Azerbaijan, Baku, Dec. 29 / Trend T.Jafarov /
The organization for special and free economic zones of Iran was ready to focus its priorities on the Azerbaijani market and create conditions for cooperation in industry, agriculture, health, trade and exports as well as for joint activities of Azerbaijani and Iranian investors, the organization's Deputy Chairman for Planning and Coordination Mahmudrza Husseini told Trend.
Six free trade zones have been established close to the Iran-Azerbaijan border, about which Husseini said that "given the existing potential in these regions, there are ample opportunities for economic cooperation between the two countries,".
Investors have great benefits to work in these economic zones, according to Husseini said, as companies engaged in industry, trade, services and tourism investors were exempted from paying taxes for 20 years. "We will also create conditions for the acquisition of 100 percent stake by foreign investors in case of investment or joint participation. Benefits also include exemption from customs duties and VAT on import of machinery, equipment and raw materials," he added.
Among other advantages, Husseini noted the possibility of providing guarantees from the government and the organization to the foreign investors about the absence of restrictions on the movement of investment. Benefits were also available for the sale and leasing of land to local investors, while the land could be transferred to foreign investors on long-term lease.
Iran, Husseini said, was located on the crossroads of Europe, Asia and Africa, and shared borders with Azerbaijan, which could prove to be advantageous in energy, trade and transit compared to other markets.
"There are large reserves of oil and gas in Iran's free economic zones. Iran's government pays constant attention to the development of oil and gas trade in a number of free economic zones," Husseini said.
The Iranian free economic zone of Qeshm is also known as the oil and gas and energy center of the country, with increased levels of investment and activity in the areas.
The Iranian Oil Ministry and the major oil companies have invested in the storage of petroleum products, crude oil transportation to the port of Bandar Abbas, provision of tankers with fuel, gas production from the Siri field in the Qeshm Island, construction of gas pipelines, processing plant condensate, refinery, processing plant heavy oil and the development of petrochemical products.
One of the main purposes of the organization for special and free economic zones of Iran, is to attract foreign investment in the regions. Iran intends to establish offices in foreign countries, including Azerbaijan, to create all conditions necessary to attract and normal operation of foreign investors in these zones.
Iranian and foreign banks operate in these economic zones for the currency exchange. Banks and lending institutions may be established in the form of limited liability and joint stock companies. All Iranian and foreign banks and lending institutions can create their own branches in these economic zones. Currency exchange rates are calculated according to the schedule announced by the Central Bank of Iran.
According to Husseini, the Azerbaijani banks may also establish its branches in the free zones of Iran. For this, banks must send appeal to appropriate area of inquiry, and after consideration may be given permission to open a branch.
"Azerbaijani investors can put their investments in these areas. I invite the public, private companies and enterprises in Azerbaijan to focus their investments in special economic zones of East Azerbaijan, West Azerbaijan and Ardebil region," Husseini said.
There are free economic zones of Araz and Maku, Namin special economic zone in Ardebil, special economic zones Salmas, Sahand (in Maraga), Sahlan (Tabriz) in these regions.
"The two countries have great potential for the development of industrial areas, investment, exports and imports, and we can take advantage of this," Husseini said.