With more than $300bn of projects planned or underway, Iran is a large market with enormous potential. The biggest challenge facing Iran is to overcome the adverse effects of sanctions on finance, inflation and access to technology.
Iran is the ninth largest projects market in the MENA region, with $4.6bn worth of contract awards in 2018.
Between 2014 and 2018, a total of $67.2bn contracts were awarded, with an annual average of $13.4bn. The largest single sector has historically been oil and gas followed by power and water. The market hit its peak in 2010 with $23.6bn worth of contracts awarded. Generally speaking, the projects market in Iran is closely correlated to movements in the oil price.
There are currently $281.4bn worth of projects planned or under way in Iran, making it the sixth largest in the MENA region. The largest current sector in terms of work under execution is oil and gas with $92.8bn worth of work under way, followed by transport at $26.5bn. The largest single client is Iran Railways with $10.3bn worth of projects currently under construction. At $9.2bn of contracts under execution, Hyundai Engineering is the biggest contractor in terms of contracts in hand.
The pipeline of known planned and un-awarded projects in Iran is $136.5bn making it the fifth biggest market in the region. Of this total, $88.8bn is in oil and gas, $21.9bn in power and water and $20.6bn in transport
The pipeline consists of $7.7bn projects in bidding, $32.5bn in design or FEED, and $96.2bn under study. Among the top future clients will be Negin Mokran Development Company, National Iranian Oil Company and Pars Oil & Gas Company.
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“MEED Projects allows our sales team across the region to track upcoming projects quickly and efficiently, saving time and helping us to effectively target potential customers. It has certainly played a role in developing our market knowledge and it’s continuing to support rapid growth in the Aconex business.”ACONEX
“MEED Projects is an excellent tool for Ducab as it helps our sales department access updates on the latest GCC projects market in great detail. Their research team does a great job in keeping Ducab abreast with reliable information on movements in the projects from inception to completion.”DUCAB