Hamidreza Ajami, NPC’s Director of Investment, said the lack of
accessible financing and limitations on feedstock supply remain the two key
challenges facing the sector. He called on state institutions and regulatory
bodies to ease bureaucratic and infrastructural barriers to support downstream
development.
“In the absence of adequate financing and investment attraction,
implementing development projects in the petrochemical industry will not be
feasible,” Ajami told a roundtable with members of the Iranian Production Club.
“We need to pave the way for private and international stakeholders through
transparent policies and streamlined regulations.”
A Key Contributor to Iran’s Economy
Despite accounting for only 25% of Iran’s non-oil exports, the
petrochemical sector has met nearly half of the country’s foreign currency
needs in recent years, Ajami noted. According to the latest figures from the
Ministry of Industry, Mine and Trade (MIMT), the industry contributes 19% of
total industrial value added while consuming just 8% of Iran’s hydrocarbon
resources.
Currently, 75 petrochemical complexes are operational nationwide, with
a combined annual production capacity exceeding 96 million tonnes. Of this,
roughly 46 million tonnes are produced in the energy hub of Assaluyeh and 25
million tonnes in Mahshahr, with the rest spread across other regions. Exports
generate around $13 billion in annual revenue, Ajami added.
Financing Reforms and AI Integration
Ajami outlined three pillars of NPC’s investment structure: capital
raising and financing, partnerships and joint ventures, and licensing for new
projects. He acknowledged criticism over delays in issuing licenses and said
reforms are underway to shorten timelines and increase transparency.
“Processes are being revised to remove unnecessary steps and make
licensing quicker, clearer and more efficient,” he said, adding that artificial
intelligence (AI) is being integrated into systems to reduce human error and
subjectivity.
He said 143 licensed projects are currently in various stages of
development, with a total investment of $87 billion recorded in the sector
between 1979 and 2022. Of that, $26.3 billion came from foreign exchange
sources including the National Development Fund of Iran (NDFI), while the rest
was covered through shareholder equity and export revenues.
Future Outlook and Investment Priorities
Ajami estimated that the industry holds potential for a further $30-40
billion in investments and called for mobilizing resources from the central
bank, capital markets, and development funds. Innovative mechanisms such as
project-based public stock offerings, structured deposit certificates, and
crowd investment schemes are also under consideration.
“The use of modern and blended financing models is a top priority,” he
said. “Given the constraints, we must tap into joint-stock project companies
and better utilize the financial capacity of local and international
stakeholders.”
Ajami highlighted past successful partnerships with foreign firms such
as Sasol and Japan’s NPC Alliance, and said NPC is actively seeking renewed
collaboration with private and international investors for both domestic and
overseas projects.
“We are managing legal and regulatory hurdles through internal
reforms, and we hope sustained efforts will remove the existing bottlenecks and
facilitate long-term growth in Iran’s petrochemical industry,” he said.