Iran’s Seventh Five-Year Development Plan mandates that the share of the digital economy in GDP should rise to 10% by the end of the programme. Chapter 13 of the plan rests on two pillars: the full deployment of the National Information Network and the expansion of the digital economy. While the Ministry of Communications has its own obligations, the Economy Ministry has from the outset pursued policies to accelerate digital growth. Sattar Hashemi, the communications minister, has welcomed this emphasis, calling for continued synergy between government and private actors.

Digital economy as a global growth engine

Globally, the digital economy has become a driver of innovation and job creation. The OECD Digital Economy Outlook 2024 reports that ICT sectors in member states grew three times faster than overall economies between 2013 and 2023, recording an average growth of 7.6% in 2023. The World Bank likewise stresses that digitalisation fosters innovation and accelerates sustainable development, particularly through the creation of export-oriented IT industries.

Deregulation: lessons from Singapore and Estonia

Singapore’s Regulatory Sandbox, launched in 2016 by the Monetary Authority of Singapore, has supported more than 1,200 fintech firms, turning the city-state into a global hub. The framework allows companies to test products in real markets without full compliance with traditional rules, while safeguarding financial stability and consumer protection.

Estonia’s e-Residency programme, introduced in 2014, has attracted over 100,000 foreign firms and lifted the digital economy’s share of GDP to 12%. By removing bureaucratic barriers and focusing on digital identity and online services, Estonia has accelerated innovation and investment.

Government–private sector dialogue: South Korea and Britain

South Korea’s Digital New Deal, launched in 2020, mobilised $130bn in AI and 5G investment and doubled the number of start-ups. Britain’s Digital Strategy raised R&D spending to £20bn in 2024/25, boosting the value of its digital economy to £150bn. Both cases show that sustained collaboration between government and business helps resolve obstacles quickly and effectively.

Flexible capital markets: NASDAQ and ChiNext

Capital markets tailored to technology firms have proved vital. NASDAQ, founded in 1971, has listed more than 3,000 tech companies, with a market value reaching $25trn in 2024. China’s ChiNext, established in 2009 with lighter regulation, has attracted 1,200 emerging firms and achieved a market capitalisation of $1.8trn. Such platforms have accelerated digital firms’ growth by up to tenfold.

Outlook for Iran

International experience suggests that digitalisation can lift GDP shares by as much as eight percentage points, as in Estonia. Yet the OECD warns of gaps exceeding ten points between countries, making deregulation and investment critical to competitiveness.

For Iran, adopting these models could raise the digital economy’s share of GDP from the current 6.5% to double-digit levels. The Economy Ministry’s initiatives at Kish Invex 2025, combined with new deregulation measures and structured dialogue with the private sector, signal a serious attempt to align Iran with global digital transformation trends.