TEHRAN- Foreign investment attraction increased by 531% in Iran’s free zones during the 11-month period from March 21, 2025 to February 19, 2026, as compared to the same period of time in the past year, while attracted domestic investment witnessed a 125-percent growth in the mentioned time span.

According to IRNA, citing the Ministry of Economy, the 11-month performance report for the year 1404 of the country's free zones indicates that the new approach of the Ministry of Economic Affairs and Finance to "make free zones production-oriented" and "facilitate the investment path" has yielded positive results. The multi-fold leap in foreign investment and exceeding approved targets are tangible outcomes of these programs to transform these zones into driving engines of national development.

Exports; positive growth with a gap from the target

In the export sector, free zones achieved $1,322 million in exports during the 11 months of 1404, registering a 14 percent growth compared to 1403.

Although the approved target for this period was $2,118 million and 62 percent of it has been realized, given the environmental conditions and external constraints, stabilizing the upward trend of exports and increasing the share of free zones in non-oil exports is considered a positive highlight of this report.

Targeted imports; focus on machinery and production raw materials

The import performance report shows that the composition of imports into free zones is increasingly leaning towards strengthening production and infrastructure; these figures indicate extensive investment for renovating and developing production lines.

The significant increase in raw material imports reflects increased production capacity and growing activity of industrial and manufacturing units located in free zones.

The very limited growth in consumer goods imports compared to the surge in machinery and raw material imports indicates a priority on productive and production-oriented imports.

Surge in car imports in free zones

In the sector of vehicles with free zone license plates that have been registered and cleared, the 11-month performance in 1404 recorded about 686 million dollars, showing an unprecedented growth of 518 percent compared to the previous year. Although no specific target has been set for car imports, this growth may indicate the increasing role of free zones in fleet renewal and meeting accumulated demand in this area.

Continuation of this path requires the continuation of the "facilitation" approach adopted by the Ministry of Economy. A macro view of the statistics shows that free zones are no longer backyards for consumer imports, but have become export platforms and massive production workshops. This "change of track," evident in the 11-month report, guarantees that if investment is accompanied by expert precision and managerial determination, even under external pressure, "national production" and "enhancement of economic security" can be achieved.

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