The agricultural sector has an important place in the Iranian economy, accounting for about 15% of GDP, 25% of employment, 92% of food needs, 20% of non-oil exports and 90% of raw materials needed by the country’s conversion industries. This sector has a minimum degree of state-dependency; and 98% of agricultural works are done by producers themselves.
Different cities in the province of Tehran have a very good potential for foreign investment in all sectors of agriculture, gardening, breeding of livestock and aquaculture, especially in the greenhouse and conversion industries. According to FAO statistics, in 2013, Iran is the third largest producer of fresh fruits in the world, after India and Vietnam, in terms of weight and forth in terms of value, after India, Vietnam and China. Therefore, a unique position is considered for Tehran Province in this regard.
Using the modern irrigation methods, guiding the crop pattern towards products with lower water expectations, controlling surface water and choosing the right time for crop production, as well as using recycled water resources are among the things considered by the provincial policy makers in the agricultural sector, which could provide suitable alternatives for foreign investors. Regarding non-agricultural sectors, the statistics of 2015 on livestock, poultry, and aquaculture products in the country show that Tehran province Tehran has the country’s first rank in milk and egg production and seventh rank in the production of red meat, indicating the capacity and potential of Tehran province for the investment in this field. In general, the strengths and opportunities available in the province of Tehran for agriculture can be summarized as follows:
Easy access to Imam Khomeini International Airport, Mehrabad Airport (for domestic flights), and Payam Airport (for transit and the shipment of low-weight goods with high prices, as well as high-priced and perishable products).
The proximity of Tehran’s fruit and vegetables central market as the most important center for supplying and exchanging fruits and vegetables in the country.
Access of 13 million population of Tehran province and 80 million population of the entire country to the domestic target market
Construction and commissioning of export terminals for greenhouse vegetables and cucurbits ornamental plants
The proximity of Western, Shahriyar and Imam Airport Customs for the clearance of export and import cargoes
The existence of several prestigious universities and agricultural research institutes (campuses) in the province
Young and educated workforce in different fields under agricultural sectors
Advanced infrastructure of telecommunication, energy and transportation, and especially infrastructure for water transportation in provincial cities, especially in agricultural areas
Hundred percent and permanent agricultural exemption from income tax payment
Exemption of unprocessed agricultural goods from payment of value added tax