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Iran Market introduction
Last updated December 2006

Market environment
Iran is located in West Asia. The nation's largest city and capital is Tehran. Iran is the Organisation of the Petroleum exportinng countries (OPEC) second largest oil producer after Saudi Arabia. Iran also has the world’s second largest natural gas reserves. Its economy continues to rely heavily on its oil as it has done so in the past 40 years. The main exports besides oil and gas are carpets and agricultural products.

Iran became an Islamic Republic in 1979. The current President is Mahmoud Ahmadinejad, a hard-line conservative who came into office in June 2005 (elections take place every four years).

The population of Iran is 70 million with the under 35 age group representing 70 per cent of the total population. Forty per cent of the under 35 age group are under 16. Iran has one of the highest urban growth rates in the world; the urban population is about 70 per cent and the United Nations estimate that this will go to 80 per cent by 2030. Literacy is high and the country has a rich and proud cultural history.

Iran’s GDP growth rate was around 6.9 percent in 2005 with both inflation and unemployment running at approximately 15 per cent. A main objective of the present Government is to reduce unemployment for current and future generations of young Iranians.

The economy is strongly centrally controlled however the private sector is large, dynamic and growing at 25 percent of the rate of the domestic economy.

Education is valued highly by Iranian families, however of the 1.5 million students passing the National University Entrance Exam, only places 500,000 gain places because of limited capacity. A key factor in deciding on higher education overseas is cost. Competition is therefore growing from the United Arab Emirates, Cyprus, India, Ukraine, France, Germany and Australia.


Market characteristics
Primary education lasts for five years leading to the Certificate of Completed Primary Education. Secondary education (reform system) covers three years of lower secondary and upper secondary and a one-year pre-university programme. Secondary education comprises three branches: theoretical, technical-vocational and skill-knowledge (Kar-Danesh). Each is divided into different fields. The required total number of credits leading to the High School Diploma is 96.

The one-year pre-university programme prepares students to enter university and higher education institutions. To enter this course, students should pass the appropriate exam. After successfully passing the one-year period, they are granted the Pre-University Certificate and can sit for the National Entrance Exam of universities and higher education institutions (Konkur). Qualified students entering the technical-vocational branch can continue studies leading to the post-Diploma degree (technician) or sit for the Pre-University Examination.

Post-secondary technical institutions and higher education institutions train first-class technicians. Students sit an entrance examination and follow a two-or three-year post-secondary course leading to the Kardani (First Class Technician's Certificate), or Associate Degree, formerly called the Fogh-Diplom.

Higher education is provided by comprehensive universities, specialised universities, universities of technology, medical universities, teacher training centres and private institutions. Most universities are State institutions. University activities are coordinated by the Supreme Council on Higher Education Planning (SCHEP), and the Ministry of Health and Medicine.

The first stages of higher education are: Associate Degree (Kardani) and Bachelor's degree (Karshenasi) (formerly Licence): Some universities offer an Associate Degree (Kardani) after two to three years' study (formerly called Fogh-Licence). The Bachelor's degree is conferred after four years' study (or two years after Kardani).

The second stage of higher education is a Master's Degree (Karshenasi Arshad) which was formerly referred to as a Fogh-Licence. The postgraduate qualification of Master's Degree in Arts and Science is generally conferred after two years' study beyond the Bachelor's Degree.

The third stage of higher education is a Doctorate (Doctora).The Doctorate is offered for professional vocations such as Medicine, Dentistry, Pharmacy, Veterinary Medicine) and at PhD level. Professional Doctorate degrees are conferred in Medicine. Each academic year is through September to June. Recent statistics shows that total number of Higher Education students is 923,913.


Market opportunities
The major demand in Iran comes from graduates with Masters degrees seeking PhD or postgraduate research programmes. However high-school leavers and graduates with BA or BSc degrees both share a relatively high proportion of the market. There is a general interest for Medicine and other subjects allied to medicine among Iranians. Also basic sciences such as Maths, Chemistry and Physics are still among the most popular subjects. In the past decade the need for Computer Sciences and InforT has grown rapidly and the demand far exceeds the local supply. Quite recently, the following subjects have attracted more Iranian students: Engineering (especially electronic engineering), Business and Management, Architecture, English studies and Education.

The absence of the American and Canadian education providers as our main competitors, has created a rather relaxed market for British institutions in Iran. However, other English language speaking countries such as Australia and New Zealand together with some Eastern European countries such as Hungary, Ukraine and Russia have become very popular amongst potential Iranian students. At post graduate level attractive English courses are offered by Sweden, Holland, Italy and Norway with low costs compared to the UK. Also in recent years Asian destinations have begun to claim a significant share of the Iranian market. India has always been a traditional destination for less affluent Iranian students but recently, Malaysia and China have emerged as major competitors in the market.

The reputation and credibility of UK qualifications along with the proximity of the UK to Iran compared to other English language speaking countries strengthens the UK’s market position. The presence of the British Council in Iran since 2001 has had a great impact on the educational relations between two countries.


Our infrastructure and strategic education priorities
The British Council has an office in Tehran which is located in the British Embassy’s premises. The reputation of the British Council has a long history in Iran which goes back over 30 years. We have expanded rapidly since the Council re-opened in 2001. Our activities and services in the education section include; higher education links, scholarships and awards, science projects, English language services and provision of UK education information.

So far, we have helped in the establishment of over 20 joint programmes as well as organised over 20 collaborative research projects between UK and Iranian Institutes. We have been managing Chevening and partial scholarships for four years. In the area of promotion, we have organised at least 80 UK university/college presentations in our office and assisted in student recruitment. The British Council in Iran actively participates in the international Educational exhibitions and promotes its services.

The British Council aims to expand its resources in the future to cater for the needs of the growing market. We will continue to reach many people with our products and services across the country.

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