Kish Island has been mentioned in history variously as Kamtina, Arakia, Arakata, and Ghiss. In 325 BC, Alexander the Great commissioned Nearchus to set off an expedition voyage into the Sea of Oman and the Persian Gulf.

Nearchus's writings on Arakata is the first known mention of Kish Island in antiquity. When Marco Polo visited the Imperial court in China, he commented on the Emperor's wife's pearls, he was told that they were from Kish. In the 1970s the last Shah of Iran turned the island into a luxury resort for the international elite complete with a Grand Casino (now known as the Shayan International Hotel) and an airport designed to handle the Concorde. After the Islamic Revolution, Kish Island became a duty-free shopping center.

Kish island's strategic position served as a way station and link for the ancient Assyrian and Elamite civilizations when their primitive sailboats navigated from Susa through the Karoun river into the Persian Gulf and along the southern coastline passing Kish, Qeshm and Hormoz islands

Kish is located in the Persian Gulf 19 km from mainland Iran and has an area of around 91 km² with an outer boundary of 40 km and a nearly elliptical shape. Along Kish's coast are coral reefs and many other small islands. The Island is positioned along the 1359 km long Iranian coastline north of the Persian Gulf, at the first quarter from the Hormuz entrance to the Persian Gulf. Its longitudinal and latitudinal positions are 26.32N and 53.58E degrees. The Island is 15.45 km long from west coast to the east coast (the distance between Mariam Complex and Hoor field). Its maximum width extending from the southern shorelines to the northern shorelines is 7.5 km (the distance between Gomrok Port and the lighthouse). The island's surface is flat, lacking mountains or even high hills. Kish International Airport is built in the center on an elevated area 35-40 meters from the sea level. Its highest surface inclination extends from the airport to the shores near Shayan hotel.

Since the mid-1990s the Iranian government has embarked on an aggressive promotional and developmental campaign to tailor Kish as a rival to Dubai but mainly a big rival to Doha. Steps taken in order to accomplish this include launching massive construction projects and programs designed to attract foreign investment and trade. Within the area of the Kish Free Zone, as it is known, the standard laws of the Islamic Republic of Iran are far more relaxed than on the mainland, which has resulted in significant increases in mostly domestic tourist population over the years, as well as in international trade on the island. The population of the island includes significant numbers of both Muslims and Christians. Kish Free Zone total foreign trade stands at around $9.2 billion per annum (2009).

Investment incentives in Kish free trade zone include:

- 15 years tax-exemption;
- no entry visa requirement;
- 100% foreign ownership possible;
- flexible monetary & banking services;
- extended legal guarantees & protection.