Infrastructure profileActive

Sistan Free Zone

Sistan Free Trade-Industrial Zone is an active free zone in Iran’s Sistan region, spanning parts of five counties around the Zabol–Milak border corridor. It supports cross-border commercial activity and logistics serving Afghanistan-facing trade. Its value lies in providing a designated investment and trade platform at one of eastern Iran’s principal border gateways.

StatusActive
VerificationBasic
ConfidenceHigh
Updated31/07/2026
Strategic Layer

Strategic and market-access role

Sistan Free Zone is designed around the Zabol-Milak corridor and trade with Afghanistan, linking border customs, road freight, Zabol’s airport and service economy, agricultural trade, warehousing, and eastern-market distribution. The zone now has functioning customs and company-registration activity, giving it more substance than a purely planned project. Its development case remains constrained by water scarcity, limited local industrial depth, transport quality, border volatility, and the need to convert customs activity into durable logistics and processing investment. The zone provides a formal free-zone platform for businesses using the Milak crossing to serve trade flows between Iran’s Sistan region and Afghanistan.

OPERATING PROFILE

Operations, capacity & connectivity

Related use cases

Useful for Afghanistan market entry, Milak border routing, customs clearance, warehouse and truck-service planning, agricultural and food trade, construction-material distribution, local partner screening, and eastern-corridor analysis. Investors should verify the exact zone parcel, customs eligibility, road and airport access, utility availability, water requirements, Afghan counterparty risk, payment channels, security conditions, and whether proposed processing activities can operate sustainably in the regional environment.

Capacity and service area

Service area: The zone covers parts of Zabol, Zahak, Hirmand, Hamoun and Nimrouz counties in the Sistan region of Sistan and Baluchestan Province.

Connected modes

Road access through the Zabol–Milak border corridor.

Industries served

Cross-border trade, logistics and industrial activity linked to the Iran–Afghanistan border economy.

Related context

Connected Intelligence

Relevant geography, industry, market and execution context for this profile.

Common questions

Frequently asked questions

Direct answers to the questions most likely to arise when reviewing this profile.

Where is Sistan Free Trade-Industrial Zone located?

The zone is in the Sistan region of Sistan and Baluchestan Province, covering parts of Zabol, Zahak, Hirmand, Hamoun and Nimrouz counties.

What border route does Sistan Free Trade-Industrial Zone serve?

It is oriented around the Zabol–Milak corridor, linking eastern Iran with Afghanistan.

What is the zone’s commercial role?

It provides a free-zone framework for cross-border trade, logistics and industrial activity connected with the Iran–Afghanistan border economy.