The state-backed Iran National Innovation Fund has lent 40 trillion rials ($161.29 million) to knowledge-based companies and startups in the current Iranian year (ending March 20).
According to Siavash Malekifar, INIF’s deputy for development, loans worth 500 billion rials ($2 million) were paid, based on the size of businesses, IRNA reported.
Malekifar added that since the novel coronavirus was reported in Iran in February 2020, the government has invested 2.5 trillion rials ($10 million) in companies with creative ideas to combat the deadly disease, in addition to extending loans.
“After a public call was issued for healthcare and medical equipment proposals, 62 tech initiatives were selected for funding. The plans included the indigenization of ventilators, oxygen generators, research kits, facemasks, antibacterial surgical gowns, sanitizers, CT scan machines and a variety of medications,” he said.
The official noted that innovative firms have made the country almost self-sufficient in the production of these items.
He said the technology and scientific community is currently working on the development of several Covid-19 vaccines and hopefully the project will be completed successfully.
After March 2020, the government has also increased funding to assist virus-affected knowledge-based businesses and startups.
“Over 5 trillion rials [$20.16 million] in low-interest loans have been allocated to save these tech units, which are mainly based in science and technology parks and innovation centers,” Malekifar said.
According to official statistics, currently over 5,700 knowledge-based companies and 10,000 technology units are operating across the country.
Banks Lend $780m to Tech Firms
Besides the INIF’s direct payments, 191 trillion rials ($770.16 million) have been paid to 763 startups and knowledge-based companies by local banks during the first nine months of the current fiscal year.
Based on the newest report by the Central Bank of Iran, the amount has increased by 128% compared with the same period of last year.
The data show Bank Saderat Iran has loaned 35.3 trillion rials ($143.14 million) during the period, which is the highest amount lent by domestic banks. Bank Mellat with 33.2 trillion rials ($133.87 million) and Bank Melli with 30.5 trillion rials ($123 million) followed.
The months ending Sept. 21 and Dec. 20, 2020, were the busiest periods for the banks, with 37.7 trillion rials ($152 million) and 30.1 trillion rials ($121.37 million) paid as loans respectively.
Banks paid the least amount, equal to 6.5 trillion rials ($26.2 million), in the first month of the current Iranian year that ended on April 19, 2020.
CBI chief Abdolnasser Hemmati earlier said that if the startups and knowledge-based companies receive enough support and attention, they will yield valuable results.
He added that state support for the tech units will continue in order to ensure their constant growth.
“The technology ecosystem is expanding and will soon claim a large share of the domestic economy,” he said.
Officials believe that tech firms’ revenues will ease the domestic economy’s dependence on oil incomes.
Extending support to new startups and technology firms has been on the government’s agenda since 2013, when President Hassan Rouhani began his first term in office.
Tech Earnings Crossed $4.6b
Officials believe that support for the technology ecosystem has already paid off, proving that efforts have been made in the right direction.
Mohammad Sadeq Khayyatian, an official with INIF, said earlier that the revenue of Iranian tech firms and knowledge-based companies has exceeded 1.2 quadrillion rials ($4.68 billion) in 10 months since the beginning of the current fiscal year (March 2020).
He noted that the income shows a 40% rise year-on-year and it is estimated to reach 1.5 quadrillion rials ($5.85 billion) by the current fiscal yearend (March 20).
Attributing the jump partly to the sudden outbreak of the novel coronavirus disease in February 2020, the INIF official said the technology ecosystem has boosted the production of health and medical products to ward off the virus.
“Surveys have shown that 1,418 knowledge-based companies in Iran are focused on information and communications technologies, 1,267 on machinery and equipment, and 1,111 on electrical and electronic products,” he added.
Khayyatian explained that the government’s next year support plan for the knowledge-based companies envisages tax and customs duty exemption, issuance of commercial license, social security fee cut, military service reduction and offering business empowerment consultations.
Boosting Export
The government is planning to help boost knowledge-based exports and make the domestic industries more self-sufficient.
INIF is working to realize the goal by designing a scheme that offers the tech firms four kinds of support, namely loans, warranties, investments and empowerment services.
Malekifar said firms with international trade can receive financial support, foreign leasing, loans for foreign customers and other services to expand their export target market.
“Offering grants worth 800 million rials [$3,120] to firms for attending foreign expos is one of the other services offered by the fund to help tech firms develop foreign business ties,” he said.
According to the official, export centers were established in China, Azerbaijan, India, Iraq and Kyrgyzstan last year, which turned out to have high capacity for introducing Iranian high-tech products to the target market.
“After opening tech hubs in Kenya late January and in Syria last week, officials are negotiating to open similar centers in Afghanistan, Qatar and Oman,” he added.
Malekifar said export centers provide tech firms with shared working space, the opportunity to employ local professionals for marketing, promotion of their products in small-scale exhibitions, market analysis and sales consultancy, while deploying commercial teams to introduce the firms and attract customers.
