Arvand Free Zone of Iran

Free zones within a country play an essential role in strengthening economic growth and development. These areas are strategically designed to increase prosperity and contribute directly to the national economy. Among the notable free zones, Arvand Free Zone stands out as a key player that has a significant impact not only on the economic outlook of the country, but also on the well-being of the local population of Abadan and Khorramshahr cities of Khuzestan province, and it also borders Kuwait and Iraq.

Arvand Free Zone is one of the largest commercial and industrial zones in Iran with an area of ​​37,400 hectares. The numerous benefits it offers include a significant increase in domestic and foreign investments, an increase in exports, and an overall improvement in the income levels of the region’s residents. In addition, the Arvand Free Zone facilitates easy access to global markets for manufactured goods, thereby promoting healthy competition on the international stage.

An often overlooked but vital aspect is the positive impact on tourism. Arvand Free Zone has become an attraction for tourists and travelers and contributes to the general influx of tourists to Khuzestan province. This wave of tourism not only boosts the vitality of the local economy, but also acts as a catalyst for increased trade and investment in the region.

Beyond economic dynamism, Arvand Free Zone has emerged as a destination for leisure trips. Tourists are attracted not only by the prospect of leisure, but also by the opportunity to invest in the affordable and convenient amenities offered by the free zone market. This dual attraction turns Arvand Free Zone into a multifaceted center that caters to both business and leisure, thus creating a dynamic and thriving environment.

Trade in Arvand Free Zone

Arvand Free Zone is the cornerstone of Iran’s commercial and industrial landscape, which is strategically located in the southwest of Khuzestan province in Mino Island. The establishment of Arvand Free Zone is in line with the general objectives of advancing the development of the region, increasing the general income of local residents, attracting domestic and foreign investment, strengthening exports, and creating a more prominent position for the region in global markets. One of the main aspects of its mission is to facilitate the global distribution of manufactured goods and create a competitive advantage in the international market.

The geographical advantages of Arvand Free Zone emphasize its importance. Iran’s extensive land and air borders, along with the Shalamcheh border in Khuzestan province and international airports such as Abadan airport, show the connection of this region. Notably, this province has a comprehensive transportation network including land, air, sea and rail routes, which increases its strategic importance, especially in transit activities.

Given Iraq’s significant demand for large-scale imports and its proximity to the Arvand Free Zone, this region emerges as a pivotal player in trade facilitation and transit services. The strategic exploitation of Arvand Free Zone is especially evident in meeting Iraq’s urgent import needs and using the transit capacities of the region for efficient and trouble-free transportation of goods. This not only places Arvand Free Zone as an optimal option for importing goods from the Persian Gulf countries, but also makes it a very important channel for transferring goods to Iraq and neighboring countries. The region’s current success in this area reflects its effectiveness as a key player in regional trade and transit dynamics.

Customs rules for the departure of goods for passengers

Travelers who intend to enter the country in this area, in addition to essential travel supplies and personal items, can also purchase items up to 80 dollars. They can freely transport these goods out of the region without the need for a green card, tax payment or business interest.

But if the export goods exceed this amount, obtaining a green card is required. In such cases, travelers are required to pay customs duties and an amount equal to twice the commercial profit. It is important to note that export items should not have a commercial purpose. To get a green card, people must present their birth certificate and national card.

For travelers looking to leave this area of ​​the country directly, there is a more lenient policy that allows them to take out non-commercial goods or items that are not prohibited by law without the need for a green card or paying customs duties.

But it should be noted that the export of historical and antique objects, manuscripts, important cultural works and all kinds of coins for domestic and foreign travelers is strictly prohibited not only in this region but also from other border and free regions. In addition, the transportation of bulky goods is limited according to the passenger goods law and it is not possible to facilitate it from the region. The purpose of this regulatory framework is to preserve cultural heritage and adhere to legal guidelines related to the export of certain items.

Trade and transit in Arvand Free Zone

Khuzestan province is facing unique challenges and strategic considerations and it is a focus for various threats. Almost 30% of the country’s water passes through this region, which emphasizes its vital role in national water management. This province has vast plains that are useful for agriculture and regular industrial activities.

In addition, it contains a significant part of the country’s oil reserves and strengthens its economic importance. Its geographical features, including land borders, the existence of sea borders and air borders, have brought it a multifaceted advantage and differentiate it from other regions of the country.

Arvand Free Zone located in Khuzestan province appears as a central player in facilitating international trade. This area facilitates the transit of goods from different countries, including the countries of the Persian Gulf and East Asia, to Iraq and the Caucasus countries in this strategic region. Due to the urgent demand for imports to Iraq, the proximity of Arvand Free Zone along with its strong transit infrastructure makes it an optimal option for transporting goods to the Persian Gulf and the Caucasus.

What sets this region apart is its comprehensive transportation network that includes land, sea, air, and rail options. The synergy of these four modes of transportation puts Khuzestan province and especially Arvand Free Zone in an enviable position in terms of transit capabilities.

This logistical advantage not only meets the current needs of the Iraqi market, but also positions the region as a key player in enhancing trade and connectivity across the Persian Gulf and Caucasus countries. The strategic location and superior transportation infrastructure help make Khuzestan province the hub of regional transit activities.

Legal economic opportunities in Arvand Free Zone

Arvand Free Zone offers a unique business landscape with a set of regulations tailored to the goal of growth and attracting investors. Here’s an in-depth exploration of the key benefits:

1- Adequate Manpower Regulations: The Free Zone provides specialized manpower regulations that ensure access to a pool of skilled, efficient and cost-effective labor.

2- Export without customs duties: Businesses enjoy the privilege of exporting products without the burden of customs duties, which increases competition in the global market.

3- Benefits of the Value Added Law: By applying the Value Added Law, businesses can transfer the goods produced in the Arvand Free Zone to the mainland with flexibility up to 100% of production.

4- Insurance and social security regulations: Special insurance and social security regulations within the free zone provide a safe and supportive environment for both employers and employees.

5- Extended tax exemption: A generous 20-year tax exemption covers all activities in various fields and provides businesses with a longer period of financial relief.

6- Flexible Foreign Investor Participation: Foreign investors have the freedom to participate in business ventures without limited participation ratio requirements.

7- Full ownership in leased land: Foreign investors have the advantage of 100% ownership rights in leased land, and it creates a favorable environment for long-term investments.

8- Full ownership of shares: Foreign investors can own 100% of the shares of registered companies and ensure full control and decision-making authority.

9- Freedom to transfer currency: Unlimited freedom to transfer currency abroad facilitates seamless financial operations and simplifies international transactions.

10- Mobility of capital and profit: Arvand Free Zone guarantees complete freedom of entry and exit of capital and profit from economic activities and provides flexibility and financial security.

11- Support and guarantee of foreign capital: Businesses benefit from special support and guarantees for foreign capital, which creates confidence and stability in investment investments.

12- Establishment of foreign banks and insurances: Regulations allow the establishment of foreign banks and insurances that facilitate international financial services in the free zone.

13- Specialized export, import and customs regulations: Unique regulations simplify export, import and customs processes and reduce bureaucratic barriers for businesses.

14- Ease of Visa for Foreign Nationals: The Free Zone offers a hassle-free visa-free experience and simplified entry and residence permit procedures for foreigners.

In essence, Arvand Free Zone combines regulatory flexibility with a range of incentives, making it an attractive destination for domestic and foreign investors seeking a favorable and supportive business environment.