The Mehran Free Zone is accelerating talks with Baghdad to create a joint commercial zone opposite Iraq’s Zurbatiyah, a move officials say could turn the western border crossing into a shared economic gateway and lift trade between the two neighbors. Mehdi Ra’yati, CEO of the Mehran Free Zone Organization, said the Iraqi side has welcomed the proposal and is now defining the boundaries of its planned zone in Zurbatiyah. The plan, discussed in meetings that included Iran’s ambassador to Iraq, still requires legal, political and security frameworks, he noted.
The initiative comes as Mehran’s free zone, approved in 2021 but operational only since February, moves from administrative setup to implementation. About 470 production, service and mostly commercial companies are being registered, while economic permits and official land deeds have been activated. Customs operations have also begun, with a customs code issued by Iran’s Customs Administration. Talks with Iraqi customs are ongoing, and Baghdad has appointed a representative to address traders’ problems.
Next week, the secretary of Iran’s Supreme Council of Free Zones is expected to launch several projects. A factory with nearly 300 direct jobs will be inaugurated, alongside commercial and administrative complexes. Fencing for the first phase, a service and cultural complex, and water, power and access-road projects are also planned, with private investment sought through public-private partnerships.
Agriculture covers nearly 17 percent of the zone, and officials are promoting modern cultivation, processing industries, ecotourism and agritourism. The organization has signed an MOU with Ilam’s cultural heritage directorate to expand tourism services and introduce the province’s attractions to pilgrims and Iraqi travelers. Ra’yati said Mehran is still at the start of its development path, but border diplomacy, legal capacity and private-sector interest could make it a key Iran-Iraq trade hub.
