The Wall Street Journal yesterday conveyed assessments from top financial experts describing Iran as “Turkey with oil” and outlining “a growing consensus that the withdrawal of sanctions on [Iran]… would be a huge boon for the country, the region and for investors who get in early.”
“Tehran feels like Ankara did in 2004,” Mr. Robertson, Rennaisance’s global chief economist, wrote in a report on his recent trip. “Iran has a broad manufacturing base – which produced 50% more cars than Turkey in 2011 – but unlike Turkey, it has 9% of the world’s oil reserves and a large current-account surplus.”
Robertson said in his report. Under Mr. Rouhani’s guidance, Iran is making monetary and budgetary adjustments emerging-market investors tend to like, which have tamed inflation and – perhaps more importantly – stabilized the country’s free-falling currency. “This looks to us like a potential re-rating play that could – in an investable scenario – attract those investors who have recently invested in Saudi Arabia, like those who invested in Turkey after 2001 and Russia since the 1990s,” Mr. Robertson wrote.