Chabahar Free Trade–Industrial Zone (CFZ) is an Iranian free trade zone formed according to the law on the establishment and administration of free trade–industrial zones. Chabahar free trade–industrial zone was established in 1992 along with the two other free trade zones Qeshm and Kish Island to use global expertise (mostly from South East Asia) as a tool for the development of the country, accelerating the accomplishment of infrastructure, creation of employment, and representation in global markets.

Main activities

The Chabahar Free Trade-Industrial Zone commenced its operations in 1995, with a primary focus on five major areas: the transit of merchandise goods, investment attraction and related services, tourism, construction and urban development, and education. These activities are overseen by the Chabahar Free Trade-Industrial Zone Organization, which is under public control.

May 2016 agreements between Iran and India

After overseeing a series of agreements intending to develop the Port of Chabahar, India's Highways and Shipping Minister, Nitin Gadkari suggested that the Chabahar Free Trade-Industrial Zone had the potential to attract upwards of $15 billion worth of investment in the future, although he stated that such investments are predicated upon Iran offering India natural gas at a rate of $1.50 per million British Thermal Units, which is substantially lower than the rate of $2.95 per million British Thermal Units offered by Iran. The two countries also signed a memorandum of understanding to explore the possibility of setting up an aluminum smelter at a cost of $2 billion, as well as establishing a urea processing facility in Chahbahar, although these investments are also contingent upon Iran supplying low-cost natural gas for operation of those facilities.