Since concluding the Joint Comprehensive Plan of Action in 2015, Iran has been able to focus on attracting foreign investment. Ahamad Imandoost updates LBM readers on ten key areas of sect oral opportunity.

Investment opportunities in IranOil

Iran plans to increase its crude oil production to 5.7 million barrels a day by 2021, around 25 percent of which is likely to be exported to European buyers. Investment to the tune of $200 billion will be required and, according to Iran’s oil ministry, 70 per cent of this sum will be sought from foreign investors.

Gas

Iran’s gas reserves are one of the most profitable fields in which to invest; one example of investment in this field is the contract between the National Iranian Oil Company and Total to develop the world’s largest gas field – South Pars. Iran’s oil minister has invited foreign investors to participate in oil and gas exploration in the Caspian Sea.

Investment opportunities in Iran

Petrochemicals

Iran’s petrochemical production share is 2.5 per cent globally and 23.6 percent in the Middle East. With 70 projects in this field and an investment capability of $40 billion, it’s an area with significant potential for foreign investors.

Investment opportunities in Iran

Wind energy

With many countries across the globe aiming to increase their capacity to develop wind turbines or renewable technologies, construction of electric power plants represents a viable opportunity
for foreign investors. The Iranian and British authorities have contracted to build a large solar power plant in Iran, and the amount of foreign investment related to this project is estimated at €600 million.

Solar energy

With more than 300 sunny days and an average of 2,800 hours of sunshine each year, Iran is one of the best countries in the world to produce and use solar energy. Countries which have already invested in this area include Germany, Greece and Switzerland. Under the Paris Agreement, Iran is required to produce 7,500 megawatts of electricity from renewable energy sources by 2030.

Investment opportunities in Iran

Aviation

Although Iran has 54 airports, comprising 20 domestic, 25 air-board, and nine international, there is not enough parking for 500 aircraft, therefore foreign investment and financial cooperation is required. It’s also worth noting that auxiliary and support equipment on the runway, in addition to hangar equipment, is needed.

Rail transport

With the Iranian government looking to increase rail passenger capacity by 25 million to 45 million customers, investment in this sector is necessary. One example is the electrification project for the Tehran-Mashhad railway, the contract value of which is equivalent to $1.7 billion.

Mining

There is an extensive plan for the development of the mining industries in Iran, requiring capital of $40 billion. Development projects are planned for mine production such as titanium, petroleum coke, coal, strategic products and rare earth elements. There are building plans to increase production of copper to 450,000 tons and aluminum to 1.5 million tons, for which a capital of $10 billion is required. Note that the foreign investment sums will be backed by government capital guarantees.

Waste management

The area of waste management has significant potential for investors. Indeed, around 50,000 tons of garbage is generated every day in Iran, with Tehran accounting for around 8,000 tons. Currently, only seven percent of this is being separated and existing factories do not possess the capacity to cope with such volumes.

Investment opportunities in Iran

Healthcare

In Iran there are 95,000 hospital beds, equating to 1.7 beds per 1,000 people whereas Japan, as a comparison, has at least 13.4 hospital beds per 1,000 people. According to economic development
plans, if Iran is to reach the level of 2.6 beds per 1,000 people, more than 100,000 hospital beds will be needed. Negotiations have taken place with countries including South Korea, Japan, and Italy with a view to build 24 hospitals. According to the current budget for the treatment sector in Iran, only 1,600 hospital beds can be created annually, therefore foreign investment in this sector is necessary.

Source : LBM Magazine