Iran Industries Ministry Reports Upsurge in Industrial Investments (Mar-Aug 2018)
EghtesadOnline: A total of 793.26 trillion rials ($5.41 billion) worth of investments were made in industrial units for which establishment permits were issued during the first five months of the current Iranian year (March 21-Aug. 22), while 304.13 trillion rials ($2.07 billion) were invested in projects for which operating licenses were issued during the period.
The volumes of investments show a 32.5% and 168.3% growth respectively compared with the similar period of last year, the latest report released by the Ministry of Industries, Mining and Trade show.
A total of 8,851 establishment permits were issued over the five months, registering a 19.8% growth year-on-year. The upcoming projects are expected to create a total of 205,026 jobs—21.1% more compared with last year's corresponding period.
Khorasan Razavi Province with 733, Semnan Province with 636 and Fars Province with 632 had the largest share of the issued establishment permits during the period, according to Financial Tribune.
Khuzestan Province, with close to 89.1 trillion rials ($608 million) worth of investment for 359 establishment permits, attracted the highest amount of investments.
The number of establishment permits issued for industrial units located in free trade and special economic zones grew by 71.3% to reach 137 permits. More than 213.33 trillion rials ($1.45 billion) worth of investments are estimated to be made into these projects to generate 8,383 jobs, indicating a 209.9% and 117% YOY growth respectively.
The field of food and beverages saw the highest number of establishment permits (1,214) to also create the highest number of jobs (29,683). The highest amount of investment in units under construction is expected to be made in projects related to chemical production (214.72 trillion rials or $1.46 million). The volume accounts for 27.1% of all investments to be made in projects for which establishment permits were issued over the period.
A total of 2,192 operating licenses were issued during the same period, which shows a 0.05% YOY. These projects are expected to create 41,962 jobs, 15.3% more compared with last year's corresponding period.
Isfahan Province with 205, Alborz Province with 155 and East Azarbaijan Province with 151 had the biggest share of all operating licenses issued during the five months.
Hormozgan Province issued operating licenses for 39 industrial projects worth 193.08 trillion rials ($1.32 billion), which is the highest amount of investments. The amount accounted for 63.5% of all investments made in the projects for which operating licenses were issued.
The number of licenses issued for industrial projects located in free trade and special economic zones stood at 108, indicating an 8% growth YOY.
More than 12.75 trillion rials ($87.09 million) worth of investments were made in these projects to create 3,178 jobs, registering a 370.7% and 98.6% growth respectively YOY.
The field of rubber and plastic production saw the largest number of operating licenses (329). Operating licenses issued for projects in the field of food and beverages created the highest number of jobs (5,834). The highest volume of investments in this vein was made in projects related to coke and oil derivatives production (202.43 trillion rials or $1.38 billion), accounting for 66.6% of all the investments made in industrial units for which operating licenses were issued.
The number of greenfield projects for which operating licenses were issued stood at 1,195, of which 92 were for those located in free trade and special economic zones. The remaining 997 permits were issued for launching brownfield projects, of which 16 were located in FTZs and special economic zones.