Asemipur pointed to the United Arab Emirates regional trade through its free trade zones and the growth of Bahrain as one of the largest financial markets in the region and reasoned it was time for Iran to stand up and take a leading role in the trade of oil from the Gulf.

The initial plan for establishment of the project has been drawn up in 18 phases and will be set up in one of the country's free economic zones. Asemipur added that the project has already attracted interest from a number of European and Asian companies keen on taking part.

Preliminaries yet to be finalised include finding the location, setting legal and financial provisions, providing specifications for transacting companies, designing a security system for the stock market, and defining details for the contracts.

Asemipur said that the exchange will allow Iranian investors to put their funds into a robust stock exchange for the first time.

"Moreover, it will stabilize oil prices while assuring both internal and external trade security."

Iran's primary concern for the market will be as a useful bartering line between OPEC member states and other parts of the world.