Iran’s Transportation and Urban Development Ministry’s suggestions for foreign investors
Tehran, Iran, Oct. 5
By Mehdi Sepahvand -- Trend:
The Iranian Ministry of Transportation and Urban Development has provided a set of recommendations for foreign investors who are seeking to carry out related projects in the country.
Attraction of foreign investment is a major policy with the Iranian government, Hossein Abdoh Tabrizi, senior consultant to minister of transportation and urban development in management and financing, told representatives of foreign companies in the Iran Transportation and Urban Development Summit, Trend correspondent reported from Tehran Oct. 5.
He said the most important sector that foreigners should seek for investment is energy saving projects since the Iranian government has especially prioritized the area.
"In Iran we are spending $100 billion a year on energy," he noted, adding, "So this is a policy of the government to reduce the figure. If we can save $30 billion of that, it would mean we would be able to export $30 billion more."
"Roads, housing, and construction are prioritized in terms of energy saving projects. So you are welcome most to these projects."
"Also, in the housing sector we have go 20-30 percent housing asset fixed cost. So it is a very huge number. 30 percent of the fixed capital of Iran is in this area."
He added that employment in the country's housing sector is 20 percent of that of the whole country.
"For next twelve-thirteen years, household number's increasing, the household dimension is decreasing, and our population approaching 87 million. That means we will need housing for more yet to come. Every year about one million units are needed, mostly in the low-income sector, not luxury," he noted.
According to the official, the total investment in housing in Iran has been 30 percent of the country's total. He added that for the past 20 years land prices have increased by 22 percent and housing prices by 21 percent.
"750,000 units were built in one year in Tehran alone," he said, adding that the country needs 1.2 million units for the coming two-three years. "We also need quality roads, need to double our road capacity, build high-speed national railway network, and the aviation needs to be revitalized."
The Iranian civil aviation fleet has become dilapidated as international sanctions have deprived the country of the chance to buy new airplanes or parts, seek technical support from abroad, or lease airplanes from other countries. It is said the country needs 400 new airplanes to renovate its fleet.
Iran plans to establish seven international airports around capital city of Tehran. Iran's Roads and Urban Development Minister Abbas Akhoundi said the seven airports are to be established by 2025.
"We have all capital market institutions in Iran including investment banks, brokerage houses, consulting firms, asset managers... you can also approach them for their services," Tabrizi said.
"You can also refer to the National Development Fund of Iran, which is receiving 20 percent of the country's total oil gas revenue, so it can help you to partially finance your projects."
The summit was held as Iran expects a flood of foreign investors after economic sanctions are removed according to the JCPOA that was reached between Tehran and the group P5+1 (the US, UK, France, Russia, China, and Germany) on July 14.
Edited by CN