Tehran’s 21% Share in Total GDP of Iran
The mayor of Tehran emphasized on the necessity of tourism
development in Tehran with due regard to ecotourism and historical
features and health service capacities.
Mohammad Ali Najafi, the Mayor of Tehran, addressing the Third Meeting of
the OECD Champion Mayors for Inclusive Growth in Seoul, South Korea (Oct.
19), praised the initiative of the Organization of Economic Cooperation and
Development and other partners in organizing the meeting and expounded on
urban strategies for realization of inclusive growth in Tehran.
Stating that the economy of Iran is developing but it is not a comprehensive
economy, he said more than half of the growth was in the oil sector and its
effects on job creation and reducing inequalities have not been favorable.
“Hence, we need more inclusive growth in Iran, and the government should
boost the non-oil sector by preparing the playing ground for the existing
and new businesses, as well as improving the business environment and the
efficiency of the labor market.”
Referring to Tehran’s important role in Iran’s attainment of inclusive
growth, he pointed out that in 2016, Tehran generated $101 billion,
equivalent to 21 percent of Iran’s gross domestic product. In addition,
Tehran still accounts for half of the industry’s manufacturing sector in
2016 and is considered the trade capital of Iran.
Najafi highlighted Tehran Municipality’s potential for realization of
inclusive growth and noted: “There is a vast ICT infrastructure in the urban
management system which provides for smartification of the city of Tehran
and development of new businesses based on new technologies, especially ICT
through the production and sale of existing and available Big Data at the
Referring to tourism capabilities in the capital city, he pointed out: “The
numerous tourism attractions and potentials in Tehran have created the space
for development of tourism as a job creating and forex earning industry, and
is considered one of the urban potentials for realization of inclusive
The mayor of Tehran pointed to the existence of a large number of
educational and research centers based in Tehran’s metropolitan area and
said these centers enjoy internationally recognized ranking and can serve as
the driving force for the provision of educational and research services to
the region and the world. There are also numerous quality and creditable
centers offering health and medical services in Tehran.
Najafi emphasized that Tehran, as a major regional economy and a model of
successful economic experiences for other cities, plays an important role in
implementing economic policies, including inclusive growth.
He continued his speech by outlining some of Tehran Municipality’s strategic
priorities for enhancing inclusive growth and said: “The development of
knowledge-based economy, with particular emphasis on the role of information
and communication technology through utilization of hardware and software
available at Tehran Urban Management System is considered one of the
priorities in this field. In addition, the production, distribution and sale
of Big Data available in Tehran’s technology infrastructure to generate
revenue and create new economic opportunities for ICT-based businesses are
of great importance.
The mayor of Tehran emphasized on the necessity of tourism development in
Tehran with due regard to ecotourism and historical features and health
service capacities. He said: It is necessary to move towards creation of
inclusive employment through the management and optimal economic operation
of the valuable city heritage. It is also inevitable to stimulate economic
growth, reduce inequality, and also benefit the lower classes of society
from the advantages of economic growth.
He cited the development of modern technology based businesses aimed at
economic prosperity coupled with inclusive employment as one of the
priorities, and said: “Participatory planning should take the place of
top-down planning with active presence of all urban stakeholders because
inclusive growth requires a broad participation in decision making and
Najafi also mentioned the attraction of foreign investments and the
financing of hundreds of attractive economic projects with the participation
of foreign investors as another priority.
In the end, Najafi stated: “Although the Tehran Municipality will fully use
all its tools and powers, the participation of the central government and
other organizations that may have the potential to affect inclusive growth
as a complementary strategy is on the agenda.”
Mayors from around the world gathered in the South Korean capital to
champion the cause of developing inclusive solutions in the fight against
climate change. The mayor of Tehran also joined the forum, and met with
Seoul’s mayor to sign a memorandum of understanding for future cooperation.