Investment, Development, Accomplishment

Role of Free Zones: At this point of time when Iran’s economic development has reached maturity as a result of political development in the recent years, free zones have offered a well-prepared ground for economic development. Free zones can play a key role when it comes to economic development and patterns considered for such development. The economic process going on here determines the world’s policies due to our geographical location.
Free zones play such roles as setting patterns for economic development, serving as gateways to the global economy and even subjects of experiment for the government’s policies.
CFZ enjoys exclusive potential and advantages which bode well for growth and development. However, we first have to compare ourselves to advanced free zones or ports in the region and then to leading free zones across the world so as to be able to function as a gateway for a successful presence in the global market.

Independent of Oil: In 1990, a bill was passed by the Parliament to designate three areas as free zones, namely, Chabahar, Kish and Qeshm. In 1993, the infrastructure operations went under way, and up to now the trade center and part of the industrial pole have become operational. Considering the fact that we are experiencing an oil-independent economy there and no oil-based budget is allocated for the construction of the infrastructure, the volume of investment stands at a reasonable level and the whole project has made good progress.

Foreign Investment: Currently, there are around 11 foreign investors who have invested in CFZ’s industrial sector. In our trade sector almost all businesses are operated in partnership with a foreign partner. Their products are imported from various countries for supply to the market or transit.

Policies of New Management: We reviewed the previous policies and practices, and updated a comprehensive plan whose implementation has already begun in the zone. New moves have been taken toward enhancing international trade, aimed at both the domestic and regional markets such as Central Asia, the Persian Gulf, Afghanistan and Pakistan. We have increased our investment in trade, transit and tourist activities as well as completing CFZ’s infrastructure. A number of finance- and BOT-based deals are near finalization with two or three foreign firms who will cooperate with us in installing the zone’s water and electricity supply systems and constructing the airport.
Hopefully, in the near future CFZ will become a hub for regional trade and transit and will attract tourists. In the next phase we will move on to industrial and production activities.

Investment Laws: Our plans predominantly focus on attracting foreign investment; therefore, we shall guarantee and support any form of investment. In fact, the objective pursued by all Iranian free zones is attracting foreign investment and encouraging Iranian expatriates to return and invest here.

CFZ’s Future: With President Khatami’s moves toward détente in the region, Iranian expatriates and foreign investors have expressed enthusiasm in investing here. In the recent months we have had several foreign investors who have been considering to launch operations in CFZ on buy-back basis. Taking into account the globalization process, regional and domestic developments in addition to our infrastructure facilities in the zone, CFZ is believed to be on its way to become a strategic hub in the region for international trade and transit. If we look at international routes, the nearest route joining Central Asia with the Far East would be via CFZ

Advantages to Other Free Zones: First of all, CFZ is attached to the mainland. In terms of weather conditions, there are in fact four springs (hence the name ‘Chabahar’ signifying ‘four seasons’) with temperatures ranging from 27 degrees to 33 degrees Celsius throughout the year. And there is more potential for development and expansion plus greater infrastructure facilities.
According to the Islamic Republic of Iran’s policies, Kish Free Zone has been designated as a tourist center, Qeshm as an industrial center, and Chabahar as a trade and transit center.

Banking in CFZ: Domestic and international banking transactions for import and export activities are now conducted using advanced electronic systems such as V-SAT, Swift and On-line. CFZ offers the possibility of supplying foreign currencies at agreed rates for opening L/Cs, purchasing and selling foreign exchange, granting facilities concerning L/Cs for both imports and exports. It also provides foreign exchange facilities at an interest rate of 2.5% higher than the world inter-bank interest rate, one-year facilities for the purchase of raw materials and two-year facilities for machinery with the ceiling of $5 million for every legal entity. The credit card ‘EuroCard’, which can be used worldwide, is now being issued in Chabahar.

Private Sector, Not Public: We are here to witness an economic boom in CFZ. To this end, we believe the people and the private sector rather than the government would make the best shareholders and partners. We welcome all investors, whether Iranian expatriates or foreign investors, to come to CFZ and we will provide them with the best facilities compared to other zones in the region.