Table of Contents 1. Chapter 1 ..................................................................................................................................... 7 1.1. Introduction .......................................................................................................................... 7 1.1.1. Economic activities ........................................................................................................ 7 1.1.2. Foreign direct investment (FDI) ..................................................................................... 7 1.1.3. Multinational companies (MLNCs) ................................................................................ 9 1.1.4. Special economic zones (SEZs) .................................................................................... 10 1.2. Objectives ........................................................................................................................... 11 1.3. Outline of the dissertation ................................................................................................. 11 2. Chapter 2 ................................................................................................................................... 12 2.1. Iran General Information ................................................................................................. 12 2.1.1. Iran′s Geography .......................................................................................................... 12 2.1.2 The Iranian Top Ranking in The Global Scale Include: .................................................. 13 2.1.3. The Cheapest Tourism Destination ............................................................................. 13 2.1.4. Languages, Religions and Ethnic Groups ..................................................................... 14 2.1.5. Science Production ...................................................................................................... 14 2.1.6. Natural Resources........................................................................................................ 15 2.1.7. Climate ......................................................................................................................... 16 2.1.8. Energy Security ............................................................................................................ 16 2.1.9. Young Educated – Human Resources .......................................................................... 17 2.1.10. Low Utility and Production Cost ................................................................................ 19 2.1.11. Population ................................................................................................................. 20 2.1.12. Vast Domestic Market ............................................................................................... 21 2.1.13. Regional Market ........................................................................................................ 21 2.1.14. The Transit Hub of The Region .................................................................................. 22 2.2. Iran’s Economy ................................................................................................................... 22 2.2.1. The Economic Infrastructure ....................................................................................... 22 2.2.2. GDP and Economic Growth ......................................................................................... 22 2.2.3. Inflation ........................................................................................................................ 24 2.2.4. Employment & Unemployment................................................................................... 25 2.2.5. Foreign Trade ............................................................................................................... 25 2.2.6. Foreign Investment ...................................................................................................... 26 2.2.7. Financing Agreement ................................................................................................... 27 2.2.8. Monetary Base & Liquidity .......................................................................................... 27 2.2.9. Budget .......................................................................................................................... 28 2.2.10. Gini Index ................................................................................................................... 28 2.2.11. Stock Exchange Index ................................................................................................ 29 2.2.12. Exchange Rate ........................................................................................................... 29 2.2.13. Price Index ................................................................................................................. 30 2.2.14. Doing Business Index ................................................................................................. 31 2.2.15. Global Competitiveness Index (CGI) .......................................................................... 32 2.2.16. Household Budget in Urban Areas ............................................................................ 33 2.2.17. Credit Rank ................................................................................................................ 34 2.2.18. Iran’s Economy According to The McKinsey Institute ............................................... 35 2.3. Iran’s political situation ...................................................................................................... 35 2.3.1. The beginnings of modernization ................................................................................ 36 2.3.2. Oil revenues boom and its impact on modernization ................................................. 36 2.3.3. The post-1979 period .................................................................................................. 37 3. Chapter 3 ................................................................................................................................... 41 3.1. Iran Free Economic Zones .................................................................................................. 41 3.1.1. Overview and History .................................................................................................. 41 3.1.1.1. Kish ........................................................................................................................ 41 3.1.1.2. Qeshm ................................................................................................................... 42 3.1.1.3. Chabahar ............................................................................................................... 42 3.1.1.4. Aras ....................................................................................................................... 42 3.1.1.5. Anzali ..................................................................................................................... 42 3.1.1.6. Arvand ................................................................................................................... 43 3.1.1.7. Maku ..................................................................................................................... 43 3.1.2. Special economic Zones in the Five-Year Development Plans .................................... 43 3.1.2.1. The 1st Five-Year Development Plan .................................................................... 43 3.1.2.2. The 2nd Five-Year Development Plan ................................................................... 44 3.1.2.3. The third five-year development plan .................................................................. 45 3.1.2.4. The fourth five-year development plan ................................................................ 45 3.1.2.5. The fifth five-year development plan ................................................................... 46 3.1.2.6. The sixth five-year development plan .................................................................. 47 3.1.2.7. Special economic zones in overall resilience economy policies ........................... 48 3.1.3. Laws and regulations ................................................................................................... 48 3.1.3.1. Regulations on investment in the special economic zones .................................. 48 3.1.3.2. Legal incentives and facilities of investment ........................................................ 48 3.1.4. Iran free zones 2025 strategic map, vision, and strategic objectives ......................... 52 4. Chapter 4 ................................................................................................................................... 54 4.1. Kish ..................................................................................................................................... 54 4.1.1. Overview ...................................................................................................................... 54 4.1.2. Performance in last five years ..................................................................................... 55 4.2. Qeshm ................................................................................................................................ 59 4.2.1. Overview .....................................................................................................................