Why is Iran destination for foreign investment in transportation?

Pars Today – With its growing infrastructure and strategic location, Iran has become a hub for international investment in the transportation sector.

With its strategic geographic location at the crossroads of Europe, Central Asia, and West Asia, Iran is one of the most attractive destinations for investment in infrastructure and transportation. According to Pars Today, Iran’s access to 15 neighboring countries and its position along international corridors such as the “New Silk Road” offer a unique opportunity for developing transportation infrastructure.

Reports indicate that Iran is attracting over $10 billion in foreign investment for infrastructure projects, including the development of ports, railways, and highways.

This opportunity is especially attractive for foreign investors from Europe and Asia, given Iran’s large domestic market of 90 million people and access to regional markets with over 400 million consumers. One of the key areas is port development. Chabahar Port, serving as a gateway to Central Asia and the Indian Ocean, has become a regional transit hub, boosted by recent investments from India exceeding $500 million.

The port offers opportunities for maritime logistics and container terminal collaboration. Additionally, Bandar Abbas and northern Iranian ports, such as Anzali, serve as gateways for exports to Europe and the Caucasus.

The free trade zones at these ports provide advantages such as 20-year tax exemptions and 100% ownership rights for foreign investors.

The railway sector also holds significant potential. Iran is completing a rail network connected to the North-South and East-West corridors, linking China, India, and Europe.

Projects such as the Tehran–Mashhad high-speed line and the rail connection to Iraq create opportunities for foreign engineering and construction companies. These projects are supported by the Iranian government and backed by investment return guarantees under the Foreign Investment Promotion Law.

Iran’s highways and roads are also being developed to facilitate cargo transit to neighboring countries. Investment in this sector, particularly in smart logistics technologies, can be highly profitable. For foreign investors, partnering with local companies and taking advantage of Iranian government incentives helps reduce risks.