Tehran and Ankara have agreed to establish a free trade zone upon a visit by Iranian President Ebrahim Raeisi to Turkey, seeking to revive economic relations.

President Raeisi and his Turkish counterpart Recep Tayyip Erdogan agreed on developing the free trade zone in the city of Khoy, a border area between the two countries, the head of the Iran-Turkey Parliamentary Friendship Association said on Sunday.

“Vast investments in the Iran-Turkey joint free trade zone could lead to economic prosperity in the border region and on country level and will result in an increase in turnover,” Adel Najafzadeh said.

He added that Raeisi’s view on creating synergy with different countries in the region would lead to economic growth and constitute “major achievements” for the country.

Najafzade further said that Iran and Turkey both share a common stance concerning the issue of Palestine.

“This could create a powerful bloc between the two countries in the region,” he added.