Western Companies Investments in the Iranian Carpet Industry in the 19th Century

Following the mass import of European goods to Iran in the second half of the 19th centry, the trade balance of the nation turned negative. When the export of raw silk failed due to the spread of silk worm disease in the 1860s, Iranian merchants began to produce and export goods like cotton, rice, opium and Persian carpets to generate income for continuing imports. Increasing demand for carpets in the world market encouraged European companies to invest in the industry in Iran.
Puropse: This paper reports the story of European companies’ involvement in Iran’s carpet industry.
Method and Research Design: Data for this paper is collected from archive documents and library resources.
Findings and European companies’ involvement was extensive. They established representatives in major carpet industry cities, and invested heavily by setting up carpet weaving factories. In addition, they entered partenerships with local producers. All such activites enabled them to control the domestic carpet market.