The Sixth Five-Year Plan Since the end of the Iran-Iraq war in 1988, Iran›s development policies have been formulated in five-year plans, with the first one starting in 1989.
The sixth five-year plan for 2021-2016 was approved by the Iranian Parliament in March 2017 and principally aims to boost foreign investment in the country. The plan envisages an annual economic growth of %8 and discusses reforms of state-owned enterprises and the financial and banking sector. It sets out the following goals and objectives to be achieved by the country over the next five years:
1. Finance Sector
The Government wants to ensure that Iran remains an attractive foreign investment destination introducing new economic, legal and policy directives to increase the transparency and clarity of information in Iran.
The Government wants to attract 30$ billion in the form of project finance, 15$ billion in the form of foreign direct investment and 20$ billion in the form of joint investment agreements
2. Banking Sector
The Government wants to actively encourage the partnership between domestic and financial institutions and credit agencies.
3. Government Guarantees
The government has been authorized to issue guarantees for foreign investments in projects in Iran›s private sector subject to them meeting certain requirements.
4. Legal Sector
The Ministry of Economic Affairs will seek to ensure clarity of existing laws to provide stability to the investment environment and to ‹safeguard› foreign investment in Iran. The government will prepare and execute the necessary laws for business and banking for Iranian businesses and financial institutions to become in line with international systems to attract FDI and foreign companies.
Realistically, in the long term, Iran›s economic growth prospects will rely heavily on the pace of Iran›s reintegration into the global economy in banking, trade and investment. As Iran continues to modernize and renovate its industries, it is likely that the non-oil sector and investments will play an increasingly important role over the next five years.
Major import products:
1. Food (cereals)
2. Consumer goods
3. Industrial supplied
4. Technical services
5. Capital goods
Major import partners (source IMF)
1. UAE
2. China
3. Turkey
4. South Korea
5. Russia
Major five export products:
1. Iron Ore
2. Cement
3. Carpets
4. Fruits and nuts
5. Petrochemical products
Major five export partners 2016 (source IMF)
1. China
2. India
3. South Korea
4. Turkey
5. Japan
oil and gas sector, with the NIOC keen to attract qualified international companies to participate in the development of the Iranian oil and gas sector. To start things off, France›s Total signed a 5$ billion deal with Tehran in July 2017 to develop Iran›s South Pars; the world›s largest gas field. This is the first major western energy investment in the country since Tehran signed an international nuclear deal, and Total will now go ahead with phase 11 of the South Pars project in the summer of 20174. This bodes well, now the financial sanctions are lifted, for companies to take advantage of the significant opportunities that lie ahead for international companies in Iran.
