Economy, Business And Markets

Foreign Interest in Car Manufacturing Hub

Foreign Interest in Car Manufacturing HubForeign Interest in Car Manufacturing Hub

Chabahar free trade and industrial zone organization said China, South Korea, and Oman are among the countries interested in investing in Iran’s third auto manufacturing hub to be built in the southeast of the country, reported Tasnim news agency.

Hamed Ali Mobaraki, the organization’s head, told Tasnim that Oman and the United Arab Emirates were expected to reach agreements to make their investments in December.

The official said 400,000 hectares of land would be allocated to the large project which includes ten development phases. The car manufacturing hub, established to attract the private sector’s investment, is expected to create 20,000 jobs after the ninth phase is completed.

Iran’s automotive industry is Iran’s second largest industry after its oil and gas industry, accounting for 10% of the country’s GDP. Iran produced a total of 630,639 cars in 2013 which shows a 25.6% decline compared to 2012 largely due to western sanctions imposed on Tehran over its nuclear energy program.

The strategic Chabahar free trade zone is seen as the shortest and the most secure route connecting central Asian independent states (CIS) and Afghanistan to open waters. It also enjoys proximity to one of the world’s largest oil, gas and mineral reserves and is the only ocean port of the country.