Iran's General Economy

[persian]

Originally Posted by Herbicide

Never put your trust in a major national news media corporation. I am sick of the way BBC News portrays things misleadingly. If you think BBC Persian is immune to it you are wrong. It is the same organisation and the people at the top of BBC have the last word on content on any of its subsidiaries. What the hell do you think is their motivation for broadcasting in Persian anyway!? Advertising/subscription revenues? -They dont have any. To provide a service to their constituents? -Most viewers dont live in the UK. Out of the charity and kindness of their hearts for the cause of informing those ignorant, news deprived Persian speakers out there? -This isnt a charity, its a multimillion pound media operation. To insidiously and subtly promote the UK and the UK establishment viewpoint amongst Iranians so that in future they will view the UK in a favourable light and act in accordance with the UK government's political and economic interests in Iran (the hitherto hostile number one strategic prize in the strategically important middle east)? Erm.. probably so.
Look at this latest story. Is it true!? Have the extremeley oil thirsty Chinese suddenly decided that they will submit to US wishes and reduce oil imports from Iran despite that being directly against their own economic interests and geopolitical agenda? Or on the other hand is it just a little bit of misinformation and fearmongering designed to make Iranians imagine things are worse than they actually are and increase tension?

I don't believe in any of these conspiracy theories that Iranians make without proof. I have been reading bbcpersian daily for at least the last 8 years and I do not recall any of their news being denied or objected, so I shall believe what they say.

[Big Abdul]

Keep reading, but one has to understand that the BBC Persian Service has little to do with the regular BBC of the UK. Being from the UK, I understand that they have a completely different agenda. Expanding on the issue, seeing a program last night advertised of Manato1 I am starting to think everyone has there written agenda's to adhere to. I mean the program was directed at Iran saying "Islamic Revolution"

[FreddyB]

Originally Posted by shiageorgia

Sorry but from your posts I can conclude that you are influenced with western propaganda... It's sad for me that muslims are influenced with this. I wish you strong iman and faithfulness to your religion and country.
Sorry one more time.

Well.I don't like defending myself but thanks for your concern about me(no sarcasm)

Originally Posted by Big Abdul

If you understand the funding structure of the BBC Persian Service, you will know that it is far less impartial than the regular BBC World Service. This is due to the fact that that the BBC World Service TV and Radio is funded by commercial activity under the auspices of BBC Commercial, whereas the BBC Persian Service is funded by the British government's foreign office. Hence, a lot less impartial, however they portray the news.

My father says when he was younger,he used to listen to the BBC which was abroad.He was like OMG,they are very open-minded and etc.But when he was in UK,he didn't like BBC there.It's just his personal view but as you said,I believe too that BBCpersian isn't like other BBCs

P.S. I'm not the most faithfull muslim but in my personal opinion,I don't blame this on Islam.Because I believe what these rulers are doing is not even Islamic.It's BS,It only carries Islams name

P.P.S. Let's not turn this into a political and religion discussion

[Herbicide]

Im sorry but I really dont believe that a persian language TV station that is funded by the British foreign office is going to be impartial. Its funded by the same people that have sent war ships to the Persian gulf to threaten Iran.

[FreddyB]

I'll PM you why I think the reason is

[Ze Carlos_Ze]

Ranging from traditional handicrafts to aviation, manufacturing forms the backbone of the country’s diversification plans.

Long overshadowed by the dominance of the oil and gas industry, manufacturing is beginning to emerge and assert its place in the economy. The sector encompasses a broad range of activities, from traditional handicrafts such as carpet weaving to heavy manufacturing and metallurgical products. As a result of extensive government support and a carefully weighted system of protective tariffs on some 1,300 goods, local industry has been able to move from simply being an import-replacement mechanism to being a regional exporter of manufactured products.
The manufacturing sector alone grew by 9.8% in 2007 and 6.3% in 2008, according to the last figures available from the Ministry of Economy. Such growth was registered substantially above total GDP growth figures over the same period (8.0% and 2.7%, respectively) indicating the strong emphasis industrial policy is playing in diversifying the economy. Overall, in 2008 the share of manufacturing in GDP increased to 18.5%, higher than any other domestic-oriented sector except for services.

The performance of Iranian industrial products in international markets is another testament to the development of the industrial base. In 2Q-4Q 2009, Iran exported over $12 billion worth of industrial and mineral products. Mineral products worth $3.7 billion made up most of the exported goods. In 2Q 2008-1Q 2009, industrial and mineral exports reached $15 billion, showing a 5% increase by weight, though a more important 25% increase by value. Figures for non-oil exports, mostly comprised of industrial and mining products, were valued at $19.2 billion over 2009, up on the $18.1 billion recorded in 2008. In the first five months of 2010, non-oil exports were valued at $9.7 billion, according to the Ministry of Commerce, indicating another strong year for export performance.
Manufacturing units are classified mainly by the size of the workforce employed. Large-scale industries that employ more than 50 people are mainly located in and around large urban conurbations such as Tehran, Esfahan, Mashhad, and Tabriz. Large-scale industries create 70% of the total value-added of the industrial sector.
According to the ISIPO, a development organization affiliated to the Ministry of Industries and Mines that actively supports SMEs, there are more than 71,000 SME industrial units in Iran, accounting for more than 94% of all registered enterprises as well as 45% of total employment. Industrial units comprise a wide range of activities, including producers of Iran’s world-famous handicrafts such as carpet weaving, engraving, glass and ceramics, needlework, and miniatures. The carpet-weaving industry in Iran has maintained its dominant position globally, controlling more than 40% of the hand-made carpet trade internationally, while employing more than 1.5 million people across the country.




One of the main tasks of ISIPO is to plan and develop industrial parks across the various regions of Iran and to promote the creation of industrial clusters among small industrial units. In November 2009, there were 795 industrial townships containing roughly 23,000 industrial units employing some 500,000 people. ISIPO expects that up to 11,000 industrial units will be located in the industrial parks and regions currently under construction. In addition to enabling coordination and interaction between industrial units, industrial parks offer further advantages such as decreased bureaucratic procedures, improved infrastructure provision for telecommunications, energy, road and natural gas, enhanced availability of supplementary services such as banking and insurance, and close interaction with the R&D centers sponsored by ISIPO.
General government policy towards industrial development favors strengthening the ties between universities and R&D centers on the one hand, and industrial units on the other. The mobilization of domestic talent, the shift towards the private sector, an increased emphasis upon quality, and selective foreign investment are among the other policy priorities of the government. Steel production, automotive industries, and agri-food industries are the dominant sectors in Iranian manufacturing today.

STEEL INDUSTRY
Iran is blessed with abundant deposits of iron ore, with ore prices set by the government at levels generally below those found internationally. These two factors together form the steel industry’s main competitive advantages that together with subsidized energy prices have allowed the industry to flourish in recent years. The annual production of steel was estimated to stand at 12 million tons per year by the end of 2009, which makes Iran the 19th largest manufacturer in the world and the second largest in the Middle East.
Currently, Mobarakeh, Esfahan, and Khouzestan are the three largest raw steel production units with 4.4 million, 2.6 million and 2.2 million tons per annum in capacity. In 2007, both the Mobarakeh and Khouzestan steel plants were privatized, in a move to further liberalize the market following the removal of price controls over commodities in 2003 after the establishment of the Iranian Mercantile Exchange (IME). Between 2004 and 2007, steel manufacturers benefited from price hikes on the global market, as the price for steel on the IME closely matched that of the prevailing international trend. Full interaction with the global steel market caused some negative effects in 2008, as prices fell in response to the global financial crisis, yet they have managed to stage a recovery in 2010.
The government aims to increase steel production capacity to 29 million tons per annum, which would require a further $2.5 billion in investment. Both public and private companies are taking part in these plans and, according to Iran Investment Monthly, the government hopes that foreign investment will cover at least 3 million tons of the increased production. The longer-term plan is to increase steel production to 42 million tons by the end of the Fifth Five-Year Development Plan (2010-2015) to ensure self-sufficiency and provide steady exports to regional customers.

AUTOMOTIVE

One of the main success stories of Iranian industrialization is that of the automotive industry. It is currently the most active and largest sector of the economy after the oil and gas industry. In 2009, Iran was the 12th largest automotive manufacturer in the world, producing more vehicles than the UK, Thailand, Turkey, Italy, and Russia. Light vehicle production rose from 372,000 units in 2001 to almost 1.4 million units in 2009, an increase largely attributed to strong domestic demand. Iran is only 69th in the world in terms of motor-vehicle ownership levels, at some 140 cars per 1,000 people, and the country’s automobile producers expect that growth in vehicle ownership will continue well into the future. By 2016 demand is estimated to increase to 2.1 million units, after which demand growth will flatten out and reach 2.3 million units by 2021.
The Iranian automotive industry produces in six segments: passenger cars, pick-ups, 4WDs, minibuses, buses, and trucks. In addition to 1.1 million light vehicles (passenger and pick-up), local manufacturers produced 9,000 4WDs, 2,200 minibuses, 4,000 buses, and 24,300 trucks in 2008.
There are 13 public and privately owned automotive manufacturers in the country, though the industry is dominated by two large holdings: IKCO (Iran Khodro Company) and Saipa Group, which together make up 92% of passenger car production and 96% of all automotive total production in 2008. The other important manufacturers in the sector include the Bahman Group, Kerman Motors, Kish Khodro, Run Iran, and Shahab Khodro, which together make up 3% of the country’s production.
Iran’s automotive manufacturers initially went down the cooperation route, joining up with major European manufacturers such as Peugeot and Renault in the licensed production of models in Iran. However, IKCO has already managed to produce a “national platform” model, the Miniator, while Saipa is looking to do the same. Both companies still continue their fruitful partnership with foreign companies, IKCO mainly with Peugeot and Renault, and Saipa with Citroën and Kia. Javad Najmeddin, the President of IKCO, told TBY that the company had recently begun to work with Suzuki of Japan. The company also has also been cooperating with Mercedes-Benz for the last 30 years, though mainly in the commercial bus and truck segment.
The localization rate for car parts produced in Iran, which in many models has already reached 100%, demonstrates just how strong the industry and its supply chains have become. Organized primarily in two different sectors, original equipment manufacturing (OEM) and after-market parts manufacturing (AMPM), there are more than 1,200 companies producing automotive parts.
In addition to the growing domestic market, Iranian automotive producers aim to increase their international presence through increased exports and production sites abroad (see box). This is very much in line with the industry’s aims of becoming a major player in the international automotive industry.


AVIATION & MARITIME
In addition to the automotive manufacturing industries, other high-tech industries in Iran such as aviation and maritime are also growing due to the strong domestic demand in these areas, although both sectors have still much room to grow before they become serious challengers on the world stage.
The Iran Aircraft Manufacturing Industrial Company, better known as HESA, has been working with Antonov of Ukraine on the production of a medium-range passenger/cargo aircraft based on the AN-140. The IrAN-140 Faraz, in passenger format, can seat up to 52 and has a range of 2,330 kilometers. Initially assembled at HESA’s facilities from kits supplied by the Ukrainian factory, Iran expects to shift to the full local production of spare parts over the coming decade. The IrAN-140 Faraz is initially targeted at the plethora of small regional airlines that are popping up in Iran, while short to medium haul cargo carriers are also looked on as potential clients.
The South Pars natural gas field is also spurring investment in the shipbuilding sector. Iran estimates it will need 500 new ships over the next two decades, including 120 oil tankers, 40 liquefied natural gas (LNG) carriers, and over 300 commercial vessels. The government aims to implement policies to encourage domestic producers to fill this need.
Iran Marine Industries Company (SADRA) is the main shipbuilder in Iran, and it has a good track record in fulfilling international orders for shipbuilding. For Exmar of Belgium the company has been contracted to produce 10 LNG carriers, one of the largest ever shipbuilding contracts signed in the region for a local producer. More recently, SADRA also secured an order from Venezuela to produce four Aframax vessels of 113,000 tons capacity each. M. Etesam, President of SADRA, told TBY that on top of its work producing rigs and other offshore platform equipment, SADRA was looking to make a larger splash in the international shipbuilding industry over the medium term.

AGRI-FOOD INDUSTRY
The agri-food industry in Iran continues to grow at a fast pace, as increased urbanization and more refined palates up demand. The industry has become a major source of employment, with 18% of the workforce involved in some way in the agri-food production chain. The government provided the industry with extensive support in the past, going hand in hand with the state’s desire to break Iran’s food import dependence and transform the country into an exporter.
Iran exported $736 million worth of processed foodstuffs in 2007, and estimates for 2010 put the end-of-year total at around $1 billion (or 600,000 tons in weight terms). Candy, confectionery, dairy products, tomato paste, fruit juice and concentrate, mineral water, and pasta are among the main export items. Iran’s network of agri-food producers is quite complex, with some estimates putting the number of industrial units at over 10,000. In the short term, a period of consolidation is likely in the sector as smaller players with less developed supply chains are overtaken by larger manufacturers. Behrouz Foroutan, President of Behrouz Food, told TBY that a reduction in the number of facilities in the future should be expected, but the new generation of factories will utilize larger machinery and more technology, and this will help increase productivity.


Revving Up

Iran is now the world’s 12th largest car producer, producing some 1.4 million cars in 2009, a 40% increase on figures from 2005. Although comfortable in their home market, Iran’s main manufacturers have begun to spread their wings and enter the highly competitive global automotive producers league. Both Iran Khodro (IKCO) and Saipa have become avid exporters, whether through completely built units (CBUs) or complete knock downs (CKDs), entailing the establishment of assembly facilities in various countries.
Saipa exports around 15,000-20,000 units annually, while IKCO exported 26,000 units in 2006 and 46,000 units in 2007. Although the company aimed to increase this number to 60,000 by 2009, the global economic downturn saw demand soften, and in 2008 the number of exported units by IKCO decreased to 43,000. Yet, the company estimates that there will be a strong comeback in 2010, and its exports will reach up to 60,000 units. In 2015, IKCO aims to allocate 15% of its production to exports.
The main export markets for Iranian cars include countries in South America, North Africa, the Persian Gulf, and members of the Commonwealth of Independent States.
In addition to the exported units, IKCO either owns or is establishing plants in five different countries. The largest is in Syria, with a production capacity of 30,000 units per year. The others are located in Belarus, Senegal, Venezuela, and Egypt. In all countries except Egypt, these production sites produce IKCO-branded cars.
The export of Iranian cars has very much followed the line of development that the industry took locally. From basic assembly though to licensed production, and on to spare part localization, Iranian automakers are now designing their own platforms, helping make them a growing player in the global automotive market.

http://www.iran.thebusinessyear.com/...tail.php?id=46

[Persan]

Iran Sanctions Squeeze Country's Trade
HUFFINGTON POST | February 08, 2012

Malaysia has halted palm oil exports to Iran because of payments problems and Asian oil buyers have cut crude purchases as Western sanctions tighten a financial noose around Iran. Traders in China said they would cut iron ore purchases from Iran, which are worth over $2 billion a year, because of sanctions that have forced payment defaults on Indian rice imports and prompted Ukrainian and European sellers to stop booking shipments of Ukrainian grain to the Middle East country.

Iran's crude oil buyers, including China and Japan, are cutting purchases, reducing the OPEC producer's earnings from its major source of the foreign exchange it needs to pay for critical imports, such as food staples.

The problems are the most visible evidence to date that Western sanctions are squeezing Iran's trade.

[ FULL STORY ]

[Ze Carlos_Ze]

a lot of this sounds like typical american hysteria. they want to tell the world, look we have imposed sanctions on iran and now it looks like this.

[Aerithia]

PLEASE no more news from western websites, these are owned by greedy zionist lobbyists/corporations etc which writes stuff which is 100% propaganda, who the hell came up with the utter stupid lie "China is cutting oil imports" this literally made me laugh out a bit, China is one of Iran's 1# trade partners, yeah i doubt they're cutting oil imports.

Let's face it; no media is 100% honest, but for accurate news just go to Iranian news sites, i'm aware of that they try to make things look better than it seems, but atleast there's some reflective news, not stuff which is made up of propaganda trying to make anything non-western "communist" or "terrorist".

Fox news is probably the biggest joke ever invented, if you're not by now aware of that it's a far right news network which is 99% corporate owned you're quite a close minded person, CNN is very left-wing but still it has the same anti-Iran rethoric as Fox News.

Guys, just stick to Al-Jazeera which is actually the most honest media (no wonder the U.S tried to bomb their head office in Qatar lol).

[SoroushPersepolisi]

iranian news is almost absolute propaganda as well

ask relatives(in iran) on oil prices and the economy
thats the best source

[Aerithia]

Yeah, with other words, the people's voice is the best source and deserves to be "outshouted".

[Aerithia]

Noticed that i posted the link in the wrong section, moved.

[persian]

The sanctions have already greatly affected the majority of Iranians' life. Only those who are amongst the 10% rich minority of Iran (I guess it includes many members here) can deny the effects.
Unless the regime drinks the "bowl of poison" for the 2nd time, which I think they will, their economy will be completely screwed in the 6-12 months.

[persian]

Originally Posted by Aerithia

PLEASE no more news from western websites, these are owned by greedy zionist lobbyists/corporations etc which writes stuff which is 100% propaganda

I promise as soon as there is no more news from IR lie spreading websites, I won't post any news from western ones.

[Aerithia]

Sounds legit.

I'm not trying to crack down on free speech here so in general i don't have anything against anyone posting news articles from western sites, i just wanted to clarify that western media are almost always anti-Iranian.

[Big Abdul]

Not me, I work on an average Iranian wage, and basically live like a local. I hate to sound like one of those westerners who enjoy living like the natives, but I can agree that it is getting difficult, with prices rising daily, including shared taxis, take for example a packet of of Winston Light, In January 2011 they were 1700 toman a pack, now they are 2500, a big increase.

[Aerithia]

Really sucks, hopefully the prices will stop increasing, or even better they'll decrease, however with all the new sanctions coming up against Iran it seems like it will continue to rise.

[FreddyB]

Remember that everyone is free to believe and put news from any source they believe in(as soon as it is official).whether western or IRI.I think it's good to cover both sides.

[Ze Carlos_Ze]

Iran's gold and currency markets

video:

http://www.presstv.ir/Program/225637.html

[InKare]

Originally Posted by Aerithia

PLEASE no more news from western websites, these are owned by greedy zionist lobbyists/corporations etc which writes stuff which is 100% propaganda, who the hell came up with the utter stupid lie "China is cutting oil imports" this literally made me laugh out a bit, China is one of Iran's 1# trade partners, yeah i doubt they're cutting oil imports.

Let's face it; no media is 100% honest, but for accurate news just go to Iranian news sites, i'm aware of that they try to make things look better than it seems, but atleast there's some reflective news, not stuff which is made up of propaganda trying to make anything non-western "communist" or "terrorist".

Fox news is probably the biggest joke ever invented, if you're not by now aware of that it's a far right news network which is 99% corporate owned you're quite a close minded person, CNN is very left-wing but still it has the same anti-Iran rethoric as Fox News.

Guys, just stick to Al-Jazeera which is actually the most honest media (no wonder the U.S tried to bomb their head office in Qatar lol).

Just logged in to tell you that you are wrong. What you think about Al-Jazeera is completely wrong. Al-Jazeera is as bad as BBC. It has its agendas. For instance, it is bringing conflicts between different sects of Islam, lets say Sunnis and Shiites or in other words hate towards Iran and Iranians. I can read Farsi/Arabic/English and as a neutral person who follows news from different sources, I assure you that your image about Al-Jazeera is wrong.

Cheers to Iran and Iranians