II. GEOGRAPHY AND CLIMATE

The Islamic Republic of Iran covers a span of over 1,648,000 square kilometers and is strategically located between Pakistan, Afghanistan, Turkmenistan, Azerbaijan, Armenia, Turkey, Iraq, the Persian Gulf and the Sea of Oman. It is five times the size of Italy, and equals the total areas of England, France, Germany, Belgium, Holland, and Denmark combined.

Iran shares over 1,600 km. of its northern border with the nations of Central Asia and Caucasus region, some 650 kilometers of which comprise the southern coast of the Caspian Sea. The Azerbaijan highlands divide Iran from Turkey, its neighbor to the north west while further to the south the Zagros Mountains tower over Khuzestan, Iran's rich oil producing region. To the east, the vast Dasht-e-Kavir and Dasht-e- Lut deserts sweep into Afghanistan and Pakistan.

Tehran, the Capital of Iran is comprised of an intriguing combination of the old and the new and is rapidly gaining due international recognition as the region's foremost business center (see accompanying side box). Tabriz, the provincial seat of Eastern Azerbaijan Province, was once the overland trade route between India and Europe and today it leads trade with the newly independent oil rich nation of Azerbaijan while also earning the distinction of being one of Iran's foremost industrial centers. Isfahan, which previously served as the national capital until 1788, is famed for its classic Persian architecture and high quality carpet and textile industry. To the south west, the port-city of Abadan houses one of the largest oil refineries in the world.

Iran is ringed by two major mountain ranges, the Alborz in the north and the Zagros to the west. The Alborz, separates the central region of the country from the fruitful Caspian plains and among its peaks stands Mount Damavand, Iran's highest mountain at 5,699 meters.


Tehran: The Re-emergence of an
International Business Center

Companies looking to set up a regional center for their business activities need to look to at least three primary business functions: headquarters, back office operations and geographic proximity to intended markets. An additional factor is the comfort of life in the prospective location.
For a company seeking all of the above and wishing to position itself for success in the midst of one of the largest consumer markets in the world need not look any farther than Tehran. Not only would a company gain the advantage of location in a fascinating and cosmopolitan capital city, but also would be backed by an intelligent support network in the logistical heart of the Middle East / Central Asia that is surrounded and connected to several large modern free trade zones with large scale distribution facilities and direct, speedy connections to road, rail and air networks.
Tehran's positioning as a major business center will be further buoyed by the establishment of the Tehran World Trade Center (pictured to the right). Having a 430m high communications tower, making it among the worlds tallest towers, the Trade Center which is 60% complete, is expected to be completed by the year 2001. Among its facilities, the Center will have a five star hotel, a fully equipped 8000 Sq.m business center, a 40,000 Sq.m Exhibition Center a 16,000 Sq.m Administrative complex and 152,000 Sq. meters of business support facilities inclusive of printing shops, travel shops, post offices, gymnasium, restaurants and convenience stores.
Furthermore, Tehran has a young, well-educated multi-lingual workforce groomed by Iran's top notch university system and has some of the region's lowest tax, energy and personnel costs.
In sum, the city's position at the apex of a major international trade route , combined with its developed capital markets, strong infrastructure, low business costs, educated workforce and cultural acceptability leads to the fact that Tehran stands alone among its neighbors in the region as a modern city serving as the hub of one of the globe's largest markets.

Due to its vast area, the country is subject to a broad array of climatic conditions varying from the sub-tropical to the sub-polar. The country's diverse climate can be categorized within the following climatic zones:

1- The lush Caspian littoral with its heavy rainfall and deep hardwood forests. The Caspian Sea, with a surface area of 424,240 sq. km is the largest landlocked body of water in the world. The Caspian is rich in fish and several major ports are situated along its coast, including Anzali, Noshahr and Turkman.


2- The snow covered mountainous regions which are subject to extreme cold and are centered around a triangular central depression. The western mountains of Iran, known as the Zagros range , run from the northwest to the southwest and span over 992 km length and 192 km in width. Below the pastures on the higher slopes of these mountains are dense forests of oak, walnut, almond and pistachio. Lower down in the high valleys, produce as diverse as pomegranates and figs are grown as well as extensive cultivation of wheat and barley. The northern part of the triangle is covered by the Alborz mountain range, of which its highest peak, Mount Damavand, stands at some 5,699 meters. The Alborz range separates the northern coastal areas of the Caspian Sea with its lush vegetation from the desert regions of the interior. From the western end, the Alborz range reaches Iranian Azerbaijan , a densely populated area with fertile valleys where wheat, cotton, rice and tobacco are cultivated. To the east, the Alborz range forms the mountains of Khorasan, wherein lie exceedingly fertile valleys in which wheat, barley, rice and cotton are grown.

3- The climate of the southern coastal region of the Persian Gulf which is characterized by its palm groves, low rainfall, high heat and humidity levels and moderately warm waters. The Persian Gulf extends from the Hormuz Strait sweeping in a northwesterly direction. Extending some 800 km., it covers an area of some 250,000 sq. km. and is at some points some 100 meters deep. Important islands in the Persian Gulf include the free trade zones of Qeshm and Kish (which will be explored in Chapter 3 in this book), the oil terminals of Khargh, Lavan and Sirri and the islands Greater and Lesser Tumbs. The Sea of Oman, which is in fact an extension of the Indian Ocean, joins and becomes the Persian Gulf at the Hormuz Strait.

4- The climate of the central plateau with lengthy hot and dry periods and barren, salty stretches of deserts. Two great deserts occupy the central plateau and are characterized by extensive deposits of minerals, including chlorides, sulfates and carbonates.

Tourism

Home to 15% of the worlds registered historical sites, Iran's geographic splendor and diversity combined with over 2,500 years of history has led to the emergence of tourism as a major source of income in Iran. As one of the major cradles of civilization, Iran' s numerous archeological sites, mosques, palaces and museums combined with Iran's top graphical and geographical diversity has led to a growing increase in the number of foreign tourists visiting Iran. From 1997 to the present, tourism has increased by more than 85%, generating revenues which are expected to top over $1 billion. Given the fact that further development and improvement of the country's tourist attractions, increased participation by the private sector and other steps can further expedite growth in this sector, tourism has been afforded a special priority in Iran's forthcoming Third Five Year Plan.