Head of Iran Chamber of Commerce: Half of Non-Oil Export Statistics Are Oil Derivatives

The head of the Iran Chamber of Commerce states that 53% of the value of non-oil exports in the first 10 months of this year has been attributed to gas condensates, petrochemicals, and natural gas, indicating that more than half of non-oil exports depend on oil and gas derivatives. According to Fars News Agency, Gholamhossein Shafiei said on Sunday, February 12, during the eighth term representatives meeting of the Iran Chamber, that one of the vulnerable points of the Iranian economy is the lack of export diversification and reliance on oil and gas exports, stating, "With the slightest adversities, all key economic variables are affected." He also noted that the top 10 exported items from Iran show that these are low value-added goods. The head of the Iran Chamber of Commerce added that according to Article 10 of the announced resistance economy policies, which emphasize the export of goods and services in proportion to added value, policies should aim to strengthen high value-added non-oil exports. Mr. Shafiei called for a "production-centered approach in Iran," adding, "As long as the country's exports are not based on production, we will not have sustainable non-oil exports." Monthly statistics from the Trade Development Organization and Iran Customs show that more than half of Iran's exports are merely crude oil materials, and given the decline in oil prices over the past three years, these items, despite a significant increase in export volume, have also decreased in value. For instance, statistics from the Trade Development Organization indicate that Iran has had $35.27 billion in non-oil exports in the first 10 months of the current solar year, of which more than $6 billion was gas condensates, a type of ultra-light crude oil. On the other hand, exports of various raw gases such as propane, butane, gas liquids, bitumen, etc., during this period have also exceeded $5 billion. The export of petrochemical products has reached nearly 17 million tons, valued at approximately $7.4 billion. Despite a significant increase in the export of these crude oil materials, their value has decreased compared to last year. For example, the export of petrochemical products and various gases has seen a 35% increase in volume over the first 10 months of the year, but their value has remained stable. Additionally, gas condensate exports show an 85% increase in volume, but their value has only increased by 59%. Overall, Iran's total non-oil exports during this period have increased by 34% in volume but only slightly over 8% in value. The head of the Iran Chamber of Commerce pointed out that developing a roadmap in the form of an industrial development strategy is one of the secrets of success for countries that have followed the path of industrial development and growth, stating, "Without determining priorities, locations, and capacities in an economy, one cannot move towards industrial development and the growth of export-oriented production." Statistics for the first 10 months of the current year show that Iran's industrial product exports have only increased by 1% to $11.77 billion. In terms of volume, exports of these products have seen a 4% increase. During this period, Iran has also increased its exports of raw minerals by 55%, but its revenue has only increased by 46%. Agricultural product exports have also grown by 27% in volume, but only 1% in value.