Modern Chabahar dates back about 40 years, when it was declared a municipality and large port projects were started by order of Mohammad Reza Pahlavi. A modern naval and air base was established as part of the Shah's policy of making Iran into a dominant power in the Indian Ocean. At that time these and other development projects in and around Chabahar involved the extensive participation of foreign companies, especially from the United States. After the 1979 revolution the foreign companies left the projects and Iranian public companies linked to the Ministry of jahade sazandegi (or jihad for construction) took them over. The Iraq-Iran war
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