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The city of Shiraz surely qualifies from many different aspects to be a good location for running a business and investment. Some unique features turning Shiraz to an investment heaven for national and international real and legal investors are mentioned below:
the city of Shiraz with an area of 6049 sq.km and around 1.8 million populations has been located in Southwest Iran. Therefore, Shiraz, as a strategic city, is a midpoint to Iranian cities in South and Southwest. The city is regarded as one of the major metropolis in Iran.
The local government plans millions of dollars for further investment to increase this share.
The diversified economy and broad industrial base
Young and educated population
Large domestic market
An increasingly sophisticated infrastructure and human capital base providing the foundation for an emerging knowledge –based economy.
A four-season climatic endowment as a privilege to agricultural activities within the limits of the city and throughout all seasons.
Areas of investment
Infrastructure: The city’s transportation network includes railway and roads.
Tourism: having numerous attractions, Shiraz is one of the most popular tourism destinations.
Ecotourism: having several natural attractions, many national and international tourists visit Shiraz annually.
Health-care tourism: providing high standard medical services particularly organ transplant, Shiraz is hub of medical tourism in the country and even in the region. Many international patients from Arab countries visit Shiraz to receive medical services.
Cultural: Shiraz is known for its history and culture. Many tourists come to Shiraz to experience the history and cultural of people of Shiraz from other cities and even other countries.
Religious: being the third major religious city of Iran and consequently, spiritually significant, Shiraz receives many tourists who enter the city to visit the places of spiritual significance
Business: being a low risk city for the investment, many national and international business people visit Shiraz to negotiate and complete a business transaction or attend business meetings annually.
Agriculture: being a four-season city, the economy of Shiraz is mainly based on agricultural activities. There are several opportunities in this field for interested people who are thinking about investing in Shiraz.
Supportive Government Policies
The Law on foreign investment in Iran under the name of “Foreign Investment Promotion and Protection Act” (FIPPA) was ratified by the parliament in 2002.Some specific enhancements introduced by FIPPA for foreign investment in Iran can be outlined as follows:
Broader fields for involvement by foreign investors including in major infrastructures;
Broader definition given to foreign investment, covering all types of investments from FDI to different types of project financing methods including :Civil Participation, Buy –Back arrangements, Counter trade and various BOT schemes;
Streamlined and fast track investment licensing application and approval process;
Creation of a one stop shop called the “Center for foreign investment Services” at the organization for investment for focused and efficient support for foreign investment undertaking in Iran;
More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purpose.
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Investment Incentives and Advantages in Shiraz special Economic Zone
Import of goods from abroad or free trade zones or industrial area-would be carried out with minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.
Log entry of merchandise subject to investment article will be done without any customs formalities.
Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.
Management of the region is allowed to assign the region to qualified natural or legal persons after classification and valuation.
Owners of goods imported to the region can send all or part of their goods for temporary entry in to the country after doing customs clearance regulations.
If the processing of imported goods is to some extent that changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.
The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.
All the goods imported to the region for the required production or services are exempted from the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.
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Reference: Shiraz Municipality
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