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A MoU Inked between KFZO and Sahm Ashena Brokerage Co. with Initial Capital of 1,000bn Tomans

April 26, 2020 - 16:6

 A Memorandum of Understanding (Mou) was inked between Kish Free Zone Organization (KFZO) and Sahm Ashena Financial Services [Brokerage] Company with the initial capital of 1,000 billion tomans.

Gholam-Hossein Mozaffari Chief Executive of Kish Free Zone Organization [KFZO] pointed to the current year’s motto of ‘surge in production’, named after by the Leader of the Islamic Revolution and added, “realizing the objectives of the ‘surge in production’ requires using financial resources of the country for the investment sector.”

Conclusion of a contract with Sahm Ashena Brokerage –Investment Company and investment of the company, amounting to 1,000 billion tomans, for spurring economy of Kish Free Zone Organization is of the salient achievement which should be taken into serious consideration.

This Memorandum of Understanding was inked in the presence of Gholam-Hossein Mozaffari CEO of Kish Free Zone Organization, managers and senior directors of the Organization as well as private sectors active on Kish Island as well as local media companions.

In the beginning, Mozaffari pointed to the suitable control of an outbreak of coronavirus, COVID-19, on Kish Island and added, “We should pass from the threats created following the outbreak of pandemic and these threats should be turned into opportunities.”

With the analysis of different units of the Organization, “we came to this conclusion that Financial Resources and Development Deputy Office is of the most important and key sectors of this complex, because, we are in a specific situations and opportunities should be used optimally.”

He pointed to the role of the private sector on Kish Island and added, “Sahm Ashena Brokerage Company has made a huge investment in the island and investment of the brokerage company should be used optimally for the economic prosperity of the zone.”

At the condition that the country is facing serious restrictions for using financial resources, internal and domestic resources should be taken into serious consideration, he said, adding, “we have witnessed that the country has faced a crisis when foreign financial resources have moved towards liquidity in the country.”

He pointed to the compilation of a framework for managing liquidities of domestic financial resources and added, “both criticism and encourage have always exited but what is necessary is the accurate use of existing capacities and the Capital Market in the free zone is an extraordinary and special opportunity.”

For this reason, “we held expert-level sessions over the past years in the field of financing,” he added.

These expert-level meetings produced positive results in such a way that Kish Free Zone Organization (KFZO) ended the last year without crisis, he said, adding, “in addition, the organization started the new year with proper budget.”

Kish Free Zone Organization (KFZO) should be leader, competent, capable, and progressive, and also it should establish good and fair relationships with the private sector, Mozaffari emphasized.

Elsewhere in his remarks, the chairman of the Board of Directors of KFZO pointed to the key role of private sector in containing and controlling COVID-19 on Kish Island and added, “salient activity of the private sector should be a role model for ‘Integrated Public and Private Sector Management’ and this integrated system should be implemented in other sectors of economy.”

Turning to the current year’s motto of ‘surge in production’ named after by the Leader of the Islamic Revolution, Mozaffari added, “selection of such a motto in the current year will instigate and motivate all industrial and production units in the country to take giant stride for materializing objectives.”

Construction of Specialized Pharmaceutical Industries Park on the Island is of the salient decision taken in this respect, he said, adding, “under such circumstances, suitable ways have been paved for medical and pharmaceutical firms to set up a branch of their company on the Island.”

Turning to the Innovation Center and Science-Technology Park on the Kish Island, he stated, “Kish Science and Technology Park will kick off its activity on the Island in the current year [started March 21, 2020].”

He pointed to the signing of a Memorandum of Understanding (MoU) inked between KFZO and Sahm Ashena Brokerage Company and added, “conclusion of an investment contract with this brokerage company is a turning point for the presence of private sector on Kish Island in the field of economic activity.”

He pointed to the launch of Housing Investment Fund on Kish Island in the next steps and added, “the ceiling of investment should be increased, so that private sector would be able to be empowered in other fields, no need to financial resources.”

This Fund i.e. Housing Investment Fund can be a good structure for the development of Kish Island in this field, Mozaffari emphasized.

Mozaffari also referred to the economic downturn and recession caused by the outbreak of pandemic and added, “needs of underprivileged and deprived people of the island settled at the unsparing support and cooperation of private sector in a way that private sector took giant stride in the field of meeting demands of needy people of this Island.”

In the end, CEO of Kish Free Zone Organization (KFZO) pointed to setting up funds with the fixed income entitled “FIX Income” using financial resources of people with guaranteed interst and profit and added, “these income resources can be invested for various projects on Kish Island and receiving 1,000 billion tomans sukuk [Islamic bonds and share] in various funds can meet the demand of investors of this island optimally.”

Ali Moghadaszadeh Deputy CEO of KFZO for Investment and Economic Affairs was the next speaker who pointed to the publishing 3,000 billion rials worth of rental sukuk bonds for the development of airport terminal at the first step. Using various tools of the Capital Market for financing various projects of the organization and strengthening the private sector using integrated financial resources will be implemented at the next steps.”

Negotiating with various financial groups at INNOVEX Kish Exhibition (Exhibition on Presenting Iran’s Investment Opportunities) was held to the conclusion of contract with Sahm Ashena Brokerage and Financial Services Company.

Statistics and reports of free zones of the country showed that there is very considerable difference in qualitative and quantitative measures in Kish Island as compared to other zones, he added.

Accelerating management of corona crisis complications caused setting up different headquarters in various industrial, investment, trade and hotel management fields.

All capabilities and capacities of the Organization on activation and development of the economic field led to the profitable and useful measures such as receiving 1,000 billion tomans of Letter of Credit [L/C] for those contractors.

Using capacity of banking capacity for granting facilities and loan to Kish investors and traders are of the other salient measures that can be as a role model in the country.

Nasser Akhoundi Deputy CEO of KFZO for Human Capital and Management Development Affairs was the next speaker who pointed to focusing on financing through the Capital Market in late last year in 1398 [ended March 20, 2020] and added, “financing and liquidity was the first step that taken in this regard.”

Turning to the growth of stock, unlike market of real estate and gold in the current situation, and necessity of transferring it to the Capital Market, he said, “with its perpetual presence along with the organization, private sector entitles officials to take drastic measures in solving problem of people.”

With enjoying 340 factories that are profitable, he reiterated, “Kish Island can embark on financing projects with its registration at the Capital Market.”

Shahriar Shahmiri CEO of Sahm Ashena Capital Market Brokerage Company pointed to the conclusion of a Memorandum of Understanding and added, “this MoU is a giant step towards development and taking advantage of all economic activists of the country from the services of the Capital Market.”

It should be noted that this Memorandum of Understanding was signed and sealed between KFZO and Sahm Ashena Brokerage Company at Kish International Conferences Center in the presence of Gholam-Hossein Mozaffari CEO of KFZO, Seyyed Mohammad Reza MAddah Adviser to CEO of KFZO and Deputy CEO for Management Affairs, Nasser Akhoundi Deputy CEO of KFZO for Management Development Affairs, Ali Moghadaszadeh Economic and Investment Deputy CEO of KFZO and senior managers of the Organization, Shahriar Shahmiri CEO of Sahm Ashena Brokerage Company as well as private sector activists.

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