TEHRAN- The head of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) considered free zones as the best platform for an investment leap and emphasized that these zones are an important advantage for attracting investors.

In a recent joint meeting of the board of presidents of the Iran Chamber with the Secretary of the Supreme Council of Free and Special Economic Zones, Samad Hassanzadeh stated: “Despite having suitable infrastructure and legal advantages, free zones have unparalleled capacity for production, exports, technology acquisition, and foreign partnership. However, there are concerns about the cancellation of some exemptions and changes in laws, which must be transparently clarified so that investors can act with confidence.”

The head of the Iran Chamber, while appreciating the management and development-oriented approach of the free trade zones, emphasized the necessity of utilizing the national capacities of Iran to attract domestic and foreign investment.

He further referred to the country's economic conditions and stated: “Although Iran has faced international restrictions in recent years, its economic capabilities, committed human resources, and achievements in the fields of production and trade have created unique capacities that are not replicable in many countries.”

Pointing to the increased attention of neighboring and Islamic countries to the Iranian market, he added: “During trips, exhibitions, and joint meetings, we see delegations from various countries. This interest indicates that Iran remains an attractive destination for joint investment, provided that some ambiguities in regulations and investment guarantees are resolved.”

Hassanzadeh, referring to the country's infrastructural limitations in the energy sector, added: Good measures have been initiated to develop infrastructure; however, incentive policies for free zones still need to be strengthened so that investors have sufficient motivation to operate in areas far from urban centers.

In late October, Iran’s Minister of Economic Affairs and Finance, Seyed Ali Madanizadeh, said the government’s top economic priority for the Iranian year 1404 (2025–26) is to attract investment to boost production, with free trade zones positioned as key drivers of national growth.

Speaking at the inauguration of five airport projects in Kish Island, Madanizadeh said the Ministry of Economy is focusing on investment-led growth to create a long-term outlook for Iran’s economy.

Madanizadeh emphasized that free zones must become pilot areas for implementing economic reforms and shaping a five-year national development vision. He said each zone will prepare a specialized development plan, with at least 20 large-scale investment projects designed with international consultants, and the goal of attracting a minimum of $10 billion in investment per zone by 2028.

The minister described the current Iranian year as the “Year of Investment for Production,” underscoring the importance of channeling both domestic and foreign capital into projects that stimulate industrial, technological, and tourism-related growth. He said all efforts of the Ministry of Economy are directed toward ensuring a sustainable increase in production capacity and job creation.

The minister said the free trade zones are ideal testing grounds for innovative models of governance and investment. “These regions can lead Iran’s economic transformation if provided with the autonomy and the right regulatory framework to attract investors,” he noted.

He added that free zones such as Kish, Chabahar, and Anzali have the potential to serve as regional gateways, connecting Iran’s markets to Central Asia, South Asia, and the Persian Gulf through trade, logistics, and technology transfer.

Madanizadeh said free zones should act as laboratories for new governance models based on meritocracy, transparency, and competitiveness.

He identified three main structural problems in Iran’s economic management—overlapping and inefficient decision-making bodies, weak human resource systems, and outdated policymaking frameworks.

“These zones can pioneer a new model of economic governance,” he said, adding that local authorities must adopt a single decision-making structure, recruit skilled professionals based on merit, and operate under free-market principles.

He also stressed the gradual removal of energy subsidies and state-imposed price controls within free zones.

“Free zones must be the first areas to experience real economic freedom—where energy and credit are priced competitively and reflect market realities,” he said.

In late July, Iranian President Masoud Pezeshkian 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 Reza Masrour 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.

MA