A year after Iran was officially accepted as a full member of the Shanghai Cooperation Organization (SCO), the country is still working to make the most of its member benefits as it looks to strengthen ties and give full play its "geo-economic" position as a gateway between the East and West.
Iran's status as a full SCO member was made official in early July last year after political obstacles to its membership were removed.
One of Iran's major objectives in becoming a permanent SCO member has been to strengthen its political standing regionally and internationally as it looks to overcome decades of harsh sanctions imposed by Western nations. With the bloc's focus more on security than economic cooperation, the country hopes to bolster its political ties with fellow SCO member states, in particular China and Russia.
Pursuing a "good neighborhood" approach is in line with SCO policy and that of other important inter-governmental blocs. Increasing trade ties with SCO members has also been another key objective for Iran. However, challenges remain.
The International Financial Action Task Force (FATF) has placed Iran on its blacklist, which means all transactions involving Iran will face more stringent scrutiny as a result of this designation, with the country's financial institutions subject to more rigorous external audits, and increased pressure on the foreign banks and businesses that continue to conduct transactions with Iran.
"Even if the member states' companies are willing to have trade ties with Iran, the Financial Action Task Force (FATF) is a serious obstacle for Iran. For instance, in China, many companies are multinational," said Mohammadreza Elhami from the Iran-China Friendship Association.
Despite the difficulties, many recognize there are considerable opportunities and Iran is hopeful about using its geographical location to become an international transport hub through the so-called "Middle Corridor", linking Europe with China, with the SCO seen as a platform for Iran to achieve this goal.
"The World Bank describes Iran's corridor as the most lucrative transit corridor in the world, so Iran should use this geo-economic position," said Elhami.
The SCO was established in 2001 by China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. India and Pakistan were admitted as full members in June 2017, with Iran joining in July 2023.
The 24th Meeting of the Council of Heads of State of the SCO is set to take place in Astana, Kazakhstan, on Wednesday and Thursday.
Iran looks to exploit opportunities, overcome challenges one year after gaining SCO membership
