Qeshm Island is located a few kilometers off the southern coast of Iran, opposite the port cities of Bandar Abbas and Bandar Khamir. The island, which hosts a 300 square kilometer free zone jurisdiction, is 135 km long, and lies strategically in the Strait of Hormuz, just 60 kilometers from the Omani port of Khosab and about 180 kilometers from the UAE port of Rashia. The island, at its widest point, located near the center of the island, spans 40 kilometers. Similarly, at it narrowest point, the island spans 9.4 kilometers. The island has a surface are of 1491 square kilometers and is 2.5 times the size of Bahrain and 3 times the size of Singapore. Qeshm city, located at the easternmost point of the island is 22 kilometers from Bandar Abbas while the closest point of the island is but two kilometers from the mainland.

The average temperature on the island is approximately 27 degrees Celsius with the warmest months are June through August and the coldest from October to January. The average rainfall is 183.2mm.

The island comprises 59 towns and villages and the local population is approximately 100,000. The local population is involved in fishing, dhow construction, trade and services. Furthermore there are approximately an additional 30,000 involved in administrative and industrial workforce and students. In the Iranian year 1369, equivalent to 1991 in the Gregorian calendar, the island was transformed into a "Trade and Industrial Free Area" with the goal of creating the largest Free Area between Europe and the Far East.

Qeshm Free Zone
In the 1st ten year plan, in note 19, the law provided for the creation of free trade zones and three locations were identified as such in the year 1991. They were Kish Island, Qeshm Island and Chabahar. In the year 1994, upon approval by the Iranian Majlis, the provisions of these free trade zones were identified and as such, an area of 300 square kilometers on Qeshm Island received the designation of free trade zone. To that end, Qeshm Island was granted considerable leeway to set its own policies, independent of the central government, which had often been seen as an impediment to growth in many sectors of the economy. However, the Island retains the advantages associated with its connection to the mainland, including the rights to explore and develop oil and gas opportunities.

Free trade zones have been set up over the last thirty year with great success in order to serve as a bridge between local, regional and global economies. As such, and in general, free trade zone have several points in common and serve to:

• Increase exports.
• Attract capital, both domestic and foreign.
• Transfer technology.
• Expand foreign trade.
• Train specialized and qualified technical personnel.
• Gain experience in management
• Align local, regional and global economies.

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