Iran Industrial Investments on Growth Trajectory
EghtesadOnline: More than 2.42 quadrillion rials ($16.54 billion) worth of investments are expected to be made in industrial units for which establishment permits were issued, while investments worth 510.72 trillion rials ($3.48 billion) are projected in projects for which operating licenses were issued during the 11 months to Feb. 19.
The abovementioned investment volumes indicate a respective growth of 61.5% and 113.8% compared with the similar period of last year, Ministry of Industries, Mining and Trade's latest report shows.
A total of 21,358 establishment permits were issued during the period, registering a 15.9% growth year-on-year. These projects are expected to create a total of 486,984 jobs—16.9% more compared with last year's corresponding period.
Semnan Province with 1,820, Qom Province with 1,575 and Khorasan Razavi Province with 1,505 had the largest share of establishment permits issued during the period, according to Financial Tribune.
Hormozgan Province with more than 478.35 trillion rials ($3.26 billion) worth of estimated investment for 468 establishment permits attracted the highest volume of investments.
The number of establishment permits issued for industrial units located in free trade and special economic zones grew by 53.5% to 350. Over 299.04 trillion rials ($2.04 billion) worth of investments are expected to be made in these projects to generate 15.291 jobs, registering a 0.2% decrease and a 30.8% growth YOY respectively.
The category of food and beverages saw the largest number of establishment permits (3,009) to create the highest number of jobs among other fields (69,799).
The biggest amount of investment in these units is expected to be made in projects related to the production of coke- and oil-derived products (731.35 trillion rials or $4.99 billion). The volume accounts for 30.2% of all investments expected to be made in projects, for which establishment permits were issued over the period.
A total of 5,462 operating licenses were issued during the same period, which register a 5.7% growth YOY. These projects are expected to create 93,953 jobs, 8.7% more compared with last year's corresponding period.
Isfahan Province with 557, East Azarbaijan Province with 411 and Khorasan Razavi Province with 336 had the biggest share of all operating licenses issued during the 11 months.
Hormozgan Province, with more than 193.59 trillion rials ($1.32 billion) spent for operating 84 industrial projects, attracted the highest volume of investments. This accounted for 37.9% of all 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 288, indicating a 9.9% growth YOY.
More than 63.14 trillion rials ($431.01 million) worth of investments were made in these projects to create 7,457 jobs, registering a 674.1% and 60% growth respectively YOY.
The field of rubber and plastic production saw the highest number of operating licenses, namely 831.
Projects in the field of food and beverages, for which operating licenses were issued, created the largest number of jobs (13,415).
The highest volume of investments in this regard were made in projects related to coke and oil derivatives production (208.33 trillion rials or $1.42 billion), accounting for 40.8% 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 2,907, some 212 of which were for those located in free trade and special economic zones. The remaining 2,555 licenses were issued for the operation of brownfield projects, 76 of which were located in FTZs and special economic zones.
Mineral Production Permits
A total of 544 mineral production permits were issued during the 11 months under review, registering a 15.3% fall compared with the similar period of last year, the report showed.
These exploitation permits are expected to create 4,199 jobs, indicating a 17.7% decline year-on-year.
The nominal mineral extraction capacity of the projects stands at 20.44 million tons, which shows a 44.8% decrease compared with the corresponding period of last year.
Khorasan Razavi Province with 55, Fars and Yazd each with 38 and Isfahan, South Khorasan and Khuzestan with 37 each had the largest share of production permits issued during the period.
Mineral production permits issued over the 11 months are expected to create the highest number of jobs in southern Kerman Province (507), South Khorasan Province (407) and Fars Province (333).
The provinces of Khuzestan, Hormozgan and East Azarbaijan, with more than 3.8 million tons, 1.26 million tons and 1.17 million tons, had the highest volume of nominal extraction capacities.
According to the report, 843 production permits were issued over the period to register a 2.8% increase YOY.
Exploration costs stood at more than 793.8 billion rials (over $5.41 million), registering a 26.9% increase YOY.