Iran Reports Significant Rise in Industrial Investments

EghtesadOnline: More than 2.26 quadrillion rials ($16.49 billion) worth of investments are estimated to have been made in Iran's industrial units, for which establishment permits were issued and 474.96 trillion rials ($3.46 billion) were invested in projects for which operating licenses were issued in the 10 months to Jan. 20.

News ID: ۷۴۷۱۳۰

23 April 2019

These investments indicate a respective growth of 81.1% and 112.2% compared with the similar period of last year, the Ministry of Industries, Mining and Trade's latest report shows.

Establishment Permits

A total of 19,057 establishment permits were issued during the period under review to register an 18.2% year-on-year growth. These projects are expected to create 439,740 jobs—21.1% more compared with last year's corresponding period.

Semnan Province with 1,597, Khorasan Razavi Province with 1,378 and Qom Province with 1,363 had the largest share of establishment permits, according to Financial Tribune.

Hormozgan Province, with more than 477.29 trillion rials ($3.48 billion) worth of investment for 416 establishment permits, attracted the highest amount of investment.

The number of establishment permits issued for industrial units located in free trade and special economic zones grew by 49% to 307. Over 292.51 trillion rials ($2.13 billion) worth of investments are estimated to be made in these projects to generate 14,036 jobs and register a 73% and 35.8% YOY growth respectively.

The field of foodstuff and beverages saw the highest number of establishment permits (2,683), which created the highest number of jobs among other sectors (62,773).

The highest volume of investment in these units is expected to be made in projects related to the production of coke- and oil-derived products (729.42 trillion rials or $5.32 billion). This accounts for 32.2% of all investments made in projects for which establishment permits were issued over the period.

Operating Licenses

A total of 4,863 operating licenses were issued during the 10 months, which shows a 5.1% growth YOY. These projects are expected to create 83,748 jobs, 7.8% more compared with last year's corresponding period.

Isfahan Province with 492, East Azarbaijan Province with 346 and Khorasan Razavi Province with 301 had the biggest share of all operating licenses.

Hormozgan Province, with more than 193.43 trillion rials ($1.41 billion) for operating 75 industrial projects, attracted the highest volume of investments, accounting for 40.7% of all 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 254, indicating a 12.9% growth YOY. More than 60.88 trillion rials ($446.06 million) worth of investments were made in these projects to create 6,875 jobs, registering a 744.9% and 76% growth respectively YOY.

The field of rubber and plastic production saw the highest number of operating licenses, namely 747.

Projects in the field of food and beverages with operating licenses generated the highest number of jobs (11,843).

The highest volume of investments in this regard were made in projects related to coke and oil derivatives production (207.72 trillion rials or $1.51 billion), accounting for 43.7% of all the investments made in industrial units with operating licenses.

The number of greenfield projects for which operating licenses were issued stood at 2,591, some 193 of which were for those located in free trade and special economic zones. The remaining 2,272 permits were issued for brownfield projects, 61 of which were located in FTZs and special economic zones.

Mineral Production Permits

A total of 489 mineral production permits were issued during the 10 months under review, registering a 20% fall compared with the similar period of last year.

These exploitation permits are expected to create 3,952 jobs, which indicate a 17.4% decline YOY.

The nominal mineral extraction capacity of these projects stands at 10.45 million tons, which shows a 71% decrease compared with the corresponding period of last year.

Khorasan Razavi Province with 46, Khuzestan with 34 and South Khorasan and Isfahan both with 33 had the largest share of production permits.

Mineral production permits issued over the 10 months are expected to create the largest number of jobs in Kerman Province (461), South Khorasan Province (385), Isfahan Province (292) and Fars Province (257).

The provinces of Khuzestan, Hormozgan and East Azarbaijan with more than 2.21 million tons, 966,600 tons and 688,100 tons had the highest volume of nominal extraction capacities respectively.

Moreover, 843 exploration permits were issued during the period to register a 2.8% increase YOY.

Exploration costs exceeded 497.7 billion rials (over $3.63 million) and registered a 0.6% decrease YOY.