TEHRAN – In a decisive shift toward economic diversification and resilience, the Iranian government is fundamentally restructuring its network of free trade zones (FTZs) to function as powerful engines for export-led growth.
The new national strategy explicitly prioritizes the development of export-oriented production within these special economic areas. This move aims to directly counter foreign currency shortages and reduce dependence on oil revenues by leveraging the unique advantages of FTZs—including tax holidays, reduced tariffs, and streamlined regulatory procedures—to attract both domestic and foreign investment into manufacturing sectors targeting international markets.
“The government’s primary strategy will now center on developing export-oriented production within these areas,” Minister of Economic Affairs and Finance Seyed Ali Madanizadeh stated, underscoring a clear policy evolution from the zones’ traditional roles in trade facilitation and tourism toward integrated industrial and logistical hubs.
Strategic geography and existing capacity
Iran’s FTZs, first established in the Iranian calendar year 1368 (1989-90) following a sharp decline in oil income, are strategically positioned to tap into regional and global trade flows. The southern zones, including Chabahar, Kish, and Qeshm, serve as the country’s gateway to the Indian Ocean and vital maritime routes. In the north, zones like Anzali and Mazandaran provide critical access to the Caspian Sea region and Eurasian markets.
The Chabahar Free Zone holds particular strategic significance, acting as the Iranian terminus of the International North-South Transport Corridor (INSTC), a multimodal network designed to connect India to Central Asia, Russia, and beyond. Meanwhile, Kish and Qeshm have developed robust infrastructure for tourism, energy services, and cargo handling. Collectively, Iran’s FTZs currently possess a substantial operational capacity, able to handle 61 million tons of bulk cargo and 1.4 million twenty-foot containers (TEUs) annually. Their passenger terminals can accommodate up to 12 million travelers per year, highlighting their dual commercial and tourism functions.
Recent investment momentum and job creation
Tangible progress is already evident. Reza Masrour, Secretary of the Iranian Free Zones High Council, recently reported a surge of activity, with 221 development and investment projects worth a combined 690 trillion rials (approximately $1.38 billion) inaugurated or launched during the Ten-Day Dawn period marking the anniversary of the Islamic Revolution.
“These figures are evidence of sustained investment momentum in free and special economic zones,” Masrour said. The projects span the Aras, Anzali, Qeshm, Maku, Chabahar, Arvand, Incheh Borun and Dogharoun zones and focus on expanding industrial, logistics, services, and production infrastructure. Notably, 85 projects came on stream, while work began on 136 others.
The completed projects alone have created 1,692 direct and 5,944 indirect jobs. Masrour emphasized that most initiatives were driven by private-sector investment, a sign of growing business confidence in the zones’ competitive potential. State funding has been directed toward complementary public infrastructure to support these private ventures.
Digital transformation and “Seventh-Generation” vision
Recognizing the need for modernization, the government has concurrently launched a digital overhaul of the zones. In late July 2025, President Masoud Pezeshkian unveiled a national smart transformation initiative, introducing three key digital platforms: a digital tourist card for foreign visitors, an online discount portal for hospitality services, and a sophisticated cargo management system for real-time logistics tracking.
Developed with domestic tech firms, this initiative aims to boost transparency, efficiency, and sanction resilience. It forms part of a broader ambition to transform the FTZs into what officials term “seventh-generation” zones—modern, digitally integrated economic hubs aligned with global best practices.
Comprehensive reengineering for an export future
Beyond digital upgrades, a profound structural reform is now underway. Masrour announced a comprehensive “reengineering process,” endorsed by the Ministry of Economic Affairs and Finance, to revitalize the zones’ original mandate for driving trade, investment, and transit, which he acknowledged had fallen short of expectations in recent years.
The transformation plan involves deep legal, institutional, and infrastructural reforms. Each zone will be tasked with specializing according to its inherent strengths—be it transit logistics, tourism, downstream industries, or advanced technologies—to maximize its export potential.
Three foundational policy documents are being drafted to guide this transition:
- A strategic roadmap to identify systemic challenges and set new macro and sectoral policies.
- A digital economy blueprint to fuse technological innovation with the zones’ commercial ecosystems.
- A national productivity program to establish performance benchmarks and enhance efficiency across all zones.
These plans are being formulated in collaboration with top economic experts and research centers, drawing on international models while tailoring approaches to Iran’s unique geopolitical and geoeconomic context, including its role in international corridors like the INSTC.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: tehrantimes.com
