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The five key elements of successful SEZs

27 November 2020

Special economic zones can be powerful driving forces of economic growth, while ensuring the implementation of industrial policy with a “laser sight” in stimulating priority industries. The world experience in the application of state policy instruments through the introduction of the instrument - “free economic zone - territory of special customs and tax preferences”, knows outstanding results. The Shenzhen Free Economic Zone is a prime example. The volume of production in 2017 was $ 338 billion, doubling the nominal production in 7 years. In Dubai, in the first nine months of 2018, total trade in economic free zones grew by 22 percent. The export processing free zones of Bangladesh employed 481,000 workers in 2017, accounting for 19 percent of the total employed population. The five key elements of successful SEZs — strategy, incentives, anchor residents, industry specialization, and infrastructure costs — all combine to provide a single value proposition for investors.
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