The firms have also agreed to establish an onshore financial advisory platform and offshore fund to provide access to the Iranian capital markets.

Italian firm Azimut Group, an independent asset manager, has agreed to acquire 20 per cent of Mofid Entekhab (Entekhab), an independent asset manager based in Iran, which is part of the Mofid Group.

Also, Azimut and Mofid Securities have signed a shareholders agreement to develop an onshore financial advisory platform and establish an offshore fund enabling foreign investors to access Iranian capital markets, the firm said in a statement.

Azimut, through AZ International Holdings, will purchase from 20 per cent of Entekhab from Mofid Securities. Mofid Group will be remaining majority shareholder of the firm. The parties have ensured that the partnership will be compliant with economic sanctions requirements.

Azimut is the first global financial institution entering with an equity investment into a company providing financial services licenced by the local regulator, SEO, in Iran. This is after international sanctions on Iran were lifted in 2016.

The asset manager believes the potential of Iran as a market place was too good to turn down. It said the country is the second largest economy in the Middle East and is expected to grow above 4 per annum through 2020.

“We are making a historical first step for a global player entering the Iranian financial market,” said Sergio Albarelli, chief executive of Azimut Holding. “We see the group to pioneer the untapped opportunities of a frontier market which has in fact the full credentials of a large advanced emerging market. Mofid adds to its undisputable market leadership a multi decade reputation in brokerage and asset management services, sharing a common base with Azimut core values of independence and commitment to performance. We look forward to leveraging this partnership to jointly add value to local and international clients”.

The Italian financial services firm has offices in Italy, Luxembourg, Ireland, China (Hong Kong and Shanghai), Monaco, Switzerland, Taiwan, Brazil, Singapore, Mexico, Australia, Chile, USA, UAE and Turkey.