Arvand Free Zone

 

About Arvand

Khuzestan province due to its diverse and extensive capacities, including extensive land and water borders with neighboring countries, extensive coastline, having one of the largest oil resources in the country, access to southern rich rivers and potential plains for agriculture and industry, enjoys special advantages over other parts of the country. Enjoying special transit benefits such as combined transport, equipped docks and warehousing and customs infrastructure, has turned this Zone to be of special importance in commercial activities, in addition to its tourism, industry and agriculture.

Arvand Free Trade-Industrial Zone was established in 2004 with the aim of optimizing the capacities of this zone. This Zone, which is located in the northwest of the Persian Gulf and southwest of Khuzestan province and at the cross-road of the Arvand Rood and Karun rivers, is adjacent to Kuwait and Iraq and includes the three main parts of the industrial towns of Khorramshahr and Abadan, Shalamcheh and Mino Island; and with 37,400 hectares of area is one of the most important and prosperous Free Trade-Industrial Zones of the country.

The most important goals of this Zone include the development of tourism industries, fisheries and agriculture industries, clean industries, heavy industries (steelmaking, pipe rolling, etc.), offshore industries and facilities, and support for oil and petrochemical industries, along with strengthening transit capacities and commercial services.  The geographical location of the Zone, its natural conditions and the existence of warehousing and transit infrastructure as well as oil and refinery industries have caused the rapid growth of this Free Trade-Industrial Zone.

 

Capabilities & Facilities

  1. Rapid, easy and cheap access to regional and global markets through road, rail, air and marine transportation.
  2. Cheap energy
  3. Infrastructure for export, import and transit of goods
  4. Possibility of access to skilled & cheap workforce
  5. facilities and installation of industrial and municipal infrastructure
  6. Abadan International Airport.
  7. Khorramshahr port with port facilities and equipment for containerized and non-containerized goods.
  8. Facilities of dry port and Shalamcheh bordering market for exporting to Iraq.
  9. Abadan Oil Refinery
  10. Available infrastructures of rail and road network in the region and having the potential of expanding railway network.
  11. Existence of country’s three main rivers in the region.
  12. Capability of accepting immigrants and familiarity of people with other languages.
  13. Possibility of expanding agriculture with reclamation of cultivable lands.

 

Legal Advantages of Economic Activities in Arvand

  • Specific provisions for the employment of workforce in the free zone and the availability of skilled, productive and cheap human resources.
  • Export of goods without paying customs duties.
  • Use of value added law for the transfer of goods produced in Arvand free zone to the mainland to one hundred percent of production.
  • Specific rules for insurance and social security in Free Zones.
  • 20- Years tax exemption for all activities in every field.
  • The possibility of partnerships with foreign investors without restriction in the participation rate
  • 100% ownership of foreign investors in relation to the newly constructed lands in the land rental areas.
  • The possibility of having hundred percent share of the registered company by foreign investors
  • Freedom of transferring currency abroad without any restriction.
  • Support and Guarantee of Foreign Investments
  • Establishment of foreign banks and insurance
  • Specific regulations on Exports, Imports and Customs
  • Lack of visa requirements and ease of issuance of foreigners’ entry and remain permits.

 

Competitive Advantages of Arvand

  • The area of 37400 hectares
  • Industrial and Commercial Background of the Region
  • A combination of experienced, young and educated human resources, especially in the industrial and commercial fields.
  • Having marine and land border with Iraq and easy access to the Persian Gulf market.
  • Access to the large market and internal population of Abadan and Khorramshahr (500 thousand), Population of Khuzestan ( 4 million) and the 28 million population of Iraq
  • The nearest free zone to the main center of population, industry, agriculture and mines of the country
  • Freshwater of Arvand, Karoon and Bahmanshir Rivers with Shipping Capability
  • Four types of Road, Rail, Air and Marine transport in the region
  • Production of approximately 90% of the country’s hydroelectric power in Khuzestan province
  • Cheap energy and labor, especially for foreign investment in the region.
  • Having the second container port of the country (Khorramshahr), Abadan Port and the possibility of transit of goods to the countries of the region and the countries of Central Asia as the closest port and the most convenient and shortest transit route for the north-south of the country.
  • Industrial, commercial and urban facilities and infrastructures.
  • Fertility of the riverside land soils to expand agricultural production
  • Shalamcheh border terminal in Arvand Free Zone.
  • Annual visit of up to 2 million people visiting Shalamcheh Shrine
  • Abadan International Airport in Arvand Free Zone.
  • Existence of the largest passenger terminal of the country in Khorramshahr port and establishment of regular shipping lines to neighboring countries.
  • Existence of 450 thousand barrels refinery of Abadan in Arvand Free Zone.
  • Existence of Great scaffolding facilities of Ministry of Oil in the region
  • Abadan Petrochemical Company in Arvand Free Zone
  • Availability of Good Hotels in the Free Zone
  • High population capacity in the region.
  • The proximity to Imam Khomeini port and the special economic zone of petrochemical and the port of Mahshahr and the possibility of using the facilities of those areas.
  • Existence of beautiful Island of Minou in Arvand Free Zone.
  • Familiarity of residents with several languages.
  • The existence of universities and institutes of higher education with a long history in the region.
  • Existence of more than 100 companies and factories such as petrochemicals, oil facilities, rolling, shipbuilding, flour, wood industry, food, soap making, power generation and etc. in the region.
  • Having suitable climatic conditions eight months of the year.
  • Common language, culture and relatives of people of the region with neighboring countries.
  • Located between the two oil poles of the Middle East, the oil-rich regions of southern Iran and the oil-rich regions of southern Iraq
  • Proximity to large Cultivation companies, Sugarcane development and its related industries.
  • Adjacent to Hoor and beautiful wetland of Shadegan
  • The presence of large ship building and vessel repairing companies in the free zone.
  • Proximity to Ahwaz steel and pipe rolling industries.
  • Major steel construction projects in Arvand

 

Investment opportunities and fields

  • Oil, gas, petrochemical and downstream industries
  • Supporting industries, technical and engineering services of oil industry
  • Steel Industry
  • Transportation and transit of goods
  • Tourism and Recreation
  • Higher education
  • Telecommunications
  • Energy production
  • Bank and insurance
  • Parts industry
  • Automotive
  • Shipbuilding, construction of marine equipment and structures
  • Goods transit
  • Conversion and packaging industries
  • Textile, leather and clothing industries
  • Chemical industries
  • Electrical and electronic industries

 

Relative Benefits of Industrial Investments in Arvand

  • Tax exemption for all economic activities for 20 years from the date of operation
  • Freedom of participation and foreign investment of any share of the stock
  • Sale and lease of land to domestic investors and lease of land to foreign investors
  • Exemption from payment of customs duties and commercial benefits for the import of raw materials, machinery and spare parts for industrial activities in the region
  • The possibility of exporting goods produced in the region to other parts of the country within the framework of the value added system
  • Neighboring Iraq and the possibility of transit and export of goods to this country through Shalamcheh Frontier crossing, Khorramshahr Railway, Basra, Arvand River and Khorramshahr Port
  • Access to the Persian Gulf and free waters through Arvand River
  • Connection to the country’s road transportation network
  • Connecting to the national rail network through Khorramshahr railway station
  • The presence of Khorramshahr port as the second container port of the country, port of Abadan in the area and close to the port of Imam Khomeini (RA)
  • International airport operating with regular domestic and foreign flights
  • Connection to the National Power Grid
  • Benefit from freshwater and extensive land area

 

Sources: www.arvandfreezone.com/en , www.freezones.ir/en