Iran expands Qasr-e Shirin zone to boost Iraq trade – Shafaq News

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.