Economy http://english.irib.ir Tue, 20 Feb 2018 09:54:14 +0000 en-gb Rouhani vows to privatize Iran’s car industry http://english.irib.ir/radioculture/iran/economy/item/223363- http://english.irib.ir/radioculture/iran/economy/item/223363- Iran’s President Hassan Rouhani said on Tuesday that the privatization of the country’s car industry is a key mission in the economic agenda of his government – an announcement already seen by analysts as a sign that Iran is already preparing to open up its economy to world markets.

President Rouhani in his remarks emphasized that people should be happy about the quality of cars in Iran, adding that the only way for this to happen is to have private sector corporations produce cars.

“The satisfaction of people has a special important for the government. To close the doors and to produce cars and impose them on the people and tell them that this is only thing you can choose is not an acceptable logic to the government,” he told a conference of auto producers.

“Everyone should struggle for the satisfaction of the people and we need to take serious steps toward this direction in the car industry. Iran’s car industry should be completely privatized and become competitive.”

Iran is the Middle East’s largest auto market with a population of 80 million who bought 1.1 million cars in 2014.The automobile industry is seen as Iran’s biggest non-oil sector, accounting for nearly 10% of the country’s gross domestic product (GDP). Iran Khodro and SAIPA companies account for more than 90 percent of the total domestic production in Iran.

Rouhani further emphasized that his government has over the past few years strongly supported the state corporations that produce cars by devising heavy tariffs on imports of cars. He specifically mentioned a government plan to provide loans to people as another key step that the government had taken to encourage consumers to purchase cars.

However, the president emphasized that the government’s abilities to support the state car producers are limited and cannot continue eternally.

Rouhani further emphasized that Iran welcomes the formation of joint ventures between Iranian and international automakers, stressing that such ventures should not only satisfy the domestic market but also answer the needs of the regional markets.

He added that partnerships with international carmakers offer quick way to improve the industry's technology and safety.

The Iranian president further emphasized that partnerships with foreign carmakers will serve the best interests of all sides, and increasing the competitiveness of the local market can only help strengthen the industry.

EA

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Economy Tue, 01 Mar 2016 15:19:59 +0000
Iran rugs stacked for global markets http://english.irib.ir/radioculture/iran/economy/item/222171-iran-rugs-stacked-for-global-markets http://english.irib.ir/radioculture/iran/economy/item/222171-iran-rugs-stacked-for-global-markets

Iran is pitching its prized carpets for the US, a traditional market warped by cycles of sanctions which have allowed cheaper craft from India, Pakistan and China to secure a foothold.

 

Exports of handcrafted Iranian rugs to the US will resume this year following a nuclear agreement which went into force earlier this month, head of Iran's National Carpet Center Hamid Kargar said on Sunday.

Iranian caviar, pistachios, saffron and carpets and US commercial aircraft and their parts are among the items allowed for limited business with the US.

"The year 2016 will mark the resumption of handmade Iranian carpet exports to America. Hence, we are very hopeful that the existing downturn in this art-industry and the slump in exports will be compensated in the coming months," Kargar said.

US imports from Iran have been blocked since 2010 when Washington removed a loophole which allowed imports of Iranian rugs, pistachios, caviar, and dried fruit.

Carpet weaving is a traditional craft in Iran, dating back to 500 BC. Basically an art form, it has evolved into an income earning occupation for many communities in Iran and beyond.

Carpets are one of the biggest foreign exchange earners for Iran's $400 billion economy behind oil and gas and their derivatives, and pistachio nuts.

In 2011, the country exported more than $600 million worth of carpets and sought to raise it to $1 billion in the next year but intensified sanctions apparently hampered the plan.

SS

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Economy Sun, 31 Jan 2016 16:12:21 +0000
Envoy: Singapore eager to broaden relations with Iran http://english.irib.ir/radioculture/iran/economy/item/222087-envoy-singapore-eager-to-broaden-relations-with-iran http://english.irib.ir/radioculture/iran/economy/item/222087-envoy-singapore-eager-to-broaden-relations-with-iran

Singaporean Ambassador to Tehran Ong Keng Yong underlined that his country is eager to further expand mutual cooperation with Iran after the implementation of the Joint Comprehensive Plan of Action (JCPOA).

 

"The post-sanctions era is the best time for bringing into effect the agreements reached between Iran and Singapore," the Singaporean ambassador said in a meeting with Qazvin Governor General Fereydoun Hemati.

He expressed hope that the two countries will do their best to expand their relations in the post-sanctions era.

Qazvin is located some 150 kilometers west of the Iranian capital Tehran.

In relevant remarks in August, Iranian President Hassan Rouhani in a meeting with Singaporean ambassador to Tehran underlined that there are no obstacles to the further development of the relations between the two nations.
EA

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Economy Fri, 29 Jan 2016 17:36:11 +0000
Snags hit Iran-China oil debts deal http://english.irib.ir/radioculture/iran/economy/item/222085-snags-hit-iran-china-oil-debts-deal http://english.irib.ir/radioculture/iran/economy/item/222085-snags-hit-iran-china-oil-debts-deal

Indications are growing in Iran that the country has come across problems with China over a mechanism to receive at least €20 billion in overdue debts from past sales of oil to the country through investments in the Iranian petrochemical projects.

 

Abbas Sheri Moqaddam, the managing director of Iran’s National Petrochemical Company (NPC), has been quoted by the domestic media as saying that China needs to modify its offered mechanism and come up with a better version that would take into account Iran’s post-sanctions business environment.

“Iran’s conditions have changed after the removal of the sanctions against the country and that China cannot dictate its own plans on Iran,” Iran’s official news agency IRNA has quoted Sheri Moqaddam as saying.

“By considering the removal of the sanctions, the foreign companies need to need to present more efficient business offers for cooperation with Iran over its petrochemical industry.” 

The official, who is also a deputy oil minister, made the comments in response to an IRNA question on whether the Iranian petrochemical companies have refused to receive loans from China as proposed in an industrial finance mechanism to settle oil money debts with Iran. 

“We cannot put China aside,” Sheri Moqaddam said. “China has good companies, but it should remember that the conditions they had considered for working with us during the sanctions era should be changed in the post-sanctions era.”

China reportedly owes Iran over $20 billion in outstanding oil payments. The cash has been frozen in overseas banks after the US-led sanctions made it difficult for Beijing to transfer money to Tehran. Accordingly, the two countries have reportedly reached a deal to settle a part of the frozen money through China’s funding of Iranian petrochemical projects.
EA

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Economy Fri, 29 Jan 2016 17:29:05 +0000
Rouhani sees ‘important’ deals in France http://english.irib.ir/radioculture/iran/economy/item/221899-rouhani-sees-‘important’-deals-in-france http://english.irib.ir/radioculture/iran/economy/item/221899-rouhani-sees-‘important’-deals-in-france

Peugeot and Renault are set to benefit the most from President Hassan Rouhani’s landmark visit to Paris where the French automakers hope to sign new deals for a return to Iran.

 

Rouhani said Iranian companies will sign “important contracts” on the visit, mentioning Peugeot and Renault, as he started his visit to Italy and France on Monday.

Ministers of petroleum, transport, industry and health are tagging along with the president in a large delegation of 100 political and economic officials.

Iran Civil Aviation Organization (CAO) will sign a contract to buy 114 passenger planes from Airbus during the visit, Minister of Transportation Abbas Akhoundi said.

"We need to modernize our aviation fleet and buy locomotives," Rouhani told reporters at Mehrabad Airport before leaving Tehran.

However, Peugeot and Renault are facing a bumpy road for a return to Iran amid calls to hold the two automakers to account over their abrupt pullout from the country in 2012 when sanctions were imposed on Tehran.

On Sunday, an unnamed auto industry official said Iran Khodro and Peugeot will likely finalize a deal for 500 million euros of joint investment in Iran during Rouhani’s visit.
Under the 50-50 joint venture, they will produce Peugeot 2008 crossover, 208 supermini and 301 compact cars in Iran, the Tasnim news agency quoted the official as saying.

Iran was Peugeot's second biggest market by volume, accounting for about 13% of the French company’s annual sales which it halted after 23 years of partnership under US pressures.

Renault has been reported to be angling for a minority stake in Tehran-based Pars Khodro or infrastructure such as car plants from the Iranian carmaker’s parent company Saipa.

Pars Khodro was Renault's partner in a joint venture before the French carmaker slammed the door in the Iranian company's face in 2012 when sanctions were imposed on the Islamic Republic.

According to Managing Director of Pars Khodro Naser Aghamohammadi, Renault intends to buy less than half of the shares in his company or manufacturing plants owned by Saipa.

The carmaker Renault reportedly plans to use $562 million of funds stuck in Iranian banks under the sanctions to buy a 45% stake in Pars Khodro.
EA

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Economy Mon, 25 Jan 2016 16:23:48 +0000
Iran Mercantile Exchange weekly trade reaches $128mln http://english.irib.ir/radioculture/iran/economy/item/221820-iran-mercantile-exchange-weekly-trade-reaches-$128mln http://english.irib.ir/radioculture/iran/economy/item/221820-iran-mercantile-exchange-weekly-trade-reaches-$128mln

The Iran Mercantile Exchange (IME) announced that around $128mln of various commodities weighting over 321,077 tons were traded in its domestic trading and exports halls in the past working week (Jan 16-21).

 

The IME said that over 102,945 tons of various oil and petrochemical products, including 36,119 tons of bitumen, 26,186 tons of polymer products, 7,320 tons of VB, 11,000 tons of lube cut, 15,060 tons of chemical products, 600 tons of insulation, 6,610 tons of sulfur and 50 tons of argon with the total value of $49mln were traded in its domestic and exports halls during the last week.

Also, 206, 272 tons of metal and mineral products, including 90,552 tons of steel products, 110,000 Tons of iron ore, 4,970 tons of copper, 140 tons of molybdenum concentrate, 30 Kg gold bullion and 640 tons of aluminum with the total value of $59mln were traded in the IME domestic and exports halls in the last week.

In the meantime, 210 tons of sugar, 1,900 tons of crude vegetable oil and 230 tons of barely alongside with 12,947 tons of maize worth over $2.77mln were traded by the customers in the agricultural trading hall of the IME in the last week.

The IME was established on September 20, 2007 in accordance with article 95 of the new la of the Securities Market of the Islamic Republic of Iran and following the merger of the agricultural and metal exchanges of Tehran. The merger marked a new chapter in Iran capital market providing endless trading opportunities for the clients in and out of the country.

Various sectors of economy and national industry benefit from the exchange operation. The IME currently offers various services, including:

Performing as the first market providing access to the initial offering of the listed commodities in the IME,

Price discovery and price making for Iran's Over the Counter (OTC), secondary markets and the end users,

Providing venue for government sales and procurement purchases,

Providing Trading platform and user interface,

Providing Clearing & Settlement services,

Risk management,

Technology services,

Training and education of the market participants.
EA

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Economy Sat, 23 Jan 2016 15:57:10 +0000
Iran eyes 90kb/d output from West Karoun oilfields http://english.irib.ir/radioculture/iran/economy/item/221818-iran-eyes-90kb-d-output-from-west-karoun-oilfields http://english.irib.ir/radioculture/iran/economy/item/221818-iran-eyes-90kb-d-output-from-west-karoun-oilfields

Iran is boosting the capacity of crude oil recovered from West Karoun oilfields in a push to increase its output now that the US-led sanctions have lifted on Tehran's nuclear program.

 

Managing director of National Iranian Oil Company Roknoddin Javadi said NIOC is planning to start production from North Azadegan and North Yaran oil fields which Iran shares with neighboring Iraq.

As he said, recovery of 75,000 b/d of crude oil in North Azadegan's phase I and early production of 15,000 b/d from North Yaran are envisaged by NIOC which will totally add 90,000 b/d of crude oil to the country's daily output.

Javadi said NIOC regards as top priorities development of South Pars gas field and West Karoun join oilfields in the post-sanctions setting.

Development project of North Yaran is 80% complete and will start production before the calendar year-end to March 20 2016, the NIOC chief added.

He said digging of 20 wells has been finished and production will start from the joint oil field within the next few months.

North Azadegan development in its first phase is 97% complete and countdown has started for its production.
The field will start with 75,000 b/d of crude oil, he added. 
EA

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Economy Sat, 23 Jan 2016 15:53:47 +0000
Iran Mercantile Exchange weekly trade reaches $124mln http://english.irib.ir/radioculture/iran/economy/item/220607-iran-mercantile-exchange-weekly-trade-reaches-$124mln http://english.irib.ir/radioculture/iran/economy/item/220607-iran-mercantile-exchange-weekly-trade-reaches-$124mln

The Iran Mercantile Exchange (IME) announced that around $124mln of various commodities weighting over 251,233 tons were traded in its domestic trading and exports halls in the past working week (Dec 19-24).

 

The IME said that over 118,432 tons of various oil and petrochemical products, including 20,718 tons of bitumen, 27,129 tons of polymer products, 31,920 tons of VB, 10,560 tons of lube cut, 20,705 tons of chemical products, 100 tons of insulation and 7,300 tons of sulfur with the total value of $55mln were traded in its domestic and exports halls during the last week.

Also, 124,641 tons of metal and mineral products, including 120,421 tons of steel products, 2,941 tons of copper, 140 tons of molybdenum concentrate and 1,140 tons of aluminum with the total value of $66mln were traded in the IME domestic and exports halls in the last week.

The IME was established on September 20, 2007 in accordance with article 95 of the new la of the Securities Market of the Islamic Republic of Iran and following the merger of the agricultural and metal exchanges of Tehran. The merger marked a new chapter in Iran capital market providing endless trading opportunities for the clients in and out of the country.

Various sectors of economy and national industry benefit from the exchange operation. The IME currently offers various services, including:

Performing as the first market providing access to the initial offering of the listed commodities in the IME,

Price discovery and price making for Iran's Over the Counter (OTC), secondary markets and the end users,

Providing venue for government sales and procurement purchases,

Providing Trading platform and user interface,

Providing Clearing & Settlement services,

Risk management,

Technology services,

Training and education of the market participants.
EA

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Economy Sun, 27 Dec 2015 14:38:31 +0000
‘Iran petchem sector to attract $70bn in foreign investment by 2025’ http://english.irib.ir/radioculture/iran/economy/item/219962-‘iran-petchem-sector-to-attract-$70bn-in-foreign-investment-by-2025’ http://english.irib.ir/radioculture/iran/economy/item/219962-‘iran-petchem-sector-to-attract-$70bn-in-foreign-investment-by-2025’

An Iranian deputy oil minister says the country is planning to attract about USD 70 billion in foreign direct investment (FDI) in its petrochemical sector by 2025 as a result of its high potentials in the sector.

 

Speaking to reporters on the sidelines of the 12th Iran Petrochemical Forum (IPF), which opened in Tehran on Sunday, Abbas Sha’rimoqaddam, Iran's deputy oil minister and managing director of the National Petrochemical Company (NPC), said having long shores along international waters and abundant feedstock for petrochemical industries were Iran's major advantages in the sector.

“Iran's numerous advantages are enough to encourage foreign investors to bring their capital to our country,” the official said adding that development of petrochemical industry is in line with Iran's plan to implement the Economy of Resistance.

Sha’rimoqaddam stated that international investors and companies that have taken part in the Sunday forum will be introduced to investment potentialities and opportunities of Iran.

The managing director of the National Petrochemical Company stated that major investors in the world are currently looking for new regions to take their capital and “under present circumstances, Iran is one of the best options for them.”

The official added that following the conclusion of the Joint Comprehensive Plan of Action (JCPOA) between Iran and world powers in Geneva in mid-July, many companies from Germany, Italy and the Netherlands have already sent delegations to Iran, discussing opportunities for future cooperation.

“Various countries from Asia and Europe have come to us” to negotiate investment opportunities in Iran's energy sector, the official said, adding that European companies have been more enthusiastic in this regard.

The Iranian officials remarks came after Wood Mackenzie, a global energy, metals and mining research and consultancy group based in Edinburgh, Scotland, released a report last week saying that Iran is capable of attracting USD 70 billion of investment in its petrochemical projects.
EA

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Economy Sun, 13 Dec 2015 15:45:31 +0000
Rouhani asks Putin to remove trade hurdles http://english.irib.ir/radioculture/iran/economy/item/219952-rouhani-asks-putin-to-remove-trade-hurdles http://english.irib.ir/radioculture/iran/economy/item/219952-rouhani-asks-putin-to-remove-trade-hurdles

Head of Iran’s Chamber of Commerce says President Hassan Rouhani has asked for President Vladimir Putin's intervention to facilitate exports of Iranian food to Russia.

 

Russia’s leaders have cited Iran as a possible new source of supply after banning imports from Turkey but Mohsen Jalalpour said Iranian exporters face hurdles to access the Russian market.

The Tasnim news agency quoted Jalalpour as saying “After a decade of trade relations, our food still faces limitations for entry into Russia”.

“At the request of Agriculture Minister, Mahmoud Hojjati, from the President, Rouhani has had a talk with Putin about promoting and facilitating Iranian food exports to Russia and reviewing imports of Iranian agricultural goods.”

Jalalpour cited tough import regulations and tariffs which Russia has in place for imports from Iran.
EA

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Economy Sun, 13 Dec 2015 13:24:43 +0000