Iran’s petrochemical industry—one of the country’s most strategic economic pillars—is moving into a new phase of expansion, with officials emphasizing the crucial role of genuine private investment in sustaining long-term growth.
According to the National Petrochemical Company (NPC) website, the sector, which began its modern development in the 1970s and has since evolved into the largest non-oil exporter of Iran, currently accounts for billions in annual revenue and serves as a backbone for national industries ranging from plastics and pharmaceuticals to fertilizers and fuels. Yet despite its vast potential, the share of true private-sector involvement has remained modest.
Hassan Abbasszadeh, CEO of the NPC, announced on Wednesday that the industry places “special value on private sector participation” and considers real, broad-based public investment one of its central policy objectives. “We must make the path smoother for investors by removing obstacles and accelerating administrative processes,” he said, underscoring that efficiency and supportive regulation are essential to attracting new capital.
Providing an update on the development of projects, Abbasszadeh highlighted that the petrochemical sector delivered a 100% achievement rate for all targets set under the first year of Iran’s Seventh Development Plan.
Notably, 19 petrochemical projects had been scheduled for commissioning and feedstock allocation in the second year of the plan (2025–2026). Remarkably, nine of these projects were completed within the first six months, with several additional major complexes now in pre-commissioning phase and expected to start up before year-end (March 20, 2026).
Discussing the broader investment landscape, Abbasszadeh revealed that of the $92 billion invested in Iran’s petrochemical sector since its inception, only around 15% has come from the true private sector.
He noted that lengthy bureaucratic procedures remain one of the most significant barriers discouraging private investors, who lack the long-term patience and financial resilience of large institutional funds.
“The private sector needs faster decision-making and quicker obstacle-removal mechanisms,” he stressed. “Our priority is to attract real public and private capital, as emphasized by the oil minister. To do that, we must streamline processes and provide full support so that investment can flow where it is needed.”
