Zirconia-supported iron oxide catalyst has been designed following the approach to the Fe/TiO2 catalyst. The catalyst prepared by reducing the precursor obtained from incipient wetness impregnation in H-2 at the proper temperature exhibits good activity (CO2 conversion > 20%) and selectivity (68%) in the selective synthesis of hydrocarbons (C-2-C-5) from CO2 and H-2 The catalytic activity has been found to vary with iron weight loadings in a "two maxima" fashion and is also affected by reduction temperature. Mossbauer and EXAFS analyses suggest that the active phases are coordinatively unsaturated ferric cations and alpha-Fe. No ferrous cations are observed. A good geometric arrangement for the two phases on the catalyst is thought to give the highest catalytic activity.