By Mahnaz Abdi

Khuzestan must build an economy beyond oil: head of Ahvaz chamber of commerce

December 23, 2025 - 17:5

TEHRAN- In an exclusive interview with the Tehran Times, Shahla Amouri, Head of the Ahvaz Chamber of Commerce, Industries, Mines, and Agriculture, emphasized the urgent need for economic diversification in Khuzestan, Iran's energy powerhouse. She detailed practical strategies to transform the province's deep-seated challenges—including water scarcity, over-reliance on crude resources, and aging industries—into opportunities through investment in non-oil sectors, modern agriculture, and revitalizing the province's unique international waterway.

Khuzestan is the backbone of Iran's energy sector, but this heavy dependence has made the economy vulnerable to global shocks. What are the Chamber's practical, project-oriented priorities for developing non-oil sectors such as "industrial agriculture and processing," "knowledge-based industries related to oil," or "mineral processing industries" in the coming years?

Despite its strategic position in the country's energy production, Khuzestan requires economic diversification to make the provincial economy resilient against oil price fluctuations and global shocks. The Chamber's practical and project-oriented priorities for developing non-oil sectors in the coming years include:
• Industrial Agriculture and Processing: Establishing modern processing units for agricultural products, including oil extraction, canning, packaging, and producing high value-added products for domestic and export markets.
• Knowledge-Based Industries Related to Oil: Investing in downstream oil and green petrochemical technologies, developing small and medium-sized refineries focused on innovation and reducing environmental impact.
• Mineral Processing Industries: Leveraging mineral potential by setting up processing plants and producing final products like light metals, construction materials, and high value-added industrial chemical products.

By focusing on a project-based model and partnership with domestic and foreign investors, the Chamber strives to establish complete production chains from raw material supply to the final market, making the provincial economy diversified and resilient.

The issue of water scarcity and water resource management is one of Khuzestan's most profound challenges, directly impacting agriculture, industry, and even social stability. As a private sector institution, what economic and investment-oriented solutions (such as developing modern irrigation systems, industrial treatment plants, or low-water-demand crops) does the Chamber of Commerce propose and pursue to help manage this crisis?

The Ahvaz Chamber of Commerce considers water scarcity a serious threat to the province's economy and social security and pursues the following practical, investment-oriented solutions:
• Modern and Smart Irrigation Systems: Investing in drip and smart irrigation methods to reduce water consumption and increase crop productivity.
• Industrial Treatment Plants and Water Recycling: Establishing water treatment and recycling units in industries and agriculture to reduce pressure on natural resources.
• Cultivation of Low-Water Crops and Development of Greenhouses: Promoting low-water-demand crops and developing modern greenhouses for multi-crop production per year.
• Investment-Oriented Policies: Providing incentives, facilities, and financial support for investment in water management and sustainable agriculture projects.

These measures will reduce pressure on water resources, increase productivity, and create sustainable job opportunities.

Despite vast oil and gas fields, many downstream products and high value-added goods are produced outside the province. What are the most significant obstacles to attracting investment for establishing new refineries, petro-refineries, and gas-based chemical units within Khuzestan itself? (Is it the issue of water supply, infrastructure, or macro-level policies?)

Despite massive oil and gas resources, the development of downstream industries faces the following obstacles:
• Sustainable Water and Energy Supply: Refining and petrochemical processes require stable water and electricity, and limited access to these resources hinders development.
• Transportation and Logistics Infrastructure: Limited access to rail networks and deep-water ports increases the cost of transporting raw materials and final products.
• Macro Policies and Regulations: Constant policy changes, energy feedstock pricing, and administrative issues increase investment risk.

The Chamber of Commerce, by pursuing regulatory reforms, establishing equipped industrial zones, and facilitating private sector investment, strives to remove these obstacles and facilitate investment attraction.

Khuzestan, with its fertile soil and rich agricultural history, now faces profound challenges. What is the Chamber's strategy for changing cropping patterns, developing modern greenhouse cultivation, and creating complete processing chains (from farm to final market) to both create added value and reduce water consumption?

The Chamber's strategy focuses on complete value chains and optimal water resource management:
• Changing Cropping Patterns: Encouraging the cultivation of low-water, high-economic-value crops.
• Developing Modern Greenhouses: Utilizing hydroponic technologies and controlled-environment greenhouses to increase productivity and reduce water consumption.
• Establishing Complete Processing Chains: Connecting the farm to the final market through packaging, storage, and export marketing industries.

These measures, in addition to increasing added value, reduce water consumption and enhance sustainable employment and income generation.

Many of the province's large, legacy industries (such as Khuzestan Steel, National Iranian Oil Company) face problems like outdated equipment and declining productivity. What is the Chamber's role in promoting innovation, attracting modern technology, and creating links between these industrial giants and tech startups to solve production issues?

Large industries need continuous innovation to maintain competitiveness, and the Khuzestan Chamber plays the following roles:
• Building Bridges with Startups and Knowledge-Based Companies: Solving production issues with modern technologies and increasing productivity.
• Facilitating the Adoption of Up-to-Date Technologies: Providing incentives and financial support for upgrading production lines and reducing equipment obsolescence.
• Industry-University Collaboration Network: Transferring knowledge and technology, creating joint R&D projects, and improving production processes.

These actions enhance productivity, reduce costs, and increase the competitive capacity of the province's large industries.

Khuzestan is the only province with an "international waterway" (the Karun and Arvand rivers). Why has this unique potential for waterborne trade not been fully activated? What is the most practical step to revive the commercial-transit role of the Karun River and link it with deep-water ports like Imam Khomeini?

The Karun and Arvand rivers have unparalleled capacity for waterborne trade and cargo transit, but they have not yet been fully activated. Practical solutions include:
• Improving Port and Logistics Infrastructure: Connecting the river to deep-water ports, constructing wharves, warehouses, and secure transit routes.
• Promoting Multimodal Transport: Integrating water transport with rail and road to reduce costs and increase cargo transfer speed.
• Water Management and Canal Maintenance: Reviving waterways, stabilizing river boundaries, and preventing sedimentation.
• Economic Incentives for the Private Sector: Facilitating permits, reducing port costs, and offering investment packages for domestic and export shipping lines.

These measures will lead to the full utilization of the province's waterborne trade capacity, increased exports, and the development of regional logistics.