$35b in Engineering Services Exported by Iran Over Three Decades

TEHRAN (Iran News) In a press briefing on Saturday, Iraj Golabtoonchi stated that this achievement spans over 1,000 projects implemented abroad by capable Iranian companies from 1995 to 2023.

Golabtoonchi noted that exports faced a decline after 2011 but experienced a boost in 2016 when Iranian companies re-entered the Iraqi market, securing $2 billion in projects that year. However, the sector’s growth has been hindered since 2022 due to ongoing sanctions, difficulties obtaining bid guarantees, and other obstacles.

He emphasized the need for Iranian firms to elevate their quality standards to international levels and strengthen their engineering capabilities by hiring skilled professionals.

Highlighting opportunities in neighboring regions, including Shanghai Cooperation Organization countries, Iraq, CIS nations, and even Gulf states, Golabtoonchi called for leveraging Iran’s experience to expand its market share. However, he lamented the lack of global recognition, noting that no Iranian company ranks among the world’s top 250 engineering firms as per ENR rankings, whereas China has 70 representatives, and Turkey has 45.

He pointed out that while Iran’s market presence shrank, Turkish firms filled the gap. For example, while Iran managed $2 billion in projects in Iraq, Turkish companies executed $24 billion worth of projects simultaneously.

Of Iran’s $2 billion in projects, $700 million were located in Iraqi Kurdistan, particularly in Sulaymaniyah and Erbil, involving 37 companies managing 57 projects. However, political disputes between Iraq’s central government and the Kurdistan Regional Government (KRG) over budget allocations have delayed payments, leaving $500 million of these projects unpaid.

In Syria, six to seven Iranian firms had been active in providing engineering services, but due to ongoing challenges, they have withdrawn their personnel, although some equipment and unpaid claims remain.

Sanctions have further complicated Iranian companies’ operations, as securing bid guarantees for projects in Iraq, CIS countries, and elsewhere has proven difficult.

According to Golabtoonchi, the national budget for this year includes provisions for resolving guarantee issues through the Ministry of Economy if companies win new projects. However, no company has successfully utilized this mechanism so far. He suggested that using local currencies or Iran’s foreign-held reserves could serve as guarantees, a topic discussed during the recent visit of the President and Minister of Economic Affairs to Iraq.

Golabtoonchi also announced the upcoming 27th Annual National Conference of the International Concrete Association (Iran branch) and the National Conference on Concrete and Earthquakes. This year’s event will focus on strengthening industry-university collaboration to address workforce shortages, operational reductions in the construction sector, and declining interest among students in engineering disciplines.

The conference will dedicate a day to showcasing student projects to highlight academic contributions to the industry. Golabtoonchi stressed the need for more practical training in universities to bridge the gap between education and industry requirements.