TEHRAN - Iran’s Free Zones High Council announced that the trade balance of the country's free trade zones was $41.463 million positive in the first Iranian calendar month Farvardin (March 21-April 21).

The council announced that the total export of goods and services from the country's free trade zones during Farvardin reached $100.85 million. In contrast, the imports from these zones, excluding machinery, were announced at $59.207 million, indicating a positive trade balance of $41.643 million.

In mid-February, Iran’s Free Zones High Council Secretary Reza Masrour stated that regulatory restrictions in free trade zones have hindered their intended function in recent years.

He pointed to past policies, such as the ban on vehicle imports into free zones while allowing them in mainland Iran, as an example of such constraints.

However, recent government efforts have led to the removal of several limitations.

He emphasized the council’s focus on enhancing the export role of free trade zones, as a significant portion of their production has historically been directed toward the domestic market, contradicting their core purpose. The new policy framework aims to steer businesses toward export-driven production.

Masrour highlighted that while free trade zones are more service- and commerce-oriented, special economic zones focus primarily on production and exports.

To improve export performance, new incentives have been introduced for production units engaged in exports.

Additionally, the council has partnered with Iran’s Trade Promotion Organization (TPO) to establish export management companies in free zones to facilitate international trade.

Masrour addressed concerns about smuggling in free zones, stating that all import processes are recorded in official systems.

He also announced a shift in trade exhibition policies, stating that foreign exhibitions, which were previously held outside free zones, have been limited due to high costs. Moving forward, exhibitions will be held exclusively within free trade zones, ensuring they target relevant markets and yield better economic results.

The official revealed plans for a greater emphasis on technology in free trade zones, and mentioned the development of an AI assistant tailored for free trade zones.

On international cooperation, he proposed the establishment of a Supreme Eurasia Trade Council within Iran’s Foreign Ministry to strengthen ties with regional economic blocs.

He noted ongoing discussions with Turkey and Pakistan about creating joint free trade zones, although such projects require parliamentary approval.

Masrour concluded by affirming the council’s commitment to enhancing the competitiveness of free trade zones, increasing exports, and minimizing smuggling, with continued government collaboration to improve policies and investment conditions.

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.

As the free trade and special economic zones have great potential to accelerate economic development, the development of existing free trade and special economic zones and the establishment of new zones has become one of the major economic approaches of the Iranian government, and the government is determined to attract investment to these zones.