The business year-Iran 2013

188 Pages·2012·23.46 MB·English

Year in Review | Diplomacy & Politics | Economy | Finance | Energy | Industry & Mining |
Iran2013
ICT | Transport | Real Estate & Construction | Agriculture | Health & Education | Tourism
thebusiness year
In this issue MAURIS ORNARE LACINIA
CHAPTER TYPE
000—Nulla sodales, elit vitae porta fringilla, leo odio faucibus nibh
A BIBENDUM TEMPOR
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000—Aenean turpis turpis, pretium a sollicitudin vel, mollis nec dolor
ORNARE BIBENDUM
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Iran 2013 000—In iaculis placerat urna egestas cursus
ISBN 978-1-908180-11-7
NULLAM SEM NISI
CHAPTER TYPE
9 781908 180117 000—Nam et mauris vel nibh tristique pulvinar ut a ante

49 branches 4 sub-branches
With , ,
1250 active agents
more than ,
267 brokers
, and more than
1300 employees nationwide
,
Alborz Insurance Company is well prepared and fully
equipped to render insurance services to its customers.
Fire • Marine • auto • LiFe • accident • Passenger LiabiLity • engineering • MisceLLaneous
HEAd OffICE 4 Sepahbod Gharani Ave., Karim Khan Cross Road, Tehran – Iran TEL [phone] EMAIL [email protected] www.alborzinsurance.ir
Iran2013
In partnership with:
YEAR IN REVIEW 06 FINANCE 47
Organization for Investment, Economic
and Technical Assistance of Iran 06 Bearing Changes 47 Over to the Private - REVIEW: Banking
Mahmoud Bahmani, Governor of the
50
Central Bank of Iran - INTERVIEW
Vali Zarrabieh, CEO of Saman Bank
52
- INTERVIEW
Mohammad Reza Fallah, Chairman of
54
Tejarat Bank - INTERVIEW
56 The Gains Abound - REVIEW: Capital Markets
10
58 Valuable & Relevant - Q&A: Capital Markets
Healthy, Wealthy, & Wiser - REVIEW:
60
Insurance
DIPLOMACY & POLITICS 09
M. E. Amin, Chairman & Managing
09 On a Fresh Path - REVIEW 62 Director of Alborz Insurance Co.
- INTERVIEW
Dr. Mahmoud Ahmadinejad, President
12 of the Islamic Republic of Iran - INSIDE Seyed Mohammad Karimi, President &
PERSPECTIVE 64 Head of High Council of Insurance at Bimeh
Markazi - INTERVIEW
Together As One - FOCUS: Non-Aligned
14
Movement
HE Dr. Ali Akbar Salehi, Minister of Foreign
16 Affairs of the Islamic Republic of Iran -
INSIDE PERSPECTIVE
49 branches 4 sub-branches There to Share - FOCUS: The Red Crescent
With , , 19
Society of IR Iran
1250 active agents 09 20 When in Need - FOCUS: Iran-Iraq relations
more than ,
267 brokers
, and more than ECONOMY 21
1300 employees nationwide 21 Dimension Shift - REVIEW
,
26 Invest in Iran: OIETAI - COMMUNIQUÉ
Alborz Insurance Company is well prepared and fully
A Pivotal Role - FOCUS: Free & Special
30
equipped to render insurance services to its customers. Economic Zones 21
Dr. Behrouz Alishiri, Vice-Minister of
34 Economic Affairs and Finance & President
of OIETAI - INTERVIEW
The Full Package - FOCUS: North Point Iran
11 37
Food Industrial State
Kazem Doost Hosseini, Chairman &
38 President of the Export Guarantee Fund of
Iran - INTERVIEW
Mohammad Reza Farzin, Chairman of the
40
Managing Board of NDFI - INTERVIEW
41 Rise Up - FOCUS: Vision 2025
Abbas Memarnejad, Deputy Minister of
Fire • Marine • auto • LiFe • accident • Passenger LiabiLity • engineering • MisceLLaneous 42 Economic Affairs & Finance & President
of the IRICA - INTERVIEW
Irandokht Attarian, Managing Director of
43
the Civil Servants Pension Fund - INTERVIEW
56 47
44 Sought & Found - FORUM: Why Iran?
HEAd OffICE 4 Sepahbod Gharani Ave., Karim Khan Cross Road, Tehran – Iran TEL [phone] EMAIL [email protected] www.alborzinsurance.ir
Iran2013
ENERGY & MINING 67 ICT 101
67 Refined & Renewed - REVIEW: Energy 101 Getting Connected - REVIEW: ICT
Rostam Qasemi, Minister of Petroleum V. Sadoughi, Managing Director &
72 - INTERVIEW 104 Member of the Board of Directors of
the MCI - INTERVIEW
73 Making It Possible? - FOCUS: Petrochemicals
Alireza Gh. Dezfouli, CEO & Board Member
Abdol Hossein Bayat, Deputy Petroleum 106
of MTN Irancell - INTERVIEW
79 Minister & President of the National
Petrochemical Company - INTERVIEW 108 Hamid Farang, CEO of RighTel - INTERVIEW
80 Absolutely Cracking - FORUM: Petrochemicals 110 A Safer Approach - FOCUS: Local IT Sector
Abdollah Fateh, Managing Director of Pars
111
Online - INTERVIEW
112 Pressing the Point - FOCUS: The Media
Ali Akbar Javanfekr, Managing Director 101
113 of the Islamic Republic News Agency
- INTERVIEW
TRANSPORT 115
67 115 Follow the Link - REVIEW
Ali Nikzad, Minister of Roads and Urban
119
Development - INTERVIEW
INDUSTRY 81 Farhad Parvaresh, Chairman & Managing
121
Director of Iran Air - INTERVIEW
81 Don’t Stop Me Now - REVIEW
Hamid Arabnejad, President & Board 115
Gholamreza Shafei, Deputy Minister of 123 Member of Mahan Airs - INTERVIEW
85 Industry, Mine & Trade and Chairman
of the Board at the IDRO - INTERVIEW
86 Bits & Bobs - FORUM: Auto Parts
87 At the Baseline - REVIEW: Mining
Ore to Dig - FOCUS: The Gohar Zamin
90
Iron Ore Mine
91 Jewel in the Crown - FOCUS: Gem City Project
L. Saeedi, Member of the Board &
92
Managing Director at HEPCO - INTERVIEW
94 Fresh Start - FOCUS: FMCG
Ziya Domaniç, Managing Director of
95
Unilever Central Asia & Iran - INTERVIEW
Mehdi Rahimi, Managing Director of MM
97
Print & Packaging Tehran - INTERVIEW
99 Drink Up - Q&A: Beverages 131
100 Baby Talk - Q&A: Baby Products
REAL ESTATE &
125
CONSTRUCTION
125 Land Is Gold - REVIEW: Real Estate
S. J. Mousavi, President of TSI Group
127
- INTERVIEW
129 Main Fields - Q&A: Construction Services
131 A Place to Live - REVIEW: Construction
A Part of the Action - Q&A: Construction
133
Materials
Mohammad Sadr Hashemi, Chairman of
136
Stratus Group Holding - INTERVIEW
Mohammad Reza Montazeri, Managing
81 138 Director of Fars & Khuzestan Cement 125
Company - INTERVIEW
thebusinessyear
ISBN 978-1-908180-11-7
Publisher
Rupert Smith
Managing Director
Ayşe Hazır Valentin
Editorial Director
Jason J. Nash
Regional Director
Peggy Rosiak
Regional Editor
Leland Rice 141
Country Manager
Gülay Sultan
Country Editor
Massimo Paradiso
AGRICULTURE 141
Sub-Editors
Peter Howson
141 More to Farm - REVIEW
Emily Mallis
Terry Whitlam Dr. Mohammad Talebi, President of Bank
144
Analysts Keshavarzi - INTERVIEW
Firstname Lastname
146 Dried & Tested - FOCUS: Fruits & Nuts
Transcribers
Lars Larsson Parviz Tavazo, Managing Director of Tavazo
Attila Pelit 147
Dried Nuts - INTERVIEW
Jared Wall
PR Manager 148 Worth Saving - FOCUS: Caviar
Laila Bastati
Advertising Manager
Caroline Miller
Creative Director
Genee Presta
Designer
Anna Klega
163
Cover Illustration
Pınar du Pre
Operations Manager
Serpil Yaltalıer
Operations Assistant TOURISM 163
Semiha Elkiran 149
163 A Spiritual Journey - REVIEW: Tourism
Circulation & Marketing Director
Amy Burtin Seyed Hassan Mousavi, Vice-President &
166 Head of Iran’s Cultural Heritage, Handicrafts,
Printing: Apa Uniprint HEALTH & EDUCATION 149 and Tourism Organization - INTERVIEW
Production: The Business Year Saman Jilanchi, Managing Director of
78 York Street 149 Down on the Pharm - REVIEW: Health 167 Raamtin Residence Hotel - INTERVIEW
London W1H 1DP
Dr. Marzieh Vahid Dastjerdi, Minister of
T [phone] 152 168 Isfahan - DESTINATION
Health and Medical Education - INTERVIEW
F [phone]
[email protected] 154 Active Players - Q&A: Pharmaceuticals 170 Take It or Weave It - FOCUS: Carpet Making
www.thebusinessyear.com Kazem Shafaghi, Managing Director of
Ali Akbar Yazdani, CEO of Moheb Hospital 174
156 Shafaghi Carpets - INTERVIEW
The Business Year is a tradename of - INTERVIEW
Wildcat Publishing Inc.
157 Veni Vidi - Q&A: Eye Surgery
Copyright The Business Year International Inc.
2012. All rights reserved. 159 Going the Distance - REVIEW: Education
No part of this publication may reproduced,
stored in a retrievable system or transmitted Dr. Hassan Abolghasemi, Chancellor of
in any form or by any means, electronic, 161 Shahid Beheshti University of Medical
mechanical, photocopied, recorded or Sciences - INTERVIEW
otherwise without prior permission of The
Business Year International Inc. Reza Roostaazad, President of Sharif
The Business Year International Inc. has made 162 University of Technology - INTERVIEW
every effort to ensure that the content of this
publication is accurate at the time of printing.
The Business Year International Inc. makes
no warranty, representation or undertaking,
whether expressed or implied, nor does it 168
assume any legal liability, direct or indirect, or
responsibility for the accuracy, completeness
or usefulness of any information contained in
this publication.
EXECUTIVE GUIDE 175
175 The Set Up - REVIEW: Legal
In-Flight Entertainment - FOCUS:
179
Azadi Airport
159
180 When in Iran...
Iran2013
6 COUNTRY
YEAR IN REVIEW
Bearing Changes
ARMENIA AZERBAIJAN
TURKMENISTAN
TABRIZ
CASPIAN SEA
TURKEY
MASHHAD
Tehran
QOM
IRAQ
ISFAHAN
SHIRAZ
KUWAIT
P
E
R
S
I
A
N

G
U
LF BANDAR ABBAS
SAUDI ARABIA BAHRAIN KISH ISLAND
OMAN
QATAR
UAE
OMAN
thebusinessyear
COUNTRY 7
While having cemented itself as a prime invest-
ment destination on the apex of major trade
routes, the Iranian economy is in a transi-
LENGTH OF LAND BORDERS
5,440 km tion period that is expected to lead to renewed
UZBEKISTAN
growth rates and long-term self-sufficiency
under the fifth Five-Year Development Plan
AREA
(FYDP), a part of Vision 2025.
1,648,000 km2
After GDP growth of 7.3% in 2010, a slow-
down into 2011 to 5% is mainly attributable to
TOTAL POPULATION (2012 EST.) hydrocarbon export routes shifting away from
78.86 million Europe. While a high price of oil per barrel has
kept things ticking along in Iran, it is solidifying
trade ties with partners in South America and
LIFE EXPECTANCY
Asia, especially China, which will lead to future
70
export growth. The gradual removal of energy
subsidies is also the cause of temporary infla-
GDP (NOMINAL 2011) tion pressure, while short-term uncertainty
$552.9 billion has been caused by speculative activity on the
rial. Currently officiating trades at a flat rate of
IR12,260 to the US dollar, the Central Bank of
UNEMPLOYMENT RATE (2011)
12.3% Iran (CBI) hopes to maintain stability in a coun-
try that has become a center of attraction for
FDI in the region due to its large, young demo-
INFLATION RATE (2012 EST.) graphics and highly skilled workforce.
23.5%
In that respect, it is Iran’s demographics
that are also leading a boom in the construction
CURRENT ACCOUNT SURPLUS (2011) sector. Demand for housing from young Irani-
3.4% of GDP ans has created a deficit of 4 million residential
AFGHANISTAN units, a gap Iran’s constructors are not shying
away from. Officials in Tehran, the center of
LOCAL GOVERNMENT STRUCTURE
construction activity, registered 53% growth
31 provinces (ostans)
in the issue of construction permits between
324 counties (shahrastans)
2Q2011 and 1Q2012. Additional impetus for
growth is also being injected into the sector by
LEGISLATIVE POWER the government, which has announced plans
290-member Parliament elected to expand and upgrade the country’s petro-
popularly and 12-member Guardian leum infrastructure worth $110 billion, as well
Council appointed by the Supreme as plans for earthquake preparedness worth
Leader and the Parliament $140 billion. Cement production is also grow-
ing apace to keep up with domestic demand,
reaching 66 million tons in early 2012, up from
HEAD OF STATE
56 million tons in 2011.
Supreme Leader Ayatollah Ali Khamenei
The government has long attached sig-
Elected by AssemPAKbISlyTA Nof Experts
nificance to ICT, and 2012 saw its vision for the
for life term
sector begin to take shape. Utilizing a highly
skilled workforce—graduates of Iran’s many
POLITICAL STRUCTURE public and private universities—officials hope
Islamic Republic to encourage the development of local internet
content in order to develop online traffic within
its national borders.
Iran’s skilled youth is also seen as key to the
government’s program of privatization. While
PAKISTAN
80% of the economy in GDP terms is cur-
rently in state hands, mostly due to the size of
the hydrocarbons sector, over 500 large com-
panies have been privatized since 2006. Cur-
rently present in domestic and foreign trade,
light industry, and mining, the private sector’s
GULF OF OMAN umbrella is set to open further and contribute
to sustainable self-sufficiency and increased
Iran2013
8 COUNTRY
Despite global uncertainty,
Iran was able to gain a solid
share of increasing world FDI
rates.
Exchange Rate 2012
rial per US dollar
12.5
12
* IR12,260:USD1 AVERAGE USED BY TBY
11.5
11
10.5
10
January February March April May June July August September
Source: Oanda
GDP (nominal)
in USD billions exports across a number of sectors, including ICT. In August 2012, Iran’s non-oil
exports exceeded total imports for the first time. Falling imports are mainly at-
600 tributable to rising commodity costs and shifting trade relations, yet an expected
trade surplus of $5 billion in March 2013, when the next Iranian year of 1391 ends,
500
is seen as a perfect opportunity to enhance local production chains. The automo-
tive industry’s major players, including SAIPA and Iran Khodro, petitioned the
400
government in 2012 to permit a price increase of up to 20% while the local parts
300 industry plays catch-up in broadening the domestic supply chain.
Non-oil trade volumes exceeded $47 billion in the six months from March 2012,
200 with $20.5 billion in exports and $16.5 billion in imports. Oil exports, however,
fell from 2.2 million barrels per day (bbl/d) at end-2011 to 1 million bbl/d in Sep-
100
tember 2012. Falling demand from Europe, which currently buys around 800,000
0 bbl/d from Iran, is mostly to blame, yet increased demand from members of the
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Non-Aligned Movement (NAM), a 120-member organization of which Iran is a
part, is likely to replace lost demand in the medium term. Current non-oil trade
with NAM members stands at $43 billion, including $19 billion in exports and $24
Source: International Monetary Fund, World Economic Outlook Database,
April 2012 billion in imports. Trade with China also reached $40 billion by the end of 2011,
and links with the Asian giant are likely to go a long way to seeing an increased
number of oil tankers, the insurance of which has recently been taken up by local
insurers.
Age Pyramid (2012)
The authorities are additionally looking to further mechanize and irrigate
in millions, according to age group
Iran’s countryside in a bid to boost agricultural production. Already a major
producer, the sector accounts for 10% of GDP, 26% of non-oil exports, and 80%
MALE FEMALE of domestically consumed foodstuffs. Under the fifth FYDP, $15 billion is to be
100+
95-99 transferred to the Agriculture Sector Development Plan, with the industry’s large
90-94
8850--8894 workforce in mind—20% of the country’s labor force is currently engaged in
75-79
70-74 agriculture.
65-69
60-64 Despite global uncertainty, Iran was able to gain a solid share of increasing
55-59
5405--5449 world FDI rates, up 16% in 2011. Iran attracted $1.28 billion in FDI in the five
40-44
35-39 months from March 2012, following on from the $4.37 billion it attracted in the
30-34
2250--2294 previous year. Continued investment across key sectors as part of the fifth FYDP,
15-19
10-14 ongoing energy subsidy reform, and solidifying trade links with energy-hungry
5-9
0-4 economies in Asia will no doubt reign in currency speculation and shore up Iran’s
5 4 3 2 1 0 0 1 2 3 4 5
credentials as a secure and lucrative investment destination as its economy con-
Source: US Census Bureau tinues to roll forward at a solid pace. ●
thebusinessyear