Iran Economy in Brief – No. 87

Italian partner for the biggest brokerage in Iran: Azimut and Mofid

The Italian company Azimut Group, a financial group active all over the world, has purchased 20% of the shares of “Entekhab” Asset Management Co.

This news was announced by Mofid Brokerage Firm. Entekhab, the largest asset management firm in Iran, is a subsidiary of Mofid. By September 2017, Entekhab which was established in 2016, has assets valued at 89 million dollars and controls 8% of the asset management market in Iran.

Mofid Brokerage Co. is Iran’s largest brokerage with 300 thousand clients and 7% market share. This brokerage which will remain the main shareholder of Entekhab, has signed an agreement with Azimut in order to establish an offshore investment fund intended to ease foreign investment in the Iranian Bourse.

Number plate for high fuel consuming cars

The Iran Traffic Police have announced that starting Saturday, number plates will not be issued to 9 automobiles with high fuel consumption i.e. Tiggo 5, Arrizo 5, MVM X33, Jac S5, Lifan 820, Suzuki Grand Vitara, Haima S7 and BYD S6. Based on a new government directive approved in August 2017, domestic manufacturers will be fined for manufacturing high consumption automobiles. As stated in this directive, manufacturers must scrap an old automobile in order to receive number plates for automobiles with fuel consumption in excess of 8.5 liters per 100 kilometers.

Only one day after the announcement of this directive, Mohsen Salehinia, Deputy Minister of Industrial Affairs announced: “The Legal Adjutancy of the Parliament has canceled this governmental directive and therefore these automobiles will be issued number plates as per usual.”

The Government is expected to rectify this directive by next week. The question of how city officials are carrying out a canceled directive however remains.

AIDCO to produce electric motorcycles

The Automotive Industries Development Co (AIDCO) will start production of its electric motorcycle in two years. The production line will have a capacity of 10 thousand units per year. By the end of this year AIDCO will import 5000 electric motorcycles with plans to double this number in the following year.

In order to reduce pollution, as soon as enough electric motorcycles are supplied, the Tehran municipality will ban internal combustion motorcycles from district 12 of Tehran; a plan which will be extended to other districts.

Read more about AIDCO plans to produce electric motorcycles

Only 25% of seniors are covered by the Government

The Ministry of Labor and Social Welfare announced that approximately 4.2 million retired senior citizens receive a salary from the government. This number is equal to 25% of the country’s total senior population.

The Minister of Labor and Social Welfare, Ali Rabiei said: “Not all of the retired have reached a senior age. Over 60% of the country’s over 60-years-old population are retired. Support plans should be developed for those who are not supported by any welfare plans”.

Based on figures from this Ministry, approximately 900 thousand households are senior citizens. 30% of which receive less than 6 million IRR per month (€125 at market exchange rate). Iran has a population of 79 million people, 60% of which are younger than 35.