Iran Economy in Brief – No.66

Danieli Persia starts operation

Danieli Persia, the Iranian manufacturing company of Danieli & Co (the sponsor of “Iran Economy in Brief” newsletter) was inaugurated in Alborz Province on Tuesday.

Minister of Trade and Industry, Mohammadreza Nematzadeh, who joined the inauguration ceremony said: “This is going to be a start for further collaborations between Iran and Italy. Danieli has been active in Iran for many years but since lifting the sanctions, in every meeting, I have asked Mr. Benedetti, CEO of Danieli, to build a manufacturing company in Iran to help transferring the know-how to Iranian engineers”.

In January 2016, Danieli signed an agreement worth 5.7 billion euro on a joint venture and orders for the supply of machinery and plants to be installed in the territory of Iran.

“As the first step, we will employ 100 people, where 90% of them will be Iranian”, said Michael Cottin, CEO of Danieli Persia, “we also plan to expand our activities in other fields, particularly in non-ferrous and Oil and Gas industry”.

Danieli workshop is built in an area of 14 hectares in Eshtehard Industrial Park, in Alborz Province, about 100 Km from Tehran. The total investment has been 40 million Euros to be the biggest initial investment of Danieli & Co. The workshop is equipped with heavy-weight lifting cranes and highly accurate and automated machineries.

Tehran Book Fair

Italy is the guest of honor at Tehran Book Fair which opened on Tuesday. Last year, about 80,000 titles have been published in Iran. Translation makes about 30% of the market (In the U.K., translation is only 1.5% of the book market according to Guardian). Supplementary reading and prayer books build another 30% of the books published, however, their value is worth 70% of the total Iranian market.

Most popular foreign literatures in Iran are Russian, French and British books. Although Iran is not a signatory to the Berne Convention, the WIPO Copyright Treaty, or a member of the World Trade Organization, over the last years famous publishers have committed themselves to obtain the necessary copyrights.

Read our article on L’Espresso about Iranian Book Market (in Italian language)

Tax to replace oil income: main policies of the Government

Ali Tayebnia, Minister of Economic Affairs and Finance has introduced the reduced reliance on oil for balancing the budget as one of the greatest achievements of Rouhani’s Government.

“For the first time in the past five decades, the share from oil in the Government’s income is less than the share from taxes. Currently, the oil income is worth 70% of the taxes”, said Tayebnia at the fourth United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Tayebnia claims this achievement is due to tax reforms such as broadening the tax base, targeted tax breaks and serious control on tax evasion.

According to Tayebnia further reduction in reliance on oil income, diversification of income resources and maintaining the stability in the budget, are the main policies of the Government. As a result, for the first time in the last 50 years, the balance of trade, excluding oil sale, has been positive.

Energy Minister in Isfahan Province

A new 10 MW solar power plant in the Jarqavieh Sofla District (65 KM southeast of Isfahan) was inaugurated by Hamid Chitchian, the Energy Minister, this week. This power plant was constructed and became operational in seven months in a 20 hectare plot with investment from Ghadir Energy and Electrical Power Holding in partnership with the Greek company, Metka and is valued at 550 billion IRR ($17m).

Read more on New energy projects in Isfahan