IRAN AND EU A LOVE-HATE RELATIONSHIP
EU need the markets in Middle East
Iran prefers European products over Asian products
Trade is rising, more than 300 delegation from anywhere of the
world in the last 2 years (inclusive 9 from Austria)
3
NON-OIL EXPORTS
5
6026
12832
11744
303
3269
1096
0
2000
4000
6000
8000
10000
12000
14000
CONDENSATES GAS & INDUSTRY RUGS & CRAFTS AGRO PRODUCTS MININGPETROCHEMICAL PRODUCTS
SOURCE: TPO OF IRAN
MOST IMPORTANT EXPORT-PRODUCTGROUPS ACCORDING TO THEIR VALUE
6
38,2
10,7
8,4
5,6 5,2
2,3 1,8 1,8 1,7 1,6
0
5
10
15
20
25
30
35
40
45
Mineral fuels,
mineral oils and
products of their
distillation;
bituminous
substances;
mineral waxes
Plastics and
articles thereof
Organic chemicals Iron and steel Edible fruit and
nuts; peel of citrus
fruit or melons
Ores, slag and ash Fertilisers Salt; sulphur;
earths and stone;
plastering
materials, lime
and cement
Dairy produce;
birds' eggs;
natural honey;
edible products of
animal origin, not
elsewhere
specified or
included
Carpets and other
textile floor
coverings
Source: TPO of Iran
IRAN ECONOMY HIGHLIGHTS
7
Iran – Biggest Industrial Base in Middle East and North Africa (MENA)
Oil – 3rd largest proven reserves
Gas – 2nd largest proven reserves
Petrochemicals – 2nd largest producer in ME
Mining – 5500 active mines in Iran
o Copper – 2nd largest producer in ME
o Iron Ore – Large reserves with high quality
o Chromate, Lead, Zinc,… - Largest producer in ME
Automotive – Largest in ME, more than 1,3 Mio. cars/year
MOST IMPORTANT IMPORT PRODUCTS GROUPS ACCORDING TO THEIR VALUE
8
16,9
10,4
6,45,9
4,3 4,33,5 3,2 3 2,8
0
2
4
6
8
10
12
14
16
18
Source: TPO of Iran
Dependency on oil & gas price development, sanctions & FDI
Certain sectors privileged- economy partly run by state owned, bonyads& big holdings
Despite problems: Iran is a wealthy country in minerals and has the highest industrialization rate in the MENA region
Oil is the dominant export commodity (4/5 of total exports)
15% of GDP, 80% of Budget
Very high rate of imports --->disadvantage for Iranian economy
1 million jobs per year are required
Private sector (28% of GDP is competitive and able to create jobs)
9
Economic Growth
INDUSTRIAL TRENDS
10
(Source: Ministry of Industry)
Number of licenses issued to establish a factory or company in 2016
Industrial GroupQuantity
(2015-2016)Industrial Group
Quantity
(2015-2016)
Food & Beverages 2646 Machinery & Equipment 983
Tobacco 12 Office machines 47
Textil 575 Electrical machinery and equipment 483
Clothing & Fur processing 472 Radio, TV, Media 75
Tannery, Leather, bags, Luggage, Shoes 109Medical- Optical- Measuring Technology-
Equipment237
Wood & wood products except furniture 407 Motor Vehicles 339
Paper & Paper products 562 Other transport vehicles 91
Printing Houses 33 Furniture 526
Koke & Petroleum products 152 Recycling 426
Chemical products 1189 Power generation 74
Rubber & polymer products 1738 Transport services 98
Other Minerals & non-metallic products 1924 Computer 6
Metalls 566 Engineering services 988
Metall products 1252 Total 11637
CHANCES FOR AUSTRIAN COMPANIES
12
AutomotiveIndustry
Minerals & Metals
PetrochemicalIndustry
Food & Beverages
Almost all existing plants does need complete revamping and
modernization of the machines. During the sanction over 90% of the
machines came from China and Korea, a small part from India and Turkey
Iran's annual petrochemical production capacity is
around 65 million tons
Iran's petchem exports to reach 20 Mio. tons by March 20
2017
Production of different kinds of petrochemical products,
showing 18 percent growth
Better international engagements and positive
atmosphere in the post-JCPOA era
2nd largest petrochemicals producer in ME
13
Iran Petrochemicals Current Status
INVESTMENT OPPORTUNITIES
The nominal capacity of the petrochemical industry will rise to 72 million tons a year.
Call for boosting the capacity of the production to 130 million tons a year by the end of the sixth economic development plan (2017-22)
before reaching 180 million tons by 2025 needs $72 billion in foreign investment for 80 major petrochemical
projects NPC's plans to have a stronger presence in world markets Iran Petchem exports to Europe rise up two-fold Forecast domestic sales of petrochemicals to rise by 25% 1st petrochemicals producer in ME
IRAN’S AUTOMOTIVE INDUSTRY OVERVIEW
16
• Iran’s automotive industry is the 2nd most important industry of the
country, after the oil and gas industry, accounting for 10% of Iran's GDP
• Biggest in ME, number 15 in the world
• The market share for Chinese cars have raised, as they have filled the
void left by European manufacturers who left the market due to the
sanctions.
• The available platforms are three decades old
• Efforts to privatize the sector
• Customer satisfaction is decreasing because of the old style, quality
issues, customer care, prices and etc.
• In order to bring the technology up to date, new platforms are needed.
The current platforms are not proper for high level technology
• To reduce the high excessive emission
IRAN OEM`S IN IRAN
41%
46%
11%
2%
Saipa Group Iran Khodro Group Private Companies Import
17
Joint Ventures with:PSA (Peugeot, Citroen), Volkswagen, Renault-Nissan, Mazda, Mercedes,
AUTOMOTIVE INDUSTRY TARGETS 2025
18
Achieve the 1st position in the region, 5th in Asia 11th in the world through
competitiveness based on technological development
Bring in modern technologies for automobile design, testing, engineering
services and assembling
Establishment of an authorized brand whether domestic, regional or global
for auto parts manufacturing and assembling
Production rate 3 Mio. Vehicles per year
To increase the export rate to 1 Mio. Vehicles per year
Acquiring a minimum 4% share of the total GDP by automotive industry
productions
Acquiring a minimum 20% share of the total national added-value industries
by automotive added-value industry
MINERALS- & METALS
Minerals, Iran Proportion at the World Production
19
No. MineralsRank
( Producer)Iran Proportion at the world production 2015 in %
1 Gypsum 2 8.53
2 Kaolin 8 4.41
3 Barite 5 4.02
4 Sulphur 10 3
5 Feldspat 6 2.83
6 Bentonite 8 2.69
7 Clinker 6 2.19
8 Ammonia 16 1.71
9 Cement 7 1.59
10 Molybdenum 9 1.5
11 Fluorine 7 1.44
12 Iron Ore 11 0.99
13 Limestone 13 0.8
(Source: USGS)
Iran 15th mineral-rich country
Iran possesses over 68 types of minerals
Iran holds……..
37 bn tons proven reserves
57 bn tons potential reserves
7% of the global mineral reserves
Mineral processing major deficiences
Lack of modern technology
Export minerals in unprocessed form
Need 40 bn US$ Investment
1.7 bn Tons Mineral Reserves discovered 2016
310 Mio. Tons produced in 2016
20
MINING & METAL
11/05/2017 21AHST Teheran
MINING & METAL PRODUCTION
• Major Production of Iron, Steel, Copper &
Aluminum
• Over 5.500 active mines
• Close to 115.000 people employed
• Benefiting from huge skilled labor force and
low labor costs
11/05/2017 22AHST Teheran
IRON & STEEL
• About to reach self-sufficiency in steel-production in the next years
• 17.89 Mio. tons crude steel production in 2016
• 10.8 % growth compared to 2015
• Projected to reach 55 Mio. tons till Vision Plan 2025
• Aim to become world‘s 6th steel producer 235.000 engineers graduate from Iranian engineering faculties every year, meaning that the
industries are well staffed with experts and skilled personnel.
WORLD RANKING IN AGRO-PRODUCTS
1st Pistachio, Berberis, Caviar, Saffron, Stone fruits, Berries
2nd Dates, Apricotss
3rd Watermelons, Cherries, Apples, Figs
4th Wool, Almonds, Walnuts
5th Fennel, Anise
6th Hazelnut, Tomatoes
7th Grapes, Onions, Kiwi
8th Lemones & Limes, Oranges, Goat products
9th Lentils
10th Tea, Natural Honey
12th Citrus fruits, Wheat, Plum
13th Hen eggs, eggplants, Melon seeds
23
FOOD & BEVERAGES
82% of the food consumed in Iran comes from the country's own agriculture
6.5 million are active in the agriculture sector
High subsidies in the energy sector (electricity, water, fossil fuels)
Thousands of valuable jobs
Approximately 25% of all Iranian bank loans go to agriculture
Investment in the agricultural sector represents a total of only 5% of total Iranian investment
24
FOOD & BEVERAGES
30% of all agro-products are wasted
Number of farmers is reduced by 50,000 every year due to a lack of
facilities in the sector
The volume of agricultural products that go to waste in Iran is enough to
feed up to 18 million people annually
About 9.3 billion cubic meters of water are lost every year thanks to the
wasted crops
Need: Silo, Cooling systems, modern slaughterhouse technology,
Breeding facilities, packaging, production & storage technologies,
poultry farming equipment, food processing technology
25
Current Status
11/05/2017 26AHST Teheran
FOOD INDUSTRY
• 12.000 firms (about 12 % of industrial sector)
• 330.000 employed
• Close to 20 % of Investment in Industries
• Investment opportunities for food related machines
& technology, hygiene management and prevention
of plant and animal diseases, packaging …
27
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Africa Expressway - Golgasht Street Nr. 20 Teheran 19157, Iran Tel.: +98-21 2204 77 91, 2205 18 20, 2201 66 28Fax: +98-21 2205 18 16E-Mail: [email protected]: www.wko.at/awo/ir