Why We Invest and Believe in Iran’s Agro-Indusries

Iran qualifies from many respects to be a good location for investment and doing business in agriculture. Some of the features are mentioned below:
•    Iran is one of a few countries in the world that has a wide climatic diversity and geographic variability and rich genetic resources, to cultivate almost all variety of agricultural products, and why, of course, has long been one of the major producers regionally and internationally in the sector. Based on estimations on global Production, Iran is among emerging producers of Fruits, Vegetables, Cereals, Fresh-Cut Flowers and Ornamental plants.
•    Due to climate diversity in Iran, Cultivation and growing of almost every agricultural products is possible in all year round. In the past two decades, lots of investments have been done on developing greenhouses and forming cultivation clusters.
•    Iran has a unique geographical location at the heart of a cross-road connecting the Middle East, Asia and Europe, coupled with many inter –and trans– regional trade, customs, and tax and investment arrangements.
•    Iran is a country of 1.65 million square km in area and a population of 80 million.
•    It has direct land or waterway access to 15 countries with a total population of 550 million that surround it. Iran is bordered by Iraq and Turkey on the west; Armenia, Azerbaijan, the Caspian Sea and Turkmenistan on the north; Afghanistan and Pakistan on the east; and the Persian Gulf and the Gulf of Oman on the south. The Persian Gulf gives it waterway access to Kuwait, Saudi Arabia, Bahrain, Qatar, UAE and Oman of course the open waters, while the Caspian Sea provides it with maritime pathways to Azerbaijan, Russia, Kazakhstan and Turkmenistan.
•    Vast domestic market with a population of 80 million growing steadily as well as quick access to neighboring markets with approximately 500 million inhabitants (2016).
•    Iran’s population is considered young. As much as 54 percent of the population is less than 30 years old. The population growth rate is 1.2 percent per annum (2016).
•    Iran holds the second largest proven natural gas reserves in the world (17 percent of total), next only to Russia, and fourth largest proven oil reserves (10 percent of the world’s), next to Venezuela, Saudi Arabia and Canada. Iran is also rich is many other natural resources, including copper, zinc, cobalt, iron ore, lead, manganese and sulfur.
•    Iran has a strong and broad economic infrastructure. The country’s transportation network includes 12,000 km of railway and 220,000 km of roads. Airliners also haul 19 million passengers per year. Iran has nine commercial ports in the south, including Shahid Rajaee Port just north of the Strait of Hormuz that trades with over 80 foreign ports via 35 container lines. Shahid Rajaee Port with its area of 2400 hectares and capacity of 70 million ton a year has been ranked 44th among the top 3500 ports in the world in 2011. Apart from the nine commercial ports in the south by the Persian Gulf and Oman Sea, there are also three commercial ports by the Caspian Sea in the north.
•    In 2013 Iran’s GDP consisted of 9 percent in agriculture, 17 percent in oil and gas, 13 percent in manufacturing and mining, 9 percent in construction and the remaining 53 percent in services. Iran’s GDP in 2014 was estimated by the IMF at $403 billion in current prices and $1,284 billion in purchasing power parity (ppp) terms, resulting in per capita incomes of $5,243 in current prices and $16,236 in ppp terms.
•    Agricultural Sector, is one of the most important sectors of the Iranian economy, accounting about 11%of GDP, 23%of the employed population and 15%of the foreign exchange revenues (form nonoil exports). Agricultural and animal husbandry products have always provided the major non-oil export items such as pistachios, raisins and even carpets (the wool or silk used in them).
•     About %20 of the land Iran is arable .the main food-producing areas are in the Caspian region and in valleys of the northwest. Some northern and western areas support rain-fed agriculture, while other areas require irrigation for successful crop production.
•    Investments in agriculture now total $7.7 billion, or 18% of total investment in the industry sector. Sector exports range around $1 billion per year, and the main export items are confectionary, dairy products, tomato paste, fruit juice and concentrate, mineral water, and pasta.
•    The main export regions include the Middle East, Central Asia and other CIS nations, Europe, and South America. The country is also increasingly importing food technology, including processing and packaging equipment.
•    The income derived from all agriculture and horticulture activities, fish farming, bee-keeping, hunting and fishing, sericulture, revival of pastures and forests, is exempt from payment of tax. All the natural and juridical persons (Iranian and Foreign) can enjoy above mentioned exemption at the outset their activities.
•    %100 of the income derived exportation of industrial finished goods and products of agricultural sector (including forming, horticulture husbandry, poultry, fishery, forest and pasture products) and its conversional-signal and complementary industries and also %50 of the income earned from exportation of other goods that are exported for achieving the objectives of the exportation of non-oil goods, shall be exempt from tax.