Iran

D

Manufacturing

Large-scale manufacturing in Iran developed during the 1970s. Major products include petrochemicals, textiles (especially cotton and wool from the Eşfahān area, wool from Tabrīz, and silk from the Mazandaran region), processed food, electronic equipment, construction materials, steel, and motor vehicles. One of the world’s largest petroleum refineries, at Ābādān, suffered severe war damage in the early 1980s. Iran is known for its finely crafted rugs, which are its second most important export. After 1991 heavy industry was opened to foreign investors, with limited take-up, mainly because of government resistance to increased contact with the West. Private industry accounts for 20 to 30 per cent of total output.

E

Energy

Around 93 per cent of Iran’s electricity is generated in thermal plants burning petroleum products, natural gas, or coal (2003); almost all the rest is produced in hydroelectric facilities. In 2003 electricity production was about 142 billion kWh.

F

Currency and Banking

The monetary unit of Iran is the Iranian rial of 100 dinar (9,490 Iranian rial equalled US$1, official rate; early 2008). The currency unit used in daily transactions is the tuman, equal to 10 rials. The Bank Markazi Jumhuri Islami Iran, established in 1960 and operated by the government, is the central bank and bank of issue. Commercial banking was nationalized and reorganized in 1979. Under laws introduced in the 1980s, all banks must conform to Islamic law, which outlaws interest from operations, replacing it with “service charges”.

G

Foreign Trade

About 90 per cent of Iran’s export earnings typically come from sales of crude oil and petroleum products; most of the country’s imports consist of manufactured goods such as machinery, transport equipment, chemicals, iron and steel, textiles, mineral products, and basic consumer goods. In 2003 Iran’s exports earned about US$33,788 million, and its imports cost some US$25,638 million. The overall balance of payments was in surplus until the mid-1980s. Thereafter, it was in deficit until 1994, since when a surplus has been regained. The country’s leading trade partners include Japan, United Arab Emirates, Germany, Belgium, Italy, the United Kingdom, and the Netherlands.

H

Transport

In 1997 there were more than 1.5 million passenger cars in Iran, with a ratio of 30 cars per 1,000 people, and around 588,000 commercial vehicles; about 42 per cent of passenger cars belong to Tehran residents, contributing to the city’s congestion and pollution. The country is served by some 179,388 km (111,467 mi) of roads, of which 67 per cent are paved (2003). In addition, Iran has approximately 5,093 km (3,165 mi) of operated railway track. Major Iranian ports on the Caspian Sea include Bandar-e Anzali (Bandar-e Pahlavi) and Bandar-e Torkeman (Bandar-e Shah). Seaports on the Persian Gulf include Khorramshahr, Bandar-Khomeini (Bandar-e Shahpur), and Bandar-e ‘Abbas as well as the oil-shipping facilities on Kharg Island. Iran Air, the state-run airline that was formed in 1962, operates both domestic and international flights; its sister airline Iran Asseman operates on domestic routes. The main airports serve Tehran (Mehrabad) and Ābādān. The Imam Khomeini International Airport opened in 2001 and serves Tehran.