A total of $52 million worth of foreign investments were made in Arvand Free Zone in the last Iranian year (March 2020-21).
“Foreign investments in Arvand Free Zone show a significant increase compared to $2 million the year before and has come about despite restrictions caused by the Covid-19 pandemic as well as heavy sanctions imposed by the US on the Iranian economy,” Ali Mousavi, deputy for investments and business expansion of Arvand FTZ Organization, was quoted as saying by IRNA.
The official said local investments in the southern FTZ amounted to 30 trillion rials ($120 million) last year, showing a 60% rise compared with the year before, adding that these investments were made in the fields of production, industry, infrastructure, trade and services.
The Arvand zone is located on the northern tip of Persian Gulf and borders Khuzestan Province and the major cities of Khorramshahr, Abadan and Minoushahr. The zone is spread across 8,600 hectares and includes administrative, tourism and commercial areas.
The free zone is of special significance, as it is in the neighborhood of Iraq and Kuwait.
Bordering Arvand River and beyond that southern Iraq, FTZ has a unique proposition on offer. It has direct access to the Iraqi market.
Among all of Iran’s neighboring countries, Iraq is the largest market for Iranian products.
In 2004, the zone’s transformation from a rural to industrial and commercial region started. It was officially demarcated by 2005.
“More than $1.26 billion worth of goods have been exported from Arvand Free Trade Zone in the southern Khuzestan Province since the beginning of the current Iranian year on March 20, 2020,” Mousavi said in January.
“Last year [March 2019-20], total exports reached $1.22 billion, which means shipments have already seen a significant rise,” he added.
The exports included seafood, minerals, different kinds of foodstuff, fruit and vegetable, steel products and construction materials.
Iraq and the littoral states of Persian Gulf were the main destinations, according to the official.
Some 190 production units are active in Arvand FTZ.
Iran is home to seven free trade zones, namely Kish, Qeshm, Chabahar, Anzali, Maku, Aras and Arvand, as well as 64 special economic zones.
