Why should foreign investors pay attention to Iran’s food and agriculture potential?

Pars Today – With its diverse climate, Iran offers significant investment potential in the food and agriculture sectors.

Boasting a varied climate, rich natural resources, a young workforce, and a large consumer market, Iran is considered one of the most promising countries in West Asia for food and agricultural industries. According to Pars Today, this sector not only plays a key role in ensuring Iran’s food security but also has high potential for exports, job creation, and attracting foreign investment.

Covering more than 1.6 million square kilometers, Iran experiences all four seasons and boasts a unique climatic diversity. This allows a wide range of agricultural products—such as pistachios, saffron, dates, apples, grapes, citrus fruits, and vegetables—to be cultivated across different regions of the country. Additionally, access to open waters like the Persian Gulf and the Gulf of Oman facilitates easy export of food products.

Domestic and regional market
With a population of over 85 million, Iran has a large and dynamic consumer market for food products. In addition, its proximity to 15 neighboring countries and strategic geopolitical location make Iran a bridge connecting Central Asia, West Asia, and Europe. Neighboring countries such as Iraq, Afghanistan, Pakistan, Russia, and the Persian Gulf states represent attractive target markets for the export of Iranian food products.

Investment opportunities
Foreign investors can explore various sectors within Iran’s food and agriculture industry, including:

• Development of modern greenhouses: Given the limited water resources, greenhouse farming offers a sustainable and profitable solution.
• Processing and packaging of agricultural products: Establishing processing units for producing concentrates, dried fruits, jams, tomato paste, sauces, and herbal extracts.

• Production of organic products: With growing global demand for healthy, chemical-free products, Iran has high potential for organic farming.
• Export of premium Iranian products: Such as saffron, pistachios, dates, honey, and medicinal herbs, which are already recognized in global markets.
• Development of cold chain and food logistics: Establishing cold storage facilities, distribution centers, and specialized transportation to maintain the quality of food products.

Government and legal support
In recent years, the Iranian government has worked to facilitate foreign investment by reforming laws and offering incentives. These supports include allowing full foreign ownership of companies in free trade zones, tax exemptions for investment in agriculture and processing industries, support for technology and knowledge transfer, and streamlined procedures for obtaining permits and registering companies.