Free trade zones are important regions for development of business activities and detecting important factors for development of these regions plays essential role for development of economy. This paper presents an empirical investigation to determine the factors influencing the performance of the incentive polities of free trade zones in Iran. The study designs a questionnaire consists of 34 questions. Cronbach alpha is equal to 0.809, which is well above the minimum acceptable level. In addition, Bartlett's Test of Sphericity yields a Chi-Square value of 2392.31 with Sig. = 0.000. Using principal component analysis with rotation, the study has detected six important factors influencing on development of free trade zones including government support, financial capability, development strategy, product competition, infrastructure and consultation services.