Domestic investment surges 68% in Anzali Free Zone

October 19, 2025 - 13:25

TEHRAN – The Anzali Free Zone has recorded a 68 percent rise in domestic investment during the first year of the 14th government, marking a strong rebound in local investor confidence, according to the zone’s managing director, Mostafa Taati Moghaddam.

He said the value of domestic investment projects increased from 104.8 trillion rials ($210 million) in the 2023–2024 fiscal year to 175.8 trillion rials ($351 million) between August 2024 and July 2025.

The official also reported a 13 percent growth in foreign investment during the same period, reaching $26 million compared with $23 million a year earlier.

He said private investors have committed 363 trillion rials ($7.26 billion) to tourism-related projects, including the redevelopment of the Marina Pier and the management of visitor traffic in the zone’s trade and tourism phase.

The Anzali Free Zone, located along the Caspian coast, has become a focal point for investment in logistics, trade, and tourism, positioning itself as a strategic link in Iran’s northern economic corridor.

Iran’s government is moving to overhaul its free trade zones by focusing on privatization, exports, and greater private-sector participation, senior officials said at a national investment forum, in early September.

The National Conference on the Capabilities and Investment Opportunities of Free Trade and Economic Zones was held in Tehran, bringing together government ministers and private-sector representatives.

The secretary of Iran’s High Council of Free Trade Zones said many restrictions on the zones had been lifted, making them valuable tools under sanctions if their legal advantages were restored.

He outlined six strategic priorities, including expanding regional cooperation, establishing a new model for border free zones, completing a financial system, rolling out a smart transformation plan and digital economy charter, strengthening exports, and reforming legal frameworks. Improving governance and easing business activity were also listed as key goals.

The official added that the government is working to launch an international stock exchange in the free zones by year-end and is seeking investors. Other plans include creating a technology park in one of the zones and expanding international transport corridors in cooperation with relevant ministries.

Also speaking at the forum, Foreign Minister Abbas Araghchi said Iran’s Kish technology park was a promising start.

He compared Iran’s vision for its free zones to China’s Shenzhen, noting their potential despite sanctions.

“Sanctions have created pressure, but we must not adopt an apocalyptic outlook or think surrender is the only option,” he said. “Sanctions were meant to paralyze Iran, but the country stands firm.”

Araghchi stressed that free zones play a vital role as “economic lungs” when sanctions restrict the country’s trade.

He said Iran remains an attractive destination for investment, with the Foreign Ministry aligning diplomacy with development goals. Talks with the International Atomic Energy Agency were progressing toward a new framework that would address Iran’s concerns, and negotiations with three European states were also continuing.

He emphasized that while diplomacy is important, the government must strengthen domestic capabilities, including free zones, without waiting for foreign talks.

Economy Minister Ali Madanizadeh said financing export-oriented projects and supporting free zones are priorities for his ministry. “The path to development passes through free trade zones,” he said, criticizing Iran’s history of government intervention.

He argued that privatization and export-focused strategies, with a strong role for the real private sector, would transform the zones into engines of growth.

One zone will be dedicated specifically to the digital economy, he said.

The event concluded with awards presented to top entrepreneurs, investors, and managers in the free zones.

Meanwhile,at the BRICS 2025 meeting in Hangzhou, China, in late September, Iran highlighted the role of free trade zones in strengthening digital economic integration among member states, according to the Secretariat of Iran’s Free and Special Economic Zones High Council.

Esfandiar Shahmansouri, deputy for economic development and investment at the council, represented Iran alongside legal deputy Meysam Safarzadeh.

He described Iran as a “crossroads of East and West” and said its free zones, with access to CIS and Eurasian markets, could become key regional logistics and trade hubs.

He pointed to southern free zones such as Kish, Qeshm, Chabahar and Arvand, which connect to Persian Gulf markets, as well as northern zones like Anzali, Aras and Maku, which link to Russia and Eurasia. The railway network connecting these hubs, he said, provides the fastest and most cost-effective north-south trade route.

Iran’s proposals for deeper BRICS cooperation included developing joint transport corridors and free zones, investing in energy and bunkering projects, expanding knowledge-based industries and innovation centers, promoting medical tourism, and easing financial and banking exchanges.

On the sidelines, Iranian delegates met with BRICS country representatives and senior Chinese free zone officials, submitted draft memoranda of understanding, and advanced talks on a cooperation agreement under the supervision of Reza Masrour, Iran’s top free zone official.

Back in late July, Iranian President Masoud Pezeshkian launched a national smart transformation initiative for the country’s free trade and special economic zones, unveiling three digital platforms aimed at boosting transparency, efficiency, and tourism.

The project, announced on the sidelines of a meeting of the Free Trade, Industrial and Special Economic Zones High Council, includes a digital tourist card system to facilitate purchases by foreign visitors, an online platform offering hotel and restaurant discounts, and a cargo management system for real-time truck scheduling and shipment tracking.

Developed in collaboration with domestic tech firms and knowledge-based companies, the project is part of a broader strategy to transform Iran’s free zones into next-generation digital economic hubs.

Officials said the initiative was expected to streamline service delivery, enhance governance, and reduce the impact of sanctions through increased digital resilience.

It was said that over time, the system would integrate additional service chains, potentially reshaping the role of free zones in Iran’s economic governance model.

The government said the project also supports improved transparency, better resource management, and a more agile administrative framework aligned with the strategic goals of the Free Zones Council.

The secretary of Free and Special Economic Zones High Council had said that during the 12 days of the imposed war, 118,000 tons of basic commodities were cleared from seven free zones, which was aimed at meeting the country's needs.

Reza Masrour announced the important measures taken in the country's free zones in recent months and said: "One of the main priorities in these zones was to accelerate the clearance of essential goods, which was successfully carried out."

In line with this goal, detailed planning was carried out in all free zones, and as a result, during the 12 days of the imposed war, approximately 118,000 tons of basic goods were cleared from the country's seven free zones, the official reiterated, adding that of course, if demand increases from new zones, this figure will increase significantly.

The secretary of the Free and Special Economic Zones High Council has said that Iran is set to implement a major restructuring of its free trade zones in a bid to revive their role in regional commerce and national economic development.

Masrour said that although the zones were designed to drive trade, investment, and transit, they have fallen short of expectations in recent years.

He announced the beginning of a reengineering process, backed by the Ministry of Economic Affairs and Finance, to redefine the function and governance of these areas.

The transformation plan focuses on deep legal, institutional, and infrastructural reforms, alongside new policies to turn the zones into export-oriented hubs.

Each zone will align its activities with its own strengths, such as transit logistics, tourism, downstream industries, or advanced technologies, he added.

Authorities also aim to transition the zones into what officials describe as “seventh-generation” areas—drawing on modern international development models.

Three key documents are being drafted to guide this transition: a strategic roadmap for reform, a digital economy blueprint, and a national productivity program.

The strategic roadmap is designed to identify systemic challenges, reassess the direction of the zones, and develop macro and sector-specific policies.

In that meeting, President Pezeshkian underscored the importance of fully utilizing the existing capacities of free trade zones. He called for the preparation of a strategic roadmap for these zones and emphasized the development of north-south and east-west transit corridors, with input from prominent consultants in the free trade sector.

Iran's free trade zones play a crucial role in facilitating trade, investment, and tourism by offering tax incentives, reduced tariffs, and streamlined regulations. The southern zones, such as Chabahar, Kish, and Qeshm, serve as key gateways for trade with the Indian Ocean, while northern zones like Anzali and Mazandaran provide critical access to the Caspian Sea region.

The Chabahar Free Zone, in particular, holds strategic significance as a transit hub connecting Iran to Central Asia, Afghanistan, and India via the International North-South Transport Corridor (INSTC). Meanwhile, Kish and Qeshm are pivotal for tourism and energy-related industries, with advanced port infrastructure to support containerized and bulk cargo handling.

The total capacity of 61 million tons of bulk cargo and 1.4 million containers highlights the zones' potential to strengthen Iran’s position as a regional logistics hub. Additionally, the ability to accommodate 12 million passengers annually reflects the zones' growing role in boosting tourism and maritime transport.

Officials emphasized the need to address challenges, including infrastructure development and modernizing port facilities, to fully capitalize on the economic opportunities offered by the free zones.

The establishment of free trade zones (FTZs) in Iran dates back to the Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz. 

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country. 

The development of existing free trade zones and the establishment of new FTZs has become one of the major economic approaches of the Iranian government.

EF/MA

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