According to the Public Relations and International Affairs of the Kish Free Zone Organization, Mohammad Kabiri, in a consultative meeting with Dr. Mohammad Nouri, the President’s aide for following up special projects, which was held in the Razi Hall of the Kish International Conference Center with the presence of several deputies of the Kish Free Zone Organization, CEOs of subsidiary companies and representatives of the island’s communities and guilds, thanked the natives, Kish residents and private sector activists for their cooperation in recent months.
He said: Despite the difficult conditions caused by the war and the imposed costs, Kish’s economic actors continued their activities on the island, and this cooperation showed that protecting Kish’s achievements and sustaining its development path requires joint team work between the government, the Free Zone Organization and the private sector.
Kabiri considered the presence of the President’s aide in Kish and the field review of the island’s and southern regions’ conditions an opportunity to directly convey the issues and proposals of economic actors to the government, and added: Kish’s management has also tried to pursue matters within its authorities seriously by being transparent about capacities and limitations, and to follow up issues requiring national-level decisions through the responsible agencies.
Kish’s Transparent Economy; A Capacity for Development
The CEO of the Kish Free Zone Organization, referring to about 12,000 businesses operating on the island, said: Despite its limited geographical area, Kish possesses significant economic capacity, and the amount of tax paid on this island is greater than that of more than 10 provinces of the country.
Referring to the performance in the year 1404, he added: about 6.5 hundred million million rials of value-added tax and 3.5 hundred million million rials of direct tax were paid from Kish’s economic activities, and the volume of goods and services sales on the island has also reached about 200 thousand billion tomans; figures that indicate the extent of formal and transparent private sector activity in Kish.
Kabiri emphasized: Proportionate to the significant share of free zones in economic activities and tax revenues, the development of infrastructure and support for economic actors in these areas should also receive special attention.
He described Kish as an example of cooperation between the government and the private sector and added: A significant portion of today’s island infrastructures and capacities are the result of decades of private sector investment and effort, and supporting this sector means supporting the continuity of Kish’s development path.
Increasing the Resilience of Kish’s Businesses
Referring to the declaration of force majeure during the war period, Kabiri said: This action enabled the use of supportive capacities in commercial and residential contracts, and with the cooperation of landlords, rents were waived in various cases for between one to five months. The Kish Free Zone Organization also provided supports up to five months in areas directly under its control.
He cited financing as another axis under follow-up and added: Negotiations have been held with the Ministry of Economic Affairs and Finance to enable Kish’s economic actors to benefit from credit and facility schemes, but recent months’ conditions have affected the credit ratings of some businesses and it is necessary that these conditions be taken into account in the credit assessment process.
The CEO of the Kish Free Zone Organization said: The Organization’s suggestion is that the Central Bank, when reviewing the status of island economic actors and their credit ratings before commencement, also consider wartime conditions so that businesses that previously had suitable performance can retain the ability to use facilities and financial resources.
Following Up Claims in Four Main Areas
Kabiri named taxation, social security, customs and the banking system as the four important axes of the Organization’s follow-ups and said: In the tax sector, the postponement of some payments until the end of Shahrivar has been pursued, and the feedback from economic actors about how these supports are implemented can form the basis for continued follow-ups.
In the social security field he stressed the necessity of strengthening services commensurate with Kish’s level of economic participation and added: Given the volume of resources paid by employers and insured persons on the island, the expansion of medical and supportive services and the use of capacities such as installment of obligations in special conditions can help preserve employment and increase businesses’ resilience.
Referring to an estimate of about five to six hundred million million rials paid from Kish to Social Security last year, Kabiri emphasized developing services commensurate with this capacity and said: Supporting economic enterprises during temporary periods of income reduction, while helping to preserve the labor market, will prevent the creation of greater costs in the future.
New Capacities for Trade and Tourism
The CEO of the Kish Free Zone Organization stated that selecting Kish as one of the entry points for the seaman’s luggage goods procedure was a result of negotiations with the government and said: Utilizing this capacity can create new cash flows on the island and pave the way for greater prosperity in the commercial sector.
He added: Part of the goods usable under this procedure have been designated for Kish and the preparations for sending the first shipment via this route are underway and this process will be implemented soon.
Kabiri also reported pursuing the possibility of officially sending postal consignments from Kish to the mainland and added: Enabling this possibility, in addition to facilitating the activities of existing businesses, can help develop e-commerce and the formation of new economic activities on the island.
He said increasing the significant exemption ceiling for passenger accompanied goods compared to the existing $80 ceiling is also among the programs under follow-up and stated: This action can act as an incentive to increase travel attractiveness, boost demand and contribute to Kish’s market prosperity.
Tourism Boost Package Centered on the Private Sector
Referring to the formulation of a demand-stimulation and tourism boost package, the CEO of the Kish Free Zone Organization said: This program has been designed with the private sector at its center and providing 50 to 200 million toman facilities with private sector participation, the Kish Institute for Development and Sustainable Prosperity and the cooperation of communities and economic associations is among the capacities foreseen in it.
He considered increasing air transport capacity complementary to this program and added: A review adjusted to the new conditions of flight restrictions at Kish Airport and other southern airports, alongside tourism incentives and travel facilities, can help increase tourist arrivals and speedier market recovery.
Kabiri also reported pursuing programs in the field of housing and human resources accommodation and said: Reducing accommodation costs and providing services can lead to a reduction in the total cost of economic activity and the provision of goods and services in Kish.
Emphasizing the importance of the economic position of the southern islands, especially Kish and Qeshm, he stated: Kish’s formal and transparent economy is a valuable capacity for investment and development, and targeted support for it can have effects beyond the island’s boundaries for the country’s economy.
The CEO of the Kish Free Zone Organization emphasized: The approach of the island’s economic actors is not merely to state problems and Kish’s communities and guilds always present proposals and practical solutions alongside their demands; therefore the purpose of such meetings is to hear the private sector’s views directly and convert them into specific proposals for follow-up at the government level.
In another part of the meeting, representatives of Kish’s communities and guilds also expressed their views, issues and proposals and, while describing some of the challenges facing economic activities, presented solutions and ideas to improve the business environment, strengthen tourism, increase market prosperity and improve the island’s economic conditions.
They also emphasized the necessity of continued interaction and synergy between the private sector, the Kish Free Zone Organization and executive agencies and demanded follow-up of the proposed suggestions until operational solutions are achieved.