Foreign Investments in Iranian Industrial Towns Top $2 Billion

EghtesadOnline: A total of $2.1 billion worth of investments have been made by 231 foreign investors in Iran’s industrial towns by March 19, creating 19,862 jobs.

News ID: ۷۵۰۵۷۶

30 July 2020

According to a report by IRNA citing data provided by the Ministry of Industries, Mining and Trade, there are 1,100 small- and medium-sized enterprises in industrial towns with annual exports worth $12.64 billion.

Iran’s industrial towns are home to 62 export management companies and 72 export consortiums with annual exports worth $236 million and $352 million, respectively.

By March 19, a total of 23 memorandums of understanding on cooperation had been finalized between Iranian and foreign SMEs.

Some other significant statistics show 41,631 Iranian SMEs participated in domestic and international exhibitions, while 176 industrial managers attended eight training courses and undertook assignments in Germany in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH or GIZ, which led to the conclusion of a €180-million contract.

The Iran Small Industries and Industrial Parks Organization, affiliated to the Ministry of Industries, Mining and Trade, helped revive a total of 314 recession-hit industrial units across the country from the beginning of the current fiscal year (March 20) to July 12 to create 5,623 jobs.

According to Mohsen Salehinia, deputy industries minister and the head of ISIPO, metal industries top the list of revived units with a 27% share, followed by chemical production units with 26%, IRNA reported.

Food and beverage production units account for 18% of the revived units, he added.

Salehinia noted that 44 revived units are located in the capital city Tehran, which was followed by Isfahan with 40 units and West Azarbaijan with 28 units.

The Industries Ministry aim to revive 1,500 recession-hit small- and medium-sized enterprises by the end of the current fiscal year (March 2021).

Salehinia said more than 46,000 industrial units are operating in 820 industrial towns across the country, 93% of which are considered small, 4% medium and 3% large.

About 35,000 small and large units are also under construction, he added.

Hossein Modarres Khiyabani, the Industries, Mining and Trade Ministry’s caretaker, said that despite obstacles created by US sanctions, 200 major industrial projects with an aggregate value of 1.7 quadrillion rials ($7.5 billion) will be implemented by the fiscal yearend (March 20, 2021) to create about 41,000 new jobs.

Six industrial and mining projects worth 58.8 trillion rials ($253 million) have come on stream in three provinces earlier this month.

By definition, enterprises run by 50 workers or less, and 100 workers or less are considered small- and medium-sized enterprises respectively, according to ISIPO.