Industry — Key Sector Highlights

• GDP contribution: 21.3% (2nd largest economic sector)
• Employment contribution: 33.7% of total employment
• Steel production: 30+ million tonnes annually
• Global ranking: 10th largest steel producer
• Regional ranking: 2nd largest petrochemical producer in Middle East
• Major industries: Petrochemicals, steel, automotive, pharmaceuticals
• Investment focus: Manufacturing, downstream industries, and industrial modernization

Sector Overview
Iran’s industrial sector represents one of the core pillars of the national economy and serves as a major engine of economic growth, employment, and industrial value creation. In the fiscal year ended March 2025, the sector accounted for approximately 21.3% of national GDP, making it the second-largest contributor to the economy. The sector also plays a central role in employment generation, with approximately 33.7% of total employment linked to industrial activities. Supported by strong human capital, extensive technical expertise, and access to abundant natural resources, Iran continues to strengthen its manufacturing capacity and industrial competitiveness.

Resource Base and Competitive Advantages
Iran possesses one of the largest and most diversified industrial bases in the Middle East and North Africa region. The country benefits from extensive industrial infrastructure across upstream, downstream, and knowledge-based industries, supported by access to energy resources and raw materials. Iran ranks among the world’s major industrial producers, including the Middle East’s second-largest petrochemical producer, the world’s 10th-largest steel producer, and the world’s 6th-largest cement producer. This strong industrial ecosystem provides a solid foundation for manufacturing expansion, export development, and industrial integration across multiple sectors.

Development Framework and Sector Modernization
Iran’s industrial sector continues to undergo modernization driven by technological upgrades, infrastructure development, and expansion of manufacturing capacity. Key industries—including petrochemicals, steel, automotive, pharmaceuticals, food processing, polymers, and cement—form the backbone of industrial production and export capacity. The petrochemical industry alone produces over 550 product types and accounts for a significant share of industrial exports, while steel production exceeded 30 million tonnes in 2025. Strategic initiatives focus on expanding production capacity, improving efficiency, enhancing product quality, and strengthening industrial value chains to support long-term sector growth.

Investment Environment and Strategic Position
Iran offers a favorable and scalable environment for industrial investment supported by a large domestic market, established industrial infrastructure, and access to regional and international markets. The country’s strategic geographic location enables efficient connectivity to major economic regions, including Central Asia, the Middle East, and Europe. Strong domestic production capabilities across key industrial sectors—including chemicals, steel, automotive, food processing, and pharmaceuticals—combined with expanding export markets, position Iran as a competitive regional manufacturing hub.

Iran Industry Sector Guide

World Steel Figures 2016

World Steel Demand

Investment Opportunities in Power Industry

Outlook for Iran Steel and DRI Consumption