Iran: a change in direction?

Published 20 March 2017

With a manufacturing capacity of approximately 93Mta, Iran is one of the world’s top cement producers and is the largest cement exporter. However, the prosperity of the sector has been undermined by falling domestic demand and export markets seeing protective measures put in place, all of which is forcing Iran’s cement leaders to adjust to a more challenging environment.

The long-term potential of the Iranian cement industry is sound as a young and growing population ensures

continued domestic demand while the country’s end to international isolation opens up export markets. However,

it may have to relinquish its traditional supply approach and aim for increased product diversification

The IMF has forecast economic growth at 6.6 per cent for the Iranian calendar year beginning in March 2016. Higher oil production and exports are the main strengths of the the country’s economic model. The Sixth Five-Year National Development Plan (2020-25) recognises the need for job creation and better education for skills, while the banks need to create the conditions for sustained macroeconomic stability and growth with coordinated reforms and regulatory changes to stimulate investment. A radical set of proposals in the National Development Plan also set the goals of the government transferring 25 per cent of its operational and service activities over to professional networks – the private sector and community-based organisations.

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