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Hakimian, Hassan

Abstract
Given the relatively recent history of many of the zones in Iran – and serious lack of available information – it is probably too early to fully evaluate the performance and impact of these zones as yet. What evidence is available, however, highlights a mixed picture and a challenging start for many of the zones. For instance, even Kish Island – arguably the most successful of Iran‟s Zones – is better known for its success in developing as a centre of domestic trade and commerce rather than as an export platform. Attracting FDI and jobs creation on a significant scale no doubt remain the major challenges for all Iranian zones and only a critical and constructive reappraisal of the schemes can help identify some of these challenges in the years to come. Some of these challenges apply at the micro level – i.e. the design, operation and management of the zones themselves. However, we argue that the macro picture is also critical to the ultimate success of these. With growing regional competition over attracting foreign capital, Iran‟s zones can be at a disadvantage if policies pursued there are largely decoupled from, and at odds with, those in the mainland. Streamlining both sets of policies – in the zones and the mainland – and giving a consistent signal to investors – domestic and foreign alike – will be critical to enabling Iran to exploit its undoubted strategic potential as a major regional economic powerhouse.
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