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The city and province of Kerman is located in southeast Iran, and it served as an important center of trade and handicrafts and the capital of Persian dynasties; it has many historic mosques. Rugs have been made in this area from the late 16th century when a royal workshop was established there, and Kerman became one of the first rug export centers to the West. With the increased demand for export of Persian rugs in the late nineteenth century, many rug workshops were established in Kerman and nearby towns and villages, so it became a large-scale center of rug production for export. In the 20th century many Western companies set up rug businesses in the city.

A distinguishing character of Kerman (or Kirman) rugs is the high quality of locally produced down wool used in them called kurk. Kirman rugs feature a wide range of styles and designs, but an open field in which one central medallion, diamond-shaped sometimes with pendants, is clearly seen is common in modern Kirman rugs. The vase design, the tree of life, and historical portraits or scenes with figures are common also in Kirman rugs. The often dense and intricate designs of Kirman rugs appear in many colors; antique rugs use vibrant red, yellow and a golden brown. Several well-known weaver-designers from this region include Golam Hussein and Sherafat Khan.