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Iran located in
South-Western Asia, in the very heart of the world’s
richest sources of energy, endowed with a wide variety
of natural resources, great potentials for tourism
attraction (due to its geographical /climate diversity,
historical heritage etc), connecting |
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Caspian Sea to Persian
Golf, the Central-Asia and Far East to the Middle East,
having access to almost all major water ways in the
world, has an irresistible attraction for foreign
investors.
However, there had been
quit a few obstacles (namely revolution, war, improper
rules and regulations, lack of transparency in the
government’s economic policy and relevant laws) that
kept foreign investors away from Iran. With due
consideration to the foregoing, the Iranian government
launched its first five-year plan aimed at the
reconstruction and economic recovery in 1989, after the
end of the eight-year Iran-Iraq war. The main objective
of this plan was to transform the managed economy of the
war to an open economy based on market forces, and
establish and maintain relations with the global
economy.
Due to the existing
limitations for the application of the market economy,
and concern over the side effects of such a sharp
transformation on the social welfare, it was decided to
assign some locations and establish free or economic
zones in order to completely apply the principle of a
free market economy. |
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Therefore, Iranian legal regime with respect to foreign
investment is divided into three regimes: |
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1-
General laws and regulations governing
foreign investment in the main land of Iran
(particularly Protection of Foreign Investment Act).
Click Here
2-
Laws and regulations governing Free
Trade-Industrial Zones. Click Here
3-
Laws and regulations governing Special
Economic Zones. Click Here |
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According to the relevant law, Free Trade
Zones and Special Economic Zones are those parts of the
Iranian territory that are managed according to the
special laws and bylaws, and are excluded from the laws
governing the motherland. |
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These
zones are excluded from the domain of the custom
authorities and enjoy from the full freedom for in/out
flow of the goods and commodities. Unique geographical
locations, sufficiently developed infrastructure and the
foreign investment incentives have provided ample
opportunity for internal as well as foreign investments
in the zones. However, due consideration should be paid
to the legal differences
between Free Trade-Industrial Zones and Special Economic
Zones, as the latter have more limitations. |
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Each of these zones is
governed by its respective organization/authority in
accordance with “Free Trade-Industrial & Special
Economic Zones Laws and Regulations”(1993) and relevant
bylaws. In order to bring about coordination among these
authorities, a council, chaired by the president and
composed of the followings, is established:
The ministers of: Economic
Affairs and Finance, Commerce, Interior, Labor and
Social Affairs, Industries, Mines and Metals, Roads and
Transportation, Petroleum, energy, Housing and Urban
development, Culture and Islamic Guidance; and the head
of Plan and Budget Organization, the Governor of the
Central Bank of Iran and the Secretary of the High
Council of Free Trade-Industrial Zones. |
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