Iran Press/West Asia: Abdul-Nasser Hemmati stated today (Monday) at the ministerial roundtable of the 28th World Investment Agency (WIPA) in Riyadh: The global economy has been affected by numerous problems in recent years.
Hemmati added: Climate crises, geopolitical changes, severe fluctuations in the energy sector, and inequalities resulting from the emergence of new technologies such as artificial intelligence, blockchain, and the digital revolution are just some of these developments. According to World Bank data, global economic growth, which was usually less than 3.5 percent annually in the past decade, is now facing increasing uncertainties.
He said: “Unequal growth between emerging and advanced economies, increasing trade tensions, and slowing global supply chains have become key issues for all governments. But amid these challenges, unprecedented opportunities have also emerged.”
The Iranian Minister of Economy stated: “Sustainable development and a green economy with investment in renewable energy, increased willingness to invest in emerging markets and a focus on digital transformation have all created new areas for global growth and cooperation.”
Hemmati added: “With its rich natural, mineral, and energy resources, young and educated population, privileged geopolitical position, and extensive network of economic infrastructure, Iran’s economy has an extraordinary capacity to respond to these challenges and exploit these opportunities.”
He recalled that Iran, with 10 percent of the world's proven oil reserves and 15 percent of the world's natural gas reserves, as well as its connectivity position as a North-South and East-West corridor, can play a key role in strengthening global supply chains.
Hemmati said: For example, in the field of renewable energy alone, there is a very high potential for solar and wind power production in Iran, which can not only meet domestic needs but also lead to strengthening clean energy exports to regional countries.
The Minister of Economic Affairs and Finance emphasized that the Islamic Republic of Iran has continuously sought to create areas for cooperation by forming a national unity government at home and strengthening its position in foreign forums, including official membership in the Shanghai Cooperation Organization and the BRICS group, and close cooperation with the Eurasian Economic Union and cooperation with neighboring countries and the Persian Gulf.
Hemmati emphasized that Iran’s increased power in the new international order has allowed us to play an active role in areas such as combating climate change, technology transfer, and joint investments.
The negative impact of Iran’s sanctions on the entire region and the world
The Iranian Minister of Economy also emphasized that economic sanctions are not only harmful to Iran, but their political and economic damage has spread to the entire economy of the region and the world.
Hemmati added: In this context, the role of governments in optimizing the functioning of investment promotion organizations, trade promotion, and special economic zones is vital.
Hemmati said: Iran, with dozens of special economic and free trade-industrial zones, has been able to provide a suitable platform for attracting high-quality investments. These zones, with infrastructure facilities and access to regional markets, have the potential to increase domestic production and international exports.
Hemmati noted that the challenges of this paradigm shift include increasing competition to attract technological investments, the decline in the share of traditional industries in the global economy, and the need to quickly transition to green technologies. This is while developing countries face infrastructure challenges of skilled labor and investment to achieve this transformation.
The Iranian Minister of Economy stated: According to official data, the share of industry, mining, and oil and gas in Iran’s GDP is about 37 percent, and sectors such as petrochemicals, automotive, and biotechnology have high potential to attract foreign investment. Iran has also witnessed very high growth in the field of knowledge-based industries over the past decade, which indicates our ability to benefit from the Fourth Industrial Revolution.
Hemmati added: To exploit these capacities, industrial policies and investment promotion strategies must be aligned and complementary; the use of big data, digital transformation, and international cooperation will be key tools to achieve this goal.
At the end of his speech, the Iranian Minister of Economy stated: "I invite all colleagues and governments present to help build a more sustainable, just, and prosperous future for all countries by strengthening multilateral cooperation and sharing experiences." 204
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