TEHRAN – Iran’s National Petrochemical Company (NPC) is seeking to attract $100 billion in domestic and foreign investment to complete semi-finished projects and expand the country’s petrochemical value chain, a senior official said on Tuesday.

Hamidreza Ajami, NPC’s investment director, said the 144 licensed projects in the sector require nearly $100 billion in capital, adding that the exclusive reliance on domestic financing has limited growth and undermined Iran’s global competitiveness.

“Petrochemicals account for 25 percent of Iran’s non-oil exports and 19 percent of the country’s industrial value-added,” he said. “Developing this sector plays a critical role in economic, social, and national security.”

According to Ajami, around $87 billion has been invested in Iran’s petrochemical industry from 1979 to 2022, with 19 percent of that originating from foreign sources and over 11 percent financed through the National Development Fund and other internal and external resources.

Under the country’s seventh development plan, an additional $22 billion in investment is envisioned, he said, noting that while some projects have already come online, others are still in progress.

According to Ajami current projects in this sector include 20 projects worth $11 billion with over 70 percent physical progress, 32 projects worth $22 billion which are between 20 and 70 percent complete, and 92 projects worth $67 billion that are below 20 percent completion.

He underscored the importance of foreign investment, citing a recent agreement with Iran’s Organization for Investment Economic and Technical Assistance aimed at more actively promoting the sector to international investors. Ajami also noted Iran is pursuing increased cooperation through the BRICS group and the Shanghai Cooperation Organization.

Despite international sanctions, Ajami said the petrochemical sector has managed to withstand external pressures by utilizing domestic funding and foreign credit lines. Several projects are slated to be inaugurated this year.

He cited Iran’s large domestic and regional markets, access to open waters, skilled labor, and legal and policy incentives as key advantages for investors. He also pointed to the growing role of knowledge-based firms and advanced technologies.

In 2024, Iranian banks issued $210 million in Islamic foreign exchange-based bonds (Murabaha Sukuk), and plans are underway to issue an additional 130 trillion rials (approximately $2.6 billion) this year. The NPC also aims to mobilize financing through project funds, public participation initiatives, educational outreach, and expert forums.

Ajami highlighted the company’s investment priorities, including the completion of unfinished projects, development of mid- and downstream units, flared gas recovery, and increasing hard currency revenues. He emphasized leveraging both domestic and foreign experiences, citing joint projects with the Philippines as well as partnerships with AriaSasoul and Karoun Petrochemical Company.

EF/MA