Iran as hub of technical and engineering services

Thanks to its army of skilled and specialized workforce, Iran has an advantage in technical and engineering services.

These services can include anything from consulting, planning, designing, and implementation of technical and engineering solutions to maintenance, repair, and troubleshooting of technical systems and equipment.

Iran’s prestigious universities and research centers train quality graduates who are capable of providing services in various fields such as oil and gas, renewable energy, civil engineering, petrochemical industries, and information technology.

Currently, 56,500 engineering companies certified by the Planning and Budget Organization of Iran are involved in the country’s construction industry with an employment base of about 2.6 million people. Two Iranian engineering companies are among the top 250 contractors in the world.

Exports of technical and engineering services today are one of the important contributors to the economic growth of industrial countries. They not only help to boost foreign exchange earnings, but also have widespread positive impacts on other economic and social aspects.

Given its geographical location, Iran is a de facto regional hub for providing technical and engineering services to neighboring countries. Access to the large markets of Central and West Asia provides Iran with unique economic and technical cooperation opportunities.

Iraq, Syria, Afghanistan, Tajikistan and Latin American countries are some of the places where Iranian companies have undertaken major technical and engineering tasks.

In April 2024, late President Ebrahim Raeisi oversaw the inauguration of a hydropower and irrigation project carried out by Iranian entities in Sri Lanka, saying the Islamic Republic has proven that the West doesn’t have a monopoly on technology.

The $529-million project included the design and construction of two concrete roller dams, a water transfer tunnel and a 120 MW power plant in Sri Lanka.

Uma Oya: Iran’s engineering milestone for internationality

The participation of companies supplying technical and engineering services in Iraq, Syria, Latin America and many other countries is a clear example of the growth of Iran

In October, Iran’s Water Research Institute beat European and Russian bidders to win the contract for the physical hydraulic modeling of the world’s second largest hydroelectric power plant in the Central Asian nation of Tajikistan.  

Also, Iranian companies undertook about $2 billion of projects in Iraq between 2009 and 2015, but according to the secretary of the Iranian Construction Companies Syndicate, they created as much as $5 billion of capacity. Mapna, a power and infrastructure group billed as the Iranian Siemens, has another $2 billion to its name in Iraq.

By providing technical and engineering services to international markets, countries can attract more financial resources, which help invest in domestic projects and develop infrastructure.

As export activities expand, the need for skilled labor increases. This leads to the creation of new job opportunities and a decrease in the unemployment rate. Also, hiring skilled labor improves the level of skills and technical knowledge in society, which in turn increases productivity and efficiency in other sectors.

The vocation also entails in technology transfer and innovation as cooperation with international companies and participation in global projects provides an opportunity to learn and transfer new technologies, ultimately helping promote domestic industry and increase competitiveness.

Given the growing need for new technologies and specialized technical services, Iran can step up its role in the regional and international markets by utilizing its capacities.

On Wednesday, Iran launched a pilot project for extracting and purifying helium from natural gas for the first time, with head of the Atomic Energy Organization of Iran (AEOI) Mohammad Eslami hailing it a “strategic step”.

Due to a stated lack of technology amid Western sanctions, Iran lost out on an opportunity to play a role in the helium business that opened up in 2017, when Saudi Arabia and the UAE cut off diplomatic relations with Qatar.

Iran sits on probably the third-largest helium reserves in the world. The substance is an inert gas used in scientific research, specialized welding equipment, leak detection, medical technology, high-tech manufacturing, space exploration and defense.

The recent developments in the region and the need to rebuild the infrastructure of some major countries also allows for Iran’s engagement.

It has already recorded annual technical and engineering exports of $4.2 billion. Officials say the country can raise this figure $6 billion without factoring the Eurasian markets in Azerbaijan, Armenia, Uzbekistan, Belarus, Tajikistan, Russia, Kyrgyzstan, and Kazakhstan.

Iran, they say, is on target to hit $20 billion in exports of technical and engineering services under a five-year plan.

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