Coke, Oil Products Most Attractive Investment of Choice in Iran

EghtesadOnline: A recent report published by the Ministry of Industries, Mining and Trade shows coke and oil products are in the limelight when it comes to sectors of interest for investors.

News ID: ۷۸۳۴۴۱

28 July 2018

The report covering a two-month period ending May 21 shows 33 establishment permits were issued in the industrial and mining sector with projected investments and job opportunities amounting to 76 trillion rials ($1.5 billion) and 4,362 respectively, Financial Tribune’s sister publication, Donya-e-Eqtesad, reported.

The second place on the list belongs to “chemical products and materials,” with a projected investment of 21 trillion rials ($420 million).

The “food products and beverages” section is third on the list, with 414 establishment permits, projecting 19 trillion rials ($380 million) of investment and 11,461 jobs, Financial Tribune reported.

“Non-metallic mineral products” and “basic metals” take up the third and fourth places on the list of most attractive industries with regard to projected investments estimated at 16 trillion rials ($320 million) and 9 trillion rials ($189 million) respectively. In these two categories, a total of 455 establishment permits were issued.

The report shows a 23% increase year-on-year in the total number of establishment permits issued during the period (2,861), with YOY rises of 45% and 28% in projected investment (282 trillion rials or $5.6 billion), and projected job opportunities (69,667) respectively.

Leading Provinces

The report also indicates that the provinces of Khuzestan, Hormozgan, Isfahan, Qazvin and East Azarbaijan registered the highest amounts of projected investment in the period under review.

The projected capital for the southwestern Khuzestan Province was 37 trillion rials ($740 million) for 135 permits issued, with 2,774 projected job opportunities.

The projected investment for neighboring Hormozgan, second on the list, is estimated at 36 trillion rials ($720 million) for the 70 establishment permits issued, projecting 2,643 employment opportunities.

In the central province of Isfahan, the third most attractive province for investors, a total of 80 permits were issued during the period, as projected investment stood at over 10 trillion rials ($200 million), leading to the creation of some 3,770 jobs.

FTZs, Special Economic Zones

The report also points to a rise in investment in free trade zones and special economic zones during the two-month period as a total of 43 establishment licenses were issued for these zones, registering a 72% YOY increase over last year’s 23, with a projected investment of 37 trillion rials ($740 million).

Of the estimated $740 million, a mere $11.2 million are to be invested in free trade zones, although Maku Free Trade Zone, to the northwest of Iran, and Chabahar Free Trade Zone, to the southeast, registered a 600% and 250% YOY growth, respectively.