Ambitious plans to boost production
Arthur D’Little – January 2018
Iran is a strong, growing economy. It experienced significant recovery in 2016 as a result of sanction relief. GDP growth in the six months to March 20, 2017 reached 7.4 percent. The boost in growth was largely a result of the oil sector’s bounce-back, in both production and exports, following the removal of sanctions in January 2016 through the Joint Comprehensive Plan of Action (JCPOA).With some recovery in foreign direct investments, Iran’s economy is expected to experience strong growth, around 4–5 percent per annum until 2021 – twice the global average. However, the growth rates can be much higher (up to 10 percent) if all the remaining constraints are lifted. Along with obvious commitment to further development of the oil & gas sector, the Iranian Government is strongly focused onstructural reforms, aiming to significantly increase the non-oil share of the GDP. The major driver of this change is the “industrial goods” sector, particularly “metals &mining”. The Iranian government and IMIDRO are striving to minimize risks and improve attractiveness for international investors in the sector.To streamline sector activities, Iran’s government created the Mines and Mining Industries Development and Renovation Organization (IMIDRO) to be in charge of implementation of the sector growth plans. IMIDRO is working on further improvement of the country’s investment climate top romote FDIs in the metals & mining sector. The first step was introduction and implementation of the Foreign Investment Promotion and Protection Act (FIPPA).