The IRGC and Its Economic Empire
How Iran's Revolutionary Guards evolved from an ideological militia into a military, political, and economic superpower within the state.
From Revolutionary Militia to Parallel State
The Islamic Revolutionary Guard Corps (IRGC, or Sepah in Farsi) was created in April 1979 to protect the new Islamic Republic from internal enemies — the regular military was distrusted as a Shah-era institution. The IRGC was designed from the start as an ideological force loyal to the Supreme Leader personally, not to the state as an abstract institution.
The Iran-Iraq War (1980-1988) transformed the IRGC from a loosely organized militia into a battle-hardened military force. It fielded its own ground forces, navy, and air force — a parallel military alongside the regular army (Artesh). After the war, the IRGC was tasked with reconstruction, gaining control of major engineering and construction projects. This was the beginning of its economic expansion.
Today the IRGC is estimated to control between 20% and 40% of Iran's economy, depending on how indirect control through front companies and charitable foundations (bonyads) is measured. Its economic interests span construction, telecommunications, oil and gas, banking, import-export, and even the Tehran metro system.