Davutoglu is in Tehran at the head of a high-ranking political and economic delegation.
Speaking at the joint meeting of Iranian and Turkish business people with Iranian First Vice-President Esahq Jahangiri, the Turkish official called Iran a "hidden treasure", adding that Turkish people must be encouraged to tour to Iran.
Having visited Iran for the first time since 2006, the Turkish official added that efforts must be made to remove red tape in trade between Iran and Turkey.
He also called on Turkish investors to consider the northwestern city of Tabriz, southern city of Shiraz and central city of Isfahan for investments.
He said the economies of Iran and Turkey complement each other like a puzzle.
"Turkey open up Iran's route to Europe and Iran can play a key role in paving the way of Turkey to central Asia," the Turkish official added.
He said Iran-Turkey can grow from the current $9bn to $30bn or even $50bn per year provided that the two countries can tap their economic potentialities.
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