The National Development Fund of Iran gave 41 trillion rials (about $114.8 million) in loans to knowledge-based companies since fiscal 2018-19 up until now, according to the fund’s head for banking and credit affairs.
“Some 39 trillion rials ($109.5m) went to the industries and mining sectors and the rest to processing industries,” Alireza Mir-Mohammad Sadeqi was quoted as saying by ndf.ir.
During the first half of the current year (March 21-Sept. 22), more than 5.2 trillion rials ($14.6 million) of loans was granted to knowledge-based businesses, Mir-Mohammad Sadeqi said
“The biggest borrowers were companies in Tehran and Alborz provinces.”
To be able to access resources of the sovereign wealth fund, there is a need for the NDFI to be linked with Iran National Innovation Fund, and the Vice Presidency for Science and Technology so that their projects and performance can be studied, the official said.
“We are willing to set up credit lines to help export of goods and services of knowledge-based companies. We believe the future belongs to startups.”
NDFI is independent of the government and was set up in 2011 to curb dependence on oil and save a part energy export revenue for future generations.
As per law, 80% of NDFI resources should be used to fund private sector projects with non-government public entities getting the balance.
Earlier the NDFI said it had invested $27 billion in oil, gas and petrochemical sectors, $13 billion in water projects, $5 billion in developing and establishing power plants and $1.5 billion in sustainable rural employment since inception.
In the 2022-23 budget bill, the government is obliged to transfer 40% form energy export revenue to the fund.
According to data published by the Vice Presidential Office for Science and Technology published in 2021, almost 6,035 knowledge-based companies are active nationwide.
They have been gradually expanding their footprint in the economy. Experts say knowledge-based enterprises are making a decent contribution to economic growth by increasing added value.
The scope of a knowledge-based economy is not limited to the technology industry, it can also be used in other sectors like IT, nanotechnology, biotechnology and other high tech firms.
Iran’s knowledge economy largely depends on the banking industry for funds, but there are plans to help them access funding via the stock market.
