Dr. Mohsen Tabatabaei Mozd Abadi

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Dr. Mohsen Tabatabaei Mozd Abadi

Seyyed Mohsen Tabatabaei Mazdabadi Seyyed Mohsen Tabatabaei Mazdabadi

Free Trade Zones: The Forgotten Sea of ​​Economy

Thursday, January 23, 2025 12:28 PM
notes
شماره خبر: -1641164

Free trade zones, the hidden engine of economic growth, provide a golden opportunity for investment and international trade development. Despite the vast benefits, there are also challenges. Can these zones become a launching pad for the country's economy?

According to Miras Aria, Dr. Seyed Mohsen Tabatabaei Mozdabadi, a professor at the Faculty of Tourism at the University of Tehran, provided Miras Aria with a note titled “Free Trade Zones; The Forgotten Sea of ​​Economy,” the full text of which is as follows:The term “free zone” is frequently used in various discussions and news reports, yet its original meaning may be elusive to some who are not familiar with the concept. A related term, “free trade zone,” adds another layer of complexity. Essentially, free zones and free trade zones are designated areas within countries where commercial activities are conducted under distinct laws and regulations, often exempt from certain customs laws. These zones, whether located in port or non-port locations, enjoy special protection and create a conducive environment for business growth. Free trade zones, as found in many countries, create an environment where companies can conduct business with a degree of autonomy and benefit from unique conditions designed to encourage economic activity. Notably, these zones are not subject to specific customs regulations and offer businesses a simpler and more efficient process for conducting international trade. The distinctive features and benefits granted to businesses operating in free trade zones help to increase the level of business activity. Iran has 15 free trade zones, each strategically located to facilitate economic development. These zones, which are characterized by their own regulations and exemptions, act as hubs for businesses seeking to invest in the favorable conditions offered in these designated zones. The distinctive conditions in free trade zones lead to a significant increase in business investments and make them attractive locations for companies seeking to grow in a dynamic and profitable business environment.Advantages and Disadvantages of Free Trade ZonesWhen talking about free trade zones, most people talk about their advantages and positive economic impacts. If you intend to do business in these free trade zones, you should look at this issue from a comprehensive perspective and consider the problems in addition to the advantages of the free trade zone. There are 15 free trade zones in Iran, each of which may have different conditions. The main disadvantages and advantages of free zones are as follows:Advantages of Free Trade ZonesThe main and most important advantage of establishing a business in free trade zones is being exempt from customs laws.Companies registered in free zones are exempt from paying taxes for up to 20 years.Foreigners can easily move and reside in the free trade zone.Individuals can easily transfer their currency and capital abroad or to other free zones.Employment of Iranian and foreign labor in these zones follows simple regulations.In the free zone, you can register your company with 100% foreign ownership.Service and transportation tariffs at airports in free trade zones are lower.Disadvantages of the free trade zoneIn the free trade zone, the wages of specialized and technical workers are higher than the wages of ordinary workers, and this has disrupted the income balance in the industrial and service centers of the free zones.Rent and economic corruption are among the most unpleasant issues that are seen in abundance in free zones.Many luxury and unnecessary goods enter the country from the free zone, and the main reason for this is the lack of transparency of some laws.Some free zones in Iran are deprived of many facilities despite the expenses spent on their development.The lack of adequate control and supervision over the entry and exit of goods into the free trade zone has led to the abuse of smugglers.The greater ability of imports to export is one of the fundamental weaknesses seen in the free trade zone. As imports increase, the labor market in the free zones may weaken.Introduction to Iran's Free Zones Maku Free Zone:The Maku Free Zone is located in the extreme northwest of the country and encompasses the geographical areas of Maku, Shout, Poldasht, and the border town of Bazargan. This area, accounting for about 75 percent of the country's free zones, is adjacent to Turkey and the Nakhchivan Autonomous Republic. The Maku Free Zone, extending 140 kilometers along the Republic of Azerbaijan and 130 kilometers along Turkey, occupies a pivotal position on the world trade map.This area, with an area of ​​386 thousand hectares, includes three counties, six cities, six districts, 13 rural districts, and 261 settlements with a population of 192,603 ​​people. Despite constituting only 0.24% of the country's total population, it constitutes 5.9% of the population of West Azerbaijan Province. Beyond its economic importance, the Maku Free Zone has natural beauty that contributes to its attractiveness on a national and global scale.Strategically located on the trade route between China and Europe, the region plays an important role in facilitating trade exchanges. Its location along the East-West Corridor, connected to Europe by rail and road transit routes, makes it a key hub for land border trade and passenger activities. With a significant annual trade volume of over $1000 billion, the Mako Free Zone has the potential to not only influence the dynamics of regional and international trade, but also add significant value to it.Several factors contribute to the attractiveness of the Mako Free Zone for investment and manufacturing activities. The presence of the Tabriz-Qars Railway, Mako International Airport, Sardar Soleimani Highway, Mako Free Zone Logistics Village, and a significant number of fleet owners and international and domestic transport companies enhance its transport capabilities. In addition, the region benefits from an export gas pipeline, access to affordable energy resources, a skilled workforce, and tax and customs exemptions.The convergence of these favorable conditions makes the Mako Free Zone a unique and attractive destination for investors and businesses. Its potential to reduce the cost and time of goods transit, combined with its strategic location and developed infrastructure, positions it as a pivotal player in the regional and international trade network. Furthermore, the Mako Free Zone has the potential to become a dynamic hub for logistics, manufacturing, and export activities, strengthening its role in the global production and supply chain.Anzali Free Zone:Established in 2005 in Bandar Anzali County, Gilan Province, Anzali Free Zone is one of Iran’s prominent “seven free zones” that are strategically aligned with the country’s economic goals. Located in the northern regions of Iran, along the southern Caspian Sea and located in the north-south corridor, Anzali Free Zone has many legal advantages that create a favorable environment for economic growth and international trade.Legal advantages of Anzali Free Zone:Capital Freedom: Unlimited entry and exit of capital, creating a flexible financial environment for businesses.Foreign Investment: Freedom to participate in foreign investment up to 100%, encouraging international cooperation and business partnerships.Capital Protection: Full guarantee of foreign investments and profits from them, creating confidence in investors.Tax Exemption: A significant tax exemption period of 15 years, which has been further extended to 20 years, offering financial benefits for businesses operating in the zone.Customs Duty Exemption: Exemption from customs duties and commercial profits for the import of raw materials, import of machinery and import of spare parts for manufacturers in the zone, which promotes domestic production.Import exemption: Customs exemption for the entry of goods produced in the free zone into the country up to the value added ceiling, facilitating market access.Transit and re-export: Freedom of transit and re-export of goods without restrictions, which increases the role of the region in international trade.Investment participation: Domestic and foreign investment participation is encouraged and strengthens a diverse and dynamic business environment.Customs exemption for local goods: Customs exemption for goods produced in the region entering the country, which promotes domestic industries.Customs duties and interest-free entry: Possibility of importing goods without paying customs duties and commercial profits within the region and reducing operating costs.Visa-free entry: Possibility of foreign nationals entering through authorized entry and exit points without the need for a prior visa and facilitating international trade interactions.Land transactions: Possibility of selling and leasing land to domestic investors and leasing land to foreign investors, creating flexibility in property transactions.Special employment regulations: Implementation of special employment regulations in the region, creating a unique work environment.Arvand Free Zone:With an area of ​​37,400 hectares, Arvand Free Zone is one of the top commercial and industrial zones in Iran, strategically located in the southwest of Khuzestan Province on Minoo Island. This economic powerhouse plays a significant role in advancing regional development, raising the income level of local residents, and giving the region a prominent position on the global stage.Key Features and Benefits of Arvand Free Zone:Investment Magnet: The region has proven to be a magnet for domestic and foreign investments, driving economic growth and development.Boosting Exports: Its strategic location and favorable conditions contribute to a significant increase in exports and create economic vitality.Improving Income Levels: The establishment of Arvand Free Zone is associated with an overall improvement in the income level of the region’s residents.Global Market Access: The region facilitates easy access to global markets for manufactured goods and promotes healthy competition on the international stage.Tourist Attraction: Beyond its economic impact, Arvand Free Zone has become an attraction for tourists and travelers, contributing to the general influx of tourists to Khuzestan Province.Economic Catalyst: The wave of tourism not only boosts the local economy, but also acts as a catalyst for increased trade and investment in the region.Strategic Location: Arvand Free Zone, located in the southwest of Khuzestan Province, plays a pivotal role in Iran’s commercial and industrial landscape.Mission Alignment: The establishment of the zone is aligned with overall goals including advancing regional development, attracting domestic and foreign investment, and boosting exports.Global Distribution Center: One of the main aspects of its mission is to facilitate the global distribution of manufactured goods, creating a competitive advantage in the international market.Transportation Network: Iran’s extensive land and air borders, along with the Shalamcheh border in Khuzestan Province and international airports such as Abadan Airport, demonstrate the connectivity of this region.Comprehensive Transportation: Khuzestan Province has a comprehensive transportation network that encompasses land, air, sea, and rail routes, increasing its strategic importance, especially in transit activities.In conclusion, the Arvand Free Zone is not only an economic powerhouse, but also a multifaceted driver of regional development, tourism, and global market integration. Its strategic location, coupled with a commitment to strengthening investment and trade, positions it as a cornerstone of Iran’s economic landscape and contributes to the country’s prominence in the international arena.Chabahar Free Zone:As one of Iran’s most important and extensive ocean ports, Chabahar Free Zone is strategically located outside the Strait of Hormuz at a global crossroads. Its unique features, including being a port, a free zone, and its connection to the Indian Ocean, have made it a pivotal hub for trade and transportation to the southeast of the country and the Makran coast.Key Features of Chabahar Port:Global Strategic Location: Chabahar’s strategic location along the Sea of ​​Oman and its direct access to international open waters make it a global crossroads, helping to develop trade and transportation.Shortest Distance to Shipping Route: Chabahar is located at the shortest distance to the shipping route outside the Strait of Hormuz, offering a convenient gateway for trade that minimizes transit time.Proximity to Afghanistan and Pakistan: Chabahar’s short land distance to the Afghan and Pakistani borders enhances its regional importance and facilitates efficient trade connections.Investment in Infrastructure: Significant investments from both the public and private sectors in port infrastructure and equipment create a unique opportunity for investment in various sectors including petrochemicals, steel, refineries, and market-friendly manufacturing units.Diverse Economic Opportunities: Chabahar’s strategic location has led to the creation of significant economic opportunities in petrochemicals, steel, refineries and other manufacturing units, which contribute to production, exports and job creation.Transit and Transportation Hub: Chabahar Port, with the necessary capabilities and capacities, has the potential to become a pivotal commercial port, especially in transit and transportation of goods within Iran.International Connectivity: Chabahar’s access to international open waters makes it prominent in Iran’s trade with the Persian Gulf countries, the Indian Ocean, IAEA member countries, and facilitates the movement of goods and passengers to Central Asia and Afghanistan.North-South Corridor: Chabahar, as Iran’s largest ocean port, plays a vital role in transit transshipment and transportation of goods in the North-South Corridor and contributes to economic development in various sectors.Two Major Ports: Chabahar currently has two major ports, Shahid Beheshti and Shahid Kalantari, both of which have played an important role in the export and import of goods and have shown their resilience during and after periods of conflict.Port Infrastructure: Shahid Beheshti Port has five berths with large areas, berthing spaces and warehouses. Shahid Kalantari Port is equipped with five berths including a multi-purpose berth and a general goods berth, further enhancing the capacity of this port.In short, Chabahar’s position as Iran’s largest ocean port, along with its strategic location, strong infrastructure, and diverse economic opportunities, make it a key player in international trade and transportation, contributing to the economic growth and development of the region and the country.Aras Free Zone:With historical roots dating back to the 5th century BC, Aras Free Zone has become a significant economic hub with the establishment of the Aras Free Zone. Free zones like Aras have become highly attractive to industrialists, manufacturers, exporters, and importers due to the countless business opportunities and various benefits they offer.Tejarat Joyan Trading Company in Aras Free Zone continuously provides services to merchants in the fields of export, import, and customs clearance. Located 135 kilometers from Tabriz, the capital of East Azerbaijan Province, this free trade zone encompasses five separate sections including Norduz, Parsabad, Aslanduz, and Khomarlu, bordering the Republic of Azerbaijan, Armenia, and the Nakhchivan Autonomous Republic.Key Features of Aras Free Zone:Strategic Location: Proximity to the Republic of Azerbaijan, Armenia, and the Autonomous Republic of Nakhchivan has made Aras Free Zone a vital hub for cross-border trade.Julfa Customs: The presence of Julfa Customs within the free zone facilitates extensive trade activities and contributes to the economic vitality of the region.Exemption from Customs Duties: A significant advantage of Aras Free Zone is the lack of payment of customs duties, which has made it a very attractive destination for businessmen. It ranks second in importance among the free zones in the country after Kish.Import of Foreign Cars: One of the significant features is the possibility of importing foreign cars without paying customs duties, which provides an affordable basis for purchasing cars.Advantages of Aras Free Zone:Proximity to the Market: Aras Free Zone’s proximity to the market of the Commonwealth of Independent States (CIS) increases its attractiveness for international trade.Rail Access: The region benefits from access to the national railway lines of Iran and the former Soviet Union, facilitating efficient transportation.Airport Connectivity: Proximity to Tabriz Airport enhances logistics capabilities and helps in the efficiency of business operations.Transit and Transportation Network: Aras Free Zone is well connected to the national transit and transportation network, reinforcing its strategic importance.Tourism Opportunities: The region’s favorable climate and proximity to cultural and historical attractions create conditions for attracting tourism and visitors.Finally, the historical importance of Aras Free Zone, along with its strategic location, customs benefits, and diverse economic opportunities, positions it as a key player in boosting trade, investment, and economic growth in the region and beyond.Qeshm Free Zone Customs has taken an important step towards improving its trade processes by connecting to the Cross-Border Trade Unit window. The responsible member of the board of directors and the deputy director of economics and investment of the Qeshm Free Zone Organization announced the start of reforms and system updates in this organization. The goal of this strategic move is to optimize conditions and simplify the process of attracting investors and ultimately economic growth and development.Key Features of Qeshm Island:Strategic Location: Qeshm Island is strategically located in the trade corridor of the southern Persian Gulf countries. The country acts as a central hub in the triangle of joint trade cooperation between Iran, the UAE and Oman.International Trade Port Potential: Qeshm Island has the potential to become an international trade port in the North-South corridor due to its proximity to the markets of Central Asia, the Indian subcontinent and Europe. It acts as a bridge for the expansion of global trade.Geographical Features: Qeshm Island, as the largest landmass in Iran, extends about 135 km from the mouth of the Strait of Hormuz, starting in front of Bandar Abbas and reaching west to Bandar Lang on the mainland.Width and Length: The maximum width of the island is about 40 km from Bandar Laft in the north to the village of Shib Deraz, and its minimum width is 9.4 km from the fishing port of Salkh in the south to the village of Tabol. In the north.Objectives of the Qeshm Free Zone:Liberalization of economic activities: The Qeshm Free Zone aims to free economic activities from legal restrictions and complex regulations of the state economy and gradually link the national economy with international markets.Expanding the global market: This zone focuses on expanding export markets and improving company management through the creation and development of industries and industrial clusters.Establishing a material supply network: The Qeshm Free Zone seeks to establish and establish a material supply network to meet the needs of the region.Using advanced technologies: Another goal is to use advanced and up-to-date world technologies in various fields of industry, trade and management.Achieving secondary goals:Increasing foreign exchange earnings: Implementing the goals of the Qeshm Free Zone will increase the country's foreign exchange earnings.Industrial development: The goal of this zone is to help the country's industrial development by creating new technology chains.Strengthening political power: The Qeshm Free Zone seeks to enhance the country's political power at the regional and international levels.Job creation and socio-cultural development: The goals also include expanding employment capacities, socio-cultural development of the island, and improving the region's position.Prizes and advantages:Qeshm Island's exploitation of coastal areas for direct and indirect transportation of goods, its location on the international shipping route, and its deep coasts and potential facilities bring special advantages. These advantages play a decisive role in the country's commercial and industrial development perspective and strategy.Kish Free Zone:The Commercial and Industrial Free Zone in Hormozgan Province is a prominent economic hub among the seven free zones in Iran. The Kish Free Zone, which is managed by an organization under the management of the Supreme Council of Free Trade and Industrial Zones, encompasses the island of Kish along with the islands of Hendrabi, Big Far, and Little Farvor.Key Features of the Kish Free Zone:Historical Significance: Kish, the first free zone of Iran, has a historical reputation as a center of trade links between India, Iran and Mesopotamia. Its trade was historically centered around pearls.Geographical Features: Kish Island is an oval-shaped island measuring 15 km long, 7 km wide and approximately 91 km squared, making it the second largest island in the Persian Gulf after Qeshm.Entertainment and Tourism: Kish Island is known for its recreational facilities, making it a major destination for Iranian tourists. The island's attractions contribute significantly to its popularity.Location and Connectivity: Kish Free Zone is located 18 km off the southern coast of Iran and is well connected mainly by air. Kish International Airport serves as a major transportation hub, facilitating both domestic and international flights.Maritime Connectivity: Kish Port facilitates the daily departure and arrival of numerous ships to three destinations: Charak Port, Aftab Port and Lengeh Port, and enhances maritime connectivity.Clearance: Clearance of goods from the Kish Free Zone is crucial for traders and merchants. The zone operates under special rules and regulations for the import and export of goods, making international trade easier and more cost-effective.Processes Related to Clearance:Customs Obstacles: The clearance process involves the payment of customs duties, taxes, and other related fees necessary for international trade.Import and Export Procedures: Completing the steps required to import or export goods requires compliance with specific regulations, and this process is affected by political and economic changes.Prohibitions and Permits: Regulations related to clearance of goods may change based on political and economic conditions. Awareness of the prohibitions and permits required for successful clearance is essential.Circulars and References: Traders should refer to the circulars issued by the relevant organizations and authorities before importing or exporting to be informed of the latest regulations.Customs Consultants and Companies: Getting help from customs consultants and companies, such as Tejarat Joyan, can be a valuable support in navigating the complex customs and clearance procedures.Customs Clearance Experts: Working with customs experts familiar with Kish Free Zone processes ensures smooth and compliant clearance of goods.Finally, the Kish Free Trade and Industrial Zone is a dynamic economic hub, attracting tourists and facilitating international trade. Its strategic location, well-developed transportation infrastructure, and specific economic regulations contribute to its importance in Iran’s business landscape. Businesses can benefit from the unique advantages of the Kish Free Zone, especially with expert guidance and compliance with the latest regulations.Problems and Weaknesses of Kish Island:The absence of artificial islands on Kish Island has become one of the weaknesses of this island. Due to the rise in sea level and rapid population growth, the possibility of land shortage in the coming years is very high. Progress and development in the field of construction has changed the scenario of today's world. Artificial islands are not only a suitable solution to overcome this crisis, but also one of the important infrastructures that has a great impact on the level of economy, tourism and industrial progress of countries. An artificial island is an area surrounded by water that is artificially built by human resources and using advanced technologies and machinery; examples of these islands in the world include: Jurong Island in Singapore, the artificial island of Odaiba in the center of Tokyo, the artificial Banana Island on the coast of Ikoyi, in the city of Lagos, the capital of Nigeria, the artificial island of New Holland in the center of St. Petersburg, Russia.The lack of educational opportunities and practical workshops on Kish Island is another weakness of this region. The international expansion of higher education in recent decades has intensified with the rapid increase in the number of international branch campuses on the scene. University expansion is positively associated with higher regional economic growth. Therefore, understanding how universities expand internationally is of social and economic importance. On the one hand, universities can expand internationally by opening new subsidiaries (wide margins). Kish Island is a suitable region to establish representation of several world-renowned universities and compete with other Gulf countries.The lack of infrastructure required to host world championships on Kish Island is similar to the problems faced by many developing countries. These deficiencies include the lack of international standard stadiums, the lack of efficient public transportation facilities, the lack of sufficient and quality hotels and accommodations to accommodate large numbers of spectators, as well as the need for advanced technology infrastructure for communications and digital services. For example, Qatar launched major development projects for the 2022 World Cup, including the construction of new stadiums and a modern public transportation system. While Kish Island needs more investment and development to host such events, especially in terms of accommodation and transportation facilities.Attracting domestic financial resources of Kish Island from the markets of the Persian Gulf countries, South Asia, India, Pakistan, Bangladesh and Africa is one of the major challenges for the economic development of this region. To achieve this goal, there is a need to create a suitable platform to attract foreign and domestic investors, facilitate financial laws and regulations, and promote the position of Kish Island as a reputable commercial and financial center. For example, countries such as the UAE have succeeded in attracting investors from different countries by establishing free trade zones and providing financial incentives. For Kish Island, it is also possible to attract new markets from the Persian Gulf countries and South Asia by providing financial incentives and special facilities, given its geographical location and economic capacities.The absence of foreign banks, foreign insurance companies and international brands on Kish Island is one of the main challenges in attracting investment and developing international trade. This can limit access to financial and insurance services with global standards and reduce competitiveness in the Kish market. For example, many other countries such as the UAE and Qatar have been able to strengthen their financial and commercial infrastructure by attracting large global banks and insurance companies and become known as regional trade hubs. While on Kish Island, the absence of these institutions makes it difficult for businesses to conduct international transactions and generally prevents international brands from entering the Kish market. The lack of an agricultural supply hub for countries such as Russia and Kazakhstan in the Kish market is a missed opportunity to exploit the large markets of these countries. This problem prevents Iranian producers and traders from effectively exporting their agricultural products to these markets, and on the other hand, the target countries do not have easy and fast access to Iranian agricultural products. For example, the UAE has been able to export agricultural products effectively to Central Asian and Eastern European countries by establishing trade and logistics hubs. While Kish Island can act as a hub for supplying agricultural products to Russia and Kazakhstan by investing in transportation and cold storage infrastructure, and establishing trade platforms and international markets.Enforcement of laws and social and cultural restrictions of the mainland, especially on issues such as hijab, is a major challenge in the Kish Free Zone. As a tourism and business destination attracting tourists and foreign investors from different cultures and countries, the Kish Free Zone requires a specific approach to managing these issues. Applying laws similar to the mainland may limit the attraction of foreign tourists, especially from countries with different cultures. For example, in countries like the UAE (Dubai), the hijab laws and social restrictions are less strict, which has attracted tourists from all over the world, especially from Western countries and Southeast Asia. Conversely, if the same laws as those on the Iranian mainland were fully implemented in Kish, it might reduce the island's appeal as an international tourist destination.The weak dependence on the main body of the country in the field of food, fuel and water resources, as well as the lack of hydroponic farms, are one of the major challenges for the sustainable development of Kish Island. Due to its geographical location, Kish Island is dependent on the mainland for natural resources, and this dependence can cause disruptions in the supply of essential goods and services in times of crisis or transportation problems. Especially in the field of food and fuel resources, which the island mainly depends on for supply from the mainland, these shortages can put a lot of pressure on the infrastructure and local economy. For example, in the event of a disruption in the supply of fuel from the mainland, transportation and economic activities on Kish Island will be directly affected. Also, the lack of hydroponic farms (cultivation without soil) as a solution to provide local food resources and reduce dependence on imports is an obstacle to self-sufficiency in agricultural production. In other countries, such as the UAE, by using advanced technologies such as vertical farms and hydroponics, they have been able to meet a large part of their food needs through domestic production and reduce their dependence on imports. For Kish Island, investing in this type of technology and developing renewable energy sources can be a suitable solution to reduce dependence on the mainland. The lack of a port for cruise ships on Kish Island is one of the main obstacles to attracting international tourists and transforming Kish into an important maritime tourism destination. As a popular mode of travel for international tourists, cruise ships require well-equipped and standard ports that are capable of accepting large ships and providing necessary services to passengers. For example, cruise ports in cities such as Dubai and Istanbul have become one of the main maritime tourism destinations with advanced facilities such as passenger terminals, welfare services, and rapid transit systems. Meanwhile, Kish Island needs port facilities and appropriate equipment to attract cruise ships. Building modern ports with adequate capacity to accommodate cruise ships could increase the number of foreign tourists and improve the economic situation of the island. The lack of an international comprehensive hospital in Kish is one of the main obstacles to the development of health tourism on the island. Specialized and comprehensive hospitals with international standards play a vital role in attracting health tourists and can turn this region into a reputable destination for medical treatments. Many countries such as Thailand and the UAE have become major health tourism hubs in the world by establishing advanced hospitals and specialized medical centers. Currently, Kish Island lacks a hospital with modern facilities and equipment to provide high-level medical services to international patients. This shortage could limit the attraction of foreign patients for specialized treatments and complex surgeries. To develop health tourism in Kish, there is a need to build comprehensive hospitals with international standards that, in addition to medical services, also provide welfare facilities and counseling for health tourists.The development of Kish Airport to accommodate wide-body aircraft such as the Airbus A380 is one of the key steps to transform the island into an international hub. The current airports in Kish do not have the capacity to accommodate these types of aircraft and for this purpose, there is a need to develop the existing infrastructure. This includes building longer runways, increasing terminal capacity, improving aircraft parking facilities, and advanced service equipment for large aircraft. For example, Dubai Airport, which has become one of the most important international hubs, uses wide runways and modern equipment to accommodate wide-body aircraft such as the Airbus A380. This has made Dubai one of the busiest airports in the world, welcoming passengers from all over the world. To transform Kish into an international hub, the development of the airport as a long-term project requires technical and financial cooperation with global experts so that it can serve as an important air transportation center in the Persian Gulf region and Asia in the future.The lack of a place for a digital currency market in Kish is a major obstacle to attracting investors and digital financial market players to the island. Given the significant growth of digital currencies in recent years and the desire of many countries to create appropriate infrastructure for trade and investment in this area, the lack of a formal and legal market for digital currencies in Kish leads to the loss of economic and financial opportunities. For example, in advanced countries such as the United Arab Emirates, Dubai has become a major commercial and financial hub in this area by creating special free zones for digital currencies and providing appropriate legal frameworks. In this regard, creating a dedicated space for digital currencies in Kish can help attract domestic and foreign investors, grow digital businesses, and increase financial turnover on the island. This market can include reputable exchanges, consulting offices, and digital financial services that will help develop this industry and strengthen Kish's position as an advanced financial center in the region.The lack of development of international medical universities in Kish is a major obstacle to attracting foreign students and promoting the island's status as a center for medical education and research. While many countries in the region and the world have been able to attract the attention of international students by establishing medical universities with international standards, Kish still lacks this type of educational center that can serve as an attractive destination for medical education and scientific research. For example, countries such as the UAE have been able to become an important destination for studying in medical fields by establishing reputable medical universities and collaborating with global educational institutions. In this regard, the development of medical universities with advanced educational and research facilities in Kish can attract international students and professors, strengthen the educational tourism industry, and improve the scientific and medical level of the island. The lack of international insurance companies for ship insurance on Kish Island is one of the main problems in developing the maritime transportation industry and attracting commercial and passenger ships. Globally recognized insurance companies play a key role in providing insurance coverage for ships, cargo, and passengers, and the lack of such insurance can increase financial and legal risks for ships and shipping lines. For example, in major global ports such as Singapore and Dubai, international insurance companies actively provide insurance services for ships and commercial shipping, which makes ships visit these ports with greater confidence. On Kish Island, in order to develop the maritime transportation industry and attract international shipping lines, there is a need for the presence of international insurance companies that can provide comprehensive and standard insurance coverage and make Kish an attractive destination for shipping and maritime trade activities.The lack of apartments for foreigners and the allocation of special residences in Kish, similar to the policies in countries such as Cyprus, Turkey, and the UAE, is one of the major obstacles in attracting long-term investors and tourists to the island. In the aforementioned countries, by providing facilities such as transferring property to foreigners and allocating special residences, they have been able to become attractive destinations for international investors. For example, in the United Arab Emirates, the city of Dubai has become one of the global investment hubs by providing long-term visas to foreign investors and allowing them to purchase property. Also, in Turkey, programs have been created to grant citizenship to foreigners who purchase property of a certain value, which has attracted a lot of investment in the real estate sector. On Kish Island, by creating similar conditions for purchasing property and granting special residences to foreigners, it can help attract foreign investors and increase the economic development of the island. This measure will not only increase the demand for housing and investment in real estate, but also can make Kish an attractive destination for long-term tourists and international investors.The lack of full English proficiency among administrative and other departments is one of the major challenges in attracting foreign tourists and investors to Kish Island. English, as the global language of business and communication, is essential for effective interaction with international individuals and companies. Currently, many employees and officials in various sectors of Kish, especially in public and commercial services, do not have sufficient English proficiency, which may cause problems in communicating with foreign tourists, investors, and customers. For example, in developed countries such as the UAE and Turkey, most employees in the commercial and service sectors have a good command of English, which facilitates international interactions and attracts foreign investors and tourists. In Kish, to address this problem, special training programs need to be considered to strengthen the English language of employees and officials so that they can operate effectively and professionally in international environments. This will not only be effective in attracting foreign tourists and investors, but will also help develop international trade and promote Kish as a global tourism and business destination.The lack of unfiltered internet and free Wi-Fi throughout Kish Island is a serious obstacle to attracting international tourists and developing digital businesses. In today’s world, access to free and unfiltered internet is a necessity for foreign tourists and investors, especially in free and commercial zones. The lack of such access can limit the experience of visitors to Kish Island and prevent them from fully utilizing online services, international communications, and digital activities. For example, in developed countries such as the UAE and Turkey, fast, unfiltered internet access and free Wi-Fi services are available in many public areas, hotels, and business centers. These features not only satisfy tourists, but also help develop businesses and facilitate international communications. In Kish, to attract foreign tourists and improve digital infrastructure, providing free internet and free Wi-Fi throughout the island can improve the visitor experience and contribute to the economic and tourism development of the island.Operational suggestions for Kish Island:Creating an air hub on Kish Island can serve as a key strategy to transform the island into a regional and international air transportation hub, similar to what has been implemented in the UAE, Qatar, and Turkey. This plan not only has the potential to increase tourism and economic growth in Kish, but can also strengthen Iran’s position in the global transportation network.Creating sports facilities to host world championships on Kish Island, considering Saudi Arabia’s plans for 2034, can put Iran on the path to competing with regional countries and present it as an international sports center. These plans can play a significant role in attracting sports tourists, strengthening sports diplomacy, and improving the country’s sports infrastructure.The establishment of a financial hub and financial market in the region can serve as a key strategy to strengthen Iran’s economic position in the Middle East. Kish Island, with its privileged geographical location, free trade zone, and appropriate basic infrastructure, has the potential to become an advanced financial center similar to Dubai, Singapore, or Hong Kong. This project can play an important role in attracting foreign investment, facilitating international trade, and the country’s economic development.The creation of an information technology (IT) hub in the region, especially on Kish Island, could transform Iran into one of the innovation and technology hubs in the Middle East. This hub could be a platform for developing new technologies, attracting startups and foreign investors, and cultivating specialized human resources. The success of such a project depends on careful planning, creating strong infrastructure, and providing attractive incentives.Extending the capacities of the Kish Free Zone to other strategic Iranian islands such as Greater Tunb, Lesser Tunb, Boumousi, and Hendroabi could contribute significantly to strengthening the country’s national authority and economic development. This plan will not only increase the country’s economic and tourism capacities, but will also strengthen Iran’s position in regional and international trade by focusing on the geographical potential and strategic location of these islands.The establishment of a joint free zone with India, Russia, Iraq, Turkey, and China through Kish Island and utilizing the capacities of other strategic Iranian islands is a major step towards strengthening economic, political, and trade cooperation between Iran and these regional and global powers. This plan could be a turning point in transforming Iran into an international economic and transit hub.Making roads accessible to veterans, the disabled, and the elderly is a necessary measure to improve the accessibility and quality of life of these people on Kish Island. Developed countries such as the United Arab Emirates and European countries have taken this issue seriously and have provided facilities for easier access for people with special needs in many of their areas. For example, in Dubai, public roads, buildings, and public transportation are specially designed for people with disabilities, with ramps, special elevators, and wheelchair-accessible buses that enable these people to move around the city easily. Kish Island can also create a more accessible and humane space by creating appropriate infrastructure such as installing special ramps, smooth pedestrian paths, installing special guidance signs for the blind, and providing appropriate public transportation services for the disabled. These measures will not only improve the quality of life for veterans, the disabled, and the elderly, but will also make the island a friendlier destination for tourists with special needs. In addition, these changes can provide a positive image of Kish Island as a tourist destination with global standards for well-being and accessibility.The development of special transportation for different segments of society, especially veterans, the disabled, and the elderly, is one of the most important measures that can provide all-round well-being on Kish Island and fulfill the social responsibilities of the responsible and influential sectors. In many advanced countries such as the UAE, Sweden, and Canada, special transportation for people with special needs has been considered a social priority. In Dubai, for example, special buses and taxis have been designed for the disabled and the elderly, providing easy access to public transportation with the necessary equipment such as ramps and wheelchair seats. Kish Island can become a friendlier and more responsible tourist destination by developing a special transportation system suitable for different groups, including veterans and the disabled. This system can include special buses, taxis equipped with special seats for the disabled, and special routes to make it easier for people with special needs to travel. Also, the use of new technologies such as transportation apps and online services to coordinate these services can be effective in facilitating access and creating greater convenience for tourists and island residents. The implementation of such projects not only improves the quality of life of people with special needs, but also directly affects the promotion of Kish Island’s position in the field of social responsibility. These measures will attract the attention of tourists with special needs and can make Kish a more attractive destination for different segments of society, as well as strengthen the island's image as a progressive and socially responsible destination internationally.Creating a comprehensive marine aquarium like Dubai’s with diverse and different services could turn Kish Island into a unique and advanced tourist destination in the region. By creating huge aquariums and marine entertainment centers such as Aquarium Dubai and The Lost Chambers at Atlantis The Palm, Dubai has been able to attract the attention of many tourists and effectively develop this part of the tourism industry. In addition to tourism attractions, such complexes also help to educate and raise awareness about the marine environment and the protection of marine species. Kish Island, given its special geographical location and access to the sea, can have high potential for developing such a project. Creating a marine aquarium with diverse exhibitions of marine species, underwater aquarium tunnels, recreational facilities such as swimming with dolphins, water sports and diving tours can create a special attraction for domestic and foreign tourists. This complex can serve as a special tourist attraction for families, adventure tourists and those interested in the marine world. In addition, the creation of such an aquarium city can create many job opportunities in various fields such as marine environmental education, marine species conservation, aquatic tourism and welfare services. This project can also be in line with sustainable development and attracting tourists with the aim of raising awareness of environmental issues and protecting the seas. For example, similar projects in other parts of the world, such as large aquariums in Singapore, Japan and the UAE, have successfully helped attract tourists and played an important role in the development of the tourism industry of these countries. Kish Island can create an advanced and distinctive destination in the marine tourism industry by using these global experiences and applying new technologies.Modern Health Tourism: Kish could develop digital health programs similar to Singapore Health Hub in Singapore, which offers advanced services including online consultations, digital checkups, and personalized health programs. Wellness-focused resorts in Kish could also be modeled after SHA Wellness Clinic in Spain, which offers guests a holistic wellness experience, including customized diets, yoga, and therapeutic services.Artificial Intelligence Gaming: Kish could launch virtual reality (VR) gaming centers similar to Zero Latency in Singapore, where players can have an immersive and interactive experience in a virtual world using artificial intelligence. Kish could also design advanced escape rooms similar to AI Escape Rooms in Tokyo, Japan, where puzzles and challenges are dynamically adjusted by artificial intelligence to make each player’s experience unique.Underwater hotels: Underwater hotels offer travelers a unique experience of staying in the depths of the sea. For example, Poseidon Undersea Resort, Fiji, this five-star hotel is located on a remote island in Fiji and is known as one of the most famous underwater hotels in the world. Poseidon Resort has 25 suites, a restaurant and a wedding chapel, offering a unique experience in the depths of the sea. Also, The Muraka Hotel, Maldives, this hotel is located in the Maldives and has underwater rooms with stunning views of the marine life of the Indian Ocean. With luxurious facilities and unique design, the Muraka Hotel provides an unforgettable experience for its guests. Creating underwater hotels on Kish Island can provide a unique and attractive experience for tourists, inspired by these international examples, and help develop the tourism industry in this region.Modern lighting: Kish can benefit from smart lighting similar to Gardens by the Bay in Singapore, where giant artificial trees with colorful and programmed lights provide beautiful and modern shows. Or, inspired by the Dubai Fountain Show, lighting shows can be performed on the beaches of Kish to create an attractive and unforgettable atmosphere.Musical waterfalls: By developing artificial waterfalls in shopping malls and entertainment spaces, for example, inspired by the Rain Vortex at the Jewel Changi Airport in Singapore, waterfalls can be designed to provide live or pre-recorded music along with impressive visual effects.Use of modern desalination plants: Kish can benefit from modern technologies similar to Solar Desalination Plants in Morocco (such as the Nour Ouergazit project), which use solar energy to desalinate seawater in a sustainable and economical way.Arya Heritage

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