According to allcitypopulation, Iran is located in the Middle East, and is bordered by Iraq, Turkey, Armenia, Azerbaijan, Turkmenistan, Afghanistan, and Pakistan. It has a total area of 1.648 million square kilometers and a population of 81 million people. Iran is a mountainous country with the Zagros Mountains running through it from west to east. The Alborz Mountains form the northern border of the country and the Dasht-e Kavir desert lies to its east. The Caspian Sea borders Iran to the north while the Persian Gulf and Gulf of Oman are located to its south. According to Petwithsupplies, the capital city of Iran is Tehran with a population of 8,700,000 (2016 census). Other major cities include Mashad with a population of 3 000 000 , Isfahan with a population of 2 100 000 , karaj with a population of 1 900 000 , Shiraz with a population of 1 700 000 , Tabriz with a population of 1 600 000 , Qom with a population of 1 200 000 , Ahwaz with a population of 1 200 000 (Census 2016).
Iran’s economy is largely dependent on oil exports which account for 80% of government revenues and 50% of GDP. Other major industries include petrochemicals, textiles, automotive, construction materials and food processing. Agriculture also plays an important role in Iran’s economy with wheat being one of its major crops along with barley, rice, vegetables and fruits. In recent years there has been an increase in foreign investment into Iran which has helped to boost economic growth in certain sectors such as automotive production. Despite this growth rate remains low due to economic sanctions imposed by Western countries on Iran over its nuclear program.
Foreign Trade of Iran
Iran is a major exporter of oil and gas, and its foreign trade is dominated by these two commodities. In 2018, oil and gas exports accounted for 80% of total exports. Iran also exports other petroleum products such as petrochemicals, fertilizers, and liquefied natural gas. The country has a vast agricultural sector which produces a wide range of products such as wheat, barley, rice, vegetables and fruits for export. Other major exports include carpets, textiles and automotive parts.
Iran imports mainly consumer goods such as foodstuffs (especially grains), textiles, electronics, machinery and transportation equipment. It also imports raw materials such as steel, aluminum ore and chemicals to be used in its manufacturing industry. China is the largest trading partner of Iran while Turkey is the second-largest source of imports in terms of value. Other major trading partners include Germany, United Arab Emirates (UAE), Italy and France.
In recent years the US has imposed economic sanctions on Iran which have had an significant impact on its foreign trade activities. These sanctions have significantly reduced Iran’s ability to access international banking services which has resulted in many countries reducing their economic ties with it as well as significantly reducing its export revenues. Despite this Iran continues to maintain trade relations with many countries around the world including China and India who remain some of its main trading partners despite the sanctions imposed by the US government.
Major Trading Partners of Iran
Iran has many major trading partners, with the most important being China, Turkey, Germany, United Arab Emirates (UAE), Italy and France.
China is Iran’s largest trading partner and has been for several years. In 2018, trade between the two countries was worth over $30 billion USD. China is a major importer of Iranian oil and gas as well as other commodities such as petrochemicals, carpets and textiles. China is also a major exporter of goods to Iran such as consumer goods, foodstuffs (especially grains), electronics, machinery and transportation equipment.
Turkey is the second-largest source of imports for Iran in terms of value. The two countries have had strong economic ties since the early 2000s and bilateral trade between them was worth almost $10 billion USD in 2018. Turkey imports mostly oil from Iran while it exports consumer goods such as foodstuffs (especially grains), textiles, electronics, machinery and transportation equipment to it.
Germany is another major trading partner of Iran with bilateral trade between them being worth over $8 billion USD in 2018. Germany mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering products to it.
The United Arab Emirates (UAE) is also an important trading partner of Iran with bilateral trade between them being worth over $7 billion USD in 2018. The UAE imports mostly oil from Iran while it exports consumer goods such as foodstuffs (especially grains), electronics, machinery and transportation equipment to it.
Italy is another important trading partner of Iran with bilateral trade between them being worth over $4 billion USD in 2018. Italy mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering products to it.
France is also an important trading partner of Iran with bilateral trade between them being worth over $2 billion USD in 2018. France mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering product to it. France is also a major exporter of consumer goods such as foodstuffs, electronics and machinery to Iran.
Major Imports and Exports of Iran
Iran is a major exporter of oil and gas, and it is the fourth largest producer of crude oil in the world. In 2018, Iran exported 2.1 million barrels of crude oil per day and its total exports of oil and gas were worth over $50 billion USD. Iran also exports petrochemical products such as polyethylene, polypropylene, methanol, urea and ammonia. It is the second-largest producer of petrochemicals in the world after Saudi Arabia. Other commodities that Iran exports include carpets, textiles, minerals (such as copper ore), fruits (such as dates) and leather goods.
In terms of imports, China is the largest source for Iran with bilateral trade between them being worth over $30 billion USD in 2018. China mainly imports oil from Iran while it exports consumer goods such as foodstuffs (especially grains), electronics, machinery and transportation equipment to it. Turkey is the second-largest source of imports for Iran with bilateral trade between them being worth almost $10 billion USD in 2018. Turkey imports mostly oil from Iran while it exports consumer goods such as foodstuffs (especially grains), textiles, electronics, machinery and transportation equipment to it.
Germany is another major trading partner of Iran with bilateral trade between them being worth over $8 billion USD in 2018. Germany mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering products to it. The United Arab Emirates (UAE) is also an important trading partner of Iran with bilateral trade between them being worth over $7 billion USD in 2018. The UAE imports mostly oil from Iran while it exports consumer goods such as foodstuffs (especially grains), electronics, machinery and transportation equipment to it. Italy is another important trading partner of Iran with bilateral trade between them being worth over $4 billion USD in 2018. Italy mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering products to it. France is also an important trading partner of Iran with bilateral trade between them being worth over $2 billion USD in 2018. France mainly imports oil from Iran while it exports industrial products such as machines, chemicals and engineering product to it along with consumer goods such as foodstuffs, electronics and machinery to it.
Other countries that import significant amounts of goods from or export significant amounts of goods to Iran include India ($3 billion USD), South Korea ($2 billion USD) Japan ($1 billion USD) Netherlands ($1 billion USD) Spain ($0.9 billion USD). These countries mainly import or export industrial products or consumer goods to or from Iran respectively.
Overall, Iran has strong economic ties with many countries across the globe, and its main imports are Oil & Gas, while its main Exports are Petrochemical Products, Carpets & Textiles, Minerals & Fruits along with Industrial Products & Consumer Goods.