Iran at a Glance

2016

Iran qualifies from many respects to be a good location for investment and doing

business. Some of the features are highlighted as following:

10 Reasons to Invest in Iran

• A unique geographical location at the heart of a cross-road connecting the Middle East, Asia and Europe, coupled with many inter-& trans-regional trade, customs, tax and investment arrangements;

1. Strategic Location:

GeographyLocation:

o Middle East : bordering Iraq, Turkey, Pakistan, Afghanistan and Turkmenistan

Oman Sea & the Persian Gulf from south & the Caspian Sea from north,

o Strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil transport

• Vast domestic market with a population of 78 million growing steadily as well as quick access to neighboring markets with approximately 300 million inhabitants;

2. Market Potentials & Proximity:

Population (Millions) 78.5

Services Export ($US Billion) (2)

Area (Million km2)1.65

Import (FOB) ($US Billion) (51)

Foreign trade volume (85)

Non-Oil Export ($US Billion) (32)

ECONOMY & TRADE Key Indicators

• Large pool of trained & efficient manpower at very competitive cost in a diversified economy with an extensive industrial base and service sector;

3. Labor Privileges:

9

• Territory developed networking in the area of telecommunication, power, water, roads and railways across the country;

4. Developed Infrastructure:

Transportation Network

• Diversified range of energy, telecommunication, transportation, as well as public utilities;

5. Low Utility & Production Cost:

• Varied & plentiful reserves of natural resources ranging from oil and gas to metallic and non-metallic species reflecting the country’s accessibility to readily available raw materials;

6. Abundant Natural Resources:

o Over $ 85 billion in Foreign Trade volume in year 2015 isone of the economic powers and large markets in theMiddle-East region.

o Iran has extra ordinary expansion and investmentpotentials in the fields of Oil, Gas, Petrochemicals, Mines,Industries, Agriculture and Service sectors.

ECONOMY & TRADE Key Indicators

o Iran ranks 3th on Diversity of Agricultural Products in the world.

o Iran holds 4th to 9th rank in the production of Zinc, Lead, Cobalt, Aluminum, Manganese, Copper in the world.

o 721 Techno-Engineering projects have been executed in 42countries by Iranian companies over the last 10 years.

ECONOMY & TRADE Key Indicators

• A four-season climatic endowment as a privilege to agricultural activities throughout the country & throughout all seasons;

7. Climatic Characteristics:

• Reduced tax rates from 65% to a flat fixed 25% rate of tax on income despite various tax holidays highlighted as follows:

8. Fiscal Incentives:

• Representative system of government based on friendly relationship with other nations;

9. Political Stability:

• Enactment of the new Foreign Investment Promotion and Protection Act (FIPPA) to substitute the former Law Concerning Attraction and Protection of Foreign Investments in Iran (LAPFI) by providing full security and legal protection to foreign investments based on transparency and international standards.

10. New Investment Legislation:

o Import structure consists of 16%capital 70%intermediated, 12% consumer goods.

o Iran is among the 10th top country in tourist attractions.

o Iran has relatively developed its own science and technology infrastructure compared to other developing countries in the region.

ECONOMY & TRADE2015

Key Indicators

Potential Export

Agriculture Sector:• Agricultural & Horticultural

Products• Poultry, Husbandry & Fisheries

Products

Industry Sector:• Food and Beverage• Textile & Leather• Construction Materials• Chemical Products• Fur Products• Plastic , Melamine Ware• Iron, Steel & Metal Ores• Refined Petrochemical Products• Pharmaceutical, Hygienic,

Cosmetic Products• Transportation Equipment,

Vehicles & Parts

POTENTIAL EXPORTPotential Export Products & Services

Mines Sector:- Metal Mines- Non-Metal Mines

POTENTIAL EXPORT

Potential Export Products & Services Services Sector:

- Tourism- Technical & Engineering- Financial & Banking- Information Technology- Health Care Services- Labor Force - Transportation & Transit

Handicrafts Sector:- Hand Knotted Carpets- Handicrafts (other)

Potential ExportComparative Advantage of Agriculture

o According to FAO, the principal structure of the world agriculture products is composed of 66 different products and Iran is among the top 10 countries producing 15 types of these products in the world

o Iran ranks 3th on Diversity of Agricultural products in the world

o Cultivated Lands (about 14 millions of hectares)

o 4 Season Products

AGRICULTUREComparative Advantage of Agriculture

Continental Climate:- Different types of climates - Significant differences in temperature between:

o Different Regions of the countryo Different Seasonso Day & Night (sharp difference)

- 12000 Different Species of Plants - Average number of Sunny Days (300 Days)

AGRICULTUREComparative Advantage of Agriculture

Potential ExportComparative Advantage of Mine & Industry

Mine & Industry Sector:- Food and Beverage- Textile & Leather- Construction Materials- Chemical Products- Fur Products- Plastic , Melamine Ware- Iron, Steel & Metal Ores- Refined Petrochemical Products- Pharmaceutical, Hygienic, Cosmetic Products- Transportation Equipment, Vehicles & Parts- Metal Mine & Non-Metal Mines

MINE & INDUSTRYPotential Export

Total capacity of 14 ports of Irancurrently stands at some 128 milliontons of cargo annually and its yards cover 42 square kilometers

MINE & INDUSTRYCapacity of Iran Ports

Imam Khomeini PortCapacity: 40 MT in Cargo

Anzali PortCapacity: 5.4 MT in Cargo

Nowshahr PortCapacity: 5 MT in Cargo

Bushehr PortCapacity: 2.7 MT in Cargo

Chabahar PortCapacity: 2 MT in Cargo

Khoramshahr PortCapacity: 2.5 MT in Cargo

Amirabad PortCapacity: 1.1 MT in Cargo

Shahid Rajaee PortCapacity: 60 MT in Cargo

MINE & INDUSTRY2014

Capacity of Iran Ports

Potential ExportTechnical & Engineering Services

PROJECTS 2012 $US MILLION

Power Plants 806

Civil and Construction 1060

Road 251

Industrial Projects 100

TOTAL 2217

TECHNICAL & ENGINEERINGSERVICES

Export Projects 2013-2014

2013 %SHARE

Middle East 89%

Africa 6%

CIS 5%

Total 100

MIDDLE EAST AFRICA CIS

89%

6% 5%

TECHNICAL & ENGINEERINGSERVICES

Export Projects 2013-2014

Zimbabwe

Sudan

Libya

Morocco

NigerBangladesh

India

Pakistan

AfghanistanTajikistanTurkmenistan

Uzbekistan KyrgyzstanArmenia

TurkeySyria

Kazakhstan

Lebanon

Yemen

OmanQatar

UAE

KuwaitCyprus

Albania

Senegal

Iraq

Azerbaijan

Saudi Arabia

BeninDjibouti

Belarus

Venezuela

TECHNICAL & ENGINEERINGSERVICES

Export Markets

Foreign TradeExport & Import

Iran’s Non-Oil Export Iran’s Import

Value: % Share

ECO PGCC CIS EU ASEAN

13%

8%9%

3%

1%

Source: I.R. Iran Customs Administration

PGCC EU ECO CIS ASEAN

36%

24%

14%

5%3%

FOREIGN TRADE2015

Trade by Regional & Economic Blocks

12004

11427

4073

3988

3789

2456

1999

990

983

756

CHINA

UAE

KOREA

INDIA

TURKEY

GERMANI

SWITZERLA…

ITALY

NETHERLAN…

FRANCE

8593

5651

3540

2325

2011

1816

912

800

513

493

CHINA

IRAQ

UAE

AFQHANISTAN

INDIA

TURKY

TURKMENISTAN

PAKISTAN

EGYPT

HONGKONG

FOREIGN TRADE2015

Main Trading Partners (Top 10)

Non-Oil Export ImportsSource: I.R. Iran Customs Administration

Iran’s Non-Oil ExportValue: $US Billion

Source: I.R. Iran Customs Administration

7 912 14

18 19

25

31 3330 32

FOREIGN TRADE2005-2015

Non Oil Export Trends

EXPORT OF GOODS * Millon $

Propane 1900

Butanes 1310

Polyethylene Having a Specific Gravity 1288

Petroleum bitumen 1267

Methanol 1178

Iron ores & concentrates,other than roasted iron pvrites 997

Other flat-rolled products of iron or non alloy steel,hot-rolled 786

Polymers of ethylene other 606

Other white cement 590

Urea (whether or not in aqueous solution) 564

Source: I.R. Iran Customs Administration

FOREIGN TRADE2015

Main Non- Oil Export

Value: $US Billion

Source: I.R. Iran Customs Administration

3538 40

45

57

49

57 5853

4551Iran’s Import

FOREIGN TRADE2005-2015Import Trends

IMPORT OF GOODS $US Million

Durum 1641Rice 1588Other vehicles,sp ark-ignition engine of a cylinder capacity 1558Oil- cake, solid residues resulting from extraction of soya bean oil 1550Maize(not seed) 1193Other parts of transmission apparatus, radar apparatus or television receivers 736

Flat- roll iron & steel 685Cane or beet sugar&chem pure sucrose, solid form 658Wheat and meslin 645Corn (maize) 575

Source: I.R. Iran Customs Administration

FOREIGN TRADE2015

Import by Main Products

IMPORTS SHARE

Intermediate 70%

Capital 16%

Consumer 12%

Other 2%

Other2%

Intermediate70%

Capital16%

Consumer12%

Source: I.R. Iran Customs Administration

FOREIGN TRADE2015

Import Structure

Free ZonesTrade & Industrial

o Unique Geographical Locations

o Sufficiently Developed Infrastructure

o Foreign Investment Incentives

7 Free Trade-Industrial Zones 30 Special Economic Zones

TRADE & INDUSTRIALZONES

Advantages

TRADE & INDUSTRIALZONES

Zones Distribution

o Unique Climatic Conditions in the Persian Gulf

o Great Tourist Attractions (1,000,000 Incoming Passengers Annually)

o Good Potential for Electronic City and as a Home Base for Information Technology

o Strategic Location & Physical Distance from

o the United Arab Emirates

TRADE & INDUSTRIALFREE ZONES

Kish Island

o Rich Mineral Reserves

o Deep Coasts

o Position of the Island in the routes of shipping lines convenient for Ships Maintenance, Fuel Installations and Logistics

o Great Tourist Attractions and Potentials for Bio-Technology Development

TRADE & INDUSTRIALFREE ZONESQeshm Island

Moderate Climatic Conditions

Best Point for Transit of South East Asia to CIS, Afghanistan, Turkey and Iraq

Good Access to Land Roads

Good Infrastructure

TRADE & INDUSTRIALFREE ZONES

Chabahar

Trade Strategies