Despite different waves of privatization and promotion of private enterprise since the early 2000s, Iran is still awaiting the consolidation of a strong and genuine private sector. So far, the so-called privatization program has mainly led to government assets being transferred to semi-state actors such as revolutionary, religious and military foundations as well as pension funds. This process has not generated any positive dynamism in the Iranian economy.

The semi-state sector has not been equipped to manage strategic entities such as power plants, refineries and petrochemical complexes, giving rise to a greater degree of mismanagement and corruption in...