A total of $25 million worth of foreign investments were made in Aras Free Trade and Industrial Zone located in West Azarbaijan Province during the first half of the current Iranian year (March 20-Sept. 21) to register a 78% rise compared with the similar period of last year when the figure stood at $14 million, according to a board member of FTZ.
Situated in northwest Iran bordering Armenia, Azerbaijan and the semi-autonomous Nakhichevan region, Aras is the main gateway to mainland Iran from the northern Commonwealth of Independent States.
“Domestic investments in Aras FTZ in the first half hit 21.89 trillion rials [$87.5 million], indicating an 81% upsurge compared with the corresponding period of last year,” Safar Shasafand was quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture.
The official noted that domestic investments in the FTZ in the last Iranian year (March 2019-20) amounted to 18.1 trillion rials ($72 million).
“During the six-month period, $240 million worth of commodities were exported from Aras FTZ, while imports reached $30 million,” he said.
Exports included nuts, greenhouse vegetables, tar, plastic products, polyester fibers, hydrocarbons, steel ingots, production machinery, polypropylene belts and bags.
Azerbaijan, Turkey, Iraq, Kazakhstan, Afghanistan, the UAE, Armenia, the Czech Republic and Uzbekistan were the main destinations.
Exports from Aras Free Trade and Industrial Zone stood at $518 million in the last Iranian year (March 2019-20) to register a more than twofold (105%) jump compared with the previous year.
The FTZ official noted that the Covid-19 pandemic and the closure of border crossings, forex rate fluctuations, delays by the Central Bank of Iran in allocating foreign currency to producers for importing raw materials, bureaucratic red tape, employing the same regulations ratified for the mainland to FTZs and problems related to financial transactions due to restrictions imposed by the Financial Action Task Force are among the bottlenecks facing businesses and economic players active in Aras and other FTZs across the country.
