In November, during an official visit to the United Kingdom, HE Eng Jahangiri, Minister for Industry and Mines, was the key-note speaker at a Conference "Fuelling Economic Growth in Iran" hosted by the British-Iranian Chamber of Commerce (BICC) and IBC Global Conferences, with the support of UK Trade & Invest.

This was a critical moment for Minister Jahangiri to be in Europe and he had been in Germany just prior to the official visit to the UK. Only two days earlier, on 15th November, Iran had signed an agreement, on nuclear matters, with, what has become known as, the EU3 (the UK, Germany and France), laying the basis for improved international and regional relations. Minister Jahangiri's visit was well timed.

Between countries, good economic and trade relations create a healthy climate for political contact. This is the context in which the Minister's visit can be seen.

British exports to Iran are some GBP450 million per annum but Iranian exports, excluding oil, to the UK are much lower and consist significantly of traditional products, notably carpets and pistachios. The official visit and the Conference enabled the Minister and his party to exhibit other Iranian industries, which are perhaps less well known to UK business at large, being mining, general manufacture, shipping, automotive and the gas industry.

BICC was an appropriate Conference host as it is a networking organisation, which makes connections between businesses in both countries as well as providing business information and travel support services. Also BICC promotes change on general trade/investment issues as a result of what it learns from British and Iranian companies will improve trade and investment flows. For example, during 2004, BICC signed a Memorandum of Understanding with its counterpart in Iran, the Irano-British Chamber of Commerce, Industries and Mines, which envisages UK and Iranian companies working together for business in third countries.

The Conference, which was chaired by the Rt. Hon. Lord Lamont of Lerwick, was opened by the two Ambassadors, HE Richard Dalton and HE Dr. Adeli, who spoke about UK-Iran economic co-operation.

The key-note speaker from the UK was the Rt. Hon. Mrs Patricia Hewitt MP, Secretary of State for Trade & Industry. Mrs Hewitt welcomed Mr. Jahangiri to the UK and explained the importance of a growing trade relationship. British business was ready to play its part in the growth of the Iranian economy, but further economic reform and the opening up of the economy will help in this. She anticipated the conclusion of an Investment Protection and Promotion Agreement and a Double Taxation Agreement.

Mr. Jahangiri declared that there were many opportunities for British business in: the renovation and modernisation of Iranian industry; minerals and metals, automotive parts; legal and financial services; and oil, gas and petrochemicals. In particular, the economy was open to private investment, both Iranian and foreign.

Mr. Gholamreza Tarjgardoon, Chief Economist of MPO, and Mr. Hasan Alaghband, Balli Industrial Develpoment and Mr. Keba Keinde of BNP Paribas gave the background to the Five Year Plan, economic reforms and the enormous potential of Iran. Plan growth will depend partly on FDI and this was exemplified by a case study presented by Mr. Jacques Kruger of BAT. Opportunities in the mining sector are increasing and were explained by Dr Akbarieh, from the Ministry of Mines and John Bartram of Rio Tinto, a UK investor in the Sari Gunay Gold Project in Kordestan Province. Most FDIs are looking for the process and procedures of investing to be made easier. A fully established one-stop shop, where FDIs can obtain all the required approvals and permits, would greatly assist in this.

The morning was rounded off with a lively panel discussion on Iran's credit standing led by Dr Mohammad Mojarrad, Vice Governor of the Central Bank of the Islamic Republic of Iran, Mr. John Weiss, Deputy Chief Executive of ECGD, Mr. John McCormack of Fitch Ratings and Dr Ahmad Azizi, Managing Director, Melli Bank in London. Iran's credit rating is stable and improving. However, many in the audience thought that Iran's economic and payment record justified an international capital markets rating higher than it was at present. However participants noted that various future developments would be relevant to investors; particularly the progress of the Five Year Plan, the oil price, fiscal constraints, regional security and Iran's international relations. Amongst export credit agencies, ECGD has taken the lead in accepting the credit of NPC and NIOC, without additional guarantees - this is the result of ECGD's positive view of Iran.

After the lunch break, Mr. Afkhami, Chairman and Managing Director, IRI Shipping Lines, gave a tour d'horizon of the shipping sector. This was a area not well known to the audience who were struck by the size and variety of the national fleet.

The remainder of the afternoon covered gas and oil developments. Mr. Roknaldin, Managing Director of NIGEC described the joint exploration and development of the huge gas fields in Iran, with overseas investors. Also there was significant prospects, throughout the export chain, in future developments where foreign investors can bring long-term markets for LNG or pipelines gas.

Mr. Klaus Michalak, Managing Director, Structured Trade & Export Finance, Deutsche Bank presented a case study of the financing of Phases 9 & 10 of South Pars which was successfully completed last year.

Finally Mr. Gary Campbell, of the legal firm Denton Wilde Sapte, recommended further flexibility and creativity in the approach to financing and contracting with overseas partners to assist in ensuring that the fast pace of growth in the energy sector, envisaged in the 4th and 5th Development plans, is achieved.

This was a well-attended Conference, with some 250 participants. The feed-back from attendees was positive and that Mr. Jahangiri's party had done an important job in promoting economic relations between the two countries. Following the Conference, participants were invited to attend a reception, hosted by Mr. Mike O'Brien MP, Minister of State for Energy and E-Commerce: this was a good opportunity to make new business contacts and to relax.

While he was in the UK, Mr. Jahangiri met Baroness Symons and Mr. Douglas Alexander, ministers in the Foreign and Commonwealth Office, as well as a number of large British companies. Also the Lord Mayor of London held a roundtable discussion with representatives of important City firms in Mr. Jahangiri's honour and to explain what London's financial centre can offer Iran' future development.

In my memory, Mr. Jaghangiri saw more senior government and business people in his one visit than any previous visitor from Iran. Quite a visit!