Downturn in Iran's Industrial Investments
EghtesadOnline: More than 1.87 quadrillion rials ($14.3 billion) worth of investments have been made in the industrial units with establishment permits, while 245.91 trillion rials ($1.87 billion) were invested in projects with operating licenses in the first eight months of the current Iranian year (March 21-Nov. 21).
The investment volumes show a respective decrease of 10.6% and 36.3% compared with the similar period of last year, the latest report released by the Ministry of Industries, Mining and Trade shows.
A total of 17,054 establishment permits were issued over the eight months under review, registering a 15.8% year-on-year growth. These projects are expected to create 394,921 jobs, 14.2% more compared with last year's corresponding period, according to Financial Tribune.
Yazd Province with 1,782, Semnan Province with 1,493 and Khorasan Razavi Province with 1,444 had the largest share of establishment permits issued during the period.
Khuzestan Province, with more than 184.34 trillion rials (over $1.4 billion) worth of estimated investments for 622 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 decreased by 18.7% to 191. Close to 193.34 trillion rials ($1.47 billion) worth of investments are estimated to have been made in these projects to generate 9,864 jobs, registering a 42.1% and 11.2% fall YOY respectively.
The field of food and beverages saw the largest number of establishment permits (2,155) to create the largest number of jobs among other fields (51,138).
The highest amount of investment in these units is expected to be made in projects related to coke and oil derivatives production with 316.31 trillion rials ($2.41 billion). The volume accounts for 16.9% of all investments to be made in projects, for which establishment permits were issued over the period.
A total of 3,960 operating licenses were issued during the same period, which shows a 3.9% growth YOY. These projects are expected to create 60,841 jobs, 11.2% less compared with last year's corresponding period.
Isfahan Province with 349, East Azarbaijan Province with 338 and Tehran Province with 263 had the biggest share of all operating licenses issued during the six months.
Tehran Province, with more than 49.43 trillion rials ($377.36 million), attracted the highest volume of investments in projects with operating licenses. This accounted for 20.1% of all investments made in 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 239, indicating a 16% growth YOY. More than 22.44 trillion rials ($171.35 million) worth of investments were made in these projects to create 5,946 jobs, registering a 0.3% and 5.6% growth respectively YOY.
The field of food and beverages registered the highest number of operating licenses, namely 567.
The biggest volume of investments in this regard was also made in projects related to food and beverages production with close to 64.11 trillion rials ($489.39 million), accounting for 26.1% of all investments made in industrial units with operating licenses. The same field created the largest number of jobs (10,032) over the seven-month period.
The number of greenfield projects for which operating licenses were issued stood at 2,063, of which 149 were for those located in free trade and special economic zones. The remaining 1,897 permits were issued for the operation of brownfield projects, of which 90 were located in FTZs and special economic zones.