Iranian free trade zones exported $1.1 billion worth of commodities during the last fiscal year (March 2018-19).
According to a report by the Majlis Research Center based on data from the High Council of Free Trade Zones and Special Economic Areas, Anzali Free Trade Zone had the largest share of exports worth $386 million among Iranian FTZs.
In terms of exports, Anzali was followed by Arvand with $240 million, Kish with $146 million, Aras with $117 million, Maku with $50 million, Qeshm with $41 million and Chabahar with $21 million.
Exports from free trade zones had a 2.5% share in Iran’s total non-oil exports last year ($42 billion).
The seven free trade zones imported $1.29 billion worth of goods during the period. Kish topped the list with $541 million, followed by Arvand with $222 million, Qeshm with $208 million, Chabahar with $141 million, Aras with $129 million, Anzali with $36 million and Maku FTZ with $13 million.
Anzali: Iran's Only Caspian Free Zone Along INSTC
As the only free zone in the southern part of Caspian Sea and the economic hub of Iran with an area of 9,400 hectares and a 40-km shoreline, Anzali is located in the northern Gilan Province. It launched its official activity in 2005.
In addition to the legal incentives and exemptions offered by free zones such as tax exemption for 20 years, plus customs duties and value-added exemptions, the FTZ boasts special advantages as it is located along the International North–South Transport Corridor, its website reported.
The strategic location of Anzali FTZ also allows easy access to the populous markets of Caucasian and Central Asian countries. It is also home to Anzali Free Zone Mercantile Exchange and Anzali Port.
INSTC is a 7,200-km-long multimodal network of ship, rail and road routes for moving freight across India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. The route primarily involves moving freight from India, Iran, Azerbaijan and Russia via ship, rail and road. The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan and Bandar Anzali. Dry runs of two routes were conducted in 2014, the first was Mumbai to Baku via Bandar Abbas and the second was Mumbai to Astrakhan via Bandar Abbas, Tehran and Bandar Anzali.
The objective of the study was to identify and address key bottlenecks. The results showed transport costs were reduced by $2,500 per 15 tons of cargo. Other routes under consideration include via Kazakhstan and Turkmenistan.
Arvand: Gateway to Lucrative Iraq Market
Arvand Free Trade Zone is located in the southwest corner of Iran, bordering Arvand River. It differs from the other free trade zones of the country in that it has direct access to the Iraqi market.
Currently, among all of Iran’s neighboring countries, Iraq stands as the largest market for Iranian products.
The FTZ is located on the northern tip of Persian Gulf and borders Khuzestan Province and the major cities of Khorramshahr and Abadan.
The zone covers 8,600 hectares and includes administrative, tourism and commercial areas. Nearly 3,800 hectares are utilized for warehousing and shipping.
The port itself boasts the deep waters of the Bahmanshir, Karoun and Arvand rivers. It also has excellent road, rail and air transit facilities, which boost its connectivity.
It was in 2004 when the area began its transformation from a rural to industrial and commercial region. The government officially demarcated the area in 2005.
Kish: A Major Tourism Hub
Located in southern Iran, Kish Island is one of the most attractive tourist sites in the Persian Gulf and a pioneer in the country’s tourism industry. It is also among the top tourist destinations for planning and investment.
Kish Island is the third most-visited vacation destination in Southwest Asia, after Dubai and Sharm el-Sheikh. Tourists from many—but not all—foreign nations wishing to enter Kish Free Zone from legal ports are not required to obtain any visa prior to travel.
Owing to its free trade zone status, the island is touted as a paradise for tourists, with numerous malls, shopping centers, tourist attractions, beaches and resort hotels, as well as wonderful scenery. With about 26,000 residents, the island attracts nearly 1 million visitors each year.
Aras: Gateway to CIS Markets
Aras Free Trade-Industrial Zone is located in northwest Iran that borders neighboring Armenia, Azerbaijan and the Nakhchivan Autonomous Republic. It has become the main gateway to mainland Iran from the northern Commonwealth of Independent States. FTZ is likely to become a far more central and major player in the years to come, as the area has historical links with its northern neighbors.
Maku: Largest FTZ in Iran
Maku Free Trade Zone is one of lesser known transit points located in northwest Iran. With just over 20 kilometers from the Turkish border and surrounded by mountains, the FTZ has had one of the best historical trading advantages through the ages. The small town is separated by Zangmar River that passes through West Azarbaijan Province. The designated zone encompasses over 5,000 square kilometers in total, making it the largest Iranian free zone. The local population includes both Azeri- and Kurdish-speaking people, who can also speak Persian.
Qeshm: The Largest Island in Iran
Qeshm is the largest island in Iran. It is located a few kilometers off the southern coast of Persian Gulf, opposite the port cities of Bandar Abbas and Bandar Khamir. The island, which hosts a 300-square-kilometer free zone jurisdiction, is 135 km long and lies strategically in the Strait of Hormuz, just 60 kilometers from the Omani port of Khasab and about 180 kilometers from the UAE Port Rashid.
Chabahar Free Trade–Industrial Zone was established in 1992 along with the two other free trade zones Qeshm and Kish Island to use global expertise (mostly from South East Asia) as a tool for the development of the country, accelerating the accomplishment of infrastructure, creation of employment, and representation in global markets.
Chabahar: Iran's Only Oceanic Port
Chabahar Free Trade–Industrial Zone achieved its importance mainly from its geographical location as the shortest and the most secure route connecting the Commonwealth of Independent States as well as Afghanistan to warm waters and its proximity to one of the largest oil, gas and mineral resources of the world and as the only ocean port of the country.
It is Iran’s only oceanic port town and consists of two terminals: Shahid Kalantari and Shahid Beheshti. The opening of first phase, namely Shahid Beheshti Terminal (out of five phases defined for the project), which has tripled its capacity to 8.5 million tons (equal to that of all the northern ports of the country), allows the docking of super-large container ships (between 100,000 DWT and 120,000 DWT) and increases India’s connectivity with Afghanistan. The first phase of Shahid Beheshti Port development project was inaugurated in December 2017 by Iranian President Hassan Rouhani, opening a new strategic route connecting Iran, India and Afghanistan. In December last year, India took over operations of a section of Shahid Beheshti Port.
