Iranian Free Zones   FTZs

The concept of FTZs was launched by the Iranian government in 1993. Three areas, Chabahar, Kish, Qeshm were designed to:

• attract local and foreign capital with the potential, manpower and infrastructure of each zone,
• promote export and earn foreign currency from a deregulated economic environment
• secure access to latest technology
• create job opportunities for skilled manpower in the FTZ area
• act as a center for re-export of goods to landlocked countries in Central Asia

Iran’s Free Trade Zones (FTZs) are under direct supervision of the High Council of Iran Free Trade & Industrial Zones (IFTIZ), which is presided over by the President of the Islamic Republic of Iran and comprises among others 11 Ministers and the Governor of the Central Bank.

The High Council has delegated the administration of the FTZs to independent government owned companies, the Free Trade Zone Organizations that have been exempted from the general state laws and regulations.

In the beginning, the FTZs’ self funding nature has generally meant a lack of infrastructure and poor development. However, the FTZ authorities have managed to finance infrastructure projects through the lease/sale of land and income from hundreds of thousands of visitors to the FTZ's.

Recently, the Iranian government has stepped up efforts to increase the attractiveness of Iran's FTZs for foreign investors. In this context a law has been passed offering governmental guarantees against nationalization and expropriation for foreign investments in the FTZs. Furthermore, foreign banks and financial institutions are allowed to start operation in the FTZs.

Today the FTZs offer foreign investors attractive investment conditions and a safe environment to enter the Iranian and Central Asian market.