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Business images of Iran

Economy of Iran

Iran is a mixed economy with a large public sector. Some 60% of Iran's economy is centrally planned. Iran's economy is characterized by its hydrocarbon, agricultural, and service sectors, in addition to manufacturing and financial services, with over 40 industries directly involved in the Tehran Stock Exchange. The stock exchange has been one of the best performing exchanges in the world over the past decade. With 10% of the world's proven oil reserves and 15% of its gas reserves, Iran is considered an "energy superpower". A unique feature of Iran's economy is the presence of large religious foundations called bonyads, whose combined budgets represent more than 30 percent of central government spending. Price controls and subsidies, particularly on food and energy, are heavily prominent in the economy. Contraband, administrative controls, widespread corruption, and other restrictive factors undermine private sector-led growth. The government's 20-year vision involves market-based reforms reflected in the government's, with a five-year development plan focusing on "a resilient economy" and "progress in science and technology". However, in March 2022, the Iranian parliament under new president Ebrahim Raisi decided to eliminate a major subsidy for importing food, medicines, and animal feed, valued at $15 billion in FY2021. Also in March 2022, 20 billion tons of basic goods exports from Russia including vegetable oil, wheat, barley, and corn were agreed.

Top Sectors in Iran

Agriculture in Iran

Agriculture contributes 9.5% to the gross domestic product and employs 17% of the labor force. About 9% of Iran's land is arable, with the main food-producing areas located in the Caspian region and in northwestern valleys. Some northern and western areas support rain-fed agriculture, while others require irrigation. Primitive farming methods, overworked and under-fertilized soil, poor seed, and water scarcity are the principal obstacles to increased production. About one third of total cultivated land is irrigated. Construction of multipurpose dams and reservoirs along rivers in the Zagros and Alborz mountains has increased the amount of water available for irrigation. Agricultural production is increasing as a result of modernization, mechanization, improvements to crops and livestock as well as land redistribution programs.

Defence in Iran

The International Institute for Strategic Studies estimated Iran's defense budget at $7.31 billion, equivalent to 2.6% of GDP or $102 per capita, ranking it 25th internationally. The country's defense industry manufactures many types of arms and equipment. Iran's Defense Industries Organization (DIO) has produced its own tanks, armored personnel carriers, guided missiles, radar systems, guided missile destroyers, military vessels, submarines, and fighter planes. It has also developed a sophisticated mobile air defense system dubbed as Bavar 373.

Services in Iran

Estimates of service sector spending in Iran are regularly more than two-fifths of GDP, much government-related, including military expenditures, government salaries, and social security disbursements. Urbanization contributed to service sector growth. Important service industries include public services (including education), commerce, personal services, professional services, and tourism.

Retail in Iran

Iran's retail industry consists largely of cooperatives (many of them government-sponsored) and independent retailers operating in bazaars. The bulk of food sales occur at street markets with prices set by the Chief Statistics Bureau. Iran has 438,478 small grocery retailers. These are especially popular in cities other than Tehran where the number of hypermarkets and supermarkets is still very limited. More mini-markets and supermarkets are emerging, mostly independent operations. The biggest chain stores are state-owned Etka, Refah, Shahrvand, and Hyperstar Market. Electronic commerce in Iran passed the $1 billion mark.

Tourism and travel in Iran

Although tourism declined significantly during the war with Iraq, it has subsequently recovered. About 1,659,000 foreign tourists visited Iran, mostly from Asian countries, including the republics of Central Asia, while about 10% came from the European Union and North America. Several organized tours from Germany, France, and other European countries come to Iran annually to visit archaeological sites and monuments. In 2003, Iran ranked 68th in tourism revenues worldwide. According to UNESCO and the deputy head of research for Iran Travel and Tourism Organization (ITTO), Iran is rated among the "10 most touristic countries in the world".


Iran - Key Economic Indicators

Exports and Imports

Iran's economy relies heavily on oil and gas exports, which constitute the majority of its export revenues. In 2023, Iran's exports were estimated at $80 billion, predominantly from oil, natural gas, petrochemicals, and agricultural products. Imports, which include machinery, consumer goods, and foodstuffs, totaled around $50 billion, reflecting a positive trade balance.

Infrastructure

Iran has been working on improving its infrastructure despite economic sanctions and financial constraints. Key projects include the expansion of its road and rail networks, modernization of airports, and development of new ports. In 2023, the government allocated approximately $15 billion for infrastructure projects to enhance connectivity and support economic growth.

Balance of Trade

Iran's balance of trade has been generally positive, thanks to its substantial oil and gas exports. In 2023, the trade surplus was about $30 billion, although it fluctuates with global oil prices and international sanctions.

Fiscal Policy

The Iranian government uses fiscal policy to manage economic stability and development. In 2023, the fiscal deficit was around 4% of GDP. The government focuses on social spending, subsidies, and infrastructure investments while grappling with the impacts of international sanctions. Tax reforms and efforts to reduce subsidies on fuel and food are ongoing to improve fiscal health.

Monetary Policy

The Central Bank of Iran manages monetary policy to control inflation and stabilize the national currency, the Iranian Rial. In 2023, the inflation rate was about 40%, a significant challenge for the economy. The central bank has been working on measures to stabilize the currency and control inflation, including interest rate adjustments and foreign exchange interventions.

Trade Agreements

Iran has been seeking to strengthen its trade relations with neighboring countries and other global partners. It is a member of regional organizations like the Economic Cooperation Organization (ECO) and has been negotiating trade agreements with countries like China and India. These efforts aim to bypass sanctions and enhance economic cooperation.

Environmental Regulations

Iran faces various environmental challenges, including air pollution, water scarcity, and desertification. The government has implemented regulations to address these issues, such as stricter emission standards for vehicles and industries, water conservation measures, and reforestation projects. Investment in renewable energy sources like solar and wind power is also being promoted to reduce dependence on fossil fuels.

Tax System in Iran

Capital gains tax: Information on a specific capital gains tax rate in Iran is limited, but capital gains are likely taxed under income tax brackets.
Corporate tax rate: The corporate tax rate in Iran is 25%.
Sales tax: Iran has a Value Added Tax (VAT) of around 9% applied to most goods and services.
Property tax: Property tax rates in Iran vary depending on location and property type.
Payroll tax: Payroll taxes in Iran contribute around 20% to social security programs.
Tax deductions and credits: The Iranian government offers some tax deductions and credits for businesses, but information on specifics may be limited.
Tax compliance: Tax collection efficiency in Iran is improving, but there's still room for further development.
Tax burden: The overall tax burden in Iran is estimated to be around 15-17% of GDP.

795 Live Notices for Iran ....

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Purchase Of Polyethylene Pipes In Different Sizes
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Basic Repairs Of 12 32 -Inch Class 900 Hub Valves With The Required Parts For 24 Months
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Construction Of South Pars Gas Refinery Wastewater Treatment Units In Kangan In Accordance With The Technical Specifications Listed In The Tender Documents
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Delivery Of Border Stations (Parviz Khan (Three Bab), Khosravi, Sheikh Saleh, Sumar And Shushami)
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Conduct The Services Required By The Parsian Operational Area
country Iran
posting date28 Jul 2025
deadline30 Aug 2025
Basic Repair Of The Station Of Martyr Mohammad Montazeri Warehouse Facilities
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Providing Security Services And Protection Of Property, Places, Installations, Pipelines And Gathering Centers And Airline Lines In Naro Kangan Operations Area
country Iran
posting date28 Jul 2025
deadline30 Aug 2025
Construction Of South Pars Gas Refinery Wastewater Treatment Unit In Assaluyeh In Accordance With The Technical Specifications Listed In The Tender Documents
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Construction Of South Pars Gas Refineries In Accordance With The Technical Specifications Listed In The Tender Documents
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Providing And Guiding A Platform For 3 Years In The South Pars Area In Accordance With The Technical Specifications Listed In The Tender Documents
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Replacement Of Old Doors And Windows With Double Glazing In Shahid Mohammad Montazeri Oil Warehouse Facilities
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Creating An Emergency Gas Discharge Site In The Liquefied Liquefied Facilities Of Shahid Mohammad Montazeri Oil Oil
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Rafsanjan District Public Bidding Advertisement
country Iran
posting date28 Jul 2025
deadline02 Aug 2025
One -Stage Public Bidding Advertise
country Iran
posting date28 Jul 2025
deadline02 Aug 2025
Buy New Design Coupling With Beads And Oring
country Iran
posting date28 Jul 2025
deadline02 Aug 2025
Construction Of Sarchant Clasters, Gas Transmission Pipelines To Sun Refinery And Gas Condensate Export Installations In Phase One Development Plan Of Kish Gas Field
country Iran
posting date28 Jul 2025
deadline04 Aug 2025
Purchase 7 Records Pumps (Aircraft Fuel)
country Iran
posting date28 Jul 2025
deadline17 Aug 2025
One -Stage Public Tender Advertisement Of Technical Buildings And Improvement Of 106 Km And 109 36 -Inch Pipeline (Mashhad Operation Center)
country Iran
posting date28 Jul 2025
deadline16 Aug 2025
Out -Of -Date Items, Used And Waste
country Iran
posting date28 Jul 2025
deadline06 Aug 2025
Tender Providing Chahar Bagh Operation Services (Renewal One)
country Iran
posting date28 Jul 2025
deadline13 Aug 2025