No Wonder Iran Remains Strong: It Turns Out to Have a 'Money Machine' Worth Thousands of Trillions

Tensions in the Iran war since early March have reignited long-standing questions. Where exactly does Iran obtain the funding to support its military and maintain the state’s existence? Unlike Israel, which openly receives aid from allies like the United States, Iran employs more secretive and complex methods. One answer was revealed in a 2013 Reuters investigative report. In that report, Iran’s Supreme Leader Ali Khamenei is said to lead a vast business network through an organisation called Setad (Execution of Imam Khomeini’s Order). The value of this business empire is estimated at US$95 billion, or about Rp1,530 trillion. Setad itself was established based on the will of the founder of the Islamic Republic of Iran, Ayatollah Khomeini, shortly before his death in 1989. Initially, the organisation aimed to manage properties, with the proceeds channelled to help the poor and war veterans. However, according to the Reuters report, this function changed over time. Under Khamenei’s leadership, Setad grew into a business giant with investments in various strategic sectors, from finance, oil, and telecommunications to the pharmaceutical industry and livestock farming. “In the last six years, Setad has transformed into a business giant that now holds investments in almost every sector of Iran’s industry,” Reuters wrote in its report. Setad’s uniqueness lies in its secretive operations and minimal oversight. An Iranian lawyer who later left the country, Naghi Mahmoudi, told Reuters that no institution can truly audit or question the organisation’s business activities. Although there is no direct evidence that Khamenei uses Setad for personal gain, Reuters notes that the organisation’s existence has strengthened the Supreme Leader’s position and power. Even US authorities once estimated the total wealth associated with him at up to US$200 billion, though this claim was denied by the Iranian government. From the Iranian government’s perspective, Setad remains positioned as an institution focused on public welfare. Iranian local media in 2014 even reported that about 90% of the organisation’s profits are allocated to social programmes. Regardless of debates about its transparency and ultimate purpose, Setad’s existence demonstrates how Iran has built a relatively independent domestic economic power source. In the context of conflicts like the Iran war, such an economic structure becomes one of the key foundations for the country’s resilience amid external pressures.