For companies that want to invest and do business with Iran there are numerous of reasons to do so!
Iran has a unique geographic position due to its strategic location between Europe, the Middle East and Asia.
Its demographic situation is unique as well. Iran has a population of over 70 million people and has experienced a large population growth rate over the last decades. 70% of the population are under 30. This has resulted in an enormous demand for many products and services. Therefore the country’s economic internal market potential is extensive.
Iran has a diversified economy and a broad industrial base. The country’s natural resources are numerous: it supplies large amounts of energy resources such as oil and gas and has a large agriculture sector.
The Iranians have a high educational level (80% is literate) and the infrastructure (roads, railroads and telecommunication) is well developed.
All the above (and more!) are more than enough reasons to explore with us the potential for your business or investment in Iran.
Below are some of the main (industrial) sectors of Iran:
Oil & Gas
Iran holds almost 11% of the world’s proven oil reserves and around 18% of the gas reserves. The Ministry of Petroleum of the Islamic Republic of Iran is responsible for all kinds of oil and gas activities and there are a large number of onshore and offshore oil and gas fields in operation. At this moment Iran’s current exploration projects will lead to a considerable increase in the country’s oil and gas reserves.
Iran is also rich in mineral deposits such as zinc, copper, iron, lead and chromate. It has the largest zinc deposits and holds huge reserves of iron and copper. Although the state owns 90% of all mines and related industries, the government is attracting foreign investment for the further development of the mining sector and is actively promoting privatization of mines.
Iran depends heavily on the export of oil. To meet de growing population’s demand for energy the government stimulates the development of sustainable renewable energy. More and more renewable energy plants are being connected to the grid. The government has set ambitious goals to construct solar and wind power plants and wants to implement more projects the coming years. In many areas the electric grid and infrastructure are set in place and working.
Iran produced more that 1.4 million cars between 2011 and 2012. Both the auto industry and the auto part industry are booming and will continue to do so due to the increased population and wealth in Iran.
Transportation (roads, railways, ports and civil aviation)
Due to the booming economy of Iran transportation plays a key role in their economic development. The government gives priority to extend and modernize the transport system with regard to the following aspects such as: decrease in energy consumption, decrease in environmental pollution, increase of safety and the increase in productivity at the highest level through promoting transport modes and management and human resources and information.
Agriculture and Agri-Food
Agricultural is one of the most important sectors of the Iranian economy. Agricultural and animal husbandry products are the main products produced and exported such as pistachios, raisins and even carpets. About 20% of the land in Iran is arable and with more area suitable for agriculture available when irrigated, there is a increased potential for crop production in this sector as well.
The Agri-Food sector exports range around $1 billion per year. Most importent export items are confectionary, dairy products, tomato paste, fruit juice and concentrate, mineral water and pasta. The main export regions include the Middle East, Central Asia, Europe and South America. Iran is also increasingly importing food technology, including processing and packaging equipment.
The Iranian ICT sector is experiencing an exponential growth due to the unique demographic and economic situation. Iran’s population is large and young and eager to use new technologies. Also the increased income has resulted in a large group of consumers of ICT products and services. For example: Iran has become the biggest market in the Middle East for mobile phone subscriptions. The fact that there are some areas that are still low in telecommunication services makes that this sector has a lot of potential.
Iran is experiencing a growth of 25% growth per year in this sector. The focus is on the production of high-tech medicines that can be exported to emerging markets. An exceptional workforce and a booming pharmaceuticals industry have spurred growth in Iran’s healthcare sector in recent years.
Steel, weaving, food processing and electronics are some of the most important industries in Iran. Furthermore Iran also produces a wide range of manufactured commodities, such as telecommunications equipment, industrial machinery, paper, rubber products, steel, food products, wood and leather products, textiles, pharmaceuticals and hand woven carpets. Within this industrial sector The Industrial Development & Renovation Organization of Iran has identified the following industries as key growth areas: pharmaceuticals, paper, sugar, packaging and textile segments.
Iran is of exceptional beauty and interest. Impressive archaeological sites, beautiful landscapes and cities, museums, and cultural and ecological wonders: Iran has a lot to offer for tourists. It has 15 UNESCO World Heritage sites and countless religious sites. Reason enough to find out business opportunities in this sector.