TEHRAN- Iran’s Ministry of Transport and Urban Development and the Secretariat of Iranian Free Zones High Council inked a memorandum of understanding (MOU) on the establishment of Imam Khomeini Airport Free Zone Organization.

The MOU was signed by Transport and Urban Development Minister Mohammad Eslami and Secretary of Free Zones High Council Morteza Bank on Tuesday, the website of Imam Khomeini Airport City (IKAC) published.

This memorandum is aimed at realizing and implementing the policies and priorities of the government in order to achieve economic prosperity in the Imam Khomeini Airport City and create maximum coordination between the Ministry of Transport and Urban Development and the Secretariat of Iranian Free Zones High Council.

Becoming the hub of freight transport and the second hub of passenger transport in the region are among the goals of the MOU.

Development of the existing free trade zones and establishment of new free zones is currently one of the major economic approaches of Iran and in a bid to attract more investments to these zones Iranian government offers various incentives to the investors.

Tax exemption is one of those incentives which has been offered for more than a decade to the investors in the free zones.

Such incentives have encouraged investment making in these zones.

One of the newly-established zones is Imam Khomeini Airport City (IKAC).

Last December, the managing director of IKAC announced that over 50 Iranian companies have put in requests to invest in the free zone.

Located next to the capital, this free trade zone can become a powerful driving force for the country’s economic development, according to Mehdi Karbalaei, the managing director of IKAC.

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Photo: Transport and Urban Development Minister Mohammad Eslami and Secretary of Free Zones High Council Morteza Bank exchange documents of MOU on establishment of Imam Khomeini Airport Free Zone Organization on Tuesday.