Construction in Iran - Key Trends and Opportunities (H2 2021)

Iran's construction industry is expected to rise by 1.8% in 2021, preceded by a 0.7% increase in 2020. The slow pace of growth has been supported by increased investment in industrial units, as well as spending on improvements to the transportation network. The analyst expects the industry to expand by 2.5% in 2022, before registering an annual average growth of 3.6% between 2023-2025, supported by investments on the energy, oil and gas, petrochemicals, infrastructure, and industrial sectors. As of November 2020, the government reported that the country aims to complete over 3,400km of new railways and 7,800km of new roadways by March 2022. Moreover, in March 2021, the government announced that IRR323.2 trillion (US$6.1 billion) will be invested on 62 projects in the industrial, mining and trade-related sectors. During March 2021 to September 2021, the government also approved 113 foreign investments projects worth IRR37.2 trillion (US$2.6 billion) in those sectors. In October 2021, the Ministry of Industry, Mining and Trade signed a memorandum of understanding (MOU) with the Energy Ministry for the construction of 13 industrial power plants, with a total capacity of 10,000MW around the country by 2023.

The industry’s output is also being aided by the government's new proposed budget for 2022. The government released the IRR36.3 quadrillion (US$519.3 billion) proposed budget for 2022 in December 2021, with the economy expected to expand by 8% in 2022. The government has allocated IRR20.1 trillion (US$287.6 million) to the Ministry of Cultural Heritage, Tourism and Handicrafts, IRR158 trillion (US$2.2 billion) to the Ministry of Education and IRR349.5 trillion (US$5 billion) to defence infrastructure and strategic research. However, there are downside risks stemming from high inflation and the impact of the COVID-19 pandemic, as well as US sanctions and uncertainty over restoring the 2015 nuclear deal.

This report provides detailed market analysis, information, and insights into Iran’s construction industry, including:

• Iran’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Iran’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Iran. It provides:

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Iran, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using the analyst's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.