TEHRAN (Iran News) –Secretary for Iran’s Mass Construction Center Farshid Poorhajat says there are some certain factors which show investment in Iraq is less risky than Iran.
Speaking to ILNA, Poorhajat reacted to Iraq Housing Minister’s invitation from Turkish companies for entering the housing sector of Iraq and said that one should ask Iran’s Roads and Urban Development Ministry, Iran Trade Promotion Organization and Iran Chamber of Commerce why Iraq does not invite Iranian companies to enter its housing sector and these bodies should be asked why the condition and ground has not been prepared for the presence of Iran’s construction and mass construction companies.
He noted that in the issue of technical and engineering services export, there are strong companies in Iran which are able to enter housing sector of other countries but the ground and condition should be provided by the governments and commercial attaches but currently this ground is not ready.
Pourhajat went on to say that Trade Promotion Organization, Roads and Urban Development Ministry and Iran Chamber of Commerce are custodians of this field and they are in charge of creating proper ground for presence of Iranian construction companies in foreign countries, adding that while with the current condition of the country in the past one and half years ago, domestic companies have been willing to enter foreign markets and they have capability to be active in the housing market of countries.
He stated that for mas constructors, Iraq’s market is a less risky market than Iran, adding that while they face a 50% inflation in the country, risk of investment has increased highly and inflation rate is the most influential factor in investment and with such an inflation rate for the private sector and companies there is no possibility for planning in the markets.
Poorhajat emphasized that definitely in terms of factors, investment in housing market of Iraq is less risky than Iran’s market because in Iran people have no notion about the price of housing in the near future and for this reason the project of National Housing Movement and leap in housing production (construction of 4m houses in 4 years) is one of the essential problems because the final price of these houses in the project is not known and the government announces a new price every day and essentially people do not know with what price they will own the house.
He then pointed to the experience of presence in the international housing sector by Iranian construction and mass construction companies and said that his colleagues in this sector in the past decade have had presence in markets in Africa, Azerbaijan and the UAE, and in the past decade they have entered Iraq’s market.
Poorhajat reiterated that they had successful experience in the foreign markets but they face problems and one of them is restriction created by the sanctions. He emphasized that constructors have faced with restrictions because of the sanctions and they cannot carry considerable amount of money by the baggage because of the financial systems of those countries.
He stressed that the main issue is dollar and value of the national currency and the cost of construction in other countries has been dependent of the dollar rate and they have faced only one to two percent inflation but the story is completely different for Iran’s rial and all international contracts are signed based on the dollar.