Iran plans to establish five new free economic zones

7 September 2015 14:32 (UTC+04:00)

By Vusala Abbasova

The Iranian Government has decided to establish five new free economic zones (FEZ) in Jask, Bushehr, Mehrane, Ardabil, and Ince-Barun.

The new FEZs will serve to increase exports to neighboring countries, said Senior Presidential Advisor and Secretary of the Coordination Council of Free and Economic Zones of Iran Akbar Torkan in a report by the TASS News Agency.

Torkan also noted that the governmental decision on establishing the five new FEZs would help neutralize the effects of the recent external shocks and Western sanctions, said Torkan.

The location of the new FEZs has been deliberately chosen to be in the outskirts of the country, which will contribute to developing of relationships with neighboring countries.

The new economic zones will create favorable conditions for foreign investors, strengthening the further stability of the country.

The FEZ in Mehrane is intended for covering the Iraqi market, while the FEZ in Jask will become country's second oil export base in the Persian and Oman gulfs, said Torkan.

He also added that the FEZ in Ince-Barun, as one of the most important zones in the north of the county, will exploit the economic potential of this district, which arose after the opening of the railway linking Gorgan (administrative center of the Golestan province) with Turkmenistan and Kazakhstan.

The creation of the free and special economic zones is a priority of Iranian policy.

Currently, there are seven FEZs in Iran and one more is planned for the Mazandaran province, which would engage in oil and gas technologies. In addition, there are 16 Special Economic Zones (SEZs) in the country.

The FEZs make it possible to register a company with entirely financed by foreign capital, which will have a right of independent legal entity, as well as to create branches on the mainland of Iran.

The creation of businesses in the free economic zones is more favorable as there are no restrictions on foreign exchange transactions. It is also possible to freely import and export any amount in any currency.

Moreover, there are no duties and restrictions on the import and export of currency from the FEZ territory.

Therefore, the FEZs are extremely attractive to foreign capital, playing a significant role in attracting of foreign investment to Iran.

Each free economic zone in Iran has its own specialization, which provides additional benefits for foreign companies. If a company plans to invest in projects that are a priority for this FEZ, then this company will earn extra privileges.

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