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IRAN FINANCE MINISTRY HOPEFUL OF 8 PER CENT GROWTH THIS FISCAL YEAR

Iran's Minister of Economy and Finance says the government’s plan to hit an economic growth of eight percent over the next fiscal year is achievable.

As the 50th anniversary of Iran’s capital market was being celebrated in on Sunday, Finance minister, MassoudKarbasian, said: “We have two strategies of more capacity for capital market development and facilitation of attracting financial sources through capital market on agenda.”

Putting emphasis on the necessity of using micro investments in the capital market, Karbasian said: “We should expand people’s presence in the stock exchange market for more attraction of micro investments to the capital market.”

Addressing the same ceremony, the economy minister note that financing by the stock market registered a twelve-point increase over 11 years.

“While the financing capacity of the stock market was about$9.33billion in 2007, that figure last March reached $116 billion,” he said.

Later at the event, Head of Securities and Exchange Organization of Iran, Mr. ShapourMohammadi, elaborated on the stock market progress over half a century in Iran. Saying that in 1997, there were only 263 firms active in the stock market, he said the number has increased to 585 as of 2017.

Mr. Mohammadi also pointed to the development of the nascent bond market, saying its value has now reached $35.5 billion - a market whose beneficiaries include banks, companies and the government itself.

He further underlined that, “today benefitting from financial instruments rather than stocks is not a dream anymore.”

Mr. Mohammadi said “We have 585 bourse companies and nearly 600 financial entities at present and the number of trades at the stock market has risen.”

Iran's Capital Market in Spotlight

A notable point is that Iran has the oldest capital market in the region, established in 1968. Now with half a century of experience, Iran has a robust background in this area.  In comparison to other regional markets, the most significant advantage of Iran’s capital market is the presence of over 40 industries listed in the exchange.

Industries such as the automotive, telecommunications, agriculture, petrochemical, mining, steel iron, copper, banking and insurance, financial mediation and others trade shares at the stock market which makes it distinctive in the Middle East. The second advantage is that most of the state-owned firms are being transferred to the pubic under the general policies of article 44 in the Iranian constitution.

Release Date: 2/3/2018


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