Iran Economy in Brief – No. 3

Isfahan: Not Only Culture But Also Industry

Mobarakeh Steel Company, the largest steel maker in MENA (Middle East and North Africa) region, inaugurated its mass production line of “Checkered Steel Plates” in Saba area. Its current production capacity is 200,000 Tons/year. This leads to complete replacement of import and saves up to $50 m for the country. Total installed capacity in Saba area is 750,000 Tons/year, which is planed to be doubled by the next year; half of it will be dedicated to Checkered Steel Plates, mainly for export. Checkered plates are used to reduce slipping risk in stairs and walkways in industrial setting, bridges, ships, etc.


Fishing in troubled waters? No chance!

Russia-Turkey conflict does not seem to be solved soon. But does it do any good to Iran? Turkey was a very popular destination for Russian tourists; indeed after Germans, Russians traveled to Turkey most. With the new travelling restrictions to Turkey on Russians, Iranian media are conjecturing whether Russian tourists may flow to Iran instead. This sounds too optimistic, given the restrictions on alcoholic drinks and enforcement of a dress code for women in the country. Beside that, tourism in Iran is basically only cultural, which explains why majority of tourists are middle aged or older.


Insurers who are not ensured

Insurance penetration rate in Iran remains as low as 1.9%, way below the world average of 6.3% in 2013. Whereas the insurance history in Europe goes back to 17th century, it is no more than 80 years old in Iran. Indeed, lack of cultural background is one of the main issues to Iranian Insurance Industry. A non-competitiveness market and absence of the big international insurance companies are among other reasons to explain the gap. Insurance Penetration Rate is calculated as the ratio of premium to GDP and shows the level of the development of Insurance Industry in a country.

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