Kish the Right Place for Investment
Relying on the Law for the Administration of the Country’s Free Zones and the Programs that have been approved by the High Council of Free Zones as well as highest level authorities, KFZO offers investors countless facilities and privileges.
Domestic and international investors may be assured that their investment and legal entitlements are guaranteed in Kish Free Zone. The following is a list of some of the investment facilities and advantages available to investors on Kish Island:
1- The unique natural and climatical features of Kish and its fascinating coast, coupled with a pleasant weather in almost seven months of the year. The island hosts over 1.5 million domestic and international tourists annually.
2- A rich historical background in international trade and commerce.
3- Kish Island is located close to the mainland Iran with a population of more than 60 million, and a vast market in the region and the world.
4- The Kish Island is just a few miles off the southern Iranian coasts and only a few hundred miles from the southern Persian Gulf states.
5- Availability of integrated sea, railway and road transit network to the Central Asian region.
6- Restriction-free foreign investment and ownership for natural and corporate entities independently or in partnership with the KFZO or the private sector.
7- Tax exemption for 15 years.
8- The legal entitlements of foreign investors are guaranteed.
9- Compensation paid by insurance for possible losses sustained by investors (in accordance with a contract that has been signed by the KFZO, the banking system and insurance companies).
10- No entry visa is required for foreign nationals.
11- Flexible monetary and banking regulations.
12- Availability of Labor Law facilities applicable to the Free Zones drafted in compliance with the guidelines of the International Labor Organization (ILO).
13- Investors are entitled to the right of repatriating the net profits, the principal and gains derived from economic activities by the foreign investors as well as the hard currency capital invested by the Iranian citizens and the funds resulting from the repatriation or transfer of such capital.
14- Import and export of all kinds of goods in any quantity, except those forbidden by the sacred law of Islam, are permissible.
15- Import of goods for provisional storage in the warehouses of the KFZO.
16- Trade exchanges between Kish and overseas market are not subject to the import-export regulations when registered with the customs office.
17- Exemption in part or in whole from custom duties and commercial benefit tax for the amount of added value, on the export of goods produced in Kish to other parts of the mainland.
18- Airport and port duties exemption for imported machinery, raw materials, parts, equipment and tools required by the manufacturing units.
19- Provision of land
20- Investors are assisted to erect sheds and workshops.
Kish Island is furnished with all modern amenities and infrastructure that make living and business activity easy for all. These include:
Water and Electricity
Kish Water and Electricity Company generates over 90 MW of electricity and 12,000 cubic meters of drinking water daily. There are plans underway by the Company to further improve and develop its services. The company is suitably mobilized to deliver needed services to the inhabitants as well as investors in various sectors such as tourism, industry and commerce.
KFZO and Hormozgan Province Regional Electricity Company have commenced a joint project that will link Kish Island’s electricity grid to the country’s nationwide electricity network via a submarine cable. An investment of US$ 20 m has been injected into this project 20% of which has been completed so far.
Kish Island’s International Airport can receive jumbo aircraft. Over 20 domestic and overseas flights transfer passengers from and to Kish Island daily. Kish Airport is furnished with two passenger terminals. Two others are scheduled to be built in the near future.
Kish Airport’s runway is 2662 meters long and 45 meters wide. In 2001, KFZO and Lufthansa Airline signed a BOT contract based on which the latter will invest in the development of Kish Airport and provide strategic technical assistance. The project is currently under consideration and the executive phase is expected to start before long.
Kish’s port area is furnished with a quayage of 800 meters long and 4.7 meters deep and can anchor vessels of up to 10,000 ton capacity. Not very far from the coast, the seawater is 18 meters deep, hence, giant vessels can be easily accommodated. Passenger and cargo vessels run between Kish and other destinations in mainland Iran and the Persian Gulf littoral states.
The passenger terminal in Kish Port is 4300 sq.m in area and has been operative since 1997.
The city network of roads and avenues in Kish is 370 km long. There are no traffic jams and driving is fun.
Many projects have been implemented during the recent years for the development of city network of roads. A beltway called Donya (world) encircles the Island and provides easy access to different parts of Kish. Regular public taxi and mini-bus services plus rent-a-car and private call-cab agencies are also operating.
Telecom and the Internet
Kish Island has a telephone center furnished with 5800 telephone ports that offers ISDN services and a digital telephone center furnished with 3800 telephone ports as well as a cellular phone network.
In order to transfer modern communications technology into Kish Island, the Lebanese Global T Company, making an investment of US$ 15m into a BOT project, established Kish Telecommunications Center (KTC) in 2001. The project also includes telecom support services and an international roaming capability, as well as ISP centers. So far 50% of the works under phase one of the project has been completed.
Health Care and Medical Facilities
Medical and health care services are provided to residents and tourists by a network of state-run and private sector centers in cooperation with KFZO. Kish Hospital and several medical clinics and centers offer general, surgical, dental, skin, psychological and other medicare services to patients. Kish hospital renders medical services to patients in a wide variety of fields.
The construction of a specialized general hospital with 200 beds is underway and 70% of the work has been already completed. Reputable domestic and foreign physicians are expected to join this hospital as medical staff.
Land Use and National Resources
Kish Island is one of the world’s few free zones whose entire jurisdiction has been recognized as free zone. As such, from the very beginning a number of specific objectives has been set for the land use in the island. Kish is not only a regional commercial and industrial pole, but it also is an important tourist destination. Thus a major portion of the Island’s development funds has been allocated to its tourist sector. Kish Island has been divided into four separate districts and no one district is expected to adversely affect the others in terms of the type of activity that is carried out in a particular district. For instance, no industrial unit may be erected in a touristy area. The zoning is based on four land use areas: business district, touristic district, industrial district and residential district.
Investment Opportunities in Kish
Kish is a free trade-industrial zone where local and foreign investors can invest in any field available for investment. KFZO welcomes domestic or foreign investment in any area particularly in the following projects:
These projects highlight the development of the Island and include: transfer of water and electricity from mainland Iran through submarine systems; development of roads; construction of ports; construction of sewage collection systems; sewage management systems; collection of surface water; production of fresh groundwater; port services; construction of warehouses and facilities for the storage of goods.
Welfare and Service Projects
Provision of services offers another area for investment. These projects include establishment of public service units; banking, insurance, shipping, air transport services; and consulting firms. Investors can also invest in the construction of modern general hospitals, clinics and old-age infirmaries . Construction of special repair shops, transport agencies, port service centers, publishing companies; consulting and auditing firms; building of warehouses and seafood processing plants include other projects that can be invested in.
Travel and Tourism Projects
Investment in travel and tourist sectors attracted many domestic investors during the early days of the Kish Free Zone.
The private sector has directly invested in the construction of accommodation and residential complexes on the Island and tens of similar tourist and catering projects are under construction.
Construction of hotels, inns, recreational centers, such as cinema, theatre, yachting clubs, video clubs, restaurants and coffee-shops, amusement parks, diving and underwater photography, educational and artistic centers are given priority in this sector.
Industrial and Manufacturing Projects
The KFZO provides investors with a long list of feasible industrial projects available for investment. The list mainly includes industries that focus on export processing activities. Protection of the Island’s environment is a priority in all such projects.
All industries that respect the international environmental standards are permitted to operate in Kish without any restrictions.
Projects that have been foreseen in the commercial area include commercial services, export and import of goods, export from the Island to overseas and the mainland Iran, import of goods destined to the mainland Iran, transit and re-export of goods, holding of trade, artistic, scientific and research exhibitions, setting up of centers for the supply of electric and electronic devices as well as creation of international handicrafts centers in order to stimulate exports.
Copyright By : Kish Trade Promotion Center 2002