No Exports of Technical and Engineering Services to Syria

TEHRAN (Iran News) Naqavi noted that the total value of these exports may not exceed $1 billion annually, even though Iran could easily increase this figure to $15 billion within two years. He compared Iran’s capabilities to Turkey, stating that Iranian companies outperform Turkish firms in construction and infrastructure projects, including power lines, water pipelines, and water treatment facilities. Despite this, Turkish firms exported $60 billion worth of technical and engineering services in 2022, second only to China.

Naqavi lamented that Iran’s export of technical and engineering services is nearly non-existent. Whatever exports occur are driven by individual companies operating without institutional support. These companies primarily work in Central Asian and East African countries, such as Tajikistan and Uzbekistan. He proposed establishing a support structure under the President’s office to facilitate these exports. “Syria”

One of the main obstacles to exporting technical services is the issue of bank guarantees. Naqavi explained that while some countries, like Oman, have bilateral agreements with Iran to address this issue, Iranian companies still face barriers in more than 90% of potential markets.

Naqavi highlighted fundamental differences between exporting goods and technical services. Unlike goods, service exports are long-term projects, sometimes spanning five years. Political instability can severely disrupt service exports. He stressed the importance of stable diplomatic relations between Iran and destination countries for the success of such exports.

Solving the FATF issue, Naqavi said, could resolve many challenges in exporting technical and engineering services by standardizing Iran’s international interactions. He also pointed out that Iran, as a major shareholder in the Islamic Development Bank, has an opportunity to benefit from projects initiated by the bank in member countries. Plans are underway to invite the bank’s officials to Iran for discussions.

Naqavi announced the first international event on exporting technical and engineering services, scheduled for May next year in Tehran. He expressed hopes to explore how Iranian companies could participate in projects funded by the Islamic Development Bank.

Responding to questions about why Iran has not advanced its service exports with politically friendly countries, Naqavi revealed that Iran lacks a presence in the Russian market due to Russia’s preference for local contractors. Additionally, exporting services requires clients with adequate budgets, which countries like Afghanistan lack.

Naqavi confirmed that Iran has not exported any technical or engineering services to Syria. In the Gulf region, some opportunities exist in Oman, but other nations, such as the UAE and Qatar, prefer European and American contractors due to their strong influence.