The development of technology ecosystem and realization of digital economy have been high on the Iranian government’s agenda, such that the Central Bank of Iran recently announced its full support for tech firms.
During a meeting with senior officials at the state-affiliated Iran National Innovation Fund on Saturday, CBI Governor Abdolnasser Hemmati said the bank is willing to allocate financial support to help the tech ecosystem flourish, Tasnim News Agency reported.
Pointing to INIF’s endeavors in the past several years, Hemmati said that in order to strengthen startups and knowledge-based companies, support centers will be established in all provinces. These centers will ease startups’ access to legal and financial support.
“Besides the provincial funding centers, plans are under consideration to set up offices that would offer specialized services to firms active in fields like nanotechnology, social innovative services and the internet of things,” he said.
Hemmati highlighted the necessity of curbing Iran’s reliance on oil revenues and implementing digital economy goals, and said, “CBI backs INIF in discharging its duties, as the fund has so far played an impressive role in supporting and expanding the technology ecosystem in the country.”
Siavash Malekifar, a deputy head at INIF, told the media the same day that the fund offers grants and loans worth 800 million rials ($5,160) per year to each knowledge-based company and tech firm willing to attend foreign tech shows and events.
The assistance is offered in line with the government’s policies to boost the export of innovative products to regional markets.
Malekifar noted that tech units can also apply for low-interest loans or receive consultation and help in offering their products to domestic or foreign customers through leasing or installment purchases.
According to INIF, 4,800 knowledge-based companies are currently active nationwide and employ over 300,000 people.
Export Value
Endeavors to expand international tech ties are mostly aimed at curbing Iran's dependence on oil-based revenues and expanding its technology ecosystem, considering the economic hardships imposed on Iran by US sanctions.
The government has put support for the ecosystem high on its agenda since President Hassan Rouhani took office during his first term in 2013. Since then, numerous startups and tech firms have been able to flourish and promote their businesses in both domestic and foreign markets.
Sorena Sattari, the vice president for science and technology, earlier said Iranian knowledge-based companies and tech firms have earned 1 quadrillion rials ($6.45 billion) from the export of technological products in the first half of the current Iranian year (started March 2019).
He noted that the income has been on an upward trajectory over the past several years, increasing from 600 trillion rials ($3.8 billion) in the year ending March 2018 to 900 trillion rials ($5.8 billion) last year.
"Given the domestic potential and the enthusiasm of tech teams, exports will soon reach 5 quadrillion rials [$32.25 billion] and it is not a farfetched goal," he added.
“The figures show that the solution to economic hardships facing Iran today can be found inside and not outside the country.”
Full Support
The government is optimistic that giving financial, technical and spiritual support to firms can help them expand their businesses and consequently help the country switch from a conventional to a digital economy structure.
INIF, affiliated to the Vice Presidential Office for Science and Technology, and other tech authorities have played a major role in extending vital resources.
The administration of President Hassan Rouhani established the fund with an initial investment of 30 trillion rials ($193.5 million). As per the law, the government is required to allocate 0.5% of its annual budget to INIF.
The fund’s officials say INIF will continue to give financial support to fledgling tech firms.
For years, the government has pursued the establishment of efficient workplaces with the help of professional mentors and investors.
Over the past few years, numerous tech parks have been established throughout the country.
Naturally, the Iranian capital city, Tehran, pioneers the trend with two innovation factories.
Later, other cities, including Mashhad, Isfahan, Karaj, Tabriz and Shiraz, launched similar projects to facilitate the growth of tech firms.
The most recent attainment in this regard is the upcoming partial inauguration of a tech center, referred to as Startup Factory, in the southern province of Fars.
Co-organized by the vice presidential office, Information and Communication Technologies Ministry and Fars Governorate, the factory has been established in an abandoned one-hectare, two-story building once used by the Iranian Telecommunications Manufacturing Company.
The first phase of the construction project is almost complete and will soon be inaugurated.
Reports say that with the launch of the first phase, the factory will provide workplaces for around 700 people. When fully operational, the center's capacity will double.
