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Iran
Iran is located in Southwestern Asia, and it is bordered by Armenia, Azerbaijan, the Caspian Sea, and Turkmenistan on the north; Afghanistan and Pakistan on the east; Iraq and Turkey on the west; and the Gulf of Oman, the Strait of Hormuz, and the Persian Gulf on the south. The area of Iran is 1,648,000 sq km (636,296 sq mi) with a population of approximately 69 million. Iran was called Persia prior to the Muslim conquest in the 7th century AD; however, it continued to be known as Persia abroad until the 1930s. Its capital and largest city is Tehran. For 2500 years Iran was a monarchy, but it became an Islamic Republic following the 1979 revolution.

Until today, Iran remains the greatest rug-weaving country in the world. It is estimated that Iran produces approximately three-quarters of all the handmade rugs in the world. Iran has the highest and most diverse number of weaving groups from master workshops to nomadic tribes, and as a result, it produces the most diverse styles worldwide. Rugs are produced almost in all parts of Iran from north to south and east to west. In the northwest the cities of Tabriz and Heriz (influenced by rugs of the Caucasus), in the northeast Mashad (influenced by rugs of Turkoman), in the center Esfahan, Qum, Kashan and Nain, and in the south Shiraz and Kerman are just a few examples among many rug-producing cities in Iran. Persian styles have been copied in machine-made rugs by the West and by most handmade rug-producing countries of the East such as India, Pakistan and China.

Even though it is not certain when rug weaving started in Iran, in early Persian manuscripts of sixth century during the rule of Khosrau I (King of Persia from 531 to 579) there is a mention of a rug called The Spring Carpet of Khosrau made of wool, silk, gold, silver, and precious and semi-precious stones. Also, centuries later, in 1295, Marco Polo had mentioned that Tabriz rugs were superior to any other rug he had seen.

Rug weaving as an art reached its peak during the reign of Shah Abbas (1586-1628) of Safavid Dynasty, and during the late 1960's and the early 1970's, rug production increased in Iran to fulfill the demands of both the Western and the domestic population. The rug industry has continued to be extremely successful. Market sizing data from the exporting countries is difficult to obtain as some of the countries may not track the data or disclose it. Nevertheless, from foreign embassies, industry specialists, and magazine articles, the 1998 rug export estimate for Iran is 800 million dollars. Iran also produces a large number of rugs for its local market. Traditionally, Iranians have purchased rugs as investments.

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