Secretary General of the High Council of Free Zones Brief Biography            Speech given in Canada, 1998

Brief Biography

Mr. Morteza Alviri is advisor the H.E. the President of the Islamic Republic of Iran and Secretary General of the High Council of Free Zones, of the Islamic Republic of Iran.  He holds a degree of Bachelor of Science (B.SC.) in Electrical Engineering from Sharif University of Technology, Tehran, and also a Master of Arts degree (M.A.) in Management from the State Management Training Center, Tehran.  The following are a few of his Career Highlights:

• 1991 - 1992:     Deputy Minister of Projects and Planning, Ministry of Mines and Metals of Iran

• 1990 - 1991:     Secretary of the Economic Committee, National Security Council of the Islamic Republic of Iran.

• 1989 - 1990:     Representative of the Parliament of the Islamic Republic of Iran

• 1989 - 1991:     Member of Parliament - Head of the Plan and Budget Committee; oversaw the finalization and the implementation of the first five year plan and the national annual budget.

• 1985 - 1988:     Lecturer, Department of Economics:  Allameh Tabatabaei University

• 1986 - 1987:     International Court of Justice (ICJ) the Hague, Netherlands.   Prosecuted two suits filed against the United States Government by the Government of the Islamic Republic of Iran.    

• 1986:    Member of the 'Council of Seven' A Special Economic Committee set up by the presiding Prime Minister of the time to review the economic fallout of the global drop in oil price on the Iranian Economy.

• 1984 - 1986:     Deputy Head of the Plan and Budget Organization of Iran, Parliamentary Affairs Liaison

• 1981 - 1984:     Member of Parliament - Head of the industries and Mines Commission

• 1974 - 1975:     Chief Electro-Mechanic Master Assembly Workshop, Iran-Khodro Automotive Company           

Speech given at the "Doing Business in Iran" seminar - Canada - 1998

In the Name of God

 Mr. Chairman, Distinguished Participants, Ladies and Gentlemen

My I express my great pleasure to be here in this conference and thank you of providing me this opportunity to brief you on the activities of Free Zones and Special Economic Zones of Iran and the great potentials that they hold.

First the legislative framework, advantages of location and incentives of Iran’s Free Trade Zones shall be explained, then I will introduce a short note about the characteristics of cash zone. A short introduction on our Special Economic Zones shall be given also.

Legislative framework of free zones

The giant step needed for the creation of the Iranian free zones was taken once the Law on Administration of the Free Trade /Industrial Zones was approved by the Iranian Parliament in September 1993.

There are approximately 14 executive regulation and by-laws for the mentioned law. All executive regulations have been approved by the High Council of Free Trade/ Industrial Zones. The High Council comprises of 14 ministers and h8igh ranking officials headed by the President.

In these regulations you will find details with respect to investment , import-export, use of land engaging manpower and social security, the issuance of visas and the management of the Zones.

The chairman and managing director of every Free Zone organization is appointed directly by the President. The members of the board of directors are appointed by the High Council of the Free Trade / Industrial Zones.

Advantages of Location

There are many advantages in the Free Zones and various factors and incentives for production from which investors may benefit. among them, the following can be highlighted;

Access to Workforce

A large supply of skilled and semi-skilled manpower in various professions and different vocational levels at reasonable wages is available in the mainland and near the Free Zones. There are some metropolitan areas and ports such as Bandar Abbas with a population of about one million people, with various levels of skills that can provide the workforce requirements of the Free Zones.

Natural resources, specially oil and gas, are abundantly available at low prices Raw material for various industrial projects are also plentiful.

Access to a wealth of mineral resources, which is unique in the middle East in terms of variety and quality, provides investors with the requisite raw material for processing and re-exportation.

Iran’s Free Zones have a special advantage with request to access and proximity to local, regional and world markets, which are as follows:

• The Iranian domestic market is one of the largest in the region. It has a consumer population of 65 million people.

The potential volume of foreign trade amounts to US $ 45 billion per year.

• A substantial portion of the population in the neighboring countries , aggregating to about 300 million people, can also be taken into account as a consumer market for the Free Zones.

The Bandar Abbas railway links this port of the Persian Gulf to all of our neighboring countries. The construction of a 1,400 Km railway form Chabahar.

Free Zone to Turkmenistan is under study. Consequently, Iran’s Free Zones will act as a linkage between the Indian Ocean and Central Asia.

Taking into account the access of Iran’s Free Zones to the international markets on the one hand, and the low production costs on the other hand, avails Iran’s Free Zones with the opportunity to export goods and commodities to world markets, Iran’s free Trade / Industrial Zones are in a position by which regional trading /manufacturing needs can be met.

In addition to advantages referred to above, we have provided the following inventive to attract investors:

• Investors are exempt from all taxes for the first 15 years.
• Free repatriation of capital and profit is permitted .
• There is no ceiling for investors’ share holdings .
• The legal rights of foreign investors are guaranteed.
• Foreign nationals who chose direct entry to the free zones do not need to apply for a visa in advance. When direct entry is not desired, a one week transit visa to the Free Zones can be obtained from Iranian consulates.
• The administrative affairs of Iran’s Free Zones are conducted with considerable freedom and are Planned to avoid red tape.
• All goods imported to the Free Zones are exempt form customs duties.
• The importation of those goods and commodities once considered permissible from the Free Zones to the mainland, will be deemed permanently permissible goods even if the importation of such goods is banned at a later point by new legislation.
• Exportation of goods from Iran’s Free Zones to the mainland, to the extent of the added value plus the value of the domestic raw materials used , are exempt from customs duties.
• Goods generally banned from entering the mainland are allowed into the mainland from the Free Zones,to the extent of local portion and added value.
• Banking regulation in the zones are flexible, and compatible with international banking practices and standards.

Foreign banks and financial institutions may open branches independently or in partnership with domestic counterparts.

The conversion of the Iranian Rial to any other currency is readily permitted and the transfer of money to any place is permitted.

Main Features of Iran’s Free Zones

Qeshm, Kish and Chabahar have been established since 1992 as our Free Trade / Industrial Zones.

1. Qeshm Free Zone:

The largest Island in the Persian Gulf , Qeshm is situated at the mouth of the strait of Hormoz,  200 kms from the U.A.E.

The total area of this Free Zone is 300 sq. CMS. Rich natural gas of the Island, refined in Gavarzin Refinery, provides all the gas used in the area.

Above that other oil and gas reserves have been explored around the Island.

The Island’s deep coast makes the construction of quays for high tonnage vessels possible.

2-Kish Free Zone:

Kish Island, the second largest in the Persian Gulf , has a total areas of 91 sq. kms. It is 18 kms. to the nearest port in the mainland, 90 kms. To Bandar Length, 200 kms. to Bandar Abbas, and 200 kms. to the united Arab Emirates.

Known as the pearl of the Persian Gulf , the Island has moderate climate for 8 months of the year. Breathtaking coastal scenery ,a unique aquarium , recreational and water sports facilities are among a number of attractions which have made Kish Island a proper place for the expansion of tourism.

3- Chabahar Free Zone:

Chabahar Free Zone is situated on international shipping routes in the Oman sea and the Indian Ocean. It covers a total area of 145 sq. kms. the zone is situated next to the town of Chabahar. As the sole port and entry point to the mainland vial Oman sea, it connects the central Asian Republics with international waters for the transit of goods.

Chabahar is best known for its access to the abundant aquatic sources in the Oman sea. Most of the tropical produce can be cultivated there.

The Special Economic Zones are places in Iran which are managed under specific rules and regulations. These places have been offering special incentives for production, storage and the transit of goods.

The Special Economic Zones are places beyond the jurisdiction of Iranian customs. The imports and Exports from these Zones are accomplished streamlined . The owners of the goods are capable of bringing their goods into the Special Economic Zones without any restriction . These goods and materials can be stored and then transferred to the mainland or be-exported to other countries.

Another point is that the goods imported into these Special Zones can, with the issuance of a new Certificate of Origin, may be subdivided. Then portions of the original volume can be dispatched to different destinations .

In the Special Economic Zones, in addition to storage, the possibility of additional processing and modification to the goods does exist. Modified goods, which have an added value, can be re-exported without any restrictions.

The following list indicates Iran’s Special Economic Zones.