During his visit, the president highlighted the 25-year Iran-China cooperation plan and proposed the establishment of a joint SCO bank, providing an opportunity to mitigate the effects of sanctions and strengthen Iran’s position as a regional transit hub.

The SCO has played a key role in strengthening political, security, and economic cooperation as a Eurasian regional organization since its establishment in 2001.

The organization, which includes members China, Russia, India, Iran, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus, covers about 42 percent of the world’s population and 23 percent of global nominal GDP. Iran’s full membership in the SCO since 2023 provides Tehran with opportunities to mitigate the effects of Western sanctions and strengthen its position in the Eurasian economy. This article examines the economic opportunities of the SCO with a focus on Iran.

1. Key Economic Opportunities in the SCO

With a focus on trade, investment, and economic security, the SCO has created several opportunities for its members:

1. 1. Trade and Economic Connectivity

The SCO emphasizes trade facilitation and infrastructure connectivity. China’s Belt and Road Initiative has strengthened infrastructure such as railways, ports, and energy lines in the region, creating opportunities for oil, gas, and agricultural exports. China's trade with SCO members, observers, and dialogue partners reached a record $890 billion in 2024, or 14.4% of its total foreign trade.

The body also seeks to reduce dependence on Western financial institutions by using national currencies in transactions.

1. 2. Investment and Innovation

The SCO focuses on investment in clean energy, technology, and the digital economy. At the 2024 summit in Astana, Kazakhstan, members agreed to strengthen cooperation in renewable energy and the digital economy. These initiatives could provide opportunities for job creation and increase the role of technology in member states.

1. 3. Economic Security and Addressing Challenges

As an alternative to Western institutions, the SCO emphasizes multilateralism and addressing unilateralism, such as sanctions. Cooperation in energy, food, and transport security helps SCO members strengthen global supply chains and become more resilient to global economic pressures.

2. Opportunities for Iran

Iran’s full membership in the SCO since 2023 has created several economic opportunities for the country:

Access to Large Markets

Joining the SCO has provided Iran with access to the vast markets of member states. These markets create opportunities to increase energy and non-oil exports to major economies such as China and India. With its strategic geographical location, Iran can serve as a transit hub for goods from west to east and north to south if its infrastructure and transit systems are strengthened.

Cooperation in Belt and Road Initiative projects, such as the development of Chabahar Port, will strengthen this capacity and contribute to the energy security of the region. By joining the SCO, Iran can attract investors and reduce its dependence on the West. Also, using national currencies in transactions can reduce reliance on Western banking systems.

Iranian President's Visit to the SCO Summit

 Iranian President Masoud Pezeshkian traveled to Beijing on August 31, 2025, to attend the SCO summit. The visit was made at the official invitation of Chinese President Xi Jinping and is considered an opportunity to strengthen Iran’s economic, political, and security cooperation with member states. At the summit, Pezeshkian emphasized Iran’s role in maintaining regional stability and unity against Western unilateralism and called for expanding multilateral cooperation to create a more just global order. The visit demonstrates Iran’s determination to exploit the SCO’s capabilities and consolidate its position in the Eurasian economy and politics. The SCO is an economic engine for a multipolar world. Iran’s membership in the organization, with a focus on trade, investment, and economic security, could ease the effects of sanctions and strengthen Iran’s position in the global economy. By investing in infrastructure and strengthening economic diplomacy, Iran can benefit from the SCO’s capabilities for sustainable development.