Business And Markets

UAE, Oman Could Invest in Bushehr Special Zone

UAE, Oman Could Invest  in Bushehr Special Zone
UAE, Oman Could Invest  in Bushehr Special Zone

Investors from the United Arab Emirates and Oman have expressed interest in investing in southern Bushehr Special Economic Zone (BSEZ), officials familiar with the matter said.

“The UAE investors are specifically interested in constructing a power plant in the economic zone,” said Abdollah Avara, the CEO of the zone, in a meeting with business people in the city of Bushehr on Thursday.  

Urging investors to bring capital into the zone, Avara said that they can import raw material and equipment needed for their production free of duty.  

Under a new law, foreign investors who establish production lines in Iran and export 30 percent of their products will be entitled to tax exemption.

Several Omani investors have also shown interest in establishing tourism facilities like hotels in old urban areas of Iranian provinces, said Ali Akbar Sharafpour, chairman of Bushehr Chamber of Commerce.

Special economic zones (SEZs) in Iran are meant for goods transit and improving the supply and distribution networks in the country.

Iran in recent years has created many SEZs, mainly in remote areas. Many international companies in recent years have entered these zones including Korean electronics manufacturers and foreign and local auto-parts producers.

Currently Iran has 18 official and well-documented special economic zones including Sirjan, Sarakhs, Payam, Khuzestan, Salafchegan, Khorramshahr, Persian Gulf Ship Building, Arg-e Jadid, Petrochemical, Bandar-Bushehr, Bandar Amirabad, Bandar Shahid Rajaee, Mines and Metals, Pars, Sang Lorestan, Shiraz Electrical and finally Yazd Textile zones.

Being the nearest special economic zone to the Persian Gulf countries (Kuwait, Qatar, Bahrain and Saudi Arabia), BSEZ offers facilities and privileges such as 20% discount on customs tariffs; 75% discount on shipping exported goods (50% for storage costs and 60% on THC for these goods); and 90% discount for freighters carrying cabotage goods.