onyx stone
18
Feb

Iran’s little share of stone in Persian Gulf

Iran’s insignificant market share in the Persian Gulf market(Iran stone Persian gulf)

It should be noted that, unfortunately, despite Iran’s expanding border with the Persian Gulf countries , low shipping costs to these countries, and most importantly  the potential for diversification and quality of its construction stones, have not had a significant share in the lucrative construction market of these countries.

The main obstacle to this neglect is the absence of trustees and the specific policies for the export of Iran’s decorative stones.

The Persian Gulf states, including the UAE with $ 345 billion, Qatar with $ 121 million and Kuwait with over $ 200 billion in investment, have focused their decision on building recreational, residential and infrastructure projects.

Iran, as the northern country of the Persian Gulf, with the least distance and having extensive mineral resources, can be the first supplier of building materials special building stones for these countries.

One of the most important materials that can compete in the Persian Gulf market for construction projects in terms of price, low shipping cost, as well as good quality and variety, is Iran’s decorative stones.

Marble, Persian marble, travertine and granite are among the decorative stones in which Iran is one of the best in the world in terms of variety and quality.

Although Iran enjoys a relative advantage over its ornamental and geopolitical potentials in comparison to other stone exporting countries to the Persian Gulf countries, unfortunately it is not well exporting positioned to compete with these countries including Turkey, India, China and Pakistan.

A close look at export statistics shows that in year 2015, Iran’s exports to the three main Persian Gulf countries amounted to about $ 6 million and Turkey’s exports were worth $ 80 million. In other words, the total export of a country like Turkey, which is far more costly than Iran, is about 13 times the share of Iran.

Name of country Turkey  $ Iran   $
UAE 48,965,721 3,764,757
Qatar 13,759,032 698,985
Kuwait 16,242,458 1,740,963
Total 78,967,211 6,204,705

Table 1- Comparison of Iran and Turkey’s Exports to the Persian Gulf Countries in Year 2015   (Source: LitosOnline.com)

Among the successful policies of the Turkish government in gaining a large market share in  Persian Gulf countries are the friendly political relations, the support of its exporters for the creation of exhibitions, commercial offices, advertising and marketing, which have been able to actively export their decorative  stones to these  Countries.

Given the clear perspective of Turkey’s active role, it can be said that in the next few years it will even acquire the small share of Iran.

Unlike Turkey, Iran stone industry does not have a specific custodian for its stone basin, and it has not formulated a clear prospect for export development and market exploitation by neighboring countries, especially the Arab Persian Gulf states.

The lack of a specific trustee for the country’s ornamental stone sector has led the domestic market to stagnate, and many foreign markets, such as neighboring countries and Iran’s strategic partners, have also dominated other countries.

To exploit the lucrative market of its southern neighbors, Iran stone industry must first of all draw a clear perspective and build on or build upon the institutions needed for the stone industry.

The policies outlined to penetrate the markets must be export-based. In other words, Iran can bring its ornamental stones to these countries and pass on the traditional trade that the buyer travels to Iran to buy his own stone.

Therefore, the policies should aim at facilitating exports, guaranteeing and facilitating money transfers, removing customs barriers and export tariffs, establishing permanent exhibitions, supporting marketing and establishing commercial offices in the Persian Gulf countries.

Therefore, if the stated policies are on the agenda of the Iranian government, Iran stone industry  can certainly regain and consolidate its lost position in a five-year plan, given its geopolitical potential and diversity of products.