Privatization to drive efficiency in Iran’s industrial parks

January 19, 2025 - 16:57

TEHRAN – Reza Ansari, head of the Iran Small Industries and Industrial Parks Organization (ISIPO), has emphasized the need to shift from government-managed industrial parks to non-governmental ones, highlighting their higher efficiency. Over 90 percent of industrial parks in the country are currently government-owned.

Speaking at the 12th council of chamber heads from across the country, Ansari called for enabling the private sector to participate more actively in managing industrial parks, IRIB reported.

He stressed that the organization should primarily focus on issuing permits and facilitating private sector involvement, despite some resistance to privatization in the sector.

According to Ansari, there are currently 870 active government-managed industrial parks and more than 70 non-governmental parks in operation, with 30 being managed by service companies. The infrastructure investment in these parks amounts to 4.80 quadrillion rials (about $9.6 billion), while an additional 340 trillion rials (about $680 million) is needed to address outdated infrastructure, which requires resolution through the national budget law.

He urged the Iran Chamber of Commerce to advocate for issues affecting industrial parks and called on its members to support the development of these parks.

Highlighting the importance of integrating into the global value chain, Ansari emphasized that businesses must prioritize acquiring and utilizing advanced technology to compete in international markets. He also advocated for creating cross-sectoral institutions to support small and emerging industries, noting the need for entities that channel financial resources toward these sectors.

During the meeting, Samad Hasanzadeh, head of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), expressed the chamber's readiness to collaborate with ISIPO to advance the country's industrial and economic agenda. He underscored the importance of establishing production chains and fostering cooperation between small and large enterprises to enhance production and industry development in Iran.

During the gathering, a memorandum of understanding (MOU) titled "Development of the Contractor System Framework for Iran" was signed between the ICCIMA and the ISIPO. The MOU aims to enhance collaboration, address economic and production challenges, and develop infrastructure in industrial parks.

Hasanzadeh expressed optimism that the agreement would pave the way for significant advancements in the development of industrial park infrastructure and the implementation of economic programs, contributing to the broader economic and industrial goals of the Islamic Republic of Iran.

EF/MA

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