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Even with these challenges there are foreign companies seizing the opportunity ahead of their competitors. While the oil and gas sector gets the most attention, Iran’s diversified economy is attracting companies across industries. In particular, consumer-oriented sectors are counting on Iran’s large (nearly 80 million), young (more than 60% under 30 years old), and urbanized (more than 70%) population to be loyal customers in the future.

For example, South Korea–based LG Electronics, which maintained an Iran presence despite sanctions, is in discussions to establish a manufacturing plant in Tehran that will produce more than 1.5 million refrigerators, televisions, and washing machines per year. French automaker Renault has taken advantage of sanctions relief, assembling nearly 15,000 cars between January and April, a sevenfold increase from the same period in 2015. And Danish pharmaceutical company Novo Nordisk is building on its Iran presence by doubling local staff to nearly 300 and investing $76 million in a new factory.

The country’s tourism sector attracted fewer than five million visitors in 2014 while neighboring Turkey attracted 39 million people. Given Iran’s top 10 ranking in the number of UNESCO world heritage cultural sites in the world, this is poised to change. Luxury hotel brand Melia is joining Accor and Rotana to open the country’s first international five-star hotel, the Gran Melia Ghoo...

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