Iran: Industrial Investment Growing
EghtesadOnline: More than 1.46 trillion rials ($13.12 billion) worth of investments are estimated to have been made in the industrial units, for which establishment permits were issued in the first seven months of the current Iranian year (March 21-Oct. 22), the latest report released by the Ministry of Industries, Mining and Trade shows.
This is while 360.9 trillion rials ($3.22 billion) were invested in projects, for which operating licenses were issued during the same period. The volumes of investments show a 59.3% and 133.7% growth respectively compared with the same period of last year.
A total of 12,808 establishment permits were issued over the seven months, registering a 21.9% growth year-on-year. The upcoming projects are expected to create 301,890 jobs, which are 25.6% more compared with last year's corresponding period.
Khorasan Razavi Province with 992, Semnan Province with 978 and Fars Province with 876 had the largest share of the establishment permits issued during the period, according to Financial Tribune.
Khuzestan Province with more than 106.01 trillion rials ($946.54 million) worth of estimated investment for 489 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 65.3% to reach 200 permits. Close to 229.9 trillion rials ($2.05 billion) worth of investments have been made into these projects to generate 9,997 jobs, indicating a 109.8% and 70.8% YOY growth respectively.
The field of foodstuff and beverages saw the highest number of establishment permits (1,766), which also created the highest number of jobs (42,158). The highest amount of investment in to-be established units is expected to be made in projects related to the production of coke and oil-derived products (559.16 trillion rials or $4.99 billion). The volume accounts for around 38% of all the investments to be made in projects for which the establishment permits were issued.
The Industries Ministry issued 3,232 operating licenses during the same period, which shows a 1.4% growth YOY. These projects are expected to create 59,162 jobs, 8.7% more compared with last year's corresponding period.
Isfahan Province with 315, East Azarbaijan Province with 223 and Alborz Province with 216 had the biggest share of all the operating licenses issued during the seven months.
Hormozgan Province, with close to 193.22 trillion rials ($1.72 billion) issued for the operation of 53 industrial projects, attracted the highest amount of investments. The investment volume accounted for 53.5% of all the investments made in the projects for which operating licenses were issued.
The number of operating licenses issued for industrial projects located in free trade and special economic zones stood at 164, indicating a 106.3% growth YOY. More than 18.87 trillion rials ($168.53 million) worth of investments were made in these projects to create 4,574 jobs, registering a 402.8% and 82.3% growth respectively YOY.
The field of rubber and plastic production saw the highest number of operating licenses (509). Projects in the field of food and beverages, for which operating licenses were issued, created the highest number of jobs (6,741).
The highest volume of investments was made in projects related to coke and oil derivatives production (205.7 trillion rials or $1.83 billion), accounting for 57% 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 1,742, 132 of which were located in free trade and special economic zones. The remaining 1,490 permits were issued for operation of brownfield projects, 32 of which were located in FTZs and special economic zones.