Why Iran?
10 Reasons to Invest in Iran
Iran qualifies from many respects to be a good location for investment and doing business. Some of the features are highlighted below:
1)Strategic Location
2)Market Potentials and Proximity
3)Labor Privileges
4)Developed Infrastructure
5)Low Utility and Production Cost
6)Abundant Natural Resources
7)Climatic Characteristics
8)Fiscal Incentives
9)Political Stability
10)New Investment Legislation
1. Strategic Location:
A unique geographical location at the heart of a cross-road connecting the Middle East, Asia and Europe, coupled with many inter- and trans-regional trade, customs, tax and investment arrangements;
2. Market Potentials and Proximity:
Vast domestic market with a population of 68 million growing steadily as well as quick access to neighboring markets with approximately 300 million inhabitants;
3. Labor Privileges:
Large pool of trained and efficient manpower at very competitive cost in a diversified economy with an extensive industrial base and service sector;
4. Developed Infrastructure:
Territory developed networking in the area of telecommunication, power, water, roads and railways across the country;
Transportation & Telecommunication Network |
Expressways and Roads: | Shipping: |
Length: | 68,685 km | No of Gov. Ships | 145 |
Freight Carried: | 238 million tons | Freight Carried: | 144 million ton |
Passengers: | 219 million | Airways: |
Railways: | No of Airports: | 76 |
No of international Airports: | 9 |
Length: | 11,487 km | Passengers: | 20.3 million |
No of Locomotives | 578 | Telecom: |
Freight Carried: | 300 million ton | Fixed Phones: | 20.9 million |
Passengers: | 19.4 million | Mobile Phones: | 9 million |
Source: Statistical Center of Iran, Iran Statistical Yearbook 1383-84 (2004-05)
5. Low Utility and Production Cost:
Diversified range of energy, telecommunication, transportation, as well as public utilities;
Infrastructure & Utility Costs |
Item | Cost (USD) |
One minute local phone/fax | Less than 0.02 |
One minute international phone/fax (maximum) | Less than 0.20 |
One kilowatt/hour grid high voltage industrial electricity | 0.02 |
One litter of gas | 0.08 |
One cubic meter of natural gas | Less than 0.02 |
One litter of gasoline | Less than 0.02 |
One litter of refined oil | Less than 0.02 |
One cubic meter of Municipal lines water | 0.25 |
One cubic meter of well water | 0.10 |
Source: Various Government Agencies and Publications
6. Abundant Natural Resources:
Varied and plentiful reserves of natural resources ranging from oil and gas to metallic and non-metallic species reflecting the country’s accessibility to readily available raw materials;
Mineral | Reserve (million ton) | Mineral | Reserve(million ton) |
Oil | 89.7 billion barrel | Kaolin, Fire | 100 |
Gas | 26.3 trillion m3 | Lead & Zinc | 94 |
Asbestos | 120 | Magnesite | 5 |
Barite | 3.8 | Manganese | 8 |
Bauxite | 14 | Mica | 0.2 |
Bentonite | 6.8 | Molybdenum | 0.05 |
Boron | 0.02 | Nepheline | 1,300 |
Chromite | 7.5 | Orpiment | 0.03 |
Celestite | 0.7 | Phosphate Rock | 630 |
Coal | 4,000 | Salt | 102 |
Copper | 3,000 | Silica & Quartz | 128 |
Feldspar | 3.7 | Silver | 0.4 |
Fluorine | 3 | Talc | 1.6 |
Gold Ore | 16.5 | Turquoise | 500 |
Gypsum | 2,200 | Dimensional Stone | 3,000 |
Iron Ore | 2,800 | Limestone | 8,500 |
Source: Ministry of Mines and Metals
7. Climatic Characteristics:
A four-season climatic endowment as a privilege to agricultural activities throughout the country and throughout all seasons;
Mid Summer | Mid Winter |
Climate Factor | North of Iran | South of Iran | Climate Factor | North of Iran | South of Iran |
Temperature (c) | Min: 5 | Max: 50 | Temperature (c) | Min: -28 | Max: 31 |
Humidity (%) | 70 | 10 | Humidity (%) | 90 | 20 |
Rainfall (mm) | 165 | 0 | Rainfall (mm) | 1200 | 125 |
Source: Statistical Center of Iran, Iran Statistical Yearbook 1381 (2002-03
8. Fiscal Incentives:
Reduced tax rates from 65% to a flat fixed 25% rate of tax on income despite various tax holidays highlighted as follows:
Highlights of Tax Holidays |
Activity | Level of Exemption | Duration of Exemption |
Agriculture | 100% | No Time Limit |
Industry and Mining | 80% | 4 Years |
Industry and Mining in Less-Developed Areas | 100% | 10 Years |
Tourism | 50% | No Time Limit |
Exports | 100% | No Time Limit |
Source: State Tax Organization, Direct Taxation Act
9. Political Stability:
Representative system of government based on friendly relationship with other nations
10. New Investment Legislation:
Enactment of the new Foreign Investment Promotion and Protection Act (FIPPA) to substitute the former Law Concerning Attraction and Protection of Foreign Investments in Iran (LAPFI) by providing full security and legal protection to foreign investments based on transparency and international standards.accessibility to readily available raw materials;