International Sanctions and Spatial Planning in Iran’s Free Trade Zones Case Study: Kish Free Trade Zone

Free trade zones (FTZs) have emerged globally as strategic instruments to integrate national economies with international markets, attract foreign investment, and foster cross-border cooperation. In Iran, the establishment of FTZs—especially Kish Island—has been promoted as part of broader economic diplomacy and spatial development strategies. This study critically assesses the role of Kish Free Trade Zone in advancing Iran’s economic diplomacy under the increasing pressure of international sanctions during the period 2012–2024. Adopting a neomercantilist theoretical framework, the research employs a mixed-methods approach combining content analysis of strategic documents and media reports with semi-structured interviews conducted with local managers and policy experts. Findings reveal that despite Kish’s advantageous geographic location and well-developed infrastructure, its contribution to Iran’s economic diplomacy remains largely symbolic. The majority of agreements signed with neighboring countries have lacked binding enforcement mechanisms and have rarely translated into tangible projects or sustainable investment flows. The study concludes that the compounded effects of international sanctions, institutional inefficiencies, and the disconnect between macroeconomic policy and spatial planning have significantly constrained the strategic function of FTZs in Iran. Kish, in particular, has struggled to meet its foundational objectives and has failed to act as a reliable platform for regional economic integration. The research calls for a fundamental rethinking of FTZ policy, suggesting a multidimensional approach that aligns legal, institutional, and geopolitical considerations in the design and governance of such zones.