Iran at a Glance

Slide 1

3Iran with a GDP worth $ 817 billion (based on Iranian Rial purchase power against us dollar) and over a $ 153 billion in Foreign Trade volume in year 2008 is one of the economic powers and large markets in the Middle-East region.

Iran has extra ordinary expansion and investment potentials in the fields of Oil, Gas, Petrochemicals, Mines, Industries, Agriculture and Service sectors.

ISLAMIC REPUBLIC OF IRANECONOMY & TRADE 2008Key Indicators

EXIT34Iran ranks 4th on Diversity of Agricultural Products in the world.

Iran holds 4th to 9th rank in the production of Zinc, Lead, Cobalt, Aluminum, Manganese, Copper in the world.

303 Techno-Engineering projects have been executed in 42 countries by Iranian companies over the last 10 years.


EXIT45Industrial commodities make up about 57% of Non-oil export.

Import structure consists of 16.2% capital, 65.2% intermediated, 9.9% consumer goods.

Iran holds the 7th standing in tourist attractions however, has little share in the trade of world tourism


EXIT56

Trade Strategies

EXIT67Renovation of NationalCommercial SystemsCompetition & Anti-trustPolicies

Proactive Interaction with the Global EconomyIncreasing the Countrys Stake in the International Trade

ISLAMIC REPUBLIC OF IRANTRADE STRATEGIES Goals & Objectives

EXIT78 ISLAMIC REPUBLIC OF IRANTRADE STRATEGIES Goals & Objectives

Goals&Objectives2. Development of ForeignTrade & Non - Oil Export Promotion1. Trade Facilitation8. Restructuring & ImprovingHuman Resources4. E-Commerce Development7. Targeted Subsidies5. Distribution Channels Productivity Upgrading 6. Local MarketRegulating3. Active ParticipationIn Regional Blocks2

EXIT82


Population (Millions) 71.5 * GDP (PPP) ($US Billion) 817 * Import (FOB) ($US Billion) 53 Area (Million km2) 1.65 * Export ($US Billion) 100 * Crude Oil & Gas (82) 82 %

Source: Central Bank of Iran, Iran Customs Dept.,IMF* Estimate *GDP Current $ ($US Billion) 382

Persian Gulf

* Trade Balance ($US Billion) + 47

EXIT * Non-Oil Export (18) 18%Excluding liquefied Gases 210 ISLAMIC REPUBLIC OF IRANTRADE STRATEGIES Goals & Objectives

Sectoral Export Strategy FormulationPromoting Export of Goods & ServicesExpansion & Diversification of Export MarketsInfrastructure Development & Upgrading Service Delivery2. Development of Foreign TradeNon-Oil Export Promotion


3. Active Participation in Regional Blocks Managing Iran Accession to WTO & Minimizing its probable adverse effectsPreparation of Economic Social & Cultural Sectors of Iran for Accession to WTO Iran Active Participation International & Regional Blocks and Organizations


Establishing Required Infrastructure for E-Commerce Promotion Development of New Technologies in Trade Sector Designing and Integrating Trade Information Systems

4. E-Commerce Development

EXIT1213 Improvement & Development of Trade Logistics Re-engineering of Distribution Sub-Sector of the country Clusters & Production Networks Promotion in the country Private Sector Investment Attraction & Promotion in Trade Sector

ISLAMIC REPUBLIC OF IRANTRADE STRATEGIES Goals & Objectives

5. Distribution Channels Productivity Up-grading


Strategic Goods Local Market Regulating

Consumer Rights Protection & Market Surveillance

6. Local Market Regulating


Strategic Goods Subsidy System Improvement

Monitoring Strategic Goods Distribution

7. Targeted Subsidies


Management Development Re-Structuring & Re-Engineering in Trade Sector Promotion of establishing NGOs for down-sizing of Government Process Improvement, Procedures and technology Development Customer Orientation

8. Restructuring & Improving Human Resources

EXIT1617

Potential Export

EXIT1718 ISLAMIC REPUBLIC OF IRAN

POTENTIAL EXPORT

Potential Export Products & Servicesm Agriculture Sector: - Agricultural & Horticultural Products - Poultry, Husbandry & Fisheries Productsm 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

EXIT1819 ISLAMIC REPUBLIC OF IRAN

POTENTIAL EXPORT

Potential Export Products & Servicesm Mines Sector: - Metal Mines - Non-Metal Minesm Services Sector: - Tourism - Technical & Engineering - Financial & Banking - Information Technology - Health Care Services - Labor Force - Transportation & Transitm Handicrafts Sector: - Hand Knotted Carpets - Handicrafts (other)

EXIT1920

Potential ExportComparative Advantage of Agriculture

EXIT2021According 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 worldIran ranks 4th on Diversity of Agricultural products in the world Cultivated Lands (about 14 millions of hectares)4 Season Products

ISLAMIC REPUBLIC OF IRAN

AGRICULTURE

Comparative Advantage of Agriculture

EXIT2122Continental Climate: - Different types of climates - Significant differences in temperature between:Different Regions of the countryDifferent SeasonsDay & Night (sharp difference)

- 12000 Different Species of Plants - Average number of Sunny Days (300 Days)

ISLAMIC REPUBLIC OF IRAN

AGRICULTURE

Comparative Advantage of Agriculture

EXIT2223 ISLAMIC REPUBLIC OF IRANAGRICULTUREProduction Rank in the WorldHusbandry

CountryRankChina1Australia2India3Iran4CountryRankChina1India2Pakistan3Sudan4Bangladesh5Nigeria6Iran7

SheepGoat

Source: FAO

EXIT2324 ISLAMIC REPUBLIC OF IRANAGRICULTUREProduction Rank in the WorldCrops Primary

Source: FAO

ItemRankShare SAFFRON190.00 STONE-FRUIT(FRESH) 143.28 PISTACHIO138.83 BERRIES126.81 CHERRIES212.25 APRICOTS210.10 DATES312.71 WALNUTS39.82 FIGS38.37 CUCUMBERS & GHERKINS33.34 WATER-MELONS32.22 LEMONS & LIMES48.64 APPLES44.03 CHICK- PEAS43.56

EXIT2425 ISLAMIC REPUBLIC OF IRANAGRICULTUREProduction Rank in the WorldCrops Primary

Source: FAO

ItemRankShare ALMONDS54.85 TANGERINE MAND.CLEMENT53.08 TREENUTS65.00 GRAPES74.26 ONIONS , DRY72.52 HAZELNUTS71.84 TOMATOES83.42 ORANGES83.18 PUMPKINS,SQUASH82.54 PEACHES & NECTARINES82.47 KIWI FRUITS81.78 VEGETABLES & MELONS915.2 SOUR CHERRIES94.31 LENTILS93.07

EXIT2526

Potential Export Comparative Advantage of Mine & Industry

EXIT2627 ISLAMIC REPUBLIC OF IRANMINE & INDUSTRYProduction Rank in the WorldMineral ReservesItemRank PERLIT2 NATURAL GAS2 OIL (CRUDE PETROLEUM)2 ZINC4 LEAD4 COBALT4 ILEMNIT6 MANGANES ORE8 BARITE8 COPPER9 CHROMIC10 BAUXITE11 POTAS15

EXIT2728 ISLAMIC REPUBLIC OF IRANMINE & INDUSTRY

Potential Export

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 Mines - Non-Metal Mines

EXIT2829 ISLAMIC REPUBLIC OF IRANMINE & INDUSTRY1991-2007Petrochemical Industry

Source: National Petrochemical Company

EXIT

2930 ISLAMIC REPUBLIC OF IRANMINE & INDUSTRY1989-2007Petrochemical Industry


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EXIT

3233

Potential ExportTechnical & Engineering Services

EXIT3334 ISLAMIC REPUBLIC OF IRANTECHNICAL & ENGINEERINGSERVICESConsulting & Contracting FirmsDams, Tunnels, Bridges, Irrigation, Drainage & Waste Water Treatment Power Lines & Power PlantsElectronics Industry & Information TechnologyTelecommunications EquipmentIndustrial Factories and InstallationsMachinery Design & Refinery Equipment

EXIT3435

ISLAMIC REPUBLIC OF IRANTECHNICAL & ENGINEERINGSERVICESExport Projects 2008

PROJECTS 2008$US MILLION Road, Buildings & Construction 1518 Irrigation & Drainage Networks582 Power Generation & Transmission221 Oil, Gas & Petrochemicals141 Industrial & Equipment83 Consultation & Supervision11TOTAL2927

EXIT3536

ISLAMIC REPUBLIC OF IRANTECHNICAL & ENGINEERINGSERVICESExport Markets 2008

2007-2008SHAREMiddle East% 48Middle Asia% 27America% 13Africa% 12TOTAL% 100

EXIT3637

ISLAMIC REPUBLIC OF IRANTECHNICAL & ENGINEERINGSERVICESExport Markets 1994-2008

ZimbabweSudanLibyaMoroccoNigerBangladeshIndiaPakistanAfghanistanTajikistanTurkmenistanUzbekistanKyrgyzstanArmeniaTurkeySyriaKazakhstanLebanonYemenOmanQatarUAEKuwaitCyprusAlbania

1994-2008

Senegal

IraqAzerbaijanSaudi Arabia

Benin

Djibouti

Belarus

Venezuela

EXIT3738 ISLAMIC REPUBLIC OF IRANTop Brands2008

EXIT

3839 ISLAMIC REPUBLIC OF IRANTop Brands2008

EXIT

3940

Foreign TradeExport & Import

EXIT4041

ISLAMIC REPUBLIC OF IRANFOREIGN TRADE 1981-2008Trends of Export & ImportValue: $US Billion

Irans Export Irans Import

Source: Central Bank of I.R. Iran* Estimate

EXIT4142

ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008Trade by Regional & Economic Blocks

Irans Non-Oil ExportIrans ImportSource: I.R. Iran Customs Administration* EstimateValue: % Share

EXIT4243

ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008 Main Trading Partners (Top 10) Non-Oil ExportValue: $US Million

Imports

Source: I.R. Iran Customs Administration* Estimate

EXIT4344

ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2000-2008Non-Oil Export Trends

Irans Non-Oil ExportValue: $US Billion


EXIT4445 ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008Non-Oil Export ($US Billion) Share * EXPORT OF GOODS *23%100 Industry Sector (Including Petrochemicals)13%57 Liquefied Gases5.2%23 Agriculture Sector2%9 Others1.2%5 Mine Sector1%3 Carpets & Handicrafts0.6%3


EXIT * EXPORT OF SERVICES Technical & Engineering 2,7 Projects Value ($US Billion)4546

ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008Import Trends

Value: $US Billion

Irans ImportSource: I.R. Iran Customs Administration* Estimate

EXIT4647 ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008

Import by Main Products

IMPORT OF GOODS$US MillionShare Gasoline2992%5.65 Ingots of Iron and Non-alloy Steel2636%4.97 Wheat And Meslin1757% 3.31 Petroleum Oils (Others)1267% 2.39 Maize(Corn)988% 1.86 C.K.D Parts For Manufacturing Motor Vehicles616% 1.16 Flat-Rolled Products Of Iron Or Non-Alloy steel 611% 1.15 Bars And Rods Of Iron or Non Alloy Steel Containing Indentation 593% 1.12 Apparatus Based on the Use of X-Rays 584% 1. 10 Semi or Wholly Milled Rice574% 1.08Source: I.R. Iran Customs Administration* Estimate

EXIT4748 ISLAMIC REPUBLIC OF IRANFOREIGN TRADE2008Import StructureIMPORTSSHARECapital% 16Intermediate% 65Consumer

% 10

Other% 9

38

Source: I.R. Irans Custom* Estimate

4849

Free ZonesTrade & Industrial

EXIT4950Unique Geographical Locations Sufficiently Developed Infrastructure Foreign Investment Incentives

ISLAMIC REPUBLIC OF IRANTRADE & INDUSTRIALZONESAdvantages6 Free Trade-Industrial Zones 19 Special Economic Zones

EXIT5051

ISLAMIC REPUBLIC OF IRANTRADE & INDUSTRIAL ZONESZones Distribution

Free Trade-Industrial Zone Special Economic Zone

EXIT5152Unique Climatic Conditions in the Persian GulfGreat Tourist Attractions (1,000,000 Incoming Passengers Annually)Good Potential for Electronic City and as a Home Base for Information Technology Strategic Location & Physical Distance from the United Arab Emirates

ISLAMIC REPUBLIC OF IRANTRADE & INDUSTRIALFREE ZONESKish

EXIT5253Rich Mineral ReservesDeep CoastsPosition of the Island in the routes of shipping lines convenient for Ships Maintenance, Fuel Installations and LogisticsGreat Tourist Attractions and Potentials for Bio-Technology Development

ISLAMIC REPUBLIC OF IRANTRADE & INDUSTRIALFREE ZONESQeshm

EXIT5354Moderate Climatic ConditionsBest Point for Transit of South East Asia to CIS, Afghanistan, Turkey and IraqGood Access to Land RoadsGood Infrastructure

ISLAMIC REPUBLIC OF IRANTRADE & INDUSTRIALFREE ZONESChabahar

EXIT5455

Investment Climate

EXIT5556 Contribution to Economic Development Financing Projects Upgrading Technological & Managerial Skills Enhancing Quality Output Increasing Employment Export Promotion Sharing Benefits & Risks on equal terms without discrimination

ISLAMIC REPUBLIC OF IRANFOREIGN INVESTMENT

The Policy

EXIT5657Political & Economic Stability (Desired G.D.P Growth)Strategic LocationEasy access to 15 Neighboring Markets with the Population of 300 million and Imports of $US 200 BillionMarket Potentials and ProximityLabor PrivilegesDeveloped InfrastructureLow Utility and Production CostAbundant Natural ResourcesNew Investment LegislationClimatic CharacteristicsFiscal IncentivesPolitical Stability


Main Advantages

EXIT5758


Distribution of Foreign Investment by Main Provinces (1993-2008)

Source: Organization for investment, Economic and Technical Assistance of Iran (OIETAI)

PROVINCEVALUE (US $ Thousand)

Hormozgan16,318Bushehr6,173Tehran2,414Khuzestan1,205Isfahan1,204Sistan & Baluchistan1,017Fars840Yazd712Gilan455Ghazvin377Markazi290Kerman239Kordestan225Khorasan Razavi183Total (Include Others)34,062

EXIT5859

ISLAMIC REPUBLIC OF IRANFOREIGN INVESTMENT1993 - 2008Main Foreign Investors in Iran

Source: Organization for investment, Economic and Technical Assistance of Iran (OIETAI)

EXIT

Europe: 32 %Africa: 23 %Asia: 34 %Others: 8 %America: 3 %5960

EXITThank you again for your presence and attention..

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Iran at a Glance

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