What role does Tehran play in Iran’s economy?

Tehran serves as the primary economic center of Iran. Its economy is heavily influenced by the oil industry, which is managed from the capital by the national government and accounts for the vast majority of the country's foreign exchange income.12

The city’s workforce is largely concentrated in the service sector, which employs nearly two-thirds of the population, including roles in retail, security, and social services. Manufacturing also plays a significant role, with Tehran housing approximately one-fifth of the nation's firms, focusing on industries such as metal machinery, chemicals, textiles, and basic metals. Additionally, Tehran acts as the largest domestic market for agricultural and manufactured goods produced throughout the country.34

Historically, the city has maintained a substantial public sector, with a large portion of the population dependent on government employment and public-sector resources. While the economy has faced challenges such as inflation and shifting labor trends, Tehran remains the central hub for Iran's financial and industrial activities.13