Investments in Iran's Industrial Projects on the Rise

EghtesadOnline: More than 1,338 trillion rials (€10.29 billion) worth of investments have been made in industrial units for which establishment permits were issued while 325.5 trillion rials (€2.5 billion) were invested in projects for which operating licenses were issued in the first half of the current Iranian year (March 21-Sept. 22).

News ID: ۷۴۶۲۶۴

26 November 2018

The volumes of investments show a 78.7% and 136.7% growth respectively compared with the similar period of last year, the latest report released by the Ministry of Industries, Mining and Trade shows.

Establishment Permits

Khorasan Razavi Province with 845, Semnan Province with 794 and Fars Province with 733 had the largest share of the establishment permits issued during the period.

Khuzestan Province with 92.45 trillion rials ($711.2 million) worth of investment for 426 establishment permits attracted the highest amount of investments, according to Financial Tribune.

The number of establishment permits issued for industrial units located in free trade and special economic zones grew by 72.6% to reach 164 permits. Close to 227.15 trillion rials ($1.74 billion) worth of investments are estimated to have been made into these projects to generate 8,986 jobs, indicating a 244.3% and 80.9% YOY growth respectively.

The field of food and beverages saw the highest number of establishment permits (1,488) that also created the highest number of jobs (35,814). The highest amount of investment in to-be established units is expected to be made in the projects related to production of coke and oil-derived products (556.1 trillion rials or $4.27 million). The volume accounts for 41.6% of all investments to be made in projects for which establishment permits were issued over the period.

Operating Licenses

Meanwhile, 2,657 operating licenses were issued during the same period, which shows a 1.1% decline YOY. These projects are expected to create 49,360 jobs, 8.7% more compared with last year's corresponding period.

Isfahan Province with 258, Alborz Province with 184 and East Azarbaijan Province with 181 had the biggest share of all operating licenses issued during the six months under review.

Hormozgan Province with 193.12 trillion rials ($1.48 billion) issued for the operation of 45 industrial projects attracted the largest amount of investments. This volume accounted for 59.3% of all the investments made in the projects for which operating licenses were issued.

The number of operating licenses issued for industrial projects located in free trade and special economic zones stood at 132, indicating a 10.9% growth YOY. More than 7.55 trillion rials ($58.11 million) worth of investments were made in these projects to create 2,494 jobs, registering a 137.5% and 23.8% growth respectively YOY.

The field of rubber and plastic production saw the highest number of operating licenses (404). Projects in the field of food and beverages for which operating licenses were issued created the highest number of jobs (6,741). The highest volume of investments in this category were made in projects related to coke and oil derivatives production (196.18 trillion rials or $1.51 billion), accounting for 60.3% of all the investments made in industrial units for which operating licenses were issued.

The number of greenfield projects receiving operating licenses stood at 1,451,106, including those located in free trade and special economic zones. The remaining 1,206 licenses were issued for the operation of brownfield projects, 26 of which were located in FTZs and special economic zones.