TEHRAN - Iranian President Masoud Pezeshkian on Monday launched a national smart transformation initiative for the country’s free trade and special economic zones, unveiling three digital platforms aimed at boosting transparency, efficiency, and tourism.

The project, announced on the sidelines of a meeting of the Free Trade, Industrial and Special Economic Zones High Council, includes a digital tourist card system to facilitate purchases by foreign visitors, an online platform offering hotel and restaurant discounts, and a cargo management system for real-time truck scheduling and shipment tracking.

Developed in collaboration with domestic tech firms and knowledge-based companies, the project is part of a broader strategy to transform Iran’s free zones into next-generation digital economic hubs.

Officials say the initiative is expected to streamline service delivery, enhance governance, and reduce the impact of sanctions through increased digital resilience.

Over time, the system will integrate additional service chains, potentially reshaping the role of free zones in Iran’s economic governance model.

The government says the project also supports improved transparency, better resource management, and a more agile administrative framework aligned with the strategic goals of the Free Zones Council.

The secretary of Free and Special Economic Zones High Council has recently said that during the 12 days of the imposed war, 118,000 tons of basic commodities were cleared from seven free zones, which was aimed at meeting the country's needs.

Reza Masrour announced the important measures taken in the country's free zones in recent months and said: "One of the main priorities in these zones was to accelerate the clearance of essential goods, which was successfully carried out."

In line with this goal, detailed planning was carried out in all free zones, and as a result, during the 12 days of the imposed war, approximately 118,000 tons of basic goods were cleared from the country's seven free zones, the official reiterated, adding that of course, if demand increases from new zones, this figure will increase significantly.

The secretary of the Free and Special Economic Zones High Council has said that Iran is set to implement a major restructuring of its free trade zones in a bid to revive their role in regional commerce and national economic development.

Masrour said that although the zones were designed to drive trade, investment, and transit, they have fallen short of expectations in recent years.

He announced the beginning of a reengineering process, backed by the Ministry of Economic Affairs and Finance, to redefine the function and governance of these areas.

The transformation plan focuses on deep legal, institutional, and infrastructural reforms, alongside new policies to turn the zones into export-oriented hubs.

Each zone will align its activities with its own strengths, such as transit logistics, tourism, downstream industries, or advanced technologies, he added.

Authorities also aim to transition the zones into what officials describe as “seventh-generation” areas—drawing on modern international development models.

Three key documents are being drafted to guide this transition: a strategic roadmap for reform, a digital economy blueprint, and a national productivity program.

The strategic roadmap is designed to identify systemic challenges, reassess the direction of the zones, and develop macro and sector-specific policies.

The digital economy document links the potential of tech-driven innovation with the commercial ecosystems of the free zones. The productivity program is aimed at defining and applying performance benchmarks to improve efficiency across all regions.

Masrour said these plans are being developed in collaboration with Iran’s top economic policy experts and research centers, using global models and tailored analyses of domestic and international conditions.

He added that the content reflects a broader strategy to redesign governance, strengthen the zones’ missions based on competitive advantages, reform outdated laws and institutions, and harness Iran’s geopolitical and geoeconomic position—including international trade corridors, regional markets, energy routes, and technology capabilities.

He expressed confidence that with support from the minister of economic affairs, the plans would mark the beginning of a more focused, dynamic, and effective era for Iran’s free trade zones.

During a meeting with President Masoud Pezeshkian in last December, Masrour said that Iran's free trade zones collectively offer a bulk capacity of 61 million tons and 1.4 million TEUs, with the ability to handle 12 million passengers annually.

During the session, the official presented a review of the maritime economy and port capacities of key free zones, including Anzali, Kish, Qeshm, Chabahar, Arvand, Bushehr, and Mazandaran.

In that meeting, President Pezeshkian underscored the importance of fully utilizing the existing capacities of free trade zones. He called for the preparation of a strategic roadmap for these zones and emphasized the development of north-south and east-west transit corridors, with input from prominent consultants in the free trade sector.

Iran's free trade zones play a crucial role in facilitating trade, investment, and tourism by offering tax incentives, reduced tariffs, and streamlined regulations. The southern zones, such as Chabahar, Kish, and Qeshm, serve as key gateways for trade with the Indian Ocean, while northern zones like Anzali and Mazandaran provide critical access to the Caspian Sea region.

The Chabahar Free Zone, in particular, holds strategic significance as a transit hub connecting Iran to Central Asia, Afghanistan, and India via the International North-South Transport Corridor (INSTC). Meanwhile, Kish and Qeshm are pivotal for tourism and energy-related industries, with advanced port infrastructure to support containerized and bulk cargo handling.

The total capacity of 61 million tons of bulk cargo and 1.4 million containers highlights the zones' potential to strengthen Iran’s position as a regional logistics hub. Additionally, the ability to accommodate 12 million passengers annually reflects the zones' growing role in boosting tourism and maritime transport.

Officials emphasized the need to address challenges, including infrastructure development and modernizing port facilities, to fully capitalize on the economic opportunities offered by the free zones.

The establishment of free trade zones (FTZs) in Iran dates back to the Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz. 

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country. 

The development of existing free trade zones and the establishment of new FTZs has become one of the major economic approaches of the Iranian government.

EF/MA