Business Monitor International


Iran Infrastructure Report

Published 17 February 2014

  • 82 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Iran Infrastructure Report

BMI View: Our outlook for the Iranian construction industry in the short- to medium is turning more optimistic. Although we estimate there was a contraction of 1% in real terms in 2013, we forecast the industry to grow by 1% in 2014 and by an average of 3.8% over the next five years. Our more positive outlook is based on reduced economic sanctions from the West with regards to Iran's nuclear programme, low base effects, and a high demand for infrastructure projects. There are, however, high risks associated with the country's challenging macroeconomic picture and its weak business environment.

The Islamic Republic remains a country of pronounced risks, including political instability, economic challenges and social tensions, and we believe the current situation is unsustainable in the long term. Despite a spike in oil prices, the latest wave of US energy sanctions and the EU oil embargo have taken its toll on Iranian oil production and consequently the economy at large. With the oil and gas industry accounting for an estimated 70% of the country's total exports, the government will be forced to cut public spending further.

Key developments in the industry:

  • In January 2014, Iran and the so-called P5+1 countries - China, France, Russia, the UK and the US plus Germany - reached an understanding on the implementation of a deal reached in November 2013. The accord starts a six-month timetable to reach a final agreement on the nuclear programme. Although the signing of the interim accord is a positive step in negotiations that could help attract foreign investment for infrastructure projects, significant challenges remain.

  • The Central Bank undertook a de facto devaluation of the rial in July 2013 from IRR12,260/US$ to IRR24,779/US$. This will have an adverse effect on the availability and cost of imported capital goods, exerting yet more pressure on construction company profit margins.

  • In the residential sector, the current administration led by President...

Table of Contents

BMI Industry View
7
SWOT
9
Infrastructure SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Table: Iran Construction And Infrastructure Industry Data
11
Table: Iran Construction And Infrastructure Industry Data
12
Key Trends And Developments In The Industry
14
Transport Infrastructure - Outlook And Overview
17
Major Projects Table - Transport
21
Table: Major Projects Table - Transport
21
Energy And Utilities Infrastructure - Outlook And Overview
25
Major Projects Table - Energy & Utilities
29
Table: Major Projects Table - Energy And Utilities
29
Residential/Non-Residential Building - Outlook And Overview
33
Industry Risk Reward Ratings
36
Iran - Infrastructure Risk/Reward Ratings
36
Rewards
36
Risks
37
MENA - Infrastructure Risk/Reward Ratings
38
Table: MENA Infrastructure Risk / Reward Ratings
42
Market Overview
43
Competitive Landscape
43
Table: Iran EQS Data
44
Company Profile
45
Iran Power Plant Projects Management Co
45
Global Infrastructure Overview
48
Africa In 2014: PPPs Cement Global Appeal
48
Asia-Pacific In 2014: Shaping Up To Be A Benign Year
53
Latin America In 2014: A Prosperous Year For Infrastructure Development
60
MENA In 2014: Reaping Rewards Despite Risks
63
North America And Europe In 2014: Turning A Corner
68
Methodology
75
Industry Forecast Methodology
75
Sector-Specific Methodology
76
Risk/Reward Rating Methodology
80
Sector-Specific Methodology
81
Table: Infrastructure Risk/Reward Rating Indicators
81
Table: Weighting Of Indicators
82

The Iran Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Iran Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Iranian infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Iran to test other views - a key input for successful budgetary and planning in the Iranian infrastructure market.
  • Target business opportunities and risks in the Iranian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Iran.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Ratings

BMI's Infrastructure Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc