Privatization Drive Continues: Saipa’s Transfer to Private Sector Enters Final Phase with Strategic Delay
In a significant development within Iran’s broader economic agenda, the planned privatization of the major automaker Saipa has been formally extended. The High Council for Privatization has rescheduled the final transfer of the company’s shares to the private sector, setting a new deadline for the end of the current Iranian calendar year in March 2025.
A Strategic Pause for Reform
Initially, officials had projected that the transfer of Saipa’s shares would be completed within the first six months of the current year. Zahra Alipour, Head of the Privatization Organization, had recently stated that the final step would be taken by early September. However, in a meeting chaired by Minister of Economy Ali Madanizadeh, the council approved a strategic six-month delay to allow for essential preparatory measures.
The Ministry of Economy clarified that the postponement, lasting until the first of Esfand (February 19, 2025), was granted following a formal request from the Ministry of Industry, Mine, and Trade. This extension provides the company with a crucial window to implement a comprehensive reform plan, optimize its operational capabilities, and fully prepare for a successful transition to private ownership.
Ensuring a Stable and Successful Transfer
The decision underscores a deliberate and meticulous approach by policymakers to ensure the long-term viability of such a pivotal industrial asset. Reports suggest that the delay will also allow for the resolution of several key structural and regulatory matters. These include clarifying the status of block shares, finalizing frameworks for pricing mechanisms, and precisely defining the future role of government oversight.
This careful calibration aims to avoid challenges witnessed in previous privatizations, ensuring that Saipa is on a stable footing before the handover is finalized. The move reflects a principled policy to strengthen domestic industries through managed economic reform, aligning with the nation’s resilient economy objectives.
