Document Type : Original Article
Authors
1
PhD Student of Financial Engineering, Department of Financial Management, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran
2
Master of International Affairs, Faculty of Islamic Studies and Political Science, Imam Sadiq University, Tehran, Iran
Abstract
This study analyzes the policy-making process for establishing an international stock exchange in Iran's free trade zones through Kingdon's Multiple Streams Framework. For over four decades, Iran's economy has faced profound challenges in accessing international financial markets due to sanctions, currency restrictions, and limited foreign investment channels. Despite having eight active free trade zones with substantial infrastructure and legal frameworks offering twenty-year tax exemptions, Iran has not yet successfully launched an international exchange, while neighboring countries like Kazakhstan and the UAE have established thriving financial centers. Employing a qualitative-analytical approach with documentary and comparative analysis, this research examines experiences from eleven international exchanges including Astana, NASDAQ Dubai, Istanbul, Bermuda, Cyprus, Channel Islands, Cayman Islands, Barbados, Mauritius, Gibraltar, and Labuan. The findings reveal convergence among three key streams: the problem stream encompasses sanctions, currency restrictions, and foreign financing needs; the policy stream includes successful offshore exchange models and innovative legal-financial structures; and the politics stream demonstrates political will to develop free zones and diversify financial resources. This convergence has opened a policy window for establishing an international exchange with hybrid ownership structure, long-term tax exemptions, currency flexibility, and emphasis on Islamic financial instruments. The results suggest that the Multiple Streams Framework provides an effective analytical lens for understanding offshore capital market policy formulation, and this represents the first application of MSF in analyzing Iran's international exchange policymaking.
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