions: One prominent example of Iranian diaspora talent is Dara Khosrowshahi, the Iranian American CEO of Uber. Born in Iran and raised in the United States, Khosrowshahi embodies a blend of western business acumen and Persian cultural heritage. His success in leading Uber through complex regulatory environments and international expansions offers a blueprint for Iranian policymakers and entrepreneurs seeking to modernize their own platforms.
Khosrowshahi’s potential engagement with Iran — through mentorship, advisory roles or philanthropic investment — could bridge cultural and technological divides. His advocacy for innovation, inclusion and ethical leadership could resonate deeply within Iran’s youth and startup communities, reinforcing the importance of global integration with cultural roots.
Strategic and geopolitical implications
Regional integration: A more open Iran could become a key node in regional initiatives such as China’s Belt and Road Initiative and digital co-operation frameworks in the Gulf. By fostering economic interdependence, tourism and technology development may serve as tools of diplomacy and soft power.
Diversification and stability: Reducing reliance on oil revenues through diversified sectors would enhance macroeconomic stability. Lessons from Turkey’s transition to a diversified economy underline the strategic value of such transformation (OECD, 2022).
Internal reforms and international relations: Progress is contingent upon easing Islamic Revolutionary Guard Corps (IRGC) control over key sectors, strengthening property rights, improving transparency and resolving nuclear-related disputes with western powers. These steps are prerequisites for rebuilding investor confidence.
Conclusion
Iran stands at a crossroads. By opening its tourism and technology sectors, it could unlock massive economic growth and reposition itself within the global order. However, this path requires co-ordinated reforms, diplomatic normalization and a fundamental shift toward greater openness. If successful, Iran could transform from an isolated actor into a regional leader in innovation and cultural engagement.
Maria Mahmoudian, PhD (SJE), MBA from Rotman and MEd from OISE, University of Toronto, is a dedicated educator with extensive teaching experience. An entrepreneur for over 15 years, she successfully owned and operated a business. Contact MariaMahmoudian@utoronto.ca.
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