The Role of the Principle of Freedom of Trade in Ensuring the Legal Security of Investors in Iran’s Free Trade Zones

Abstract

The principle of freedom of trade, as one of the fundamental foundations of contemporary economic and legal systems, plays a decisive role in creating a secure, transparent, and predictable environment for economic activities. In free trade zones, this principle—through the reduction of administrative interventions, facilitation of the flow of capital, goods, and services, and the guarantee of contractual freedom—provides an appropriate framework for attracting domestic and foreign investors. In Iran’s legal system, free trade zones have been designed with the objectives of economic development, increasing non-oil exports, and technology transfer, and the principle of freedom of trade is considered one of the governing legal pillars of these zones. The main issue addressed in the present study is the extent to which the principle of freedom of trade, within the framework of the laws and regulations governing Iran’s free trade zones, has been able to ensure the legal security of investors, as well as the challenges that impede the full realization of this principle. Regulatory instability, conflicts between mainland laws and free zone regulations, and interventions by multiple institutions are among the factors that may weaken the effectiveness of this principle and negatively affect investor confidence. The research method employed in this study is descriptive–analytical and based on documentary research. Data were collected through an examination of the laws and regulations governing Iran’s free trade zones, upstream policy documents, relevant judicial decisions, and comparative analysis with certain successful legal experiences. The primary research tools consisted of legal note-taking and content analysis of legal texts and legal doctrine. The findings indicate that the principle of freedom of trade, if implemented coherently and accompanied by legislative and judicial stability, can play an effective role in ensuring the legal security of investors; however, weaknesses in enforcement guarantees, frequent regulatory changes, and a lack of institutional coordination have reduced its practical effectiveness. Finally, the study proposes that by strengthening regulatory stability, clarifying the limits of governmental intervention, harmonizing free trade zone laws with macroeconomic policies, and enhancing judicial protections, the conditions for the effective realization of the principle of freedom of trade and the enhancement of investors’ legal security can be achieved.