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Country Guide 2026-04-13 • 11 min read

Complete guide to SETAD: Iran's government procurement portal

Everything vendors need to know about SETAD — Iran's electronic procurement and auction system. Registration, procurement methods, sanctions considerations, and how to navigate Iranian government contracts.

SETAD Iran electronic procurement system guide for vendors

What is SETAD?

SETAD (sometimes written as Setad-e Iran or referenced as the Electronic Government Procurement System) is Iran's centralised e-procurement platform, accessible at setadiran.ir. It is operated under the supervision of Iran's Management and Planning Organisation (MPO) and mandated by presidential decree for all government entities.

SETAD was established to bring transparency and efficiency to Iran's public procurement, replacing a largely paper-based and fragmented system. All government bodies, state-owned enterprises, and municipalities are required to publish procurement opportunities on SETAD above certain value thresholds.

What SETAD publishes:

  • Monaqese (tenders) — competitive bidding for goods, services, and construction works
  • Mozayede (auctions) — public auctions for government asset sales and surplus equipment
  • Estelam (price inquiries) — market price consultations and quotation requests
  • Monaghese-ye mahdud (limited tenders) — restricted competitions for pre-qualified suppliers
  • Kharid-e mostaqim (direct purchases) — single-source procurement published for transparency

Key fact

Iran's GDP is approximately USD 400 billion, with government procurement representing a significant share of economic activity. The state sector — including state-owned enterprises in oil, gas, petrochemicals, automotive, and mining — drives the majority of procurement spending, making SETAD one of the most consequential procurement portals in the Middle East.

Budget spending analysis

Iran's public procurement is dominated by state-owned enterprises and government ministries. The economy's reliance on the state sector means procurement spending is concentrated in a few key industries.

Energy & petrochemicals

~40%

Major share

Oil, gas, petrochemical plants, refineries, pipeline infrastructure

Infrastructure & construction

~30%

Growing

Roads, rail, dams, housing, urban development, free trade zones

Government & defence

~30%

Significant

Ministries, military, healthcare, education, IT modernisation

Top spending sectors

  • Oil & gas — NIOC (National Iranian Oil Company) and its subsidiaries are among the largest procurement spenders. Upstream exploration, refinery upgrades, and pipeline projects dominate.
  • Petrochemicals — NPC (National Petrochemical Company) manages massive expansion projects across multiple industrial zones.
  • Automotive — Iran Khodro and SAIPA, the two state-linked automakers, procure components, tooling, and factory equipment at scale.
  • Power & water — MAPNA Group and Tavanir manage power generation and grid infrastructure. Water projects are expanding across arid regions.
  • Transport infrastructure — rail electrification, metro expansion (Tehran, Mashhad, Isfahan), road construction, and port development.

Budget calendar

Iran's fiscal year runs from March 21 (Nowruz) to March 20:

  • December-February: National budget bill presented to the Majlis (parliament). Debates and amendments before Nowruz.
  • March-May (Farvardin-Ordibehesht): New fiscal year begins. Agencies receive allocations and begin procurement planning.
  • June-September: Peak procurement period. Major tenders published as agencies execute annual budgets.
  • January-March: Year-end push before Nowruz. Agencies commit remaining budget, often with shorter deadlines.

Iranian procurement thresholds and methods

Iran's procurement law (Law on Tenders, ratified 2004) defines procurement methods based on contract value and complexity:

Method Description Published on SETAD?
Open tender (Monaqese-ye omumi) Competitive bidding open to all qualified suppliers Yes
Limited tender (Monaqese-ye mahdud) Restricted to pre-qualified suppliers; specialised goods/services Yes
Single-source (Tarke tashrifat) Direct award; emergency or sole-supplier justification required Yes (for transparency)
Auction (Mozayede) Sale of government assets, surplus, or concessions Yes
Price inquiry (Estelam) Small-value purchases based on market price comparison Yes

The Law on Tenders requires open tendering as the default method. Limited tenders and single-source procurement require specific justification approved by the relevant tender committee (komite-ye monaqesat). For vendors, open tenders represent the largest and most accessible opportunity.

Who buys on SETAD?

Iran's public sector is vast, with state-owned enterprises playing a dominant economic role. Here are the most significant procurement buyers:

NIOC (National Iranian Oil Company)

Oil exploration, production, refinery upgrades, pipeline infrastructure

MAPNA Group

Power generation, oil & gas EPC, rail locomotives, renewable energy

Iran Khodro (IKCO)

Automotive manufacturing, components, tooling, factory equipment

Municipality of Tehran

Urban development, metro, roads, waste management, IT systems

NPC (National Petrochemical)

Petrochemical complexes, industrial equipment, catalysts, engineering

Tavanir

Power transmission and distribution, grid infrastructure, substations

Ministry of Roads & Urban Development

Highways, rail, housing, urban planning, airport infrastructure

IMIDRO

Mining, steel, aluminium, copper extraction, industrial development

How to register on SETAD

Registration on SETAD requires an Iranian business presence. The system is designed primarily for domestic suppliers, though foreign companies can participate through specific channels.

For Iranian companies:

  • National ID / company registration — Iranian companies register using their company registration number and national identity code of the legal representative.
  • Digital certificate — required for electronic bid submission. Issued by authorised Iranian certificate authorities.
  • Tax clearance — valid tax clearance certificate from the Iranian National Tax Administration.
  • Social security compliance — proof of compliance with Social Security Organisation (Tamin Ejtemaei) obligations.
  • Supplier classification — for construction and engineering, registration with the Management and Planning Organisation's contractor classification system is required.

For international companies: Foreign companies typically participate through Iranian-registered joint ventures, local agents, or representative offices. Direct registration on SETAD generally requires an Iranian legal entity. Some large-scale energy and infrastructure tenders issue separate international invitations.

Sanctions considerations for international vendors

International companies considering Iranian procurement must navigate a complex sanctions environment. This section provides general awareness — not legal advice.

  • US sanctions (OFAC) — comprehensive sanctions prohibit most US persons and companies from engaging in transactions with Iran. Secondary sanctions may affect non-US companies using US financial systems or technology.
  • EU sanctions — the EU maintains targeted sanctions on specific Iranian entities, sectors (nuclear, military), and individuals. Some procurement sectors are restricted even after JCPOA-related relief.
  • UN sanctions — UN Security Council resolutions impose restrictions on certain defence, nuclear, and ballistic missile-related procurement.
  • Due diligence — any international vendor must conduct thorough sanctions screening of the contracting entity, end-use, and payment channels before participating in Iranian procurement.
  • Non-sanctioned sectors — humanitarian goods (food, medicine), certain consumer goods, and some infrastructure sectors may have exemptions or general licenses, but specifics vary by jurisdiction and change frequently.

Important: Sanctions regimes evolve rapidly. Always consult qualified legal counsel specialising in trade sanctions before engaging with Iranian public procurement.

The language challenge

SETAD is entirely in Farsi (Persian). All tender notices, technical specifications, evaluation criteria, and contract documents are published in Farsi with right-to-left text layout. There is no English-language interface.

Key Farsi procurement terms you need to know:

Farsi (transliterated) English
MonaqeseTender / competitive bidding
MozayedeAuction
EstelamPrice inquiry / quotation request
PishnahadBid / proposal
PeymankariContracting / contractor
KargozarAgent / procuring entity
GharardadContract
Tamin konandeSupplier / vendor

Hook searches SETAD in plain English

Farsi-language procurement notices. Right-to-left interfaces. Complex bureaucratic terminology. SETAD's search assumes you read Persian fluently and understand Iran's procurement law. Hook removes the barrier — search in plain English, get structured results with contract values, deadlines, and procuring entities.

Join the waitlist →

How to search SETAD effectively

SETAD's native search is Farsi keyword-based. Effective searching requires understanding both the language and Iran's procurement categorisation system.

Tips for navigating SETAD:

  • Search by procuring entity to track specific organisations — NIOC tenders differ significantly from municipal procurement.
  • Filter by procurement type — separate monaqese (tenders) from mozayede (auctions) and estelam (price inquiries) to focus on relevant opportunities.
  • Monitor sector-specific tenders — oil & gas, petrochemicals, and construction have the highest volume and value.
  • Check tender results to understand historical award patterns, pricing benchmarks, and which suppliers win repeatedly.
  • Watch for pre-qualification notices — large infrastructure projects require pre-qualification rounds before the main tender. Missing the pre-qualification deadline means missing the project entirely.
  • Use SETAD's notification system — register for category-specific email alerts within the portal, though these are in Farsi only.

The core challenge is that SETAD is entirely in Farsi with no cross-language search. Hook solves this with semantic translation — you search in English, and Hook finds relevant Iranian tenders regardless of how the procuring entity wrote the notice in Persian.

Common questions about Iranian procurement

Can foreign companies participate in SETAD tenders?

In most cases, foreign companies need an Iranian-registered entity (subsidiary, joint venture, or authorised representative) to participate directly on SETAD. Some large international tenders in oil, gas, and infrastructure are issued separately with international terms. Sanctions compliance is a critical prerequisite.

What currency are SETAD tenders denominated in?

Most tenders are denominated in Iranian Rial (IRR). Some international tenders, particularly in oil and gas, may specify pricing in USD or EUR. Currency exchange and payment transfer complexities are a significant consideration for international vendors.

Is SETAD usage actually mandatory for all government entities?

Yes, by presidential decree. All government ministries, state-owned enterprises, municipalities, and public institutions are required to publish procurement on SETAD. In practice, compliance varies — some entities, particularly in defence and security, may use parallel procurement channels.

What are typical tender bond / guarantee requirements?

Iranian tenders typically require a bid bond (zemanat-e sherkat dar monaqese) of 5% of the estimated contract value, provided as a bank guarantee from an Iranian bank. Performance guarantees of 10% are standard for contract execution. These requirements can be a barrier for foreign suppliers.

How Hook helps with Iranian procurement

Hook is an AI-powered search tool that indexes SETAD procurement notices. Instead of navigating Farsi-language interfaces with right-to-left text, you ask Hook in plain English.

Example queries Hook understands:

  • "Show me oil and gas equipment tenders from NIOC subsidiaries"
  • "What construction contracts has Tehran municipality published this quarter?"
  • "Find petrochemical plant tenders from NPC above USD 5M"
  • "Which Iranian agencies are looking for IT infrastructure services?"

Hook returns structured results: tender reference, procuring entity, title (translated), estimated value, submission deadline, and procurement method — formatted for direct import into your pipeline. No Farsi language skills required.

Next: Read our guide to using Hook for Iranian procurement or explore more procurement guides.

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