Socio-political production of space in oil-based rentier states; Interpreting Tehran's urban spatial developments

Source abstract

Urban spatial transformations are often interpreted through neoliberal political economy, yet perspectives may overlook how neoliberal processes are institutionalized through context-specific conditions. The study argues that, alongside neoliberal forces, oil's political economy reshapes state -society relations and produces distinctive spatial transformations. In Tehran, an oil-based rentier metropolis, oil-related mechanisms generate spatial outcomes beyond neoliberal models. Adopting a Critical Realist (CR) approach, a theoretical model was developed through the qualitative content analysis of sources and refined through semi-structured expert interviews. The findings reveal three generative mechanisms: Institutionalized rent-seeking through top-down state -society relations; Capital concentration in real estate, making urban space an arena for rent extraction; and Unequal access to spatial rents, contributing to socio-spatial segregation and injustice. These mechanisms explain how oil revenues reshape urban governance, social relations, and space production in Tehran. The study offers a framework for localizing the political economy of space and understanding neoliberalism across institutions.