Iran Economy in Brief – No 70

Ramadan food under observation

Goods in demand in the month of Ramadan will be under observation by inspection bureaus in order to prevent profiteering. Dairy, protein, rice, cooking oil, sugar, dates, fruits, vegetables, pastries, etc. have been announced to be under observation.

Yazdan Seif, the CEO of the Government Trading Corporation of Iran, said: “The stores of essential products such as wheat, rice, sugar and oil are sufficient to balance the market during Ramadan and we will increase production as much as necessary in order to prevent an increase in prices.”

Prices hike for zoulbia and bamie –a traditional Iranian and Turkish sweet- about 8% respect to a year ago. However, herbs’ prices for ash –an Iranian cuisine of a thick soup- will remain constant.

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70% of Iraqi Internet Market in Iranian Hands

The Telecommunication Infrastructure Company of Iran has stated that Iran is the largest internet provider in Iraq and controls 70% of this market. Mohammadjavad Azari-Jahromi, the CEO of the Telecommunication Infrastructure Company of Iran, pointed to Iran overtaking Turkey and Saudi Arabia in controlling the Iraqi market and said: “Iraq gains access to the internet via Turkey, Iran and Saudi Arabia and due to problems, Turkey has been temporarily eliminated from this competition.”

He introduced Ahwaz international causeway as a great facilitator in providing a better quality of services to Iraq: “In order to maintain control over the Iraqi market, our net quality must be competitive with neighboring countries”, said Mr Azari-Jahromi.

Iran’s fifth international internet gateway was revealed last week in the province of Khuzestan and the city of Ahwaz, in the presence of Mahmoud Vaezi, the Minister of Communications and Information technology.


Transportation structure must change, says The Minister of Roads

While 80% of the country’s flights are done from 9 airports, other 51 airports make only 20% of the flights. The minister of Roads and Urbanization, Abbas Akhundi, sees little efficiency in it.

In the latest meeting of the Ministry of Roads and Urbanization’s logistics taskforce, Mr Akhundi, called for change in the country’s transportation structure and said: “Basically, in the governmental approach, the business outlook of the transportation structure is lacking. For example, billions of Rials have been invested in the railway. However, this investment has not been used to improve economic efficiency.”

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How to protect local game developers?

The Iran Computer and Video Games Foundation has announced a revision in the guidelines for the distribution of foreign mobile games. Based on these guidelines, publishers of foreign games must first be registered as publishers in the Iran Computer and Video Games Foundation database and can then present their contracts with foreign game developers in order to obtain publication licenses for games.

Hassan Karimi Ghodusi, The CEO of the Foundation said: “The increase in bandwidth has led to people playing more but this has not caused an increase in the amount of time spent playing Iranian games. We do not intend to force consumers to play Iranian games; foreign products must exist alongside domestic ones. However, there must be a balance between the two”.