Chabahar Free Trade–Industrial Zone (CFZ) ( fa, منطقه آزاد تجاری-صنعتی چابهار ) is an Iranian

free trade zone A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to cu ...

formed according to the law on the establishment and administration of free trade–industrial zones . Chabahar free trade–industrial zone was established in 1992 along with the two other free trade zones Qeshm and

Kish Island Kish ( fa, کیش ) is a resort island in Bandar Lengeh County, Hormozgān Province, off the southern coast of Iran in the Persian Gulf. Owing to its free trade zone status, the island is touted as a consumer's paradise, with numerous malls, s ...

to use global expertise (mostly from

South East Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical south-eastern region of Asia, consisting of the regions that are situated south of mainland ...

) as a tool for the development of the country, accelerating the accomplishment of infrastructure, creation of employment, and representation in global markets. The Chabahar free trade–industrial zone achieved its importance mainly from its geographical location as the shortest and the most secure route connecting the Commonwealth of Independent States (CIS) as well as

Afghanistan Afghanistan, officially the Islamic Emirate of Afghanistan,; prs, امارت اسلامی افغانستان is a landlocked country located at the crossroads of Central Asia and South Asia. Referred to as the Heart of Asia, it is bordere ...

to warm waters and its proximity to one of the largest oil, gas and mineral resources of the world and as the only ocean port of the country.

Main activities

Chabahar free trade-industrial zone started its activities in 1995 focusing on five major areas: transit of merchandized goods, investment attraction and related services, tourism, construction & urban development and education under the administration of public controlled Chabahar free trade-industrial zone organization.

May 2016 agreements between Iran and India

After overseeing a series of agreements intending to develop the

Port of Chabahar Chabahar Port ( fa, بندر چابهار) is a seaport in Chabahar located in southeastern Iran, on the Gulf of Oman. It serves as Iran's only oceanic port, and consists of two separate ports named ''Shahid Kalantari'' and ''Shahid Beheshti'', ...

, India's Highways and Shipping Minister,

Nitin Gadkari Nitin Jairam Gadkari (; born 27 May 1957) is an Indian politician from Maharashtra who is the current Minister for Road Transport & Highways in the Government of India. He is also the longest serving Minister for Road Transport & Highways cu ...

suggested that the Chabahar Free Trade-Industrial Zone had the potential to attract upwards of $15 billion worth of investment in the future, although he stated that such investments are predicated upon Iran offering India natural gas at a rate of $1.50 per million British Thermal Units, which is substantially lower than the rate of $2.95 per million British Thermal Units offered by Iran. The two countries also signed a memorandum of understanding to explore the possibility of setting up an aluminum smelter at a cost of $2 billion, as well as establishing a

urea Urea, also known as carbamide, is an organic compound with chemical formula . This amide has two amino groups (–) joined by a carbonyl functional group (–C(=O)–). It is thus the simplest amide of carbamic acid. Urea serves an important ...

processing facility in Chahbahar, although these investments are also contingent upon Iran supplying low-cost natural gas for operation of those facilities.

References

External links

Iran Free Zones official website

Chabahar Free Zone Organization official website

Main activities

May 2016 agreements between Iran and India

See also

References

External links

Further reading