Unlike many ancient cities in Iran, Arak is a relatively young city with a history spanning just over two centuries. Its emergence was dictated by military-strategic goals during the reign of the Qajar dynasty. The city was founded in 1808 by order of Fath-Ali Shah as a military fortress to strengthen central authority in the region. It was originally named Soltan-Abad. The city received its modern name — Arak — in the 1930s.
A key role in the city's formation was played by its favorable geographical location. Situated at the crossroads of trade routes connecting the north, south, west, and east of the country, Soltan-Abad quickly transformed from a military fortress into a bustling commercial center. Further development was facilitated by the routing of the national railway through the city, which further strengthened its status as an important transport and trade hub.
From the very beginning, all necessary infrastructure was established in the city: a central bazaar, mosques, schools, and caravanserais, reflecting its commercial nature. By the end of the 19th century, Soltan-Abad had become one of the most important centers for Persian carpet production, attracting many artisans and merchants. The carpets produced here were highly valued both within the country and abroad, becoming the main economic feature of the early period of the city's history.