Shiraz - Economy

Economy

Shiraz is the economic center of southern Iran. The second half of the 19th century witnessed certain economic developments that greatly changed the economy of Shiraz. The opening of the Suez Canal in 1869 allowed the extensive import into southern Iran of inexpensive European factory-made goods, either directly from Europe or via India. Farmers in unprecedented numbers began planting cash crops such as opium poppy, tobacco, and cotton. Many of these export crops passed through Shiraz on their way to the Persian Gulf. Iranian long-distance merchants from Fars developed marketing networks for these commodities, establishing trading houses in Bombay, Calcutta, Port Said, Istanbul and even Hong Kong.

Shiraz's economic base is in its provincial products, which include grapes, citrus fruits, cotton and rice. Industries such as cement production, sugar, fertilizers, textile products, wood products, metalwork and rugs dominate. Shirāz also has a major oil refinery and is also a major center for Iran's electronic industries. 53% of Iran's electronic investment has been centered in Shiraz.

Agriculture has always been a major part of the economy in and around Shiraz. This is partially due to a relative abundance of water compared to the surrounding deserts. Shirāz is famous for its carpet production and flowers as well. Viticulture has a long history in the region, and Shirazi wine used to be produced here. Shiraz is also an Iranian center for IT, communication, electronic industry, and transportation.

The Shiraz Special Economic Zone or the SEEZ was established in 2000 with the purpose of boosting manufacture in electronic and communications.