Kish Draws $1.1 Billion in Investment

Iran Daily - Domestic Economy - 08/08/05: "FTZs Absorbed Only $1.8b in 3 Yrs.


Kish, with $1.1 billion, and Chahbahar, with $56 million, attracted the highest and lowest amounts of foreign investments.

TEHRAN, Aug. 7--Free trade zones (FTZs) absorbed a total of $1.8 billion in foreign investment in the past three years, reported ISNA.
Kish, Qeshm and Chahbahar FTZs also managed to attract 25.3 trillion rials in domestic capital over the same period.
According to statistics released by the secretariat of the High Council of Free Trade Zones, the three FTZs recorded the highest rate of foreign investment in 2003 with $520 million, whereas they absorbed the lowest amount in 2001, when investment reached $378 million.
Kish, with $1.1 billion, and Chahbahar, with $56 million, attracted the highest and lowest amounts of foreign investments in the same period, respectively.
Kish Island also received the highest amounts of domestic investment with 21.8 trillion rials, whereas Chahbahar attracted only 956 million rials in the period.
Experts say poor financial support by the government and low investment ventures have prevented free trade zones (FTZs) from developing properly, stressing that prevailing instabilities in FTZ laws have added to the dilemma.
Hadi Haqshenas, who is a member of the Majlis Plan, Budget and Audit Commission, told ISNA earlier that FTZs lack basic infrastructure, including proper airports, as investment laws remain ineffective.
“Our political problems and tensions with some other countries, including regional states, have prevented a significant rise in foreign investments,“ he said.
Economic activities of Iranian FTZs remain insignificant due to sluggish economy and constant lack of understanding among senior officials about the important role free trade zones can play in improving the country’s international transactions.
The tiny Persian Gulf state of United Arab Emirates has taken full advantage of Iran’s inability to lead the regional marine transit to boost its multibillion-dollar business.
This is while many Iranian officials are skeptical about establishing more FTZs given the globalization process and the prospects of the country’s joining the World Trade Organization."