Fars Province Ready to Expand Economic Ties With Germany

TEHRAN (Iran News) According to the Shiraz Chamber’s public relations office, Hamidian highlighted that Fars Province, which accounts for 7% of Iran’s land area and 6% of its population, is a key center for agriculture, industry, mining, healthcare, and tourism.

He noted that agriculture makes up 17% of the province’s economy, placing it at the top of the economic sectors in the region. Agricultural processing industries also lead the province’s industrial sector, followed by non-metallic mineral industries. Fars ranks second nationally in ornamental stone production and fourth in mineral potential.

Hamidian emphasized the province’s strong medical capacity, particularly in liver transplants. “Shiraz is recognized as a global hub for liver transplants, with over 1,000 successful procedures annually,” he said. He also pointed to the province’s significant cultivation of medicinal plants—over 80,000 hectares certified—which offers opportunities for partnership with German pharmaceutical companies.

The chamber president recalled historical industrial ties between Fars and German companies in sectors such as cable manufacturing, electrical and electronic industries, and telecommunications. However, he lamented that these partnerships have diminished due to sanctions, resulting in higher costs from indirect trade routes through third countries.

“Despite these challenges, German companies remain key buyers of Fars products such as licorice extract and powder, and continue to supply raw materials to many of our pharmaceutical firms,” Hamidian stated.

He urged for a revitalization of direct economic relations independent of political tensions, encouraging increased exchanges between businesspeople from both countries. Hamidian also invited Ambassador Potzel to allocate more time during his next visit to Fars to tour production facilities, farms, and research centers to help pave the way for broader cooperation.

German Ambassador Markus Potzel, visiting Fars Province, echoed Hamidian’s sentiments and expressed optimism that political de-escalation could unlock new economic opportunities. He praised Shiraz’s advancements in tourism infrastructure, pharmaceuticals, and food industries.

“During my previous tenure as head of the economic section at the German Embassy in Tehran from 2000 to 2004, I witnessed the early stages of development. I’m now pleased to see significant progress across multiple sectors,” he said.

Potzel noted that current trade between Iran and Germany stands at around €1.5 billion, largely focused on pharmaceuticals and food products. However, he acknowledged that banking restrictions and sanctions remain serious obstacles.

Referring to the nuclear deal (JCPOA), the ambassador said that after its signing, many European companies re-entered the Iranian market. “We hope ongoing negotiations will lead to a breakthrough, enabling the private sectors of both countries to re-engage,” he added.

While stressing that economics cannot be entirely separated from politics, Potzel remarked, “Sanctions have complicated economic engagement. We’re working to ease some of these restrictions through dialogue with Iranian officials, but it requires time and political will on both sides.”

Highlighting Iran’s rich tourism potential, particularly in Shiraz, the ambassador said he visited key historical sites including Persepolis, Pasargadae, and the tombs of Hafez and Saadi. He commended the city’s progress in cultural heritage preservation and tourism development.

Regarding concerns about German nationals traveling to Iran, Potzel acknowledged existing travel warnings but noted that German tourists still visit the country. “We hope for improved safety conditions that will encourage more visitors,” he said.

In conclusion, Potzel voiced cautious optimism about improved political and economic relations, noting a more positive approach toward Iran under Germany’s new administration. He also pointed to the large and successful Iranian diaspora in Germany, particularly in medicine, law, and business, as a valuable bridge for future cooperation.