According to a report by the Economist, Iran has been ranked 39th for producing $23 billion of industrial products in 2008. From 2008 to 2009 Iran has leaped to 28th place from 69th place in annual industrial production growth rate.
The government of Iran has plans for the establishment of 50-60 industrial parks by the end of the fifth Five-Year Socioeconomic Development Plan by 2015. Iranian contractors have been awarded several foreign tender contracts in different fields of construction of dams, bridges, roads, buildings, railroads, power generation, and gas, oil and petrochemical industries. As of 2011, some 66 Iranian industrial companies are carrying out projects in 27 countries. Iran has exported over $20 billion worth of technical and engineering services over 2001-2011. The availability of local raw materials, rich mineral reserves, experienced man power have all collectively played crucial role in winning the international bids.
Ministry of Industries and Mines is in charge of facilitating the expansion and promotion of industrial and mineral policies. The Ministry is also in charge of centralization and integration of policy making in the industrial and mining sector. Finally, this Ministry regulates all strategies, policies and plans relevant to the industrial and mining sector in Iran.[7]
Small and Medium Enterprises
A 2003-report made by United Nations Industrial Development Organization regarding the state of SME's in Iran identified these causes as the ones impeding Iran's industrial development: lack of monitoring institutions, inefficient banking system, lack of sufficient R&D, shortage of managerial skills, corruption, inefficient taxation, socio-cultural apprehensions, absence of social learning loops, lack of familiarity with international markets necessary for global competition, cumbersome bureaucratic procedures, shortage of skilled labor, lack of intellectual property protection, shortage of research centers, lack of social capital, social learning, social responsibility and socio-cultural values.[8]Despite these problems, recent studies reveal that over the past few years Iran has progressed rapidly in various scientific and technological fields. Major advancements have taken place in the petrochemical, pharmaceutical, aerospace, defense, and heavy industry sectors. Even in the face of U.S. economic sanctions, Iran appears to be emerging as an industrialized country.[9]
Production Statistics
See also: Economy of Iran and Labor
and tax laws in Iran
Tehran is the economic centre of
Iran.[10] About 30% of
Iran’s public-sector workforce and 45% of large industrial firms are located in
Tehran and almost half of these workers work for the government.[11]| 2003 | 2001 | 1999 | Unit | Product |
|---|---|---|---|---|
| 26390 | 18180 | 12699 | Ton | Preserved fish (tuna & sardine) |
| 1264915 | 801395 | 671346 | Ton | Pasteurized milk |
| 1179139 | 852353 | 950555 | Ton | Vegetable oil |
| 1495 | 1113 | 923 | Ton | Sugar |
| 4976 | 4818 | 4418 | Thousand tons | Non-alcoholic carbonated drink (except buttermilk) |
| 112 | 60 | 000 | Million bottles | Barley decoction |
| 13873 | 13359 | 20143 | Million each | Cigarette |
| 293188 | 388790 | 227599 | Ton | Thread |
| 396 | 551 | 385 | Million meters | Finished fabric |
| 41195 | 51875 | 33933 | Thousand square meters | Machine woven carpet |
| 81286 | 43014 | 41676 | Thousand square meters | Unwoven textile floor covering |
| 11918 | 8166 | 5696 | Thousand each | Blanket |
| 390210 | 315502 | 359037 | Ton | Paper |
| 360017 | 306249 | 321232 | Ton | Detergent |
| 60607 | 75918 | 74984 | Ton | Soap |
| 1654 | 2351 | 2665 | Million boxes | Matches |
| 28241 | 24755 | 22219 | Thousand ton | Cement |
| 103867 | 76827 | 64105 | Thousand square meters | Tiles and ceramic |
| 490 | 346 | 342 | Each | Combine |
| 15377 | 12208 | 5173 | Each | Tractor |
| 1505 | 612 | 532 | Each | Road construction machinery |
| 447063 | 212664 | 182504 | Each | Washing machine |
| 13624 | 24559 | 21198 | Thousand each | Electric sockets and switches |
| 399692 | 129256 | 114399 | Each | Radio sets and record players |
| 858190 | 807964 | 860403 | Each | Color TV sets |
| 832420 | 933741 | 599701 | Each | Water counter |
| 1189912 | 906671 | 842063 | Each | Electricity counters |
| 663164 | 332643 | 194366 | Each | Motor cars |
| 1075 | 328 | 353 | Each | Ambulances |
| 12779 | 4303 | 3938 | Each | Trucks and lorries |
| 4460 | 1643 | 3783 | Each | Buses |
| 537 | 3226 | 940 | Each | Mini buses |
| 69036 | 46639 | 38508 | Each | Vans and Mini vans |
Food industry
Iran exported $736 million worth of foodstuffs in 2007 and $1 billion (~600,000 tonnes) in 2010.[13] Soft drinks, mineral water, biscuit, chocolate, confection, edible oil, dairies, conserved foods and fruits, jam and jelly, macaroni, fruit juice and yeast were among the main exports to Iraq, Afghanistan, Turkmenistan, Tajikistan and other Central Asian countries, Russia, Ukraine, Belarus, Pakistan, Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Oman, Syria, Germany, Spain, the Netherlands, France, Canada, Venezuela, Japan, South Korea and Turkey.[13][14]Retail industry
See also: Transport in Iran, Demography of
Iran, Bonyad, Bazaar, Department stores in
Iran, Shopping malls in Iran, Electronic commerce in
Iran, List of Iranian companies, and Smuggling in Iran
At present the Iranian retail industry is largely in the hands of cooperatives, many of them
government-sponsored, and of independent retailers in the bazaars. The bulk of food sales occur at street markets,
where the Chief Statistics Bureau sets the prices.[15]Behpakhsh Co., Golrang Pakhsh and Ghasem Iran are the largest distribution companies in Iran.[citation needed] Ghasem provides more than 80,000 retailers with their requirements of consumer goods within the territories of Iran, Afghanistan, and Iraq.
Iran has 438,478 small grocery retailers.[16] These are especially popular in cities other than Tehran where the number of hypermarkets and supermarkets is still very limited. More mini-markets and supermarkets are emerging, but these are mostly one-off, independently owned operations. The most significant chains are the state-owned Etka, Refah, Shahrvand and Carrefour-owned Hyperstar Market, all of which are gearing up for expansion.[17][18] Migros Turk has also announced that it intends to invest in Iran's lucrative retail market. In 2010, a state-linked technology group (the Rouyesh Technical Centre) established the country's first online supermarket.[19]
Imports still account for a considerable proportion of consumer goods consumption in Iran, and Dubai, United Arab Emirates-based companies meet much of the demand; they re-export from Western and Asian countries, making Iran the UAE’s most important re-export market.[17]
Before the revolution in 1979, Iran was a major importer of Western apparel and foreign-manufactured consumer goods. Even now Iran is no stranger to Western retail influences, with numerous brands and goods available in shopping centers and outlets on Kish Island.
Brands
According to study results Bank Saderat Iran, Hamrah Aval, Iran Khodro, Zar Macaron, Pars Khodro, Steel Alborz, Yek-o-Yek, Golbaft, Takdaneh, Darou Pakhsh, [8] Behrouz, Delpazir, Sepehr Electric, Arjan, Khoshkhab, Novin Zafaran, Havilux, Boof chain restaurants, Telavang and Golrang are the best brands in the country.[20] Hamshahri and Donya-e-Eqtesad newspapers and Movafaqiyat magazine were selected as the best press.[20]Automotive industry
Main articles: Automotive industry in Iran and Iranian
railway industry
See also: IKCO, SAIPA, IDRO, Wagon
Pars, and MLC
(Mapna Locomotive Engineering and Manufacturing Company)
Iran’s automotive industry is the second most active industry of the country,
after its oil and gas industry.[21]
Iran's automobile production crossed the 1 million mark in 2005. Iran Khodro is the largest car
manufacturer in the Middle-East. It has established joint-ventures with foreign
partners on 4 continents. Iran is the 12th largest
automaker in the world.
Defense industry
Main articles: Iranian
defense industry, Defense Industries
Organization, and List of military
equipment manufactured in Iran
The Iranian defense industry has taken
great strides in the past 25 years, and now manufactures many types of arms and
equipment, including its own tanks, armored personnel carriers, guided missiles, radar systems, guided
missile destroyer, military vessels, submarines, and a fighter plane.[22] According to
Iranian officials, the country sold $100 million worth of military equipment in
2003, including NATO members,[23] and as of 2006 had
exported weapons to 57 countries.[24][25]Construction industry
Main articles: Construction in
Iran, Water supply and sanitation in
Iran, and List of reservoirs and dams in
Iran
See also: IMIDRO and Khatam al-Anbia
Construction is one of the most important sectors in Iran accounting for
20–50% of the total private investment. The Central Bank of
Iran indicate that 70 percent of the Iranians own homes. The housing
industry is one of the few segments of the Iranian
economy where state capital shares as little as two per cent of the market,
and the remaining 98 per cent is private sector investment. There is little red
tape or hurdles and, as a result, through launching mass development projects,
the use of new technologies and fast-pace project execution, a
larger portion of the housing market is accessible. This is also true for new
construction materials and technological advances.Mining and metals
Main articles: Mining in Iran and IMIDRO
Iran is one of the most important mineral producers in the world, ranked
among 15 major mineral-rich countries.[26] The country holds
68 types of minerals, including chrome, lead, zinc, copper, coal, gold, tin and
iron.[27]Textiles and apparel industry
See also: Persian carpet, Iranian
leather industry, Industrial
Development and Renovation Organization of Iran, and Customs Administration in
Iran
Textile
mills, based on domestic cotton and wool such as Tehran Patou and
Iran Termeh, among others, employed about 400,000 people in 2000 and are
centered in Tehran, Isfahan and along the Caspian coast. Iran, with a population of 70
million, requires 1.4 billion square meters of textiles annually.[28][29] Overseas companies
smuggle illegal textiles and apparel into Iran at a rate that is decimating Iran
textile manufacturers and costing Iranian jobs. The annual textile production
has been restricted to 800 million square meters.[30]| Industry components | Workforce, 1995 | Workforce, 2000 | Share in total manufacturing employment, 1995 (percent) | Share in total manufacturing employment, 2000 (percent) |
| Spinning, weaving and finishing of textiles | 112,714 | 107,565 | 14.2 | 12.0 |
| Other textiles (line, jute, etc.) | 30,879 | 31,794 | 3.9 | 3.5 |
| Knitted and crocheted fabrics and articles | 3,631 | 2,459 | 0.5 | 0.5 |
| Wearing apparel, except fur apparel | 8,608 | 4,800 | 1.1 | 0.5 |
Further information:
Aviation industry
See also: Iran Aircraft
Manufacturing Industrial Company, Panha, SAHA (Iran aviation), and Shahid Basir
Iran is producing 59-seat aircraft inside the country such as HESA
IrAn-140 with the help of Russia and Ukraine and it will shift focus to 90
to 120-seat airplanes in the next step.[31] Iran also produces
military attack aircraft such as HESA Saeqeh. With a population of 70 million, Iran
needs to have 6,300 airplanes while it does not possess more than nine aircraft
for every one million individuals.[32]Pharmaceuticals and healthcare industry
Main article: Pharmaceuticals in
Iran
See also: Darou Pakhsh
The pharmaceutical industry in Iran began in its modern form in 1920 when the
Pasteur
Institute was founded. Iran has a well-developed pharmaceutical production
capability, however, the country still relies on imports for raw materials and
many specialized drugs. In 2009, Iran exported $74 million worth of "medical
products" to countries such as Iraq, Afghanistan and Russia.[33]Oil, gas and petrochemicals
Main articles: Energy in Iran, Petroleum industry in Iran, National Iranian Oil Company, National Iranian Gas Company, National Iranian
Petrochemical Company, and National
Iranian Oil Refining and Distribution Company
See also: Iranian
Offshore Engineering and Construction Company and IDRO
Iran's oil and gas industry is the most active industry of the country.[21]
Iran has the fourth largest reserves of oil and second largest reserves of gas
in the world.Domestic production of equipment in the nation's upstream oil industries has grown four-fold in as many years while procurement of equipment and goods accounts for around 60 to 65 percent of any oil project.
Power
Iran has become self-sufficient in designing, building and operating dams and
power plants and it has won a good number of international bids in competition
with foreign firms. Iran is one of the
six countries in the world that manufacture gas and steam powered turbines.
Electronics and computer industry
Iran’s domestic consumer
electronic market, defined as including computing devices, mobile handsets
and video audio and gaming products, was estimated at $7.3 billion in 2008 ($8.2
billion in 2010), with 47% market share for computer hardware, 28% Audio/Video and 25% mobile phone (with growing
demand for PDAs, smart phones
and 3G handsets) Business Monitor
International (BMI) forecasts that Iran’s demands for domestic consumer
electronic devices will reach $10 billion by 2013.
Telecommunications
Iran is among the first five countries which have had a growth rate of over 20% and the highest level of development in telecommunication. Iran's Ministry of Communication and Information Technology along with TCI are developing the landline telephone network in the towns of Karbala and Najaf in Iraq.
Banking industry
Shariah-compliant
assets has reached about $400 billion throughout the world, according to Standard & Poor’s Ratings Services, and
the potential market is $4 trillion. Iran, Saudi Arabia and Malaysia are at the top with the
biggest sharia-compliant assets. Bank Melli, Saderat and Sepah are Iran's three largest
banks.
Tourism industry
Officials state that Iran has in recent years earned about US$1bn a year from
tourism. Iran currently ranks 68th in tourism revenues worldwide. Iran with attractive
natural and historical sites is rated among the "10 most touristic countries" in
the world. Area considered for further expansion in the tourism sector in Iran
are eco
tourism, coastlines, restoration
of historical
relics, handicraft
townships, and health tourism (e.g. water therapy).
Over the next two decades, Iran would need 500 new ships, including 120 oil
tankers, 40 liquefied natural gas (LNG) carriers and over 300 commercial
vessels.[51] In 2009, in a move
aimed at further enhancing Iran's shipbuilding industry,
President Mahmoud Ahmadinejad said he will ban the
purchase of foreign ships by Iranian organizations. The Ministry of Commerce has confirmed
that Iran is able to build all its needed sea fleets inside the country. Iran's SADRA launched its first Aframax oil tanker made for Venezuela in 2012.
Machine tools
Machine Sazi Tabriz Group has managed to manufacture machines such as VMC850, VMC 1050, FP4ME, TME40NEW, and TC-20 HF and it has exported turning and milling machineries worth €1.5 million to Germany, Austria, Azerbaijan, Turkey and Malaysia during 2011.
