Iran Allocated Land for Afghan Trade Operations
The 110-hectare deal grants landlocked Afghanistan direct access to the Gulf of Oman for industrial investment.
Updated on Oct. 9, 2026 in International Trade
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Iran has designated 110 hectares of land at Chabahar Port and its surrounding Free Trade Zone for use by Afghan businesses. This agreement is designed to facilitate industrial development and boost bilateral trade between the two nations.
Why it matters
Securing this transit and production hub provides landlocked Afghanistan with a vital gateway to international maritime markets. The move reflects a broader attempt by both nations to deepen industrial cooperation and scale bilateral trade.
Iran allocated 110 hectares of land, split between 10 hectares within Chabahar Port and 100 hectares in the adjacent Free Trade Zone, to support an ambitious $10 billion bilateral trade target. Details regarding the full scope of Afghan investment in these zones remain undefined.
The players
Iran
A Middle Eastern state acting as a key regional logistics provider and host for the Chabahar Free Trade Zone.
Afghanistan
A landlocked nation seeking to expand its international trade capacity through the acquisition of foreign port-adjacent land.
The details
The land allocation allows Afghan enterprises to establish industrial operations and logistics hubs directly at the Chabahar Port facility on the Gulf of Oman. By moving into the Free Trade Zone, businesses can utilize these parcels to facilitate imports and exports that previously required more complex regional transit routes. The agreement serves as a mechanism to integrate Afghanistan into international maritime supply chains through Iranian infrastructure.
Timeline
Economic consultations between Iranian and Afghan officials took place on October 8, 2026.
Market Landscape
This land allocation represents a significant expansion of the Chabahar Port development initiative, which serves as a major trade corridor. It follows a pattern of infrastructure-based diplomacy where port access is leveraged to secure long-term industrial and trade partnerships.
Operators in trade and logistics should monitor how this port access changes transit costs and shipping reliability for goods moving into Central Asia. Businesses should watch for future announcements on capacity and operating requirements if they intend to utilize the new zones.
The takeaway
The move signals a structural push to reorient trade logistics in the region toward the Gulf of Oman. Businesses should track ongoing negotiations regarding additional port space to identify emerging opportunities for industrial site development in the zone.
Further reading
For broader trends in regional supply chain developments, see International Trade.
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