Hamidreza Ajami, Director of Investment at the National Petrochemical
Company (NPC), told a panel on “Investment and Financing in the Petrochemical
Industry” — held on the sidelines of the International Conference on Investment
in Oil, Gas and Petrochemicals — that the sector requires innovative funding
models suited to its strategic and capital-intensive nature.
“The petrochemical industry differs structurally from oil and gas, yet
its scale of investment, export potential, and contribution to non-oil revenues
make it a strategic pillar of the national economy,” Ajami said. “Financing
models must therefore reflect its specific dynamics.”
Capital Market as a Financing Engine
Ajami highlighted the strong potential of Iran’s domestic capital market to
fund petrochemical projects, especially those with one- to four-year completion
horizons that can offer faster returns to institutional and retail investors.
“To attract such investment, projects must enter the market with transparent
financial models and robust management structures to control risk and build
investor confidence,” he said.
Government’s Role: Regulator, Not Operator
Ajami stressed that the government’s role should focus on policy and regulation
rather than direct operation. “The National Petrochemical Company must serve as
an investment hub — preparing standardized project packages, ensuring financial
transparency, and offering incentives for private and small-scale investors,”
he said.
He added that global experience shows that a balanced mix of state
support and private-sector autonomy yields the most sustainable investment
outcomes.
Reforming Regulations and Financial Tools
Ajami cited institutional inefficiencies and inconsistent policies —
particularly regarding energy pricing and allocation — as key challenges to
investor confidence. He called for regulatory reforms to reduce operational and
financial costs and proposed the introduction of new financial tools such as project-backed
bonds, construction funds, and long-term financing contracts.
Regional and International Opportunities
Despite political and sanctions-related constraints, Ajami said opportunities
remain for cooperation with regional and Asian investors, provided that Iran
can offer competitive investment packages, legal guarantees, and transparent
data. “We must design models that appeal to both domestic and foreign investors
through co-investment structures, guaranteed returns, or revenue-sharing mechanisms,”
he said.
Short Project Cycles as an Advantage
He noted that many petrochemical projects can reach production within one to
four years — a feature that makes them particularly attractive for capital
market investors seeking medium-term returns. “With proper risk management and
clear financial frameworks, petrochemical projects can become viable, low-risk
assets for both institutional and retail investors,” he added.
Towards Institutional Synergy
Ajami concluded that coordination among the government, capital market, and
private sector is essential for achieving the industry’s development goals.
“Without institutional synergy and modern financial instruments, reaching the
next stage of growth will be difficult. The NPC is ready to act as a facilitator
by presenting transparent investment packages and streamlining access to
domestic and foreign capital,” he said.
The panel brought together experts, investors, and government
officials to discuss practical measures for strengthening petrochemical financing
capacity, with transparency, facilitation, and innovation identified as key
policy priorities.