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Industrial Investment
in Kish Free Zone
One of the major objectives of the free trade zones in Iran is to create the necessary grounds for industrial development through attracting foreign and domestic investors to these regions and also transferring technology to the country. According to the Kish Master Plan, tourism and industries are the two major axes of activity in the region. The plan reiterates the need to create production centers including light industries that could create jobs, and industries that require a high level of technology. In the master plan and the laws and regulations ruling Kish Free trade Zone, there is no limitation for investment in the industrial, trade or production sectors. The only condition placed for the industrial sector is that industries in Kish, a major tourism destination, should not pollute the environment. According to the expert planning made, it is estimated that in the short- term, a volume of 500 billion Rials plus 250 million dollars will be invested in this sector. The Organization of the Kish Free Trade Zone, has established the necessary infrastructure facilities such as the water and electricity network, the industrial sewage network, the air and sea transportation network, the urban transportation network and telecommunications facilities, in order to materialize the Kish Master Plan in the field of industrial development. Ways to establish industrial unitsThe establishment of an industrial unit in Kish requires minimum amount of administrative formalities. Obtaining the authorization to establish and operate an industrial unit in Kish is carried out in the following three phases: 1- Obtaining the permission for establishment In this phase the applicant, whether a real or corporate person fills out a form and supplies the necessary information on his proposed plan to the Organization. If the plan is not in contradiction with the laws and regulation of the region and religious laws, and does not pollute the environment, the permission of establishment will be issued by the Organization within a short period of time. The permission has a limited validity during which the investor must provide the land and begin the construction. If the construction takes longer than the time given, this time period can be extended. 2- Provision of Land After obtaining the permission of establishment, the investor must provide his land in one of Kish’s industrial Parks ( provision of land by the organization has been described in Chapter 4).
3-licensing the Operation After construction is completed the license for the operation of the industrial unit is issued by the Organization .
According to the Kish Master Plan and the laws and regulations ruling over the region, there is no limitation for investing in industrial activities, unless the activity creates pollution. But in general, considering Kish’s situation and its future prospects, the following industries are of priority in the light and medium-sized industries: 1- High-tech industries 2- Export-oriented industries 3- Electronic and computer industries 4- Audio-visual industries 5- Medical and dentistry instruments and appliances 6- Home appliances industries 7- Clothing and textile industries 8- Modern packaging industries 9- Food processing, pharmaceutical and hygienic industries
During the past decade ,investment in industrial activity in Kish Island has seen a considerable growth. Currently there are more than 110 industrial units operating in the island and several others under construction. The major industries active in the Kish Free Trade Zone are: 1- Electric and electronic industries, including units producing computer games, modems, assembly of computers and printers, video cassettes, and medical and laboratory equipment 2- Clothing and textile industries including units producing all sorts of clothes, footwear and and leather products. 3-Food industries, lab kits, hygienic and pharmaceutical products, irrigation water systems. 4- Chemical and cellulose industries including units producing fiberglass and car bodies, PVC doors and windows and all sorts of wooden products and stationery 5- Non-ferrous industries including units for the processing raw crystal through sandblasting and cutting, and production of construction materials. 6- Metal and car manufacturing industries (Sinad 1 and 2 passenger cars manufactured by Kish Khodro Company), welding electrodes,spot welding, seals and bicycles.
Oil and oil derivatives industry has proved appealing to domestic and foreign investors in the recent years. Kish Island is close to major oil fields in the Persian Gulf and development of oil and gas fields in this region has prepared the grounds for the presence of international oil companies in Kish. The project for the establishment of an oil logistics support base by the Kish Island Drilling Services Company is underway in Kish. The project has made a progress of over 30% so far. With the completing of this project, Kish Island will supply logistic drilling, utility, technical and engineering services to oil platforms. Another project is under construction by Total, Agip, Petro Pars and Petro Iran companies. The project will serve as a support base for the above oil companies in Kish Island. Total is the first company to have stationed its logistics base in Kish Island for a period of nine months. In later stages, the managers of Total Company decided to set up a permanent logistics base on Kish Island. Subsequently, other oil companies took similar measures and set up their logistics bases in Kish.
In order to concentrate industrial and warehousing activities as well as industrial services and manufacture of construction materials, four industrial parks and one workshop parks intended for the production of construction material have been set up in Kish. Many plots of land located in these districts have been ceded to investors and many complexes under construction are completed now. Concentration of manufacturing units in the industrial and workshop districts has facilitated the supply of services and utilities to them.
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Copyright By : Kish Trade Promotion Center 2002 |
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