List of special economic zones

Last updated

This is a list of special economic zones by country. [1] [2]

Contents

Africa

Botswana

Currently identified areas for SEZs are:

Democratic Republic of the Congo

Democratic Republic of the Congo planned to build its first Special Economic Zone in the Kinshasa district of N'Sélé. The SEZ was intended be operative in 2012 and dedicated to agro-industries. [3]

As of April 2013 the DRC did not have any FTZs or free ports. [4]

Egypt

The North West Suez Special Economic Zone (SSEZ) is located at the Red Sea, 45 km south of Suez. It is served by Sokhna harbour. It was the first SEZ set up under laws passed in 2002. [5] [6]

Additionally, in 2013 Egypt had nine FZs and thirteen Investment Zones. [5]

Eswatini

The Royal Science and Technology Park (RSTP) was designated as a Special Economic Zone through the Special Economic Zone Act of 2018. This was an initiative by His Majesty King Mswati III to attract foreign investment into the Kingdom of Eswatini, promote export-oriented growth, generate employment with the intention to ensure technology transfer to the Eswatini populace, subsequently boost economic growth. The Investor Management Services Unit is responsible for the operationalization and management of RSTP’s SEZ Industrial Plot and the One Stop Shop Service Centre (OSSSC).

Ethiopia

Ethiopia has a SEZ named Oriental in Dukem (near Addis) that produces electrical machinery, construction materials, steel and metallurgy. The zone is wholly owned by China. [5] [7]

Kenya

Two Rivers International Finance & Innovation Centre (TRIFIC) is the first and only business services- focused Special Economic Zone (SEZ) in Kenya, offering new and exciting prospects for global, African, regional and Kenyan service-oriented enterprises and investment-focused entities seeking a next-frontier gateway base to competitively access regional and international markets.

Mauritius

A Chinese owned SEZ has been created in Jinfei called the Mauritius Jinfei Economic Trade and Cooperation Zone. The zone manufacturers textiles, garments, machinery and high-tech. Additionally, it supports trade, tourism and finance. [7] [8]

Nigeria

Two Chinese SEZs have been constructed in Nigeria. [9]

Zambia

Zambia is home to two SEZs developed in partnership with China Non-Ferrous Metal Mining corporation. One sitting just outside Lusaka focuses on garments, food, appliances, tobacco and electronics. The second is in the copper rich town of Chambishi and focuses on copper related industries. The zones combine expedited customs and administration procedures with tax incentives, to attract increased investment. [10] [11]

Americas

Cayman Islands

The Cayman Enterprise City SEZ officially launched on Friday, 3 February 2012. It specializes in knowledge based industries. The SEZ has a range of incentives to attract businesses including no corporate, income or capital gains tax. [12]

Cuba

Mariel Special Development Zone is a special economic zone under construction in Cuba exempt from normal economic legislation. [13] :159

Honduras

Roatán contains a Zona de Empleo y de Desarrollo Económico (ZEDE) [14] or Zone for Economic Development and Employment, designated by Honduran constitutional provisions and legislation. The goal is to enable stable legal structures, physical environment, human rights, and taxation in order to encourage investment, migration, and economic development. [15] This is the location of the private charter city of Próspera.

Jamaica

The first of Jamaica's special economic zones was created in 1976 with the goal of industrializing the country, as well as increasing foreign exchange and access to technology. [16] :183 [17] This primary zone was in Kingston and was strategically attached to one of the country's main ports, to facilitate efficient transportation. Although it is no longer in use, during its years of operation, the zone consisted of 146 acres of warehouse land, which could be rented by foreign enterprises at very low rates. Private companies were invited to occupy the warehouses, but the government at that time, The People's National Party, remained tentative of relying on foreign capital as a means of industrializing. [18] :50

With the shift to the Seaga government in the 1980s, export led industrialization became key to Jamaica's economic development, and more effort was put into attracting foreign enterprises to the zone. [18] :51 One of the ways in which this was executed, was by transforming the warehouse land into a center for production of manufactured goods. [18] :51 While the Caribbean Development Bank and the World Bank funded the creation of the zone, the conversion into factories was initiated and paid for by the National Development Bank, a government-owned institution. [18] :51 [19] Due to the large job creation that accompanied the transformation, a second SEZ was opened in Montego Bay in 1988. The majority of the activity, however, remained at the Kingston location, with only ten percent of the factories at the new, smaller site. [16] :184 [18] :51 The factories were primarily occupied by foreign enterprises, and produced apparel items, fish products, fruit juice concentrates and animal feed. [18] :53 As a result of the special economic zones, Jamaica's export of manufactured goods increased ten-fold between 1980 and 1984, although the export of traditional goods, namely bauxite and alumina, stagnated. [18] :51

Foreign enterprises were attracted to the SEZs by the incentives they offered. [16] :183 The zones operated as separate entities that were not technically part of Jamaica, which allowed companies to bypass local import and exchange controls. [19] Additionally, under the Jamaica Free Zone Act, any enterprise with approval from the Port Authority could import certain items without any customs duties. [16] :183–184 Any remaining local labour controls were of little concern to foreign companies, since Jamaican workers were typically excluded from all steps except for manufacturing. The materials used for apparel manufacturing, for example, were all imported from the United States and simply assembled by the local workers. [19] The minimal role played by Jamaicans in the production also meant that there were very few backwards and forwards linkages. With the exception of fish products, which incorporated local resources, most of the companies imported their inputs from home or from Asia. [18] :56 Since these enterprises could execute their business with very little engagement with the country, there was no incentive for them to ameliorate Jamaican infrastructure or industry. [19] The Seaga government argued that despite this lack of success in industrializing the country, the zones were effective in providing much-needed employment for the locals. [19]

At its peak, the Kingston and Montego Bay Free Zones employed over 36,000 locals. However, they were criticized for issues of poor working conditions and low wages. [17] The jobs that the factories provided were high pressure, laborious, and provided few opportunities for workers to gain new skills. [17] [19] Jamaican women made up 95 percent of the workforce in the zones, the majority of whom were under 25 years old. [16] :183–184 These women typically worked twelve-hour days, six days a week, with significant overtime expected. [18] Throughout the mid-1980s, an average income in the zone was US$30 per two weeks, a wage that was comparable to other low-skill, entry-level jobs in Jamaica, but much less than the minimum wages of the countries that owned and operated the factories. [19] Although the creation of these jobs did lift some families out of dire economic situations, the wages were not high enough to stop the cycle of poverty for most. [17] In addition, the government taxed their incomes heavily for ‘health benefits’, yet no aid was provided when medical issues arose. This forced many locals to believe that the government was co-conspiring with foreign countries to exploit them, but without the adequate unionized backing, there was little they could do to fight these injustices. [19] This lack of unionization also meant that many enterprises were not forced to comply with the Factory Act: Occupational issues that arose from poor working conditions, such as overheating, carpel tunnel syndrome, strained eyesight, or back problems, went unnoticed. [16] :184 [18] :57

Although the workers had a fundamental right to create or join unions, the majority of the factories in the zones remained non-unionized. [16] :194 The International Labour Organization set out guidelines for ethical working conditions, but it was largely up to the Jamaican government to enforce them. Since low-wage female workers were not a priority, very little effort was made to support them. [16] Some women did try to improve the conditions of the factories and were met with mixed success. A few factories started to provide maternity leave and some medical benefits; however, the majority remained unchanged. [17] In response to strikes or labour movements, some companies dismissed their Jamaican workers and brought in workers from Asia who were less vocal about the injustices. [19] This not only took jobs from the locals, one of the key goals behind creating the special economic zones, but also had deleterious effects on future movements to unionize the factories.

The creation of the North American Free Trade Agreement (NAFTA) in 1994 had significant impacts on the SEZs of Jamaica and can be seen as one of the main reasons for the closure of the Kingston site. [17] Before this agreement, the United States had held a monopoly over the factory spaces, since the Caribbean Basin Economic Recovery Act of 1983-1995, allowed for one-way free trade benefits on most products entering the U.S. from the Caribbean. [20] NAFTA gave its members (Canada, the United States and Mexico) similar trade privileges amongst each other that foreign countries received in Jamaica. The agreement made it more attractive for the United States to invest in Mexico than Jamaica and resulted in many of their companies moving to factories in there. [17] Aside from the lower transportation costs between Mexico and the United States, in 1997, Mexican workers were being paid much less than Jamaican workers. [17] In 1996, Jamaica's exports to the United States declined 12 percent, while Mexico's exports to the United States grew by 40 percent. [17] Similarly, by the mid 1990s, employment in the special economic zones had declined 64 percent since its peak in 1987. [16] :184 The loss of 16,000 jobs between the years 1995-1997 was severely detrimental to the workers, who claimed they had been ‘ruined’ by health issues attributed to factory work, and were therefore not fit to pursue any other work. [17] In response to the closure, the Jamaican government tried to promote export-oriented work like data processing and call centers, but neither venture was very successful and few jobs were created. [17] As of February 2013, there has been talk of opening another SEZ in the Caymanas. [21]

Mexico

In May, 2016, President Enrique Peña Nieto signed a new law for the creation of special economic zones to attract investment into certain southern states of the country. The first of the zones are the port of Lázaro Cárdenas, including neighboring municipalities in Michoacán and Guerrero; a corridor in the Isthmus of Tehuantepec between Coatzacoalcos, Veracruz, and Salina Cruz, Oaxaca, that includes both those cities; and the Pacific coast port of Puerto Chiapas. In 2017 another zone is to be created in the petroleum corridor of Tabasco-Campeche. [22]

According to Vázquez Tercero & Zepeda, the Mexican Special Economic Zones regime will provide tax benefits, customs, and business facilitation measures, and possibly financial support to investors. Moreover, the federal government, in coordination with State and local authorities, will also implement parallel policies in the region, such as education, security, health, and infrastructure, in order to boost the competitiveness of the geographic location as well as to attract investment. [23]

Panama

The Colon Free Zone (C.F.Z.) is located in the city of Colon at the Atlantic entrance to the Panama Canal dedicated to re-export of merchandise to Latin America and the Caribbean.

The Panama Pacifico Special Economic Area (PPSEA) was passed into law in 2004 in the Republic of Panama. It is located on the former Howard AFB, near Panama city, on the Pacific side of the isthmus.


Asia / Pacific

Bangladesh

Several special economic zones (SEZs) have been established across Bangladesh since the 1980s.[ citation needed ]

Mandated by the Bangladesh Economic Zones Act, 2010, the Bangladesh Economic Zones Authority (BEZA) was officially instituted by the government on 9 November 2010. BEZA aims to establish SEZs in all potential areas in Bangladesh including underdeveloped regions with a view to encouraging rapid economic development through increase and diversification of industry, employment, production and export. [24]

Bangladesh government has taken an initiative to introduce a hundred SEZ throughout the country. As of March 2016, thirty seven government SEZs have acquired land and are under development.

The following Eight EPZs are in operation:

BEPZA is currently working on Mirsharai Economic Zone project to expand the opportunities for the investors to invest and create employment in a business-friendly environment.

Cambodia

Formally introduced in 2005, there are 22 SEZs in Cambodia as of November 2014. They are listed below followed by the province in which they are located. [25]

  1. Sihanoukville Special Economic Zone (SSEZ),Sihanoukville
  2. Sihanoukville Port SEZ, Sihanoukville
  3. Neang Kok Koh Kong SEZ, Koh Kong
  4. Suoy Chheng SEZ, Koh Kong
  5. S.N.C. SEZ, Sihanoukville
  6. Stung Hav SEZ, Sihanoukville
  7. N.L.C. SEZ, Svay Rieng
  8. Manhattan (Svay Reing) SEZ, Svay Rieng
  9. Poipet O’Neang SEZ, Banteay Meanchey
  10. Doung Chhiv Phnom Den SEZ, Takeo
  11. Phnom Penh SEZ, Phnom Penh
  12. Kampot SEZ, Kampot
  13. Sihanoukville SEZ 1, Sihanoukville
  14. Tai Seng Bavet SEZ Svay Rieng
  15. Oknha Mong SEZ, Koh Kong
  16. Goldfame Pak Shun SEZ, Kandal
  17. Thary Kampong Cham SEZ, Kampong Cham
  18. Sihanoukville SEZ 2, Sihanoukville
  19. D&M Bavet SEZ, Svay Rieng
  20. Kiri Sakor Koh Kong SEZ, Koh Kong
  21. Kampong Saom SEZ, Sihanoukville
  22. Pacific SEZ, Svay Rieng

China

The Tencent Seafront Tower in Shenzhen, it is the Headquarters of the Tencent group. Tencent binghai building202012 (cropped).jpg
The Tencent Seafront Tower in Shenzhen, it is the Headquarters of the Tencent group.

The most prominent SEZs in the country are Hainan Province and the cities of Kashgar, Shantou, Shenzhen, Xiamen, and Zhuhai. It is notable that Shantou, Shenzhen, and Zhuhai are all in Guangdong Province, and all are on the southern coast of China where the sea is very accessible for transportation of goods.

India

A view of one of the IT blocks of Infosys Ltd in the Mahindra World City situated in Chennai. States such as Tamil Nadu and Haryana are housing a number of under construction SEZ projects. Infosys Mcity, Building number 5.jpg
A view of one of the IT blocks of Infosys Ltd in the Mahindra World City situated in Chennai. States such as Tamil Nadu and Haryana are housing a number of under construction SEZ projects.

India was one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. In order to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

A comprehensive draft SEZ Bill was prepared after extensive discussions with the stakeholders. A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce. Around 800 suggestions were received on the draft rules. [26]

SEZ Act provides for customs duty on services cleared into DTAIt was hoped that the bill would instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime. Thereby generating greater economic activity and employment through their establishment.

The Special Economic Zones Act was passed by the Government of India in May 2005, it received Presidential assent on the 23rd of June, 2005. While introducing the act, then prime minister of India, Dr. Manmohan Singh, said:“SEZs are here to stay”.

The bill came into effect on 10 February 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments. The remaining part of India, not covered by the SEZ Rules, is known as the Domestic tariff area. Exports from Indian SEZ totalled INR 2.2 Trillion in 2009-10 fiscal. It grew by 43% to reach INR 3.16 Trillion in 2010-11 fiscal. Indian SEZs have created over 840,000 jobs as of 2010-11.[ citation needed ] Exports through Indian SEZs grew further by 15.4% to reach INR 3.64 Trillion (roughly US$66 billion). As of 2011-12 fiscal, investments worth over US$36.5 billion (INR 2.02 Trillion) have been made in these tax-free enclaves. Exports of Indian SEZs have experienced a growth of 50.5% for the past eight fiscals from US$2.5 billion in 2003-04 to about US$65 billion in 2011-12 (accounting for 23% of India's total exports).[ citation needed ]

Special Economic Zone as per Central Sales Tax, 1956 --> A Special Economic Zone (SEZ) is a geographically bound zone where the economic laws relating to export and import are more liberal as compared to other parts of the country. These are like a separate island within the territory of India. SEZs are projected as duty-free area for the purpose of trade, operations, duty, and tariffs. SEZ is considered to be a place outside India for all tax purpose. Within SEZs, a unit may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc. As per law, SEZ units are deemed to be outside the customs territory of India. Goods and services coming into SEZs from the domestic tariff area or DTA are treated as exports from India and goods and services rendered from the SEZ to the DTA are treated as imports into India.

The objectives of SEZs can be explained as: [27] [ citation needed ]

  1. Generation of additional economic activity;
  2. Promotion of exports of goods and services;
  3. Promotion of investment from domestic and foreign sources;
  4. Creation of employment opportunities;
  5. Development of infrastructure facilities.

The incentives and facilities available to SEZ developers include: [28] [ citation needed ]

There were about 143 SEZs (as of June 2012) operating throughout India, by February 2016 this had risen to 187. [29] 634 SEZs have been approved for implementation by the Government of India (as of June 2012). [30]

Indonesia

There are 20 Special Economic Zones in Indonesia that have been approved.

Iran

Iran's interest in free trade and special economic zones can be traced back to the 1970s. According to SOAS's Hassan Hakimian, "the FTZs are more ambitious in their objective of acting as magnets for the attraction of Foreign Direct Investment (FDI) and ultimately for generating a diversified industrial base and promoting Iran's non-oil exports, the SEZ are conceived for goods transit and improving the supply and distribution networks in the country." [31]

Malaysia

Malaysia launched an East Coast Economic Region (SEZ) in August 2009. [34] The country's first Special Economic Zone is expected to contribute RM23 billion to the national GDP and create 220,000 new jobs in the ECER.

Myanmar

Special economic zones (Burmese : အထူးစီးပွားရေးဇုန်), which offer tax exemptions for different sectors (5 years for production, 8 years for high-tech, 2 years for agriculture, livestock breeding and forestry, and 1 year for banking) are undergoing preliminary construction in Sittwe Township and Kyaukpyu Township in Rakhine State. [35] An international standard airport is also to be constructed. The six free trade zones will be Thilawa Port in Yangon, Mawlamyine in Mon State, Myawaddy and Hpa-an in Kayin State, Kyaukphyu in Rakhine State and Pyin Oo Lwin in Mandalay Region. [36] According to the country's Special Economic Zone Law's [37] Act 7, Section 36, homes and farming properties located on a proposed SEZ must be duly relocated and reimbursed. [38]

The Myanmar Port Authority has been involved in facilitating contracts to develop Myanmar's Special Economic Zones, including a US$8.6 billion deal to develop a deep sea port at Dawei called the Dawei Port Project, by Italian-Thai Development). [39]

Nepal

In Nepal SEZs laws were formulated in 2016 in the form of Special Economic Zone Act (2016). The laws were subsequently revised in 2019. [40] The industries inside the Special Economic Zones are given various facilities and in return they have to commit to export a minimum of 60% of their production to the foreign market. [41]

Democratic People's Republic of Korea (North Korea)

The Rajin-Sonbong Economic Special Zone was established under a UN economic development programme in 1994. Located on the bank of the Tuman River, the zone borders on the Yanbian Korean Autonomous Prefecture (or, Yeonbyeon in Korean) of the People's Republic of China, as well as Russia. In 2000 the name of the area was shortened to Rason and became separate from the North Hamgyeong Province. In 2013 and 2014 a number of smaller special economic zones were announced covering export handling, mineral processing, high technology, gaming and tourism. [42]

North Korea also used to operate Kaesong Industrial Region in conjunction with South Korea from 2002 until 2016.

The State Academy of Sciences operates a special economic zone near Unjong Park in the northern suburbs of Pyongyang. [43]

North Korea designated over a dozen new special economic zones in 2013 and 2014. [44]

Pakistan

Taking the example of the Chinese success with their SEZs, China is helping Pakistan develop the RUBA SEZ on the outskirts of Lahore. RUBA SEZ PVT LTD is a subsidiary of RUBA Group of Companies and was expanded from existing Haier – RUBA Economic Zone.

Other economic zones include the China-Pakistan economic zone open only to Chinese investors in Gwadar, Pakistan.

There are talks of creating a Japanese city for investors from Japan only.

There has been new SEZ proposed on the under-construction Sialkot-Lahore motorway; Qatar has proposed an investment for $1 billion in a new SEZ along the motorway.

There is a new zone under construction in Faisalabad, which will be the biggest industrial estate of Pakistan when complete. It has sections for each country and the first phase is complete with a special Chinese zone in it.

Special economic zones in Pakistan:

Philippines

Philippine economic zones (ecozones) are collections of industries, brought together geographically for the purpose of promoting economic development. These ecozones were established through Republic Act No. 7916, otherwise known as "The Special Economic Zone Act of 1995" as amended by Republic Act No. 8748. [45]

Philippine Ecozones are generally administered by the Philippine Economic Zone Authority through a board (PEZA Board), attached to the Department of Trade and Industry. The PEZA Board sets the general policies on the establishment and operations of the Ecozones, industrial estates, export processing zones, free trade zones, and the like. [46] They also review proposals for the establishment of Ecozones, which they subsequently endorse to the president of the Republic of the Philippines. In addition, the PEZA Board regulates and undertakes the establishment, operation and maintenance of utilities, other services and infrastructure in the Ecozone, such as heat, light and power, water supply, telecommunications, transport, toll roads and bridges, port services, and the like. [46]

Several incentives are granted to business establishments operating within Philippine Ecozones, particularly those found in the Omnibus Investments Code of 1987. [47] These incentives include income tax holidays; zero percent (0%) duty on importation of capital equipment, spare parts, and accessories; exemption from wharfage dues and export tax, impost or fees; and the simplification of customs procedures, among others. [48] In addition, The Special Economic Zone Act of 1995 exempts business establishments operating within Ecozones from all taxes. In lieu of paying all other taxes, business establishments are only required to pay five percent (5%) of their gross income to the national government. [49] [50]

Activities Eligible for PEZA Registration and Incentives include but are not limited to (1) Export Manufacturing; (2) Information Technology Service Export; (3) Tourism; (4) Medical Tourism; (5) Agro-industrial Export Manufacturing; (6) Agro-industrial Bio-Fuel Manufacturing; and (7) Logistics and Warehousing Services. [51]

Although designed to operate separately from the political and economic milieu of surrounding communities, Philippine economic zones do in fact interact with their neighbors. As of 31 May 2010, there were more than 200 Ecozones in the Philippines. Of these more than 200 Ecozones, seven (7) are Agro-Industrial Economic Zones, 134 are Information Technology Parks and Centers, 65 are Manufacturing Ecozones, two (2) are Medical Tourism Parks/Centers, and nine (9) are Tourism Economic Zones. Of the 41 private economic zones, the biggest exporter is Gateway Business Park in General Trias, Cavite and the second biggest private ecozone is Laguna Technopark Inc. The four governmentally owned are Cavite Economic Zone, Bataan Economic Zone, Mactan Economic Zone and Baguio Economic Zone. Some of the more well-known Economic zones are the Clark Special Economic Zone, and Subic Economic Zone, former military bases of the United States of America.

Some of the over 200 SEZs in the Philippines are as follows:

(16,119.56 hectares)

  • Cagayan Special Economic Zone
  • Aurora Pacific Economic Zone and Freeport Authority (APECO)
  • Light Industry & Science Park I, II, & III (272.22 hectares)
  • Laguna Technopark (289.95 hectares)
  • Laguna International Industrial Park (34.88 hectares)
  • Hermosa Ecozone Industrial Park (142.04 hectares)
  • Keppel Philippines Marine Special Economic Zone (22.92 hectares)
  • Filinvest Technology Park - Calamba (51.07 hectares) [52]
  • Carmelray Industrial Park I&II - Calamba (CIP I 60.86 hectares; CIP II 143.03 hectares) [52]

Republic of Korea (South Korea)

Korean FEZs are designated by law [53] to facilitate foreign investment, and thereby to strengthen national competitiveness and seek balanced development among regions by improving the business environment for foreign-invested enterprises and living conditions for foreigners.

There are eight Free Economic Zones in South Korea. The first three zones were created in 2003 and three more were created in 2008. In 2013, the East Coast and Chungbuk Economic Zones were declared. [54]

  1. Incheon Free Economic Zone (IFEZ) in 2003
  2. Busan-Jinhae Free Economic Zone (BJFEZ) in 2004
  3. Gwangyang Free Economic Zone (GFEZ) in 2004
  4. Saemangeum Free Economic Zone (SGFEZ) in 2008
  5. Yellow Sea Free Economic Zone (YESFEZ) in 2008
  6. Daegu-Gyeongbuk Free Economic Zone (DGFEZ) in 2008
  7. East Coast Free Economic Zone (EFEZ) in 2013
  8. Chungbuk Free Economic Zone (CBFEZ) in 2013

Russia

Russia currently has 16 federal economic zones and several regional projects.

As of March 2010 Russia's federal special economic zones host 207 investors from 18 countries. There are major MNCs among investors to Russia's SEZ, such as Yokohama, Cisco, Isuzu, Air Liquide, Bekaert, Rockwool and many others.

Russia's 15 existing and to-be federal special economic zones are managed by OJSC "Special Economic Zones".

OJSC "SEZ" was founded in 2006 to accumulate and implement world's best practices in developing and managing SEZ and promote Foreign direct investment (FDI) in the Russian economy. It is fully owned and funded by the Russian state.

Federal economic zones in Russia are regulated by Federal Law # 116 FZ issued on July 22, 2005.

Technical/Innovational Zones

Industrial/developmental Zones

Tourist Zones

Saudi Arabia

The Red Sea Project, a luxury tourist destination currently under construction, will "operate as a Special Economic Zone with its own laws and regulatory framework, specially created to encourage investment opportunities and commercial activities". [55]

The Saudi government announced the creation of four new Special Economic Zones (SEZs) in various parts of the nation in 2023. [56]

List of SEZs in Saudi Arabia:

Thailand

Thailand has SEZs in the following provinces:

Thailand's Board of Investment (BOI) estimates that in 2015, 20-25 percent of Thailand's exports were accounted for by border trade. The BOI identifies 13 Thai industries that benefit from SEZs: agriculture; ceramics; autos; electronics; plastics; gems; furniture; textiles; medical equipment; pharmaceuticals; logistics; tourism; and industrial estates. Companies in target industries will receive an eight-year tax exemption; import duty exemptions on machinery and raw materials; double deductions on transportation costs; cheap electricity and water for 10 years; a 25 percent deduction for facilities construction; faster licensing and permit issuance; improved infrastructure and customs services within the SEZ, and other non-tax incentives. [57] Perhaps the biggest incentive is the exclusive right to use unskilled foreign labour as the Thai workforce is in decline. [58] Because of inadequate infrastructure in the SEZs, the government approved infrastructure development plans for SEZs that saw 2.6 billion baht expended on 45 projects in 2015 and another 79 projects, worth 7.9 billion baht, to be completed in 2016. [59]

Uzbekistan

Europe

Belarus

Belarus has a SEZ called the China-Belarus Industrial Park.

Latvia

Liepaja Special Economic Zone in Baltics consisting of sea-port, industrial area and international airport.

Rezekne Special Economic Zone in Baltics with crossroads of transport corridors in Latvia with direct access to international markets with more than 500 million consumers in the EU, Russia and CIS countries.

Poland

There are fourteen SEZs in Poland. [62]

Special economic zones (SSE is shortcut of Specjalna Strefa Ekonomiczna) in Poland:

  • Kamienna Góra SEZ for Small Business (Kamiennogórska SSE Małej Przedsiębiorczości)
  • Katowice SEZ (Katowicka SSE)
  • Kostrzyń-Słubice SEZ (Kostrzyńsko-Słubicka SSE)
  • Kraków Technology Park (Krakowski Park Technologiczny)
  • Legnica SEZ (Legnicka SSE)
  • Łódź SEZ (Łódzka SSE)
  • SEZ EURO-PARK MIELEC (SSE Euro-Park Mielec)
  • Pomeranian SEZ (Pomorska SSE)
  • Słupsk SEZ (Słupska SSE)
  • Starachowice SEZ (SSE Starachowice)
  • Suwałki SEZ (Suwalska SSE)
  • Tarnobrzeg SEZ (Tarnobrzeska SSE)
  • Wałbrzych SEZ "INVEST-PARK" (Wałbrzyska SSE)
  • Warmian-Masurian SEZ (Warmińsko-Mazurska SSE)

Spain

The Canary Islands Special Zone is a special tax regime included in the Canary Islands Economic and Tax Regime providing for a reduced 4% Corporate Income Tax, exemption on dividends, interests and capital gains, exemption on VAT and exemption on transfer duties. A large list of activities qualify for applying for the special regime (main exclusions are accommodation, food and beverage, construction (but repair is eligible), financial, insurance and pure holding (substance-based corporate activities are not excluded)). The regime is applicable to new activities to be developed in the Canary Islands provided the creation of a minimum of three jobs. The regime is authorized by the European Commission, supervised by the Code of Conduct, and fully compliant with EU and OECD substance rules. Is run and controlled by the Consorcio de la Zona Especial Canaria, an agency of the Ministry of Finance and Public Service of the Government of Spain.

Ukraine

Special Economic Zones existed in Ukraine until March 31, 2005. The first created was the Nouth-Crimean Experimental Economic Zone Syvash (since 1996). From 1998 to 2000 11 new zones were created.

NameLocationAreaEstablishedTime limit*
Slavutych Slavutych, Kyiv Oblast 2,000 ha30.06.1998until 01.01.2020
Azov Mariupol, Donetsk Oblast 315 ha21.07.199860 years
Donetsk Donetsk, Donetsk Oblast 466 ha21.07.199860 years
Zakarpattia Uzhhorodskyi Raion and Mukachivskyi Raion, Zakarpattia Oblast 737 ha09.01.199930 years
YavorivYavorivskyi Raion, Lviv Oblast 116,000 ha17.02.1999until 01.01.2020
Interport Kovel Kovel, Volyn Oblast 57 ha01.01.200020 years
Kurortopolis Truskavets Truskavets, Lviv Oblast 774 ha01.01.200020 years
Mykolaiv Mykolaiv, Mykolaiv Oblast, shipyard territory, and adjoining area865 ha01.01.200030 years
Porto-Franco Odesa, part of Odesa Trade Sea Port's territory32 ha01.01.200025 years
Reni Reni, Odesa Oblast 94 ha17.05.200030 years
* Initially planned time of operation given. All zones were shut down on March 31, 2005.

NCEEZ — Nouth-Crimean Experimental Economic Zone.

Sources: [63] [64] [65] and Пехник А.В., Іноземні інвестиції в економіку України. Навчальний посібник, Вид. «Знання», Київ 2007, pages: 49, 310–319

See also

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