Iran plans to set up a financial center on the free zone at Qeshm Island in Hormuzgan Province as it seeks to attract financial institutions to an 80-million-strong market.
Chinese and Russian banks are seeking to set up representative offices in the area, Farhad Taqizadeh-Hesari, senior adviser to Qeshm Investment and Development Co., said in an interview.
One of Japan's largest banks is also negotiating on establishing a presence, he said, declining to identify the banks, Bloomberg reported.
"The aim for this financial center isn't to look onto Qeshm, but to be a window onto the mainland." he said. "There is much interest to enter Iran."
Iran's economy has traditionally relied on oil revenue and consumption by the internal market. That market provides opportunities for retail banking and project finance as the country vies to overhaul its infrastructure and spend billions of dollars expanding airports, transportation links and its energy sector after the lifting of economic sanctions in January.
The International Monetary Fund expects Iran's economy to expand four percent in the 12 months to March 2017.
