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Oil & Gas
The Ministry of Petroleum of the Islamic Republic of Iran is responsible for all kinds of oil and gas activities. The Ministry by itself has got the four major subsidiaries body as follows which undertake implementation and operation of the above mentioned activities:
• National Iranian Oil Company (NIOC)
• National Iranian Gas Company (NIGC)
• National Iranian Oil Refining & Distribution Company (NIORDC)
• National Petrochemical Company (NPC)
The Iran’s Unique Position in terms of hydrocarbon reserves is as follows:
I. Iran is endowed with 155 billion barrels of oil equivalent to 10.9% of the global oil reserves.
II. Iran owns 18% of the global natural gas reserves equal to 34 TCM of natural gas.
III. Iran’s current exploration projects will lead to a considerable increase in the country’s oil and gas reserves.
IV. Presently, 62 onshore oil fields, 16 offshore oil fields, 20 onshore gas fields, and 2 offshore gas fields are in operation in Iran.
Industry & Mining
Steel, weaving, food processing, car, electrical and Electronics Industries are among the key industries in the country. Iran now produces a wide range of manufactured commodities, such as telecommunications equipment, industrial machinery, paper, rubber products, steel, food products, wood and leather products, textiles, and pharmaceuticals. Iran is also known throughout the world for its hand-woven carpets. The traditional craft of making these Persian rugs contributes substantially to rural incomes and is one of Iran’s most important export industries
The pharmaceuticals, paper, sugar, packaging, and textile segments have been identified as key growth areas of the industrial sector by the Industrial Development & Renovation Organization of Iran.
Industrial output continued to grow into 2012, buoyed by the strong mining and steel sectors. Advances in aerospace and agri-business are also firming up the manufacturing sector.
• Iran produced 1.4 million cars from 2Q2011 to 1Q2012. Total sales, including imported and domestically produced vehicles, totaled $18.8 billion.
• A booming auto industry requires a booming auto parts industry. Iran has just that. Now supplying much of the industry’s needs, producers are ramping up exports.
Iran is rich not only in oil and gas, but in mineral deposits’, as well. Iran has the world’s largest zinc reserves and second-largest reserves of copper. It also has important reserves of iron. Uranium, lead, chromate ,manganese, coal and gold .In addition to the major coal mines found in Khorasan Razavi, Kerman, Semnan, Mazandaran and Gilan, a number of smaller mines are located north of Tehran and in Azarbayjan and Esfahan provinces.
Deposits of lead, zinc and other minerals are widely scattered throughout the country. The mines at Sar Cheshmeh in Kerman province contain the world’s second largest lode of copper ore. The government owns %90 of all mines and related large industries in Iran and would like To attract foreign investment for the development of the mining sector. As per Article 44 of Constitution of Iran, the government has been actively promoting the privatization of all mines.
Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) is the major state-owned holding company.
Although 90% of the country’s mines and related large industries are in state hands; the government has stated its intention to further develop the sector through private and foreign investment. Minerals targeted for investment include aluminum, copper, and iron ore. By the end of the current Five-Year Development Plan (FYDP), which began in 2010, the government expects to boost the mining sector’s contribution to GDP to 1.2% as well as boost total mineral production to 500 million tons. With 12% of the Persian Gulf region’s aluminum reserves, the implementation of development projects could boost production to 1.5 million tons by 2025 and turn Iran into one of the top 10 producers in the world. The private sector is also being mobilized to get the mining sector to work with modern equipment.
• There are approximately 5,000 mines in operation in Iran, with 12 metals and 36 non-metal ores currently being exploited.
• Increased investment and private sector involvement will see mineral production increase in the coming years as modern machinery and equipment are put to use.
• Iran is one of the top 10 global producers of iron ore, with over 35 million tons of output per year.
• Iran’s precious stones have become an object of admiration for onlookers as well as a profitable industry for the country as it aims to diversify its economic strengths.
• As one of the 15 most mineral-rich countries in the world, Iran enjoys export links with 159 countries, including Iraq, China, the UAE, India, and Afghanistan. Mining products represent over 30% of the country’s non-oil exports, and the sector also employs 100,000 people directly and up to half a million indirectly.
• Developments in the country’s base metals segment, including copper, aluminum, zinc, and lead, also continued over the last 12 months. Iran has the world’s biggest zinc reserves, second largest copper reserves, and ninth largest iron reserves.
• Iran is also rich in zinc and lead, with over 220 million tons of proven reserves. Production remains below 200,000 tons for zinc and lead, with just under half exported.
80% of the income from producing and mining activities ,which is derived and declared by producing and mining enterprises of cooperatives of private sectors of whom exploitation licenses are issued , or with whom extraction and sale contracts are concluded, from the beginning of the year 2002,on words by relevant ministries ,shall be exempt from the tax set forth in the article 105 here of for a term of 4 years beginning from the date of exploitation or extraction the less developed regions ,the exemption shall apply to 100% of the income for a term of years.
Ministry of Roads and Urban Development of the Islamic Republic of Iran is responsible for all kinds of transportation. The Ministry by itself has got five important sub-sectors as follows which undertake implementation and operation of transport infrastructures:
• Company for Construction and Expansion of Transport Infrastructures
• Road Maintenance and Transportation Organization
• The Railways Company of the Islamic Republic of Iran
• Ports and Maritime Organization
• Civil Aviation Organization
- Considering the key role of transportation in economic development of the country especially foreign trade and transit operation, Islamic Republic of Iran approved in 2000 its general policies in transportation sector with focus on the following priorities:
- Establishment of transport system and regulating portion of each sub- sector through giving priority to the rail transportation and with regard to the following aspects:
• Economic considerations
• Decrease in energy consumption
• Decrease in environmental pollution
• Increase of safety
• Balancing between infrastructures and fleet, navigation equipment and demand
• Increase in productivity at the highest level through promoting transport modes and management and human resources and information.
-According to the country’s fifth Five-Year Development Plan (FYDP), the Iranian government allocated approximately $34 billion to the transportation sector in 2010. With renewed interest in connecting international points by land, sea, and air, the government had utilized about 80% of these funds by 2012.
-The amount of cargo and passengers traveling along these routes has increased significantly in the past decade, with airline companies seeing some of the largest growth. In 2011, 27 million travelers and businesspeople passed customs, and the government surpassed its passenger and cargo targets by over 100%.
-Rail and road networks are being focused on as the key for a streamlined transport corridor from east to west, and in 2012 there has been an increase in the number and quality of a variety of valuable connection routes both throughout the country and extending beyond its borders.
-Sea freight capacity has steadily increased since 2009, on a growth pattern that has been accelerated by better quality services and faster loading and unloading times. By 2011, Iran’s TEU handling capacity reached 2.8 million, up from 1.7 million TEUs in 2007. Over the same period, passenger traffic by sea displayed 21% growth, making Iran an increasingly accessible destination for a variety of both new and loyal markets.
Agricultural is one of the most important sectors of the Iranian economy, accounting about 11%of GDP, 23%of the employed population and 15%of the foreign exchange revenues (form nonoil exports). Agricultural and animal husbandry products have always provided the major non-oil export items such as pistachios, raisins and even carpets (the wool or silk used in them).
About 20% of the land Iran is arable .the main food-producing areas are in the Caspian region and in valleys of the northwest. Some northern and western areas support rain-fed agriculture, while other areas require irrigation for successful crop production.
Agri-food & Packaging
• Iran is one of the most populous countries in the region, and so there was a real long-term strategic intent from the side of international companies to make an entry into this market
• A total of 12,198 entities are engaged in the Iranian food industry, or 12% of all entities in the industry sector. The sector also employs approximately 328,000 people or 16.1% of the entire industry sector’s workforce, according to the Iranian Food Industry Organization.
• Investments now total $7.7 billion, or 18% of total investment in the industry sector. Sector exports range around $1 billion per year, and the main 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 and other CIS nations, Europe, and South America. The country is also increasingly importing food technology, including processing and packaging equipment.
• The beverages sector is growing quickly in Iran as part of an expanding FMCG scene. As local consumption increases, players in the sector look to gain market share while improving supply and quality.
1- The income derived from all agriculture and horticulture activities, fish farming, bee-keeping, hunting and fishing, sericulture, revival of pastures and forests, is exempt from payment of tax. All the natural and juridical persons (Iranian and Foreign) can enjoy above mentioned exemption at the outset their activities.
2- %100 of the income derived exportation of industrial finished goods and products of agricultural sector(including forming ,horticulture husbandry, poultry ,fishery, forest and pasture products) and its conversional-signal and complementary industries and also %50 of the income earned from exportation of other goods that are exported for achieving the objectives of the exportation of non-oil goods, shall be exempt from tax. A List of goods subject to this article, in the course the of each development plan based on proposal of the ministries of economic affairs and finance, commerce, jihad-e-agricultural and industries and mines, shall be approved by the council of ministers.
The Iranian ICT sector, a keystone of the country’s non-prime economic expansion, is set for exponential growth thanks to its unique combination of demographic and economic variables.
A major engine of this growth is undoubtedly Iran’s population, which is large, young, and quick to pick up new technologies. Of Iran’s 73 million citizens, 70% are under 30 and 80% are literate.
A consistently increasing level of disposable income is creating a consumer class, while new players and technologies are helping to build sophistication and demand among them. It is estimated that consumer expenditure on telecoms equipment will reach $500 million and expenditure on services will hit $6 billion by 2014.
In the context of low penetration in strategic ICT areas, this formula portends the exponential growth.
Iran’s mobile phone penetration is 129%, representing the fact that many Iranians have more than one phone or subscriber identity module (SIM); however, the number of smart phones on the market remains relatively low. There are an astounding 23 million internet users in Iran, but only 2 million have access to broadband.
Iran is by far the biggest market in the Middle East for mobile phone subscriptions, with 90 million by end-2012. In terms of revenue, it is the fourth most lucrative market, in the region of $9.2 billion. Its estimated growth rate of 6%- 7% per annum puts it among the top-five countries in the world.
According to the Electronic Journal on Information Systems in Developing Countries (EJISDC), the sector employs 150,000 people and accounts for1.3% of GDP.
Rural expansion has been a key element in the government’s growth strategy, and the country was recently awarded the UNESCO special certificate for developing telecommunication services in rural areas. The current administration is targeting to provide computers and internet to every school in the country.
Iran’s mobile telephone segment is the centerpiece of its ICT sector. The current level of 90 million subscribers is up sharply from 68 million at the end of 2011 and 35million in early 2008. The vast majority of subscriptions are in the form of pre-paid users. The data segment is now seen as the key driver of the industry, as players vie for various 3G technology rights.
Data’s share of the total revenue is expected to double over the next five years reaching $4.5 billion by 2014. By the end of 2009, Iran’s mobile telecoms market was the fourth-largest market in the region at $9.2 billion and it is expected to grow to $12.9 billion by 2014 at a compound annual growth rate (CAGR) of 6.9%.
MOBILE AND INTERNET
There is substantially more competition in the internet arena, where 11 private access providers (PAPs) and TCI vie for market share, offering ADSL2+, WiMAX, and other fixed wireless broadband services.
Iran currently has only 2 million high-speed internet users, compared to 7 million in similarly sized Turkey to the North West.
The government’s fifth Five-Year Development Plan (FYDP) calls for the establishment of a fiber-based national broadband network by 2016.
Recognizing the role of multilateral broadband development in the nation’s economy, the Iranian government has also awarded significant WiMAX tenders to private players in recent years.
Impressive archaeological sites, carefully planned museums, and ecological wonders await the curious traveler in Iran, a country that has something for everyone.
Iran successful domestic market has laid the groundwork for an increased amount of foreign visitors interested in the history, natural beauty, and business opportunities Iran has to offer.
Travelers seeking to delve deep into history and the origins of civilization need look no further than Iran, where a mosaic of cultures and natural landscapes transcends the perception of the country in the international arena.
Iran’s Cultural Heritage, Handicrafts, and Tourism Organization (ICHTO) is the related authority in Iran.
With the goal of capitalizing on the already productive domestic market, ICHTO has identified 1,200 Tourism special Zone that investors can take advantage of it .With the support of OIETAI, ICHTO aims to attract a much larger FDI figure to the tourism industry in 2013.
Iran’s Potentials in Tourism
• 15 UNESCO World Heritage sites
• 10th Country on Tourism Attractions and 5th on Ecotourism
• One of the rich countries of the cultural places, ecotourism sites and historical monuments which called the cradle of civilization in other way the history of the Country goes back to 7000 written history
• An array of museums
• A myriad of ecotourism opportunities
• Numerous religious sites
• Extensive bus network and air and rail infrastructure in the country
There are huge potentials for investment in health infrastructures due to Iran’s capabilities in health tourism. Iranian doctors are among the best in the world. Dentistry is highly advanced and Iran has the potential to become a medical tourism destination. The government has eased the process of developing these platforms as it sees the potential for high returns on investment thanks to the tourism potential the country possesses.
Iran’s interest in nanotechnology and biotechnology has prompted the establishment of a variety of specialized care facilities, including institutions focused on optometry and organ transplants.
Education and up-to-date equipment supports distributors, while working with active pharmaceutical ingredients has supported the profitability of the sector.
Experiencing 23%-25% growth per year, the pharmaceuticals industry is a key driver of the healthcare sector overall. Focusing on the production of high-tech medicines that can be exported to emerging markets, pharmaceutical companies are working to meet demand and maintain growth. In 2011, the domestic market was worth $4.5 billion.
An exceptional workforce and a booming pharmaceuticals industry have spurred growth in Iran’s healthcare sector in recent years.
Investments in biotechnology and nanotechnology characterize the industry, with local manufacturers focused on offering high-tech products to the domestic market as well as developing countries abroad.
Structure of Health Sector in Iran
Three fundamental pillars support Iran’s highly centralized healthcare sector: public and governmental entities, private providers, and NGOs. Expenditures for the healthcare sector were pegged at $31.7 billion in 2012, and that figure is estimated to reach $50 billion by end-2013. The government has consistently invested approximately 5% of GDP in the sector annually during recent years.
Nearly every decision made regarding the sector’s goals and policies is made by the Ministry of Health and Medical Education (MOHME), which exercises the executive responsibility for health care within the framework of the Iranian government. MOHME has the legal authority to oversee, license, and regulate the activities of the private health sector.
Some facts and statistics:
With over 830 medical institutions and more than 110,000 beds, the local medical network is prepared to accommodate region’s growing population.
Over 85% of the 6,200 generic-branded pharmaceutical products in Iran are produced locally.
Foreign products, imported by 75 companies, are processed at 20 main import centers before being registered on the Iranian market.
In terms of medical and health care tourism, Iran boasts the distinct advantage of well-educated professionals and affordable costs. As one of the most advanced countries for health care and technology, many investors have seized the opportunity to establish operations and medical facilities in Iran; the year 2012 saw the arrival of approximately 30,000 medical tourists.
Although leisure, business, and healthcare tourism opportunities are blossoming in Iran, ICHTO has identified key areas for improvement. Among its aims is the need for greater tourism promotion abroad, and the organization has launched a campaign to attract international tour agencies and build better infrastructure for the expected increase in international arrivals. "We currently lead $500,000 worth of projects for the development of tourism infrastructure. After the completion of over 800 projects, we will witness tremendous growth,"