Iran’s Future Depends on the Digital Economy

TEHRAN (Iran News) Speaking at the National Conference on Investment Opportunities in the ICT Sector, Aref said the Seventh Plan is built around three key pillars: investment, production, and ICT. He emphasized that the plan’s economic target—most notably achieving 8 percent annual growth—cannot be reached without substantial and well-directed investment.

Aref noted that while Iran has long focused on self-sufficiency in production, its economic strategy is now increasingly aimed at expanding into regional markets that share cultural and commercial ties with the country. Production, he added, is no longer confined to hardware, as scientific progress over the past two decades has broadened the focus to include software and emerging technologies.

He identified ICT as “the beating heart of the innovation economy,” pointing to this year’s national slogan, “Investment for Production,” and stressing the growing importance of ICT across governance, education, commerce, industry, national security, and daily life. “There is no major sector today in which ICT does not play a decisive role,” he said.

Aref also referenced Iran’s ranking in the Global Innovation Index—70th overall and 46th in innovation outputs among 139 countries—but argued that inaccuracies in domestic data reporting weaken these measurements. He stated that Iran’s digital infrastructure still falls short of both national and regional needs.

The First Vice President warned that Iran is lagging in the global race toward artificial intelligence. Countries that invested early in AI, he said, now dominate the field. To close the gap, the 14th administration has established a High Council for AI Development at the highest levels of government. Aref urged the creation of a transparent, predictable, and flexible investment environment, including specialized regulatory frameworks to facilitate both domestic and foreign investment in AI sectors.

He highlighted the crucial role of coordinated collaboration between universities and industry to speed the commercialization of technological breakthroughs. While acknowledging the current gap between Iran’s capabilities and its goals, Aref called this gap “an opportunity rather than a threat,” describing AI as the most powerful driver of transformation within ICT.

AI, he explained, is expanding digital services and enabling new industries such as intelligent cloud systems, advanced data analytics, and smart automation. These technologies are also lowering innovation costs for startups and technology companies.

According to Aref, the government has already begun implementing major initiatives to support advanced technologies and AI, with the new High Council expected to accelerate progress. He expressed confidence that with its skilled workforce and growing investment base, Iran can become a leading AI player regionally and potentially internationally.

Aref also underlined the need to reinforce the nation’s digital infrastructure—expanding high-speed networks, large-scale systems, and cloud services. He warned against adding new users to outdated or overloaded systems without increasing capacity. “Quality must be our top priority,” he said, calling for serious investment and greater support for startups and technology firms.

He praised the capabilities of domestic companies that have already made significant contributions to the digital economy, emphasizing the need for ongoing and targeted support. The shift toward smart governance, he said, will strengthen transparency, speed service delivery, attract investment, and help resolve structural inefficiencies.

Aref called for ICT investment to be treated as a national and strategic priority, supported by regulatory reform and modernization of infrastructure. He pointed to applications such as smart electricity-grid management—using ICT and AI to reduce losses, predict consumption, and monitor production in real time—as critical tools for increasing energy efficiency.

Reaffirming ICT as one of Iran’s most secure and profitable investment fields, Aref said the government is prepared to assist projects of all sizes by removing regulatory barriers and fostering innovation. “The future will not be built on underground resources,” he said, “but on innovation, data, communication, and digital technology.”

He concluded by urging collective action as the country moves toward a major digital transformation: “Iran stands at the threshold of a digital leap. The future of our economy is digital—and it begins today.”