a safe haven against international sanctions and inflation. Market valuation In 2007, the market, with a capitalization of $37 billion, was trading at a fraction of the earnings multiples enjoyed by Iran's neighbours, while average earnings continued to grow at about 25 per cent a year. As of 2010, the price-to-earnings rate in Iran's market stands at around six while it is 15 in regional markets. With the removal of obstacles to foreign investment Iran could potentially have a 2,000–3,000 billion US dollar stock exchange market. Due to the price gains the average dividend yield has fallen from 16 per cent in 2009 to 13 per cent in 2010. Iran devalued its currency in July 2013. Iran has a large young, educated labor force. As of 2014, Iran's wage costs are lower than Vietnam’s (i.e. cheap). According to Voltan Capital Management LLC in New York City, growth valuations and potential investment upside are similar to frontier markets in their early stage while it has developed characteristics such as well-educated workforce, a large middle-class and a broad industrial base. According to various sources, TSE is 200% undervalued in comparison to frontier market peers because of misperception and sanctions (2015). Privatization In recent years, the role of the private sector has been further on the increase. Furthermore, an amendment of the article 44 of the Iranian Constitution in 2004 has allowed 80% of state assets to be privatized, 40% of which will be conducted through the "Justice Shares" scheme and the rest through the Bourse Organization. The government will keep the title of the remaining 20%. Under the privatization plan, 47 oil and gas companies (including PetroIran and North Drilling Company) worth an estimated $90 billion are to be privatized on the Tehran Stock Exchange by 2014. Foreign investors can bid in Iranian privatization tenders, but need permission from the Economy Ministry on a case-by-case basis. The government has reduced the bureaucratic channels and issues investment permits for foreign nationals in less than seven days. Iran has announced it will begin to allow foreign firms to purchase Iranian state-run companies, with the possibility of obtaining full ownership. Iranian expatriates There are differing estimates of the total capital held by Iranian expatriates. One estimate places the number at $1.3 trillion US dollars. Whatever the actual number, it is clear that these funds are sufficiently large enough to buy significant stakes in all state