Iran at a Glance 2016 - Cool Logistics...
Transcript of Iran at a Glance 2016 - Cool Logistics...
Iran at a Glance
2016
Iran qualifies from many respects to be a good location for investment and doing
business. Some of the features are highlighted as following:
10 Reasons to Invest in Iran
• A unique geographical location at the heart of a cross-road connecting the Middle East, Asia and Europe, coupled with many inter-& trans-regional trade, customs, tax and investment arrangements;
1. Strategic Location:
GeographyLocation:
o Middle East : bordering Iraq, Turkey, Pakistan, Afghanistan and Turkmenistan
Oman Sea & the Persian Gulf from south & the Caspian Sea from north,
o Strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil transport
• Vast domestic market with a population of 78 million growing steadily as well as quick access to neighboring markets with approximately 300 million inhabitants;
2. Market Potentials & Proximity:
Population (Millions) 78.5
Services Export ($US Billion) (2)
Area (Million km2)1.65
Import (FOB) ($US Billion) (51)
Foreign trade volume (85)
Non-Oil Export ($US Billion) (32)
ECONOMY & TRADE Key Indicators
• Large pool of trained & efficient manpower at very competitive cost in a diversified economy with an extensive industrial base and service sector;
3. Labor Privileges:
9
• Territory developed networking in the area of telecommunication, power, water, roads and railways across the country;
4. Developed Infrastructure:
Transportation Network
• Diversified range of energy, telecommunication, transportation, as well as public utilities;
5. Low Utility & Production Cost:
• Varied & 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;
6. Abundant Natural Resources:
o Over $ 85 billion in Foreign Trade volume in year 2015 isone of the economic powers and large markets in theMiddle-East region.
o Iran has extra ordinary expansion and investmentpotentials in the fields of Oil, Gas, Petrochemicals, Mines,Industries, Agriculture and Service sectors.
ECONOMY & TRADE Key Indicators
o Iran ranks 3th on Diversity of Agricultural Products in the world.
o Iran holds 4th to 9th rank in the production of Zinc, Lead, Cobalt, Aluminum, Manganese, Copper in the world.
o 721 Techno-Engineering projects have been executed in 42countries by Iranian companies over the last 10 years.
ECONOMY & TRADE Key Indicators
• A four-season climatic endowment as a privilege to agricultural activities throughout the country & throughout all seasons;
7. Climatic Characteristics:
• Reduced tax rates from 65% to a flat fixed 25% rate of tax on income despite various tax holidays highlighted as follows:
8. Fiscal Incentives:
• Representative system of government based on friendly relationship with other nations;
9. Political Stability:
• 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.
10. New Investment Legislation:
o Import structure consists of 16%capital 70%intermediated, 12% consumer goods.
o Iran is among the 10th top country in tourist attractions.
o Iran has relatively developed its own science and technology infrastructure compared to other developing countries in the region.
ECONOMY & TRADE2015
Key Indicators
Potential Export
Agriculture Sector:• Agricultural & Horticultural
Products• Poultry, Husbandry & Fisheries
Products
Industry Sector:• Food and Beverage• Textile & Leather• Construction Materials• Chemical Products• Fur Products• Plastic , Melamine Ware• Iron, Steel & Metal Ores• Refined Petrochemical Products• Pharmaceutical, Hygienic,
Cosmetic Products• Transportation Equipment,
Vehicles & Parts
POTENTIAL EXPORTPotential Export Products & Services
Mines Sector:- Metal Mines- Non-Metal Mines
POTENTIAL EXPORT
Potential Export Products & Services Services Sector:
- Tourism- Technical & Engineering- Financial & Banking- Information Technology- Health Care Services- Labor Force - Transportation & Transit
Handicrafts Sector:- Hand Knotted Carpets- Handicrafts (other)
Potential ExportComparative Advantage of Agriculture
o According to FAO, the principal structure of the world agriculture products is composed of 66 different products and Iran is among the top 10 countries producing 15 types of these products in the world
o Iran ranks 3th on Diversity of Agricultural products in the world
o Cultivated Lands (about 14 millions of hectares)
o 4 Season Products
AGRICULTUREComparative Advantage of Agriculture
Continental Climate:- Different types of climates - Significant differences in temperature between:
o Different Regions of the countryo Different Seasonso Day & Night (sharp difference)
- 12000 Different Species of Plants - Average number of Sunny Days (300 Days)
AGRICULTUREComparative Advantage of Agriculture
Potential ExportComparative Advantage of Mine & Industry
Mine & Industry Sector:- Food and Beverage- Textile & Leather- Construction Materials- Chemical Products- Fur Products- Plastic , Melamine Ware- Iron, Steel & Metal Ores- Refined Petrochemical Products- Pharmaceutical, Hygienic, Cosmetic Products- Transportation Equipment, Vehicles & Parts- Metal Mine & Non-Metal Mines
MINE & INDUSTRYPotential Export
Total capacity of 14 ports of Irancurrently stands at some 128 milliontons of cargo annually and its yards cover 42 square kilometers
MINE & INDUSTRYCapacity of Iran Ports
Imam Khomeini PortCapacity: 40 MT in Cargo
Anzali PortCapacity: 5.4 MT in Cargo
Nowshahr PortCapacity: 5 MT in Cargo
Bushehr PortCapacity: 2.7 MT in Cargo
Chabahar PortCapacity: 2 MT in Cargo
Khoramshahr PortCapacity: 2.5 MT in Cargo
Amirabad PortCapacity: 1.1 MT in Cargo
Shahid Rajaee PortCapacity: 60 MT in Cargo
MINE & INDUSTRY2014
Capacity of Iran Ports
Potential ExportTechnical & Engineering Services
PROJECTS 2012 $US MILLION
Power Plants 806
Civil and Construction 1060
Road 251
Industrial Projects 100
TOTAL 2217
TECHNICAL & ENGINEERINGSERVICES
Export Projects 2013-2014
2013 %SHARE
Middle East 89%
Africa 6%
CIS 5%
Total 100
MIDDLE EAST AFRICA CIS
89%
6% 5%
TECHNICAL & ENGINEERINGSERVICES
Export Projects 2013-2014
Zimbabwe
Sudan
Libya
Morocco
NigerBangladesh
India
Pakistan
AfghanistanTajikistanTurkmenistan
Uzbekistan KyrgyzstanArmenia
TurkeySyria
Kazakhstan
Lebanon
Yemen
OmanQatar
UAE
KuwaitCyprus
Albania
Senegal
Iraq
Azerbaijan
Saudi Arabia
BeninDjibouti
Belarus
Venezuela
TECHNICAL & ENGINEERINGSERVICES
Export Markets
Foreign TradeExport & Import
Iran’s Non-Oil Export Iran’s Import
Value: % Share
ECO PGCC CIS EU ASEAN
13%
8%9%
3%
1%
Source: I.R. Iran Customs Administration
PGCC EU ECO CIS ASEAN
36%
24%
14%
5%3%
FOREIGN TRADE2015
Trade by Regional & Economic Blocks
12004
11427
4073
3988
3789
2456
1999
990
983
756
CHINA
UAE
KOREA
INDIA
TURKEY
GERMANI
SWITZERLA…
ITALY
NETHERLAN…
FRANCE
8593
5651
3540
2325
2011
1816
912
800
513
493
CHINA
IRAQ
UAE
AFQHANISTAN
INDIA
TURKY
TURKMENISTAN
PAKISTAN
EGYPT
HONGKONG
FOREIGN TRADE2015
Main Trading Partners (Top 10)
Non-Oil Export ImportsSource: I.R. Iran Customs Administration
Iran’s Non-Oil ExportValue: $US Billion
Source: I.R. Iran Customs Administration
7 912 14
18 19
25
31 3330 32
FOREIGN TRADE2005-2015
Non Oil Export Trends
EXPORT OF GOODS * Millon $
Propane 1900
Butanes 1310
Polyethylene Having a Specific Gravity 1288
Petroleum bitumen 1267
Methanol 1178
Iron ores & concentrates,other than roasted iron pvrites 997
Other flat-rolled products of iron or non alloy steel,hot-rolled 786
Polymers of ethylene other 606
Other white cement 590
Urea (whether or not in aqueous solution) 564
Source: I.R. Iran Customs Administration
FOREIGN TRADE2015
Main Non- Oil Export
Value: $US Billion
Source: I.R. Iran Customs Administration
3538 40
45
57
49
57 5853
4551Iran’s Import
FOREIGN TRADE2005-2015Import Trends
IMPORT OF GOODS $US Million
Durum 1641Rice 1588Other vehicles,sp ark-ignition engine of a cylinder capacity 1558Oil- cake, solid residues resulting from extraction of soya bean oil 1550Maize(not seed) 1193Other parts of transmission apparatus, radar apparatus or television receivers 736
Flat- roll iron & steel 685Cane or beet sugar&chem pure sucrose, solid form 658Wheat and meslin 645Corn (maize) 575
Source: I.R. Iran Customs Administration
FOREIGN TRADE2015
Import by Main Products
IMPORTS SHARE
Intermediate 70%
Capital 16%
Consumer 12%
Other 2%
Other2%
Intermediate70%
Capital16%
Consumer12%
Source: I.R. Iran Customs Administration
FOREIGN TRADE2015
Import Structure
Free ZonesTrade & Industrial
o Unique Geographical Locations
o Sufficiently Developed Infrastructure
o Foreign Investment Incentives
7 Free Trade-Industrial Zones 30 Special Economic Zones
TRADE & INDUSTRIALZONES
Advantages
TRADE & INDUSTRIALZONES
Zones Distribution
o Unique Climatic Conditions in the Persian Gulf
o Great Tourist Attractions (1,000,000 Incoming Passengers Annually)
o Good Potential for Electronic City and as a Home Base for Information Technology
o Strategic Location & Physical Distance from
o the United Arab Emirates
TRADE & INDUSTRIALFREE ZONES
Kish Island
o Rich Mineral Reserves
o Deep Coasts
o Position of the Island in the routes of shipping lines convenient for Ships Maintenance, Fuel Installations and Logistics
o Great Tourist Attractions and Potentials for Bio-Technology Development
TRADE & INDUSTRIALFREE ZONESQeshm Island
Moderate Climatic Conditions
Best Point for Transit of South East Asia to CIS, Afghanistan, Turkey and Iraq
Good Access to Land Roads
Good Infrastructure
TRADE & INDUSTRIALFREE ZONES
Chabahar
Trade Strategies