Shafaq News- Tehran

Iran is developing the Qasr-e Shirin free trade zone on its border with Iraq, completing infrastructure and attracting new companies to expand commerce between the two countries, state-run IRNA News reported.

Stretching along about 186 km of border with Iraq, the Qasr-e Shirin Free Trade-Industrial Zone covers more than 7,220 hectares between the Parviz Khan and Khosravi border crossings, linking western Iran with markets in Iraq and the Kurdistan Region.

Reza Qobadi Mehr, the project’s chief executive, described it as an attempt to attract major automotive manufacturers and specialized enterprises while expanding commercial activity across the development.

“Construction of the zone's perimeter fencing and basic infrastructure is under way, with the facilities needed for commercial and customs operations still being completed,” he added, noting that the remaining work must be completed before the zone can begin full-scale operations and attract greater private-sector involvement.

The administration is also preparing to launch the second stage of a tender in September to select firms qualified to import vehicles. The initial phase, held in May, approved 22 businesses.

The subsequent stage will link the development to regional logistics networks and extend its boundaries to include the urban area of Qasr-e Shirin. “Authorities are preparing a one-stop commercial center to handle export, import and transit activities,” he noted.

Trade between Iraq and Iran has grown from about $12 billion in 2023 to about $12.5 billion in 2024, while formal bilateral exchange stood at roughly $12 billion in 2025, according to figures from the Iran-Iraq Joint Chamber of Commerce.