Market Research Report
Construction in Iran - Key Trends and Opportunities (H1 2021)
|Published by||GlobalData||Product code||1003025|
|Published||Content info||20 Pages
Delivery time: 1-2 business days
|Construction in Iran - Key Trends and Opportunities (H1 2021)|
|Published: April 23, 2021||Content info: 20 Pages||
Iran's construction industry is expected to have expanded marginally by 0.7% in 2020 - down from growth of 8% in 2019. The outbreak of the Coronavirus (COVID-19) pandemic, coupled with the steep decline in oil and gas prices, has weighed on the Iranian economy, which was already battered by the US sanctions that curb oil and gas exports, which are crucial for government revenues. The economic weakness amid the COVID-19 pandemic and the US sanctions, coupled with the depreciation of the currency and rising inflation, further weighed on the construction industry's output last year.
As a result of the sanctions, oil revenue in the country fell from over IRR1.6 quadrillion (US$40 billion) in 2018 to less than IRR840 trillion (US$20 billion) each in 2019 and 2020, according to the Central Bank of Iran (CBI). Moreover, since early 2018, the value of the Iranian rial has fallen eight-fold, and inflation in the country has increased by at least 40% as of last year. In a positive development, however, the change in the US administration is expected to relieve tensions between the US and Iran, as the new president of the US, Joe Biden, is in favor of returning to the Iranian nuclear deal, which was previously abandoned in 2018. Despite this optimism, there have been delays in negotiation talks, as both countries wait for the other party to fulfil certain conditions.
GlobalData expects the country's construction output to expand by 1.8% in 2021, before registering an annual average growth of 3.3% between 2022-2025. This will be supported by investments in the energy, oil and gas, petrochemicals, infrastructure and industrial sectors. In an effort to boost the economy and improve infrastructure, the Iranian government aims to complete over 3,900kms of new railways and roads 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 mid-March 2020 to mid-February 2021, the government also approved 135 foreign investments projects worth IRR96.5 trillion (US$1.8 billion) in those sectors.
This report provides detailed market analysis, information and insights into Iran's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Iran. It provides -