Beginning and evolution

In the early 17th century Shah Abbas I from the Safavid dynasty established New Julfa in the city of Isfahan relocating over 300,000-400,000 (scholarly estimates range) to Persia. Not all of those deported ultimately settled in Isfahan. Armenian population numbers for New Julfa during this time range from roughly from 10,000 to 30,000.

Armenians from Old Julfa (also known as Jugha or Juła) in Nakhidjevan. 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.

One of the powerful families in Isfahan was 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 early 1600s. 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.

“New Julfans were primarily known for their role as silk merchants. They monopolized the silk trade for much of the early modern period, but they also dabbled in other things: gems, diamonds and so forth, but also textiles, and they had an extensive commercial network that went from London, Amsterdam, Cadiz, all the way to Manila.” -Houri Berberian, Professor of History & Meghrouni Family Presidential Chair in Armenian Studies, University of California Irvine.

(Source: Berberian, Houri. “The Changing Roles of Armenian Women in New Julfa.” Armenian General Benevolent Union, March 27, 2018, https://www.youtube.com/watch?v=ZjhPPO5UgpE.)

Commenda contracts exemplify this trust, wherein a merchant capitalist partner with 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, mostly with this ratio: 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 Legacy of Julfa: A Global Armenian Trade Network

Julfa’s legacy is built on resilience, innovation, and global influence. Located in the historic Armenian region of Nakhijevan, Old Julfa thrived as a trading hub until it was upended by war. 

In very early 1600s, Shah Abbas I forcibly relocated over 300,000-400,000 Armenians to Isfahan, where New Julfa was established. This became the center of a sophisticated global merchant network, reaching across continents from Europe to Southeast Asia. Despite their forced migration, these Armenian merchants not only survived but flourished, shaping trade and commerce for over 300 years.

• New Julfa became home to one of the most advanced global trading networks of the early modern era, connecting over 40 modern countries.

• Armenian merchants pioneered many financial instruments like trade contracts and letters of credit.

• Families like the Shahmirians, Lazarians, Tatevians, and Apcars were instrumental in shaping early global commerce, finance, and education.

• The commenda contract were based on trust and they predicted New Julfa establishment.

The Families Behind the Legacy

Among the most prominent families were the Shahmirians, Lazarians, Tatevians, and Apcars, who were central to the establishment of early global commerce and trade. These families pioneered financial instruments such as letters of credit and promissory notes.

• The Shahmirians, known for their intellectual contributions, played a significant role in Armenian political thought and trade policies.

• The Lazarians, who flourished in Russia, not only built financial institutions but also founded the Lazarev Institute, which contributed to Armenian education and culture.

• The Apcar family, originally from New Julfa in Isfahan, Persia, established Apcar & Co. in

1819. They became prominent in commerce and trade between India and China, and later

expanded into shipping, connecting Calcutta with various Chinese ports.

The Trust That Fueled Global Trade

At the heart of their success was the contract—an agreement rooted in deep trust. This contract allowed merchants to send agents on long voyages, entrusting them with goods or capital. Upon the agent’s return, profits were shared based on a mutually agreed percentage. This system created a lasting bond between merchants and agents, grounded in loyalty and trust, which helped propel Armenian merchants into the forefront of global trade for centuries.

The Digital Julfa Revival

As the world evolved, so too did trade. The rise of digital commerce and Web3 technology inspired the creation of Digital Julfa, a modern initiative to reconnect Armenian businesses globally. Digital Julfa is more than a name; it is a platform that bridges the rich history of Armenian trade with the future of commerce.

• Digital Julfa is the world’s first Armenian 3D virtual domain, bringing together Armenian businesses, investors, and entrepreneurs.

• This metaverse platform fosters collaboration and creates a digital marketplace where Armenian businesses can showcase their work and global reach.

Through Digital Julfa, we’re not just preserving the legacy of Julfa; we’re continuing it in the digital age.

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 modern 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.

Sources provided by Ashley Bozian, Ph.D.

- Aslanian, Sebouh. From the Indian Ocean to the Mediterranean: The Global Trade Networks of Armenian Merchants from New Julfa. Berkeley: University of California Press, 2011.

- Aslanian, Sebouh. “‘The Salt in a Merchant’s Letter’”: The Culture of Julfan  Correspondence in the Indian Ocean and the Mediterranean." Journal of World History 19, no. 2 (2008): 127-88.

https://dx.doi.org/10.1353/jwh.0.0014.

- Baghdiantz McCabe, Ina. The Shah's Silk for Europe's Silver: The Eurasian Trade of the Julfa Armenians in Safavid Iran and India (1530-1750). Atlanta: Scholars Press, 1999.

- Chaudhury, Sushil and Gegham Gewonean (eds). Les Arméniens dans le Commerce Asiatique au Début de l'Ère Moderne. Paris: Éditions de la Maison des Sciences de l'Homme, 2014.

- Ghougassian, Vazken S. The Emergence of the Armenian Diocese of New Julfa in the Seventeenth Century. Atlanta: Scholars Press, 1998.

- Gregorian, Vartan. “Minorities of Isfahan: The Armenian Community of Isfahan 1587-1722.” Iranian Studies 7, no. 3/4 (1974): 652–80.

http://www.jstor.org/stable/4310181.

- Herzig, Edmund M. “The Armenian Merchants of New Julfa, Isfahan: A Study in Pre-Modern Asian Trade.” PhD diss., University of Oxford, 1991.

- Hovannisian, Richard G. (ed). Armenian Communities of Persia/Iran: History, Trade, Culture. Costa Mesa: Mazda, 2021.

- Julfa. Encyclopaedia Iranica XV (2009): 217-42. https://www.iranicaonline.org/articles/julfa-index.

- Khachikian, Shushanik. “Typology of the Trading Companies Owned by the Merchants of New Julfa.” Iran & the Caucasus 2 (1998): 1–4. http://www.jstor.org/stable/45405680.

- Mints, A.A., Ronald Grigor Suny, C.J.F. Dowsett, and G. Melvyn Howe. "The Marzpāns of Armenia." Encyclopedia Britannica. Accessed February 23, 2025. https://www.britannica.com/place/Armenia/The-marzpans.

- Rezaei, Saeed and Maedeh Tadayyon. “Linguistic Landscape in the City of Isfahan in Iran: The Representation of Languages and Identities in Julfa.” Multilingua: Journal of Cross-Cultural and Interlanguage Communication 37, no. 6 (2018): 701–20.