Beginning and evolution

In 1606, Shah Abbas I from the Safavid dynasty established New Julfa as an Armenian quarter, relocating over 150,000 Armenians from Old Julfa (also known as Jugha or Juła) in Nakhidjevan. Iranian sources suggest that the Armenians sought refuge in Iran to escape persecution by the Ottoman Empire. Historical records show that Shah Abbas treated the residents of Julfa well, hoping their resettlement in Isfahan would benefit Iran's silk trade due to their expertise in the field.

New Julfa was initially governed by the Lazaryan noble family, which later moved to Russia after Nader Shah's death in 1747. One member, Ivan Lazarev, became a court banker to Catherine the Great and was granted the title of Imperial Count in 1788. His brother founded the Lazarev Institute in Moscow. Historian Fernand Braudel noted that the Armenians had a vast trade network spanning from Amsterdam to Manila in the Philippines.

Old Julfa, once an Armenian mercantile town in the Ottoman Empire, faced a significant upheaval during the war between the Ottoman Turks and Safavid Persians in 1604-1605. Shah Abbas I of the Safavid Empire relocated the Armenian population of Julfa and nearby areas to his capital, Isfahan. There, he allotted them one quarter of the city, giving rise to "New Julfa."

New Julfa’s Armenians thrived as merchants and businessmen, achieving prosperity and playing a vital role in the development of global trade and economy. Their advanced trading network crisscrossed the world’s oceans, empires and kingdoms, spanning from Europe, Southeast Asia to India to many centers in Europe, and to North America. New Julfans built a network based on trust, conducting trade with reliable individuals. Commen da contracts exemplify this trust, wherein a merchant capitalist and an agent, representing the merchant, formed a mutual agreement. Agents would be away for extended periods, working on behalf of the merchant. Upon their return, profits were divided, with agents receiving 25 percent and merchants 75 percent. This arrangement allowed agents to establish a reputable image within the community, where trust was a fundamental value.

Source: Dr. Sebouh Aslanian, Professor of Modern History at UCLA, “From the Indian Ocean to the Mediterranean: The Global Trade Networks of Armenian Merchants from New Julfa”

The Armenians of New Julfa enjoyed privileges that transformed the suburb in Iran of 17th century into a thriving commercial and cultural hub. They were granted significant autonomy, including the election of their own mayor (kalantar), who held a royal seal to bypass bureaucratic hurdles. This autonomy extended to self-governance in areas such as religious practice and legal disputes, as the community maintained its own courts and customs. Economically, New Julfa's Armenian merchants were key players in the Safavid Empire's trade. They held monopolies on the silk trade, one of the empire’s most valuable exports, and facilitated connections to more than 40 countries in Europe and Asia. The community's entrepreneurial activities extended globally, with Armenian trading companies establishing networks in cities from Venice, Amsterdam to Manila. Their involvement in international trade contributed to the Safavid economy’s prominence in Eurasian commerce. The Armenians' prominence attracted further investments, including interest-free loans to establish industries. Over time, New Julfa became a cultural and economic bridge between Europe and Asia. This success was supported by Armenian merchants deep knowledge of global markets and strategic connections.