Economy, Business And Markets

Kish Eyes Boost in Foreign Investment

Kish Eyes Boost in Foreign InvestmentKish Eyes Boost in Foreign Investment

Absence of international banks, insurances and lack of money transfer facility as a result of sanctions imposed by the US, EU and the UN Security Council over Tehran’s nuclear energy program have posed a significant barrier for foreigners to put their money into Iran, says the managing director of Kish Free Trade Zone Ali Asghar Monesan.

“As the new era begins after the deal, it is our hope to see international firms initiate investment in Iranian FTZs. Advantages such as tax exemptions, having an airport of high capacity, availability of adequate infrastructures, ports of high capacity and low customs’ duty make Kish an ideal choice for investment. Business activities which lead to exports are of great importance to us,” IRNA quoted him as saying.

Kish has six industrial towns with 500 high-tech industries including, but not limited to pharmaceutical and medical equipment, food and packaging industries.

“Tourism expansion is at the core of Kish Free Trade Zone’s mission statement. Big industries are shut out of Kish due to the adverse effects of their industrial pollutants on the environment of the region,” said the official.

According to Monesan, exports from Kish in the Iranian year that ended March 20, 2014 stood at $131 million. The figure had a 30% rise to reach $171 million the following year. The value of exports by production units was $54 million which hit the $76-million mark last year (ended March 20, 2015), he added.

In terms of imports, last year saw a 4.8% decrease compared to the previous year. Transit to the mainland jumped from 782 tons in 2013 to 3,820 tons in 2014. The total value of exports and imports stood at $327 million and $508 million respectively in the past Iranian year (ended March 20).

The number of companies registered last year reached 900 which posts a 17% rise, while some 2,000 jobs were added, indicating an 11% increase compared to the previous year.

“Investment in the industrial sector registered a 55% rise over the same period. The total value of industrial products grew by 40% to hit $80 million last year,” he concluded.