Boon, not Boom
According to the International Contractors Association of Korea, the total number and value of the orders received in Iran by Korean construction firms are 91 and US$12,046,638,000, respectively. For these companies, Iran is the 18th-largest overseas market and the eighth-largest market in the Middle East. They have signed no contracts in Iran since the Korean government joined the economic sanctions in July 2010. At present, no Korean builder is doing construction work in the country.
Iran, in fact, was close to their home turf before the embargo. As of the end of June 2010, their cumulative value in the country added up to US$11,941,256,000 to rank sixth. At that time, Iran was the fifth-largest market for them following Saudi Arabia, the U.A.E., Libya, and Kuwait.
Now, Korean builders are looking forward to a number of new contracts. “Iran has been unable to make a proper investment in industrial facilities, social overhead capital, and the like due to the embargo, but the nuclear deal is expected to result in a higher demand for development,” the association explained. According to the organization, the Iranian construction market is estimated to grow from US$88.7 billion to US$154.4 billion between 2013 and 2016.