According to the Public Relations and International Affairs of the Kish Free Zone Organization, Masoud Nikafroz at the start of this meeting, referring to his 13-year presence in various expert and managerial levels of this organization, stated: despite this experiential backing, the volume of events, challenges and economic shocks of the past two years has been unprecedented in the island's history.
He added: during this period Kish, in addition to structural issues, faced war, natural incidents and a sudden drop in tourist arrivals, and these complex conditions made it necessary to change the region's economic management approach from conventional models to active crisis management and economic defense.
Horizon 1414; Kish's economic development roadmap
Explaining the foundations for drafting Kish's 10-year vision framed as "Horizon 1414", he said: this vision was drafted in eight axes including structural transformation, sustainable water, electricity and communications infrastructure, a new governance system, event-based tourism, a financial free zone, a city of science and technology, annexation of the backshore to Kish and international branding diplomacy.
The Deputy for Economic and Investment Affairs of the Kish Free Zone Organization continued: changing approaches and strengthening trust in the investment ecosystem caused the total amount of investment attraction in Kish to increase from 11 hemmt in 1403 to 94 hemmt in 1404, which, even accounting for inflation and currency rate fluctuations, means the dollar value of investment has grown more than fourfold.
He noted: this trend has continued this year as well, and the registration of about 90 hemmt in attracted investment in the first half of the year indicates continued private sector confidence in Kish's economic future.
The Deputy for Economic and Investment Affairs of the Kish Free Zone Organization also announced growth in realized investments, industrial and indigenous productions and exports, saying: realized investment increased from 36 hemmt in 1403 to 58 hemmt in 1404 and over 48 hemmt in the first half of this year. The value of industrial and indigenous productions also rose from 23 hemmt in 1403 to 37 hemmt in 1404 and 26 hemmt in the first half of this year. Exports of goods and services also increased from 243 million dollars in 1403 to 263 million dollars in 1404.
Referring to difficult international transport conditions and tensions created in shipping lines, he said: despite these restrictions, Kish's export cycle did not stop.
Start of car imports after a decade and tariff reductions
The Deputy for Economic and Investment Affairs of the Kish Free Zone Organization then referred to the process of renewing the island's transport fleet and said: after about a decade of halt and nationwide ban, in 1403, using legal capacities of temporary entry and granting two-year dedicated plates, the import of new cars to the island began.
He added: this action laid the groundwork for starting the renewal process of public and private transport fleets and Kish, in implementing this model, became recognized as one of the country's pioneer regions.
Nikafroz, referring to the necessity of supporting people's purchasing power in conditions of currency fluctuations, said: by resolution of the organization's board, customs duties on car imports which had previously been set between 25 to 45 percent, were reduced to 10.5 to 31.5 percent so that the cost burden on Kish residents would be reduced.
Refuting rumors of monopoly on car imports; the possibility of ordering for all natural persons
In another part of the meeting, the Deputy for Economic and Investment Affairs of the Kish Free Zone Organization, explicitly rejecting some rumors about restricting or banning car entry by natural persons and handing it over exclusively to dealers, emphasized: there is no monopoly in the process of importing cars to Kish and the entry route for cars remains open to all natural persons and eligible Kish residents.
Nikafroz, referring to follow-ups undertaken to clarify the market and prevent profiteering behaviors in the car sector, stated: the policy of the Kish Free Zone Organization is to facilitate processes for all Kish residents and prevent formation of any rent-seeking or monopoly.
Natural person applicants can, in accordance with notified legal regulations, complete customs procedures and submit their requests directly without intermediaries, and inspection oversight of the market and commercial units for price regulation and protection of buyers' rights continues rigorously.
Immediate measures for vehicle exit in crisis conditions
Referring to the consequences of recent wars on the island's economic and social conditions, he said: after a missile strike last Esfand and the formation of long queues of Kish residents at customs points to transfer assets and vehicles to the mainland, with coordination of the Security Council and the organization's CEO, within less than two hours the complex customs assessment formalities were halted and exit duties on vehicles were cancelled.
The Deputy for Economic and Investment Affairs of the Kish Free Zone Organization added: in this situation, Kish residents could, merely by proving ownership, take their vehicles out of the island without obstacle; because the regional management's priority was to preserve calm and protect the rights and dignity of Kish residents.
Opening the seaman procedure and implementing the economic resilience package
He considered a more than 90 percent drop in passenger arrivals during critical periods one of the most important challenges facing merchants and tradespeople and said: through direct follow-up by the organization's CEO with the Central Headquarters for Combating Goods and Currency Smuggling and the Article 4 working group of the Ministry of Industry, Mine and Trade, permission to implement the "seaman procedure" was obtained for the first time in Kish.
The Deputy for Economic and Investment Affairs of the Kish Free Zone Organization continued: within this framework, 96 commodity items whose commercial exit previously required paying 60 to 70 percent duties were allowed to leave with an average tariff of 8.3 percent and minimal formalities.
He also announced the implementation of the "Kish economic resilience package" in four axes and said: first, in the tax support area, enforcement operations, bank account freezes and collection of corporate income and value-added tax receivables of economic actors are suspended until the end of Azar 1405, crisis-period debts will be installmentized and the capacity of Article 167 forgiveness of the Direct Taxes Law will be used. Second, in social security, employer account seizures are suspended until the end of 1405 and insurance coverages and medical services for employees and their dependents will continue. Third, in bank facilities, negotiations have begun for a three to six-month moratorium on overdue loans, non-registration of bounced tax checks in the integrated Sayad system is being pursued and credit lines will be allocated for working capital. Fourth, in rent support, the "Spring of Kindness" plan with a two-month waiver of rent for the organization's commercial properties has been implemented and extending this support to owners of private passageways and markets for two to six month periods is being pursued.
Registration of major investments in tourism, health and energy
In another part of his remarks, the Deputy for Economic and Investment Affairs of the Kish Free Zone Organization referred to the island's large and leading economic projects and said: while Kish was facing various crises, the process of attracting investment and implementing development projects continued.
He added: foreign investment worth 150 million dollars for the construction of a large modern hotel on Kish's shores has been officially registered in the Foreign Investment Organization.
Nikafroz also reported the foundation of a 100-bed super-specialty hospital project in the south of the island with participation of the country's surgical staff and said: this project will be pursued over a four-year period.
He described the official registration of the "non-governmental Oil Industry Guarantee Fund" with capital of 300 million euros in Kish as another important action and stated: this fund can play a role in strengthening Kish's position as one of the financial, insurance and logistical support centers for the country's energy projects in the Persian Gulf region.
Pursuing Kish's claims in the economy and trade
At the end, the Deputy for Economic and Investment Affairs of the Kish Free Zone Organization referred to some other actions and follow-ups and said: restoring the free zone's share of value-added tax in the Parliament, legislating formal imports of mobile phones with valid warranties, deployment of postal equipment in ports to develop e-commerce, pursuing an increase in the ceiling of rental deposit loans and transparent allocation of lands through the Investment Opportunities System are among other matters being pursued and implemented by order of Mohammad Kabiri, CEO of the Kish Free Zone Organization.
He emphasized: the management of the Kish Free Zone has tried, in difficult economic conditions, to support the livelihood and economic capacities of Kish residents and private sector activists and, while continuing supportive actions, has also pursued the island's development and investment path.