foreign investment in mining sector according to the 6th Five-Year Development
Plan is to attract more than 15 billion USD.
Iran has the largest and the most extended industries among the countries in MENA region and enjoys sufficient infrastructures in upstream, downstream and knowledge-based industries.
Iran’s petrochemical industries provide most of the world market necessities by the annual production capacity equal to 60 mn tons. Petrochemical, steel, cement and automotive industry are among the country’s most prominent and successful industries. Some of the features of these four industries are as follows:
Iran’s petrochemical industry has more than half a century of experience and its production capacity reaches over 61.9 mn tons by operating numerous development projects now.
Iran’s total petrochemical production was 50.7 mn tons in the year ended March 2017 and in comparison to the nominal capacity, the average percentage of production was 79.2% during this period.
Presently, Iran is known as the greatest steel producer in the Middle East.
With 17.9 mn tons of crude steel production, Iran is ranked 14th on a global scale in the year 2016.
Producing 77 mn tons of cement per year, Iran is
ranked 13th in the world in this industry.
Iran exports cement to some two dozen countries
including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan,
Kuwait, Pakistan, Qatar, Turkey, the UAE, Georgia, Oman, India, and China.
Iran’s automotive industry is deemed as the second
most important branch of the national economy, after the oil and gas industry
with a turnover of 26 bn USD.
In 2016, Iran became the world’s 18th large
automotive manufacturer with an annual production capacity of 2 mn vehicles and
over 8,000 people working in this industry.
Iran intends to increase its petrochemical
production capacity to 100 mn tons per year as has been predicted by the
According to the 6th Five-Year Development
Plan, Iran plans to surge its steel production capacity from the current 23
million tons to 40.3 million tons by 2025.
In 20 Year Vision Plan (2005-2025), Iran seeks to
increase its steel production capacity to 55 mn tons of crude steel and 20-25
mn tons of export per annum and become the world’s 6th largest steelmaker.
enjoys a strong and widespread infrastructure in most of its sectors. Iran has
a wide range of communication networks including over 214,000 km of road and
almost 11,000 km of railways. Other features of modern Iran are, enjoying over 600
operational dams and power plants that generate 76,000 MW of electricity
production. Iran transport portion in total GDP is about 9% (2014 ).
to 2016 statistics; Iran’s railroads transport about 23 million passengers per
year via 2,000 operating passenger wagons.
A booming consumption and production together with
new ways of electricity generation, lead Iran to have a promising perspective
in electric power industry. Iran’s electricity domestic consumption and
production rates have steadily grown together since 1984. Consumption has
constantly risen, and it is expected to rise at about 6 percent per year, over
the following decade. Iran ranked 14th largest producer, and 17th largest
consumer of electricity in 2015 in the world. With numerous projects underway,
Iran has offered more incentives to encourage Iranian and foreign investors to
invest in electricity generation sector.
Iran is among the top ten manufacturers of gas
turbines in the world. Further it has sustained technical expertise to set up
hydroelectric, gas, and combined cycle power plants. Not only is Iran
self-sufficient in terms of power plant construction, but also has concluded a
number of important contracts on implementing projects in the neighboring
Demographic trends and intensified industrialization
have caused the electric power demand to grow by 8 percent per year. Iran is
also experimenting electricity generation from organic wastes, and plans to
build power plants using sewage and organic waste of domestic and industrial
origin, as fuel. With nearly 300 clear sunny days a year, and an average rate
of 2,200 kilowatt-hour solar radiation per square meter, Iran has a great
potential to try out the solar energy as well.
It is Iran’s Ministry of Roads and Urban Development’s
agenda as part of the objectives outlined in the 6th Five-Year Development Plan
(2011-16) , to create an airport city comprising of 1,500 hectare free trade
zone and a 2,500 -hectare special economic zone in a 13,700 -hectare area
surrounding Imam Khomeini International Airport.
Iran has planned to expand Imam Khomeini
International Airport by building a new terminal with the capacity to handle 20
million passengers a year compared to about 6 million in 2015 worth 2.8
The port of Bandar Abbas which handles about 75
percent of cargo passing through Iran’s Persian Gulf ports, is doubling its
capacity from three million 20-Foot equivalent containers (TEUs) per year to
Based on the 20 Year National Vision Plan
(2005-2025), Iran plans to increase the number of passengers using rail
transport to 65 million per year.
The country plans to boost its electricity
generation capacity to more than 100,000 MW within the framework of the 6th
Five-Year Development Plan (2016-2021).
Iran’s officials have stated that 17 billion USD is
needed for electricity generation and over 7.5 billion USD is required in
transmission, distribution and ultra-distribution sectors.
In recent decades, Islamic Republic of Iran has witnessed significant improvement in the health status owing to applied reforms in the primary health care, social determinants of health, and health equity.
Despite fewer physicians and hospital beds per capita compared to countries with similar income and health expenses, healthcare related indices have got improved a lot during recent decades. It should be noted that improved life expectancy and reduced mother and infant
mortality, despite limited resources is commendable, and it is an indication of relative efficacy.
Iran offers a wide range of state-of-the-art
treatment, through an extensive network of highly equipped
hospitals, around 924 hospitals, and rehabilitation centers at reasonable
Iran has a unique combination of healthy and
pleasant climate, wonderful scenery, magnificent historical and
cultural monuments as well as cutting-edge technology and sophisticated medical equipment.
Before the advent of medical tourism, as we
know it today, Iran was known as a destination for treatment of
Muslims, attracting thousands of visitors from Persian Gulf countries. In
2004, the government, realizing the potential of medical tourism,
passed a law in the parliament as article 87 within the 4th
Social, Economic, and Cultural Development Plan.
Today, medical tourism in Iran is an emerging
cluster aiming to provide world-class medical facilities by
In the year ended 2015, the number of
operating hospitals has reached 924 by which 567 belongs to Iran Ministry of
Health, 156 to private sector and the rest of 201 are the other
With 70 years of experience in producing
medicine, Iran’s pharmaceutical industry is working as one of the world and
region’s medicinal poles acquiring a wide and diverse range of raw
materials and products.
While focusing on the production of high-tech
medicines that can be exported to the emerging markets, Iranian
pharmaceutical companies are working hard to meet the demands, and tomaintain the growth rate in the sector.
Some of the
outstanding features of this sector are as follows:
· Islamic Republic of Iran has a well-developed and
active private health sector;
primarily concentrated in urban areas and playing a 27 major role in the
provision of secondary and tertiary care.
Iran is the largest manufacturer of generic chemical
drugs across the Middle East & North Africa.
Setting an outstanding record, Iran as one of the
largest pharmaceutical producers was able to generate revenues of over 700
billion USD in 2014 and secure itself a good place in Tehran Stock Market.
The numbers of ICU, neonatal ICU, and pediatric ICU
beds have increased by 34% , 27 %, and 44% respectively in the same period.
Under Iran’s 6th Five-Year Development Plan; to achieve
close to the global average of 2.6 beds per 1,000 people, an additional 115,000
new beds are required within five years, costing around 15 billion USD (as
outlined in the 2016 IRHS Iran Health Summit report).
· The Iranian pharmaceutical market valued by BMI
Research at 1.9 billion USD in 2015 is predicted to grow at a compound annual
growth rate of 6%.
At the heart of the
Middle East stands a vast and fascinating country with a 5,000-year-old history
that bears home to 22 World Heritage sites. Iran’s name for long has thrilled
and brought excitement shivers to the hearts of history enthusiasts as well as
culture vultures. What needs to be emphasized though is that on top of its
diverse arrayof historical, architectural and cultural attractions including
various architectural masterpieces, traditional bazaars, Iran also enjoys a
favorable and four-season climate, as a result of which it has become home to
mesmerizing sceneries and landscapes of distinct types.
On top of that, the hospitality shown towards foreign tourists from
locals and host community is also something that has been appealing to those visiting
the country from outside. With its ancient history; historical monuments and
architectural remnants some of which date back somewhere between an average of
2000 years; and rich cultural treasures, Iran has been listed among the top 20
countries with the highest number of tourist attractions. Some of the facts and
figures about this booming industry are as follows:
Based on data from the World Travel and Tourism
Council, the direct share of domestic and foreign tourism in Iran’s gross
domestic product equaled 7.5% in 2017.
With the 6.6% growth in tourism sector’s
contribution to GDP Iran stands well above the average growth rate of 5.3 in
the Middle East.
The 10% growth in the number of Iran’s inbound
tourists since the lifting of western sanctions, which is more than twice the
global average, indicates the country’s flourishing tourism market.
With the latest addition of city of Yazd, known to
be world’s largest inhabited adobe city, Iran is now home to 22 world heritage
sites, which puts Iran as the highest ranked country in the Middle East
regarding the number of its inscribed world heritage sites and the eleventh
Iran’s annual revenue from health tourism is between
400 million USD and 500 million USD, which is expected to reach 2.5 billion USD
in the foreseeable future.
As part of its 20 Year Vision Plan, Iran is hoping
to attract 20 million tourists per year by 2025.
ICHHTO has made plans to build 300 four and
five-star hotels within five years in cooperation with the private sector that
has initiated the construction of more than 170 hotels so far.
Based on the 6th Five-Year Development Plan
(2017-2022), Iran is aiming to attract between 500,000 and 600,000 medical
tourists every year.
on its diverse climate, natural resources and ecological foundations, Iran
produces a long array of agricultural products, of which some, such as saffron,
pistachios and caviar, hold worldwide reputation. Nonetheless, Iran’s
agricultural industry accounts for a mere 12-13 % of the country’s economy,
with 4 mn people employed in this sector.
of Iran’s total surface area is suited for farmland, but because of poor soil
and lack of adequate water distribution in many areas, most of it is not under
cultivation. Only 12% of the total land area is under cultivation (arable land,
orchards and vineyards). Some of the features of Iran’s Agricultural sector are
16,500 food companies are working under license of
“Ministry of Agriculture“ and “Ministry of Industry, Mine and Trade” with about
100 mn tons nominal capacity, which their actual capacity is about 50 mn tons.
Food and beverage contribution amounted 22.9% of
Iranian household’s expenditure. Iran owns the 4th rank in food export among
West Asian Countries.
Market share of Food industries is 18.3% of total
industries volume in Iran. Moreover, 16.5% of employment, 13.2% of investment
and 10.8% of value-added belong to this industry.
Iran’s self-sufficiency in food production has
improved by 24% since 2013, mainly thanks to higher production of wheat and
In 2016 Iran’s wheat production had reached 13.5
million tons in a year and the country celebrated the first time it had become
self-sufficient in production of the crucial agricultural product in 40 years.
1.575 million tons of sugar was produced in the last
Iranian year, registering a record high and meeting more than 74% of the
domestic demand for the product.
Currently, Iran is largely self-sufficient when it
comes to vegetables and nuts, and Iran has the world’s largest production of
pistachio, nuts, saffron and barberries.
According to its 6th Five-Year Development Plan
(2017-2022), Iran is going to increase the quantitative production of its
agricultural products. A few examples of these expansions are as follows:
Production of wheat to increase from 10,576 in 2017
to 14,500 tons by the year 2021; barley from 2,955 to 3,588; maize from 1,659
to 3,000; forage corn from 9,803 to 11,154; beetroot from 4,731 to 10,200;
sugar cane from 6,732 to 7,500 and so on.
Increasing government investment in Agriculture
sector infrastructure and correction of business environment of the sector
which can help growth of private investment.
Special attention to the important issue of
financing (investors) for the purpose of renovation of farms and gardens,
including completion of new watering grids, importance of farms and gardens
watering systems, modernization of equipment and enhancing technologies of
breeding, husbandry and aquatics as well as protection and revival of natural
· Organization of seeds and saplings production by
private sector and supporting foreign companies participation for the purpose
of technology transfer to the country.
· Implementation of health and bio-environmental
standards based on latest world scientific developments in production and
processing of agro-products, reduction of waste during production stages,
cropping, transport and storage and delivery.
Facilitation of Foreign Direct Investment or FDI can
help promotion of investment in agriculture in four ways: 1) Supply of capital
2) Transfer of technology and upgrade the knowledge of agriculture 3)
Connection of domestic producers to international supply chain 4) Reduction of
risk in agriculture production through establishment of insurance so that it
would absorb part of the risk for expansion of investment.
8. Capital Market
capital market of Iran has been a pioneer market during its 49 years of
activity for financing businesses through local funds. Tehran Stock Exchange
has 320 listed companies, 4 ETFs, 15 different debt securities, including
cooperation certificates, sukuks and CDs. There are 104 brokerage firms, 157
mutual funds and several other registered entities like investment banks,
investment advisories, portfolio management companies, investment companies as
well as financial information providers.
most important advantage that Iran’s capital market has in comparison with
other regional markets is that there are 37 industries directly involved in it.
Industries such as the automotive, telecommunications, agriculture,
petrochemical, mining, steel, iron, copper, banking and insurance, financial
mediation and other trades, hold shares at the stock market, which makes it
unique in the Middle East.
statistics show that 264 foreign investors received trading codes over the past
year, which shows a 42% rise compared with the corresponding period of a year
before. Some of the features of Iran’s capital market are as follows:
Increasing liquidity in securities market with a
review on trading regulations.
Continuation of privatization plan and IPOs of
Establishing Islamic bonds and products such as
Sukuk and Islamic
Securities (MBS), based on market development act and tax exemption.
The development of the capital market with emphasis
on financial and commodity instruments design and engineering, the energy
exchange development and the supply of crude oil and petroleum products in the
energy exchange, institutional reform of corporate governance for public
corporations and financial institutions (according to 6th Five-Year Development
The required policies and orientation to enhance the
transparency of information in the capital market and establishing the rating
agencies to attract foreign investment and international financing (according
to 6th Five-Year Development Plan).
The permission of foreign financial and credit
institutions’ participation in Iran within the framework of the law of
Implementation of General Policies of Article (44) of the Constitution and the
law of Investment Promotion and Protection Act (according to the 6th Five-Year
Facilitating and expanding market access by means of
developing brokerage network, electronic trading and direct market access.