According to a report byThe Economist,Iran has been ranked 39th for producing $23 billion of industrial products in 2008.[1] From 2008 to 2009 Iran has leaped to 28th place from 69th place in annual industrial production growth rate.[2]
Thegovernment of Iran has plans for the establishment of 50–60industrial parks by the end of the fifthFive-Year Socioeconomic Development Plan by 2015.[3] Iranian contractors have been awarded several foreign tender contracts in different fields of construction ofdams,bridges, roads,buildings,railroads,power generation, andgas, oil andpetrochemical industries. As of 2011, some 66 Iranian industrial companies are carrying out projects in 27 countries.[4] Iran has exported over $20 billion worth of technical and engineering services over 2001–2011.[5] The availability of local raw materials,rich mineral reserves, experienced manpower have all collectively played crucial role in winning the international bids.[6]
Ministry of Industries and Mines is in charge of facilitating the expansion and promotion of industrial and mineral policies. The Ministry is also in charge of centralization and integration of policy making in the industrial and mining sector. Finally, this Ministry regulates all strategies, policies and plans relevant to the industrial andmining sector in Iran.[7] The Department for High Technology Industries, also known as the High Tech Industries Centre (HTIC) is active in promoting research activities and in supporting the emergence of high tech firms.[8] As of 2014, Iran has 930industrial parks and zones.[9]
As of 2014, 81,000 small industrial units employed more than 1 million workers in Iran.[10] Small industries constitute 92 percent of Iranian industries, 45 percent of the country's industrial employment, and 17 percent of the country's production.[11] In Iran, because of its weakness or absence, the support industry makes little contribution to theinnovation/technology development activities. Supporting the development of small and medium enterprises will strengthen greatly thesupplier network in Iran.[8] Difficulty inaccessing financing is also a major concern for small and medium enterprises.[12][13] In 2016, Iran had nearly 3,000knowledge-based firms accounting for 70,000 jobs and $6.6 billion in revenue.[14]
As of 2019, 43,650 SMEs were based in over 800 industrial parks in Iran, of which nearly 78 percent or 33,800 were active (1,100 of those SMEs are exporting domestic products to global markets).[15]
A 2003-report made byUnited Nations Industrial Development Organization regarding the state ofSME's in Iran identified these causes as the ones impeding Iran's industrial development: lack of monitoring institutions, inefficientbanking system, lack of sufficientR&D, shortage of managerial skills,corruption, inefficienttaxation, socio-cultural apprehensions, absence of social learning loops, lack of familiarity with international markets necessary for global competition, cumbersome bureaucratic procedures, shortage ofskilled labor, lack ofintellectual property protection, shortage ofresearch centers, lack of social capital,social learning, social responsibility andsocio-cultural values.[16]
Despite these problems, recent studies[by whom?] reveal that over the past few years[when?] Iran has progressed rapidly in variousscientific and technological fields. Major advancements have taken place in thepetrochemical,pharmaceutical,aerospace,defense, and heavy industry sectors. Even in the face ofU.S. economic sanctions, Iran appears to be emerging as anindustrialized country.[17]
Tehran is the economic centre of Iran.[18] About 30% of Iran's public-sector workforce and 45% of large industrial firms are located in Tehran and almost half of these workers work for the government.[19]
| 2003 | 2001 | 1999 | Unit | Product |
|---|---|---|---|---|
| 26390 | 18180 | 12699 | Ton | Preserved fish (tuna & sardine) |
| 1264915 | 801395 | 671346 | Ton | Pasteurized milk |
| 1179139 | 852353 | 950555 | Ton | Vegetable oil |
| 1495 | 1113 | 923 | Ton | Sugar |
| 4976 | 4818 | 4418 | Thousand tons | Non-alcoholic carbonated drink(except buttermilk) |
| 112 | 60 | 000 | Million bottles | Barley decoction |
| 13873 | 13359 | 20143 | Million each | Cigarette |
| 293188 | 388790 | 227599 | Ton | Thread |
| 396 | 551 | 385 | Million meters | Finished fabric |
| 41195 | 51875 | 33933 | Thousand square meters | Machine woven carpet |
| 81286 | 43014 | 41676 | Thousand square meters | Unwoven textile floor covering |
| 11918 | 8166 | 5696 | Thousand each | Blanket |
| 390210 | 315502 | 359037 | Ton | Paper |
| 360017 | 306249 | 321232 | Ton | Detergent |
| 60607 | 75918 | 74984 | Ton | Soap |
| 1654 | 2351 | 2665 | Million boxes | Matches |
| 28241 | 24755 | 22219 | Thousand ton | Cement |
| 103867 | 76827 | 64105 | Thousand square meters | Tiles and ceramic |
| 490 | 346 | 342 | Each | Combine |
| 15377 | 12208 | 5173 | Each | Tractor |
| 1505 | 612 | 532 | Each | Road construction machinery |
| 447063 | 212664 | 182504 | Each | Washing machine |
| 13624 | 24559 | 21198 | Thousand each | Electric sockets and switches |
| 399692 | 129256 | 114399 | Each | Radio sets and record players |
| 858190 | 807964 | 860403 | Each | Color TV sets |
| 832420 | 933741 | 599701 | Each | Water counter |
| 1189912 | 906671 | 842063 | Each | Electricity counters |
| 663164 | 332643 | 194366 | Each | Motor cars |
| 1075 | 328 | 353 | Each | Ambulances |
| 12779 | 4303 | 3938 | Each | Trucks and lorries |
| 4460 | 1643 | 3783 | Each | Buses |
| 537 | 3226 | 940 | Each | Mini buses |
| 69036 | 46639 | 38508 | Each | Vans and Mini vans |
The sector also employs approximately 328,000 people or 16.1% of the entire industry sector's workforce.[21] Iran exported $736 million worth offoodstuffs in 2007 and $1 billion (~600,000 tonnes) in 2010.[22] Soft drinks, mineral water, biscuit, chocolate, confection, edible oil, dairies, conserved foods and fruits, jam and jelly, macaroni, fruit juice and yeast were among the main exports to Iraq, Afghanistan, Turkmenistan, Tajikistan and other Central Asian countries, Russia, Ukraine, Belarus, Pakistan, Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Oman, Syria, Germany, Spain, the Netherlands, France, Canada, Venezuela, Japan, South Korea and Turkey.[22][23] As of 2015, Swiss-basedBuhler Group is a leading supplier of industrial equipment to Iran's food industry.[citation needed][24]
At present the Iranian retail industry is largely in the hands ofcooperatives, many of them government-sponsored, and of independent retailers in thebazaars. The bulk of food sales occur at street markets, where the Chief Statistics Bureau sets the prices.[25]
Behpakhsh Co., Golrang Pakhsh and Ghasem Iran are the largestdistribution companies in Iran.[26] Ghasem provides more than 80,000 retailers with their requirements of consumer goods within the territories ofIran,Afghanistan, andIraq.
Iran has 438,478 small grocery retailers.[27] These are especially popular in cities other than Tehran where the number of hypermarkets and supermarkets is still very limited. More mini-markets and supermarkets are emerging, but these are mostly one-off, independently owned operations. The most significant chains are the state-ownedEtka,Refah,Shahrvand andCarrefour-owned Hyperstar Market, all of which are gearing up for expansion.[28][29]Migros Turk has also announced that it intends to invest in Iran's lucrative retail market. In 2010, a state-linked technology group (the Rouyesh Technical Centre) established the country's first online supermarket.[30]
Imports still account for a considerable proportion ofconsumer goods consumption in Iran, andDubai, United Arab Emirates-based companies meet much of the demand; they re-export from Western and Asian countries, making Iran the UAE's most important re-export market.[28] In 2012, Iranians spent $77 billion on food, $22 billion on clothes and $18.5 billion onoutward tourism.[31] In 2015, overallconsumer expenditures anddisposable income are respectively projected to be $176.4 billion and $287 billion.[32]
Before therevolution in 1979, Iran was a major importer of Western apparel and foreign-manufactured consumer goods. Even now Iran is no stranger to Western retail influences, with numerous brands and goods available in shopping centers and outlets onKish Island. Latest major shopping centers constructed in Iran as of 2017 are:[33]
TheSupreme Leader of Iran has repeatedly urged Iranians to consume more domestically produced goodsover imported ones to support theresistance economy andimport substitution industrialization.[citation needed]
According to research study,IEI,Bank Saderat Iran,Hamrah Aval,Iran Khodro, Sanatiran,Wagon Pars, Sanayeiran,Machine Sazi Arak (MSA), Zar Macaron,DESA,Pars Khodro,HEPCO, Steel Alborz,IRALCO, Yek-o-Yek,AzarAb Industries, Golbaft,Navard Aluminium, Takdaneh,Darou Pakhsh,Kalleh, Behrouz, Delpazir,Iran Combine Manufacturing Company (ICM), Sepehr Electric, Arjan, Khoshkhab, Novin Zafaran, Havilux, Boof chain restaurants, Telavang andGolrang are the best brands in the country.[34]Hamshahri andDonya-e-Eqtesadnewspapers and Movafaqiyatmagazine were selected as the bestpress.[34]
Iran's automotive industry is the second most active industry of the country, after its oil and gas industry.[35] Iran's automobile production crossed the 1 million mark in 2005. Iran holds some of the biggest industrial complexes in the region,Iran Khodro is the largest car manufacturer in the Middle-East,ITMCO is the largest tractor manufacturer in the middle east. Iran Khodro has establishedjoint-ventures with foreign partners on 4 continents. Iran is the12th largest automaker in the world.
TheIranian defense industry has taken great strides in the past 25 years, and now manufactures many types of arms and equipment, including its owntanks,armored personnel carriers,guided missiles,radar systems,guided missile destroyer, military vessels,submarines, and afighter plane.[36] According to Iranian officials, the country sold $100 million worth of military equipment in 2003, includingNATO members,[37] and as of 2006 had exported weapons to 57 countries.[38][39]
In a conference, Iran's Deputy Minister of Defense said: Iran's military products exports from March 2022 to March 2023 have reached about one billion dollars.[40]
.jpg)
Construction is one of the most important sectors in Iran accounting for 20–50% of the total private investment. TheCentral Bank of Iran indicate that 70 percent of the Iranians own homes. The housing industry is one of the fewsegments of the Iranian economy where state capital shares as little as two per cent of the market, and the remaining 98 per cent isprivate sector investment. There is little red tape or hurdles and, as a result, through launching mass development projects, the use of newtechnologies and fast-pace project execution, a larger portion of the housing market is accessible.[citation needed] This is also true for new construction materials and technological advances.[citation needed]
Iran is one of the most important mineral producers in the world, ranked among 15 major mineral-rich countries.[41] The country holds 68 types of minerals, includingchrome, lead,zinc, copper, coal, gold,tin and iron which includes 37 billion tons of proven reserves and more than 57 billion tons of potential reserves of minerals .[citation needed][42][43][44]
Textile mills, based on domestic cotton and wool such asTehran Patou andIran Termeh, among others, employed about 400,000 people in 2000 and are centered inTehran,Isfahan and along theCaspian coast. Iran, with a population of 70 million, requires 1.4 billion square meters of textiles annually.[45][46] Overseas companies smuggle illegal textiles and apparel into Iran at a rate that is decimating Iran textile manufacturers and costing Iranian jobs. The annual textile production has been restricted to 800 million square meters.[citation needed]
| Industry components | Workforce, 1995 | Workforce, 2000 | Share in total manufacturing employment, 1995 (percent) | Share in total manufacturing employment, 2000 (percent) |
| Spinning, weaving and finishing of textiles | 112,714 | 107,565 | 14.2 | 12.0 |
| Other textiles (line, jute, etc.) | 30,879 | 31,794 | 3.9 | 3.5 |
| Knitted and crocheted fabrics and articles | 3,631 | 2,459 | 0.5 | 0.5 |
| Wearing apparel, except fur apparel | 8,608 | 4,800 | 1.1 | 0.5 |
Source:United Nations Industrial Development Organization (UNIDO)[20]
Further information:
Iran’s modernleather industry (Persian:صنعت چرم ایران) began at the start of the twentieth century. Despite the industry's long history and the livestock hide's genetic proficiency, there are technical problems for Iranian leather industry. Since the 2000s, the production of women's leather boots in various designs has been able to give a new life to Iran's leather industry. Iranianthigh-high boots withblack leather can be found all over the region.[48]
Iran is producing 59-seat aircraft inside the country such asHESA IrAn-140 with the help of Russia and Ukraine and it will shift focus to 90 to 120-seat airplanes in the next step.[citation needed] Iran also produces military attack aircraft such asHESA Saeqeh. With a population of 70 million, Iran needs to have 6,300 airplanes while it does not possess more than nine aircraft for every one million individuals.[49]
The pharmaceutical industry in Iran began in its modern form in 1920 when thePasteur Institute of Iran was founded. Iran has a well-developedpharmaceutical production capability, however, the country still relies on imports for raw materials and many specialized drugs.[50] In 2009, Iran exported $74 million worth of "medical products" to countries such asIraq,Afghanistan and Russia.[51]
Iran's oil and gas industry is the most active industry of the country.[35] Iran has the fourth largest reserves of oil and second largest reserves of gas in the world.
Domestic production of equipment in the nation's upstream oil industries has grown four-fold in as many years while procurement of equipment and goods accounts for around 60 to 65 percent of any oil project. Iran manufactures 60–70% of its industrial equipment domestically, including various turbines, pumps, catalysts,refineries,oil tankers,drilling rigs,offshore platforms and exploration instruments.[52][53][54][55][56]
Iran has become self-sufficient in designing, building and operating dams and power plants and it has won a good number of international bids in competition with foreign firms.[57][58] Iran is one of the six countries in the world that manufacture gas and steam powered turbines.[59]
Iran's domesticconsumer electronic market, defined as including computing devices, mobile handsets and video audio and gaming products, was estimated at $7.3 billion in 2008 ($8.2 billion in 2010), with 47% market share for computer hardware, 28% Audio/Video and 25% mobile phone (with growing demand forPDAs,smart phones and3G handsets).[60][61] Business Monitor International (BMI) forecasts that Iran's demands for domestic consumer electronic devices will reach $10 billion by 2013.[60]
Iran is among the first five countries which have had a growth rate of over 20% and the highest level of development in telecommunication.[62][63]Iran's Ministry of Communication and Information Technology along with TCI are developing the landline telephone network in the towns ofKarbala andNajaf in Iraq.[64]
Shariah-compliant assets has reached about $400 billion throughout the world, according toStandard & Poor's Ratings Services, and the potential market is $4 trillion.[65][66]Iran,Saudi Arabia andMalaysia are at the top with the biggest sharia-compliant assets.[67]Bank Melli,Saderat andSepah are Iran's three largest banks.[68]
 | This sectiondoes notcite anysources. Please helpimprove this section byadding citations to reliable sources. Unsourced material may be challenged andremoved.(April 2017) (Learn how and when to remove this message) |
Officials state that Iran has in recent years[when?] earned about US$1bn a year from tourism. Iran currently ranks 68th in tourism revenues worldwide. Iran with attractive natural and historical sites is rated among the "10 most touristic countries" in the world. Area considered for further expansion in the tourism sector in Iran areeco tourism,coastlines,restoration ofhistorical relics,handicraft townships, andhealth tourism (e.g.water therapy).
Over the next two decades, Iran would need 500 new ships, including 120 oil tankers, 40liquefied natural gas (LNG) carriers and over 300 commercial vessels.[69] In 2009, in a move aimed at further enhancingIran's shipbuilding industry, PresidentMahmoud Ahmadinejad said he will ban the purchase of foreign ships by Iranian organizations.[citation needed] TheMinistry of Commerce has confirmed that Iran is able to build all its needed sea fleets inside the country.[70] Iran'sSADRA launched its firstAframax oil tanker made for Venezuela in 2012.[citation needed]
Machine Sazi Tabriz Group has managed to manufacture machines such as VMC850, VMC 1050, FP4ME, TME40NEW, and TC-20 HF and it has exported turning and milling machineries worth €1.5 million to Germany, Austria, Azerbaijan, Turkey and Malaysia during 2011.[71]
{{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link){{cite web}}: CS1 maint: archived copy as title (link)
