Hadi Akhlaghi-Feyz, speaking at the first Iran Petrochemical Industry
Investors Summit in Tehran, said the sector held strategic importance for the
national economy, with its direct and indirect contribution to gross domestic
product estimated at between 5% and 10%.
Over the past decade, petrochemicals have been among Iran’s leading
sources of export-generated foreign currency, while their integrated value
chain—from upstream to downstream—has created significant capacity for job
creation and the development of related industries, he said.
Akhlaghi-Feyz warned that without sustained reinvestment, ageing
equipment and intensified competition from neighbouring countries not subject
to sanctions could weaken the international competitiveness of Iranian
producers.
“Although substantial investments have been made over the past three
decades, maintaining and expanding this industry requires continued and
strengthened capital allocation,” he said.
He highlighted the role of the National Petrochemical Company in
setting investment strategies across the sector, adding that banks should act
as facilitators by aligning financing structures with the actual capabilities
of investors to ensure projects progress efficiently.
Given constraints on foreign investment and access to equipment,
Akhlaghi-Feyz stressed the need for a clear investment roadmap and coordinated
national planning, noting that banks were well positioned to provide the
required financial resources.
He said nearly 50% of Iran’s banking capacity was currently engaged in
oil, gas and petrochemical projects, adding that a comprehensive national plan
would allow all stakeholders to participate in sector development according to
their financial strength.
Tejarat Bank has allocated $1.05 billion in the second half of the
current year to support investment in seven petrochemical projects, most of
them linked to the Persian Gulf Holding, he said. In addition, the bank is
finalising a new agreement worth about $1 billion with domestic and foreign
investors for further petrochemical projects.
Akhlaghi-Feyz said the measures aimed to streamline investment and
concentrate financial resources to expand production capacity, noting that high
rates of return in the petrochemical sector could yield significant results
within two to three years.
He said the bank was introducing new financial instruments to
encourage investment, including special foreign-currency deposit certificates
designed for specific industrial projects. Under this structure, investors
provide 20% of project funding, while the remaining 80% is raised through
financing instruments.
He also cited the issuance of foreign-currency transaction bonds,
adding that $150 million of the allocated funding had already been deployed
over the past two weeks, with the remainder to be disbursed by year-end.
Other instruments include project-specific foreign-currency funds and
pre-sale mechanisms for export revenues, which he said could stabilise currency
markets while giving investors early access to foreign exchange needed to
complete development projects.
Akhlaghi-Feyz said greater use of capital market instruments could
further boost production and economic growth, positioning the petrochemical
industry as a key driver of Iran’s national economy.