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Oxygen and cotton production factories worth $4 million open in Herat 

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An oxygen producing company and a cotton manufacturing facility, totaling $4 million, have opened in Herat’s Industrial City. 

This comes after Islamic Emirate of Afghanistan (IEA) officials called for investors to open businesses in the country. 

Herat Chamber of Industries and Mines say in the past four months, 20% of the factories have resumed operations and the necessary facilities have been provided to them to deal with customs and transportation. Currently there are about 200 factories in the city.

Officials from the new oxygen plant say they can produce 1,000 cylinders of gas a day. 

“The conditions are ready for all investors inside and outside the country. Whenever they want to invest, now is the best time. Herat is ready and a very good platform for investment,” said Nooruddin Azizi, Acting Minister of Trade and Industry.

Hamidullah Khadem, head of the Herat Chamber of Industries and Mines, said: “Approximately $1.5 million is the value of the cotton factory and about $2.5 million has been invested by the oxygen production company, of which about four million dollars we are witnessing in the opening of these companies.”

However, factory owners have raised concerns about the amount of goods, similar to domestic products, that are imported into the country. 

Herat factory owners say this is a problem for them and that they are manufacturing goods which are still being imported. 

“We have a special program with neighboring countries on importing similar goods, but we will support our domestic production at any time,” said Azizi.

“Our production has improved and sales in the market have improved. At the moment, what has been done is that similar goods are being imported from neighboring countries,” said Ismail Sakhawat, a factory owner.

Meanwhile, a new industrial town covering an area of 5,000 acres is expected to be developed. The Ministry of Industry and Trade said the process of distributing lands to industrialists will begin next month.

Business

Dogharoun handles 60% of Iran’s exports to Afghanistan

Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.

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Mohammadreza Modoudi, CEO of the Dogharoon Free Zone, has criticized what he described as the neglect of Dogharoun’s potential, saying Iran ranks first among all countries in terms of exports of goods to Afghanistan.

He said 60 percent of this large volume of exports passes through the Dogharoun border crossing, adding that, despite this, the region’s significant potential has been overlooked.

Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.

He said it is time to take a realistic approach and transform Dogharoun from a transit route into a major hub for production, value-chain development and a driving force for international trade.

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EU and FAO launch €5m programme to strengthen Afghanistan’s agrifood sector

FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.

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The European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO) have launched a €5 million initiative to help Afghan farmers and agribusinesses access markets, improve incomes and withstand climate and economic shocks.

The programme will target vulnerable households, including returnees, internally displaced people and host communities, particularly in areas affected by food insecurity, climate risks and limited economic opportunities. Women and youth will be key beneficiaries.

Four one-stop service hubs will connect farmers and rural entrepreneurs with agricultural advice, specialised services, businesses and markets. Farmers will also gain access to FAO climate analysis and early-warning information to help them make timely production and marketing decisions.

The initiative will restore 2,000 hectares of degraded forests and rangelands and support 250 women- and community-led nurseries, combining environmental protection with new livelihood opportunities.

FAO will also provide matching grants and technical and business support to established agrifood and environmentally sustainable enterprises with growth potential. Participating businesses will contribute their own resources, helping expand processing, source from more local farmers and create rural jobs.

Nicola Bellomo, the EU’s new Chargé d’Affaires for Afghanistan, said the programme reflected the EU’s commitment to food security and economic empowerment.

“Afghanistan’s agricultural potential remains undervalued and constrained by the country’s extreme climate vulnerability,” Bellomo said, adding that the partnership would strengthen agricultural services, support agribusiness growth and promote nature-based solutions.

FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.

“When farmers can produce with confidence, businesses can grow and products can reach markets, agriculture becomes a powerful engine for recovery and resilience,” he said.

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UAE firm eyes investment in Salang’s second tunnel and pharmaceutical factories

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

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A United Arab Emirates-based company, HHM Global Industry Group, has expressed interest in investing in the construction of the second Salang Tunnel and establishing pharmaceutical factories in Afghanistan.

The issue was discussed at a regular meeting of the Inter-Ministerial Investment Committee, held on September 8, 2026, at the Marble Palace under the Economic Deputy Office of the Prime Minister’s Office.

The committee welcomed the company’s interest in investing in Afghanistan and assured its representatives that the relevant ministries and government agencies are prepared to provide comprehensive cooperation.

Following extensive discussions, company officials were asked to prepare detailed investment proposals for the construction of the second Salang Tunnel, pharmaceutical manufacturing facilities, as well as other potential investment projects.

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

If implemented, the proposed investments could contribute to the development of Afghanistan’s transport infrastructure and strengthen domestic pharmaceutical production.

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