Innovation Fund Backs Guarantees for Knowledge-Based Firms in Petchem Sector

Innovation Fund Backs Guarantees for Knowledge-Based Firms in Petchem Sector
(Wednesday, January 15, 2025) 13:09

TEHRAN (NIPNA) – The Innovation and Prosperity Fund will fully back financial guarantees for knowledge-based companies, reassuring organizations and enterprises to accept these assurances without concern, the Fund's president said on Wednesday.

Speaking at a strategic meeting with Persian Gulf Petrochemical Industries Company (PGPIC) and knowledge-based firms during the Iran Petrochem conference, Mohammad Sadegh Khayyatian highlighted the growth of innovation-driven industries in recent years.

“With the development of the knowledge-based culture and determination now present in the country, the landscape is vastly different from 12 years ago,” he said.

The conference, organized by PGPIC—the largest petrochemical holding in Iran—aims to foster connections between technology developers and industry stakeholders. Khayyatian expressed hope that buyers and contractors would capitalize on this opportunity to adopt advanced domestic products.

Encouraging Investment in Petrochemical Innovation

He noted global trends where major corporations invest in diversifying products and technologies in sectors like oil, gas, and petrochemicals, emphasizing that PGPIC’s investment arm has received board approval to pursue these ventures.

“The Innovation and Prosperity Fund stands ready for joint initiatives with such specialized investment entities to enhance value chains and meet strategic needs,” Khayyatian said.

He praised Iran's "Leap in Production" law, enacted in 2010 and expanded in 2022, for its role in fostering innovation and supporting technology demands.

“Article 11, which provides tax incentives for venture investments, marks a turning point,” Khayyatian stated. Investors with qualifying capital can benefit from tax exemptions through corporate venture funds.

Strengthening Domestic Production and Guarantees

Khayyatian underscored the importance of supporting the production of first-generation products by local firms, noting exemptions from public procurement formalities for pioneering products.

Despite initial resistance from some entities, Khayyatian urged organizations to accept the Innovation Fund-backed guarantees, reassuring them of the Fund’s accountability.

“Our motto is that financial concerns should be the least worry for knowledge-based companies,” he concluded, affirming the Fund's ongoing support for innovation in the petrochemical sector.

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