Summary

Iran’s exports of engineering and technical services rose significantly in the Iranian year 1404 (March 2025–March 2026) compared with the previous year, despite sanctions and ongoing economic pressure, according to a senior trade official. Soharab Salimi, director general of the Trade Promotion Organization of Iran’s Office for Knowledge-Based Products and Engineering Services, said exports in the sector increased from $790 million in 1403 (March 2024–March 2025) to $1.8 billion in 1404. He said the strong performance reflects the structural advantages of service exports, which are less exposed to sanctions compared with traditional goods trade. “Engineering and technical service exports are based on knowledge, expertise and professional capacity, and are therefore less dependent on customs borders or transport routes,” Salimi said. He added that maritime, air and land restrictions have limited impact on this type of export, since services are delivered through expertise rather than physical shipments. Salimi described engineering services as one of the clearest examples of knowledge-based exports in Iran, allowing companies to operate in foreign markets without relying heavily on traditional logistics infrastructure. He said the sector’s expansion came despite difficult domestic conditions, adding that even under more severe pressures, growth would likely have continued due to the nature of service-based trade. Iran’s main export destinations for engineering and technical services include members of the Commonwealth of Independent States (CIS), such as Russia, Armenia, Belarus, Uzbekistan, Kazakhstan and Tajikistan, as well as regional markets Iraq and Oman. Looking ahead, Salimi said a $5 billion export target is achievable, provided key conditions are met, including stronger international banking relations and the restoration of normal financial channels such as SWIFT for cross-border transactions. He also pointed to financial and regulatory challenges facing some exporters, including banking-related debts. Resolving these issues, he said, would help further expand Iran’s engineering service exports in global markets.