Iran is Making Religion a Business: Here is How

Behind the Iranian government’s religious facade lies an intricate web of corruption, power plays, and exploitation. At its core, this system disguises financial and political machinations with sacred symbols, manipulating faith and reverence to tighten its grip on both the Iranian people and resources.

Among the most striking examples of this is Astan Quds Razavi (AQR), a large organization in Iran that was founded to manage and look after the Imam Reza Shrine in Mashhad, one of the holiest places in Islam, especially for Shia Muslims. Instead, AQR has grown into a financial powerhouse, profiting off its privileged status, while the Iranian population endures poverty and deprivation.

This article delves into AQR's transformation from a religious institution into a tool of control and wealth accumulation, highlighting the staggering misuse of its resources. Through a careful look at how political connections, tax exemptions, and unchecked economic power sustain AQR's monopoly, we’ll examine the broader implications for a country that claims allegiance to divine justice, yet systematically undermines it. 

How Four Elite Organizations Control Half of the Economy

The Iranian economy is dominated by a few key organizations that control a significant portion of the country's wealth and resources. Four of the most powerful entities are Astan Quds Razavi (AQR), the Executive Headquarters of Imam's Directive (EIKO), the Bonyad Mostazafan (Foundation of the Oppressed), and Khatam al-Anbiya Construction Headquarters, which is owned by the Islamic Revolutionary Guard Corps (IRGC). They are directly or indirectly under the supervision of Iran’s Supreme Leader, Ayatollah Ali Khamenei. They form the backbone of Iran’s economic power structure and are deeply embedded in the country's political apparatus. Together, they are said to control more than half of the Iranian economy. 

The wealth generated by these institutions serves multiple interconnected purposes, all reinforcing the power structure of the Iranian regime. These organizations function as the financial backbone for the Supreme Leader, enabling control over domestic policy, the support of loyalists, and the suppression of opposition through economic dominance.

Religious activities are another key focus, with institutions like AQR funding projects such as the maintenance and expansion of shrines, religious education, and propaganda aligned with the regime’s ideological goals. Military and strategic interests are also supported through this wealth, with Khatam al-Anbiya financing and bolstering the Islamic Revolutionary Guard Corps (IRGC), a powerful military and political organization in Iran. This funding it received from Khatam al-Anbiya allows the IRGC to sustain military operations both domestically and across the Middle East, where it supports allied regimes and militias, particularly in Syria, Iraq, and Lebanon. While foundations like Bonyad Mostazafan are intended to aid the impoverished, critics argue that a substantial portion of their wealth is redirected toward political and personal gains for the elite, leaving their stated mission of social welfare largely unfulfilled.

The History of Astan Quds Razavi: From a Religious Institution to a Financial Empire

Since its establishment after the Islamic Revolution in 1979, Astan Quds Razavi rapidly transformed from a small and limited institution to a massive financial and economic empire. Initially, its main responsibility was managing the shrine and tomb of Imam Ali Al-Reza and helping the needy through donations. However, it has now become one of the largest economic organizations in Iran and the Islamic world.

This economic expansion began in the 1980s and gradually extended into various fields, including agriculture, livestock, industry, oil and gas, and even automotive manufacturing. Another important aspect of Astan Quds Razavi’s economic activities is its vast ownership of real estate. More than half of the city of Mashhad's land is owned by Astan Quds, and the institution earns substantial profits from renting and selling these properties. In addition, Astan Quds owns endowments and properties in other provinces of Iran.

This extensive ownership has made Astan Quds one of the biggest players in Iran’s real estate market, significantly impacting the housing market in Mashhad and providing a considerable source of income for the institution. The monopoly AQR holds in the real estate sector, particularly in Mashhad, has driven up housing prices, making it increasingly difficult for ordinary citizens to afford property. This financial barrier has contributed to widespread public discontent, as the economic benefits of Astan Quds' ventures appear to serve only the elite.

In addition to real estate development, Astan Quds Razavi has benefited from its privileged status in the allocation of land and resources by the government. Its ties to the political elite have ensured that the institution continues to expand its holdings without facing significant opposition, allowing it to solidify its control over Mashhad and other regions. 

Ebrahim Raisi and the Misuse of Imam Ali Al-Reza’s Shrine

Ebrahim Raisi, former President of Iran, a prominent figure in the Islamic Republic who held the position of custodian of Astan Quds Razavi from February 2016 to April 2019, played a key role in increasing the economic and political influence of this institution. During his tenure, Raisi widely used Astan Quds' resources to advance his political ambitions, turning the institution into a tool for his electoral campaigns.

While Raisi has consistently positioned himself as a defender of the poor and a promoter of social justice, his tenure at Astan Quds tells a different story. The institution's resources were regularly exploited for political gain, with donations and public works being redirected toward building his personal political brand. These actions have severely damaged the credibility of AQR as a religious organization, revealing how deeply intertwined it has become with political machinations.

One of Raisi's controversial actions during his tenure was the widespread distribution of donations during election times. Using Astan Quds' financial resources, he distributed sacks of rice and flour in rural and impoverished areas, attempting to gain popular support for the elections. This act is seen as one of the clearest examples of political misuse of Astan Quds’ resources.

The distribution of these resources was not motivated by a genuine desire to help the poor, but was a calculated move to buy votes and influence public opinion. Many critics argue that such actions are a blatant misuse of religious donations and endowments meant to support the needy. Instead, these resources were used to further Raisi’s political ambitions, undermining the principles of charity and social welfare that Astan Quds Razavi was originally founded upon.

Establishment of an Independent Protection Unit

Another of Raisi’s actions was the establishment of an independent protection unit for Astan Quds. Believing that Astan Quds’ endowed properties needed special protection, he created a private security force for the institution. This move essentially created a private military force for Astan Quds, increasing its autonomy.

The creation of this security force has set off alarm bells, with critics warning that it marks a dangerous escalation in the militarization of Iran’s already powerful economic and religious institutions. By handing Astan Quds Razavi (AQR) its own security apparatus, Ebrahim Raisi has effectively transformed the institution into a semi-autonomous fortress, capable of wielding force and defending its vast financial empire with zero government oversight.

This brazen move has intensified fears of unchecked power, fueling concerns that AQR will now have even more freedom to protect its interests, further blurring the already murky lines between Iran’s religious, economic, and military realms. 

Financial Corruption in Astan Quds Razavi: The Tire Case and an $22 Million Embezzlement

One of the most significant cases of financial corruption involving Astan Quds Razavi occurred in 2019, linked to the import of tires. Astan Quds Razavi, through its supply chain management subsidiary, was allocated $80 million in government foreign exchange for the import of 200,000 tires. However, due to mismanagement and potential corrupt practices, only part of this amount was actually used for the intended purpose, with $22 million of the funds unaccounted for.

This scandal lays bare the glaring absence of transparency and accountability within one of Iran’s most powerful institutions. Despite the blatant mismanagement of public funds, those at the helm of Astan Quds Razavi (AQR) have faced little more than a slap on the wrist. The tire scandal is yet another damning example of how AQR, bolstered by its vast political connections, operates with total impunity. Instead of facing consequences, AQR has thrived, exploiting its privileged position for financial gain. It’s no wonder that public perception is shifting—this institution, once revered for its religious mission, is increasingly seen as a profit-hungry giant, more interested in expanding its wealth than serving its spiritual purpose.

Key figures involved in this case managed to evade prosecution through political connections. Despite failing to fulfill the contract for the tire imports, with only part of the order arriving, those responsible have avoided serious consequences—just another instance of the elite shielding their own. Worse still, many of the individuals implicated in the mismanagement have since been elevated to powerful government roles, a brazen reminder of the incestuous relationship between financial corruption and political power in the Islamic Republic. This pattern of promoting individuals involved in financial scandals to higher government positions suggests a system deeply embedded in corruption and nepotism.

The Impact of $22 Million: What Could Have Been Achieved

With an exchange rate of 62,000 tomans per US dollar as of October 2024, the minimum wage in Iran remains approximately 9,500,000 tomans, or around $153 per month. The theft of $22 million is roughly equivalent to the monthly wages of 144,000 Iranian workers. Beyond this comparison, $22 million could have had a transformative impact on critical social and development projects across Iran, especially amid the country's economic challenges and high inflation. This amount could have funded the construction of around 40 to 110 schools in rural areas, providing education to thousands of children. In terms of housing, the stolen funds could have financed approximately 450 to 730 housing units, offering homes to families in need. This money could have covered healthcare costs for 100,000 to 200,000 people or significantly expanded medical facilities for underprivileged communities. In rural areas facing water scarcity, $22 million could have funded about 1,100 to 2,200 projects, bringing clean water access to hundreds of thousands. With the cost of feeding a family of four for a month at approximately $200–$300, this amount could have provided basic food supplies for around 75,000 to 110,000 families or supported food banks and soup kitchens to aid hundreds of thousands facing food insecurity.

The contrast is nothing short of staggering. The misused funds, funneled through corrupt deals and backdoor channels, represent far more than just financial mismanagement—they are a direct affront to Iran’s most vulnerable. This is not just about lost money—it's about lost opportunities to address the urgent, critical needs of a population in crisis. It’s a moral and economic failure on a massive scale.

The Role of Tax Exemptions in Facilitating Corruption 

One of the main factors contributing to widespread corruption in Astan Quds Razavi is the institution’s tax exemption. Astan Quds, citing orders from the leadership of the Islamic Republic, is exempt from paying any taxes. This exemption is applied despite the institution benefiting from government resources and preferential currency and earning enormous profits from its economic and commercial activities.

The tax exemption enjoyed by Astan Quds Razavi has long been a lightning rod for public outrage, and rightfully so. Critics across the board, from economists to ordinary citizens, have repeatedly slammed the institution’s privileged status, arguing that its refusal to pay taxes is bleeding the government dry while piling financial strain onto the backs of other sectors. The institution's preferential treatment creates an uneven playing field, allowing AQR to dominate the economy while ordinary businesses and citizens are forced to bear the tax burden.

During his presidency, Ebrahim Raisi significantly increased taxes on workers, employees, and businesses to address the government's budget deficit. However, he did not advocate for imposing taxes on Astan Quds Razavi. Yet, in a glaring contradiction, Raisi made no move to impose taxes on AQR, an entity swimming in wealth. Despite its significant financial advantages, Raisi defended AQR’s tax-free status by claiming that the institution was “helping the poor” to the tune of ten times what it would have contributed in taxes—a defense that critics tore apart as a hollow excuse to maintain the status quo. Raisi further justified his stance by stating, "They don't tax people's donations" and condemned those questioning the institution's tax-exempt status, stating in a speech at Mashhad University, "God forbids those who created the doubt of the Astan Quds tax in their minds."

Conclusion: A Drop in the Ocean of Corruption

The case of Astan Quds Razavi (AQR) is a stark example of how deeply financial corruption is ingrained within the Iranian government. The institution’s misuse of its religious status, tax exemptions, and privileged access to state resources has allowed it to amass vast wealth at the expense of the Iranian people. From diverting funds intended for social welfare to political campaigns, to the embezzlement of millions of dollars through corrupt deals like the tire import scandal, AQR’s actions highlight a disturbing pattern of financial abuse and impunity. The $22 million that disappeared in the tire case represents just a fraction of the larger issue, but its impact is significant. The funds could have been used to build schools, provide housing, improve healthcare, or feed thousands of hungry families in Iran. Instead, they have been funneled into the pockets of those who exploit their political connections for personal gain.

This financial abuse, however, is only part of a broader systemic problem within the regime. In the Gospel of the Riser of the Family of Muhammad, titled Goal of the Wise, Aba Al-Sadiq condemns the Iranian government as an Anti-Divine Just State. In Chapter 33, it states:

"The terror that Iran spreads upon its own people and around the world in the name of God and the Holy Household (Ahlul-Bayt) makes it illegitimate... they have not provided solutions for humanity’s needs and problems. These states are notorious for discriminating against those outside their faith. They are Anti-Divine Just States." 

This denunciation highlights not only the government’s corruption, but also its failure to uphold the values of justice and equity; exploiting religious symbols for political control and global manipulation.

However, this example is just a drop in the ocean of financial corruption that plagues Iran’s governing institutions. AQR, alongside other powerful entities like the IRGC’s Khatam al-Anbiya and the Bonyad Mostazafan, forms part of an intricate network of wealth and power that sustains the regime. The Iranian people, who bear the brunt of these corrupt practices, are left with a system that prioritizes the enrichment of the elite over the well-being of its citizens. Until these corrupt structures are dismantled and real reforms are implemented, the promises of justice and fairness will remain hollow, and the regime’s grip on power will continue to tighten at the cost of the nation’s future.