Perspective of economy in Iran

Free trade-economic zones

The free zones and special economic zones are to function as a "pilot experiment" in order to be adopted for the national economy and particularly in connection with global economy.

To reach such goals, Iran's free zones are administered subject to the laws and regulations properly legislated, providing the investors with many advantages and facilities. Those zones are privileged by the overall support of the Islamic Republic establishment.

Stability and security are to be taken into account as the two principles for attraction and protection of capital investments. Persistent endeavors are made to create new grounds for the expansion of investments in various fields of enterprises.

The unique location of the Islamic Republic of Iran in the Persian Gulf, as well as vis--vis the Middle East, central Asia, Caucasus and the Indian subcontinent on the one hand, and the establishment of free trade - industrial zones and special economic zones on the other, have provided an ideal and rare opportunity, along with a sustainable capacity, in connection with the global network of regional and over regional domain to facilitate the investors to intensify the output of their investments.

Economic structure

The economic system of the Islamic Republic of Iran shall be based on public, cooperative and private sectors, with proper and sound planning. The public sector includes all large-scale industries, foreign trade, large mines, banking, insurance, power supply, dams and large irrigation channels, radio and television, post, telegraph and telephone, aviation, shipping, roads, rails and the like, which are public property and at the disposal of the government.

The cooperative sector includes cooperative production and distribution companies and institutions established in cities and villages on the basis of Islamic principles.

The private sector includes such activities related to agriculture, cattle-raising, industry, trade and services that supplement the economic activities of public and cooperative sectors.

Ownership in the aforesaid three sectors that does not surpass the limits of Islamic laws, contributes to economic growth and development of the country, and does not harm the society, shall enjoy protection of law in the Islamic Republic.

Details of regulations, scope and conditions of the three sectors shall be determined by law.

Privatization procedures

The Iranian Private Organization (IPO) reported that "At least 82 state-owned enterprises (SOEs) shall be divested by the end of the current Iranian Year.

The IPO reached 90 percent of its predetermined objectives in the way of divesting SOEs during the first nine months of the year.

From March to December 2007, more than 3.27 billion shares worth more than $1.57 million were divested

Left: Bala-Bala Bridge, Rasht-Loshan Road Right: Saveh Dam

(China Daily 02/18/2008 page15)