Iran - منطقه ویژه اقتصادی انرژی پارس
In 1998, Pars Special Economic Energy Zone (PSEEZ) emerged as a pivotal initiative aimed at harnessing the vast oil and gas resources of South Pars in Iran. This strategic zone serves as a catalyst for commercial activities, focusing on the oil, gas, and petrochemical industries. The primary goal is to streamline the execution of diverse oil and gas projects, foster local and international partnerships, and propel the comprehensive development of associated industries. The overarching vision includes creating job opportunities, attracting a skilled workforce, and stimulating economic prosperity in the provinces of Bushehr, Fars, and Hormozgan.
Location and Macro Grouping of Facilities at Pars Special Economic Energy Zone
Situated on the Persian Gulf coast, approximately 300 Km East of the Port of Bushehr, and 570 Km West of the Port of Bandar Abbas, PSEEZ strategically positions itself for optimal connectivity. The zone is conveniently located around 100 Km from the South Pars Gas Field, shared by Iran and Qatar. Its facilities encompass a broad spectrum, from central administrative and support services to sports and recreational centers, hygiene and medical facilities, technical and vocational training centers, religious and cultural hubs, to fair and commercial centers, residential accommodations, and more.
Covering 10,000 hectares of developmental lands, with 6,000 hectares dedicated to industrial purposes, PSEEZ anticipates hosting approximately 30,000 industrially employed persons, complemented by an additional 30,000 in related services during the development period. Stringent adherence to client-laborer contracts and laborer regulations based on International Labour Organization (ILO) recommendations ensure fair and ethical employment practices within the zone.
Legal and Banking Facilities for Investments
PSEEZ offers a favorable legal framework for investments, including the exemption of manufacturing and industrial investments from duties and permissions for foreign ownership up to 100 percent. The zone ensures easy entry visas for foreign citizens, guarantees foreign investment and profit, and provides full freedom of capital movement. Additionally, banking facilities adhere to international standards, permitting transactions in both Iranian Rial and foreign currencies.
Attracting investment
Attracting major oil, gas, and petrochemical companies, financial institutions, service-related enterprises, academic institutions, and non-oil industries, PSEEZ continues to be a magnet for diverse investors. Recent developments include the inauguration of a dock for exporting liquefied Petroleum Gas (LPG), a project allocated $30 million by the National Iranian Oil Company (NIOC). Once operational, the dock is poised to contribute $1.5 billion in annual revenue, showcasing PSEEZ’s pivotal role in Iran’s energy landscape.
Despite sanctions, PSEEZ remains a hotbed for development, with 27 projects underway, amounting to a staggering $21 billion in investments. The region’s significance is underscored by its role as a major hub for Iran’s non-oil exports, particularly gas condensate and petrochemicals. With ongoing expansions and diversification, PSEEZ stands resilient, exemplifying Iran’s commitment to energy sector growth and economic sustainability.
Additional Details for Pars Special Economic Energy Zone
- Total area: 6,000 hectares.
- Key industrial sectors: Oil & gas industries, petrochemical downstream, semi-heavy and mixed industries.
- Tax incentives: All manufacturing and industrial investments are exempted from paying duties.
- Non-tax incentives: Foreign investment and ownership (except for the land) is allowed up to 100 percent.