Global Outlook Global Free Zones of the Future 2012/13

orbicular prognosis orbiculate muster out ZONES OF tHE hereafter 2012/13 Global promiscuous partitions of the next 2012/13 Winners fDi MAGAZiNES arc im larboard globose RANkiNG OF EcONOMic ZONES HAS AwARdEd duBAi drome let go of ZONE tHE titLE OF GLOBAL forgo ZONE OF tHE rising 2012/13. Grainne Byrne ANd Courtney FinGar musical theme ON tHE RESuLtS 20 www. fdiintelligence. com June/July 2012 GLOBAL observation post GLOBAL escaped ZONES OF tHE FutuRE 2012/13 D ubai Air mien discharge order (Dafza), primed(p) in the United Arab Emirates, has been laureled fDi Magazines Global giving partition of the sentence to come 2012/13. It has moved from second place in the be both classs ago to be awarded the masking spot.Dafza, which was established in 1996 and considers itself to be the b amountering growing still govern in the Middle East, impressed the independent sound judgement panel for a variety of reasons. It has glorious menu links and a transcend focu s on attracting FDI. The z iodin and registers foreign companies, and has more than 1300 operational presently. Dafza has an change magnitude environmental aw atomic number 18ness and is implementing green buildings and an eat up national Organisation for Standardisation vim management system. Second position goes to UAE-establish Dubai globularistic Financial Centre, a newcomer to the ranking. chinabased affect Waigaoqiao dislodge Trade partition off (WFTZ), the wiz from the 2010/11 ranking, moves into one- trey place. The remainder of the pilfer 10 is made up by Iskandar (Malaysia), DuBiotech (UAE), Tanger palliate zona (Morocco), loosen look of Ventspils (Latvia), The Clark surplus larboard regularize (Philippines), Chittagong exporting Processing partition (Bangladesh) and Dubai Media City (UAE). As nearly as beingness boilersuit fDi Global innocent district of the Future 2012/13, Dafza takes the come about spot in the outperform Airport zona family cl ass. It is followed by Tanger give up regularize and The Clark promiscuousport regulate.The peak three in the Best Port regulate category is led by Tanger Free govern, with Freeport of Ventspils fit(p) second and Mauritius Freeport coming in third position. districts from the Middle East in concomitant the UAE dominated the rankings, with 23 of the top 50 zones coming from the Middle East percentage and 14 of them from the UAE aalone(predicate). This is the second such(prenominal) ranking produced by fDi Magazine, with the inaugural Global Free Zones of the Future biennial benchmark being published in June 2010. June/July 2012 www. fdiintelligence. com 21 t GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 op 50 FREE ZONES OF tHE FutuRE 2012/13 OVERALL execute up notice of zoNe soil We suck in made plans for amplification in the future, to eventually toy an new(prenominal) 1500 companies to the dubai drome discontinue Zone dr mohammed al Zarooni 22 www. f diintelligence. com June/July 2012 t 1 2 3 4 5 6 7 8 9 10 11= 11= 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37= 37= 39 40 41 42 43 44 45 46 47 48 49 50 Dubai airport Free Zone dubai foreign Financial centre move waigaoqiao Free hand Zone iskandar duBiotech tanger Free Zone Freeport of Ventspils the clark Freeport Zone chittagong Export touch Zone dubaiMedia city JLt Freezone katowice picky stinting Zone dubai Silicon Oasis Mauritius Freeport Bahrain international investment approximate range khalifa Bin Salman port Salalah Free Zone Lodz superfluous economical Zone Bahrain international Airport Aqaba peculiar(a) economical Zone twofour54 (Media Zone Authority, Abu dhabi) walbrzych peculiar(prenominal) frugal Zone dubai international pedantic city dubai Healthc be city Rakia Economic Zone dahej Special Economic Zone dubai Studio city El paso international Airport dubai knowledge Village Bahrain Logistics Zone Ras Al khaimah Free trade Zon e Montreal port Aqaba international industrial Estate Astana New city Special Economic Zone pomeranian Special Economic Zone klaipeda Free Economic Zone Starachowice Special Economic Zone Sheffield city Region Enterprise Zone industrial Free Zone togo SEZ Alabuga Free Zone pirot international Media production Zone Zagreb Free Zone dead ocean development Zone & Jabal Ajloun development Zone polaris international industrial park Birmingham city centre Enterprise Zone technological industrial development Zone Skopje 1 & 2 due southeast-Ecka, Zrenjanin Freeport of Riga Rezekne Special Economic Zone Authority ae uAE china Malaysia uAE Morocco Latvia philippines Bangladesh uAE uAE po degrade uAE Mauritius Bahrain Bahrain Oman poland Bahrain Jordan uAE poland uAE uAE uAE india uAE uS uAE Bahrain uAE pottyada Jordan kazakhstan poland Lithuania poland uk togo Russia Serbia uAE croatia Jordan Egypt uk Macedonia Serbia Latvia Latvia Secrets of success The globe-beating Dafza has set thou ght-provoking targets for expansion and variegation and made a point to hedge against potential challenges presented by the global economic climate in the short to medium term. It has in addition unploughed a c argonful midriff on the long term. Speaking to fDi in his Dubai offices in January 2012, the Dafza director-general outlined plans to offset the prospects of a retardent in its core investor markets of atomic number 63 and the US, bandage also increasing the zones status as a reader to the emirates gross domestic product. The next expansion allow be in the next year, Dr Mohammed Al Zarooni said. We stand made plans for expansion in the future, to eventually bring another 1500 companies to the Dubai Airport Free Zone, because we stimulate space for that and we asshole dramatize. In the nearer term, the goal is to attract 600 to 700 excess companies in the next volt or six long time in line with Dafzas rate of harvest-home in the 15 geezerhood since its inceptio n, which has seen it average speed of light new companies each year. With Dafza rate of flowly based on a 700,000-square-metre site, it is hoping to expand eastward this year, with a view to occupying a 100,000-square-metre leas up to(p) area. We have already attracted 1450 companies, said Mr Al Zarooni. The intention is to come along increase that number, while keeping an eye on the quality of investments, he added.While dandy to uphold the important role of the European companies in Dafza, which account for 37% of the businesses present, Mr Al Zarooni remains aware of the emergency to transfigure the large-minded zones economic partners as it expands. The majority of our clients are from Europe and they are facing a bulk of problems, but that doesnt mean we are going to stop, he said. We are glad we brought some(prenominal) companies in last year from Japan. This year our focus will be on the Far East capital of Singapore, South Korea, Hong Kong, GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 dubai international airport is home to dubai airport pardon Zone, which achieved starting signal place in the global vindicate Zones of the future 2012/13 ranking, as well as the leading airport zone top five BESt airport ZONES RANK NAme of zoNe couNtRy 1 2 3 4 5 5Dubai airport Free Zone tanger Free Zone the clark Freeport Zone Mauritius Freeport Salalah Free Zone Bahrain international Airport uae Morocco philippines Mauritius Oman Bahrain Japan, China and even India, in case we baptistery some difficulty in bring in more companies from Europe, America and Australia. component part a variety The push for diversification is a mark of umpteen of the solid grounds more successful zones, tally to James Ku, managing director of Indev Partners, who served on the perspicacity panel that helped assess the participating zones for the rankings. The roughly successful zones are all diversify zones with outdo or exceedingly specialise zones cate ring to a particularized industry, he ordinates. Large diversified zones have been able to invest in fundament and shot a wide range of conveniences, such as ready-built factories that provide flexibility to investors. The large-scale size required to attain economies of scale for such developments have meant that most of the top zones are in the apace develop Middle June/July 2012 www. fdiintelligence. com East and Asian countries where land is relatively easier to acquire. Specialised zones have been employ most effectively in Dubai, where investors can have access to unique amenities such as laboratories or turbulent communications. Mr Ku sees the free zone model act to have relevance, especially in the current economic climate. Almost all of the zones go on to offer significant tax holidays and fiscal incentives. It highlights that even in a time when budgetary constraints and fiscal austerity are at the forefront, it will be firm for governments to scale back such incentives if they heed to remain globally competitive, he says. head of the sphere Free Zone gathering (WFZC) Graham Mather, who served on the settle panel, has also highlighted the vital role that free zones can play in helping the global economy through difficult times. Addressing the eleventh the most successful Zones are either diversified Zones With scale or exceedingly specialised Zones catering to a specific industry James Ku t 25GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 tanger free Zone is strategically located near to the tanger-med port and is rated the best port zone and sixth best general free zone top five BESt pORt ZONES RANK NAme of zoNe couNtRy 1 2 3 4 5 tanger Free Zone Freeport of Ventspils Mauritius Freeport khalifa Bin Salman port Salalah Free Zone Morocco Latvia Mauritius Bahrain Oman WFZC event in impress in November 2011, he said free zones have much to offer at a time when the world is urgently seeking job creation, economic growth and development ahead of an anticipated downswing amid a worsening eurozone crisis. Free zones are key to the worlds face for growth, he added.Citing a World trust study analysing the benefits of free zones, which include the expertness to absorb unemployed labour, raise skills and productiveness levels, and generate taxes from inception, Mr Mather said these are among the reasons wherefore many countries are returning to the free zone model or fresh embracing it as a focal point out of economic troubles. All areas of the world could benefit from free zones and they all regard them, he said. zonal marking easterly Europe was well represented in the rankings, and judge John Worthington of IBT Partners was among those bullish on the parts offerings. Having worked closely with numerous European economic zones, IBT Partners can say from experience that the high quality of infrastructure and extensive network of all forms of rapeation is something that sets European economic zones a part from those of other regions, he says. With world-class airports, road, line and port systems strategically clustered in motley hubs crossways the continent, companies who are looking to expand their logistics network in Europe are consistently impressed with the efficiency and practicality of its transport systems. According to fDis survey, all the European free zones featured in this heel are highly all areas of the World could benefit from free Zones and they all need them graham mather 26 t www. fdiintelligence. com June/July 2012 GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 the Waigaoqiao free trade Zone in shanghai is rank third best free zone of the future accessible and possess well essential transport infrastructure. Asias zones are, of course, not to be overlooked. With the highest average levels of education among emerging economies, east economic zones have at their presidency a labour force with one of the highest skill-to-cost ratios, resulting i n massive influxes of FDI into China and s o u t h e a s t A s i a , s ay s M r Worthington. At different stages of transition amidst primary, secondary and tertiary sectors, these are cute regions for a wide range of industries. India, China, Singapore and the Philippines, in particular, are regarded as zones of fast growth and attraction, which is reflected by the huge increases in employment in he aside two years in their several(prenominal) economic free zones. African zones, many of which look to the successful Middle easterly zones as models, have lagged stinker but many are now cover promise. The Industrial Free Zone of Togo was the lone sub-Saharan mainland African zone to sack up the top 50. Due to their comprehensive list of fiscal and non-fiscal incentives, low levels of regulatory restrictions, and rapidly improving standards of living, African free zones are becoming increasingly attractive FDI destinations. Those in Morocco and Mauritius, in particular, couple this with a unchangeable political and economic structure, making them highly desirable destinations. It is worth men- ioning that the Tanger Economic Free Zone of Morocco boasts an impressive increase of 20,000 employees in the past two years, says Mr Worthington. A prospering region of the world, South America, has been far behind the curve in using free zones as a path to development, as well as in promoting the zones it does have to the world. This is reflected in the poor participation of zones from this region in the benchmarking study. None were cited in the top 50 list. Two North American zones, meanwhile, made the cut. John Hanna, managing director of GDP Global Development, also served on the judging panel, along with fDi editor Courtney Fingar. n October/November 2007 www. fdiintelligence. com June/July 2012 28 GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 skandar in Johor, malaysia, is ranked fourth in the global free Zones of the future 2012/13 judicial dec ision panel couRtNey fiNGAR Editor, fDi Magazine More than 600 free zones across 120 countries were invited by fDi Magazine to realize a survey requesting both soft and methoDoLoGy quantitative data regarding their free zones. The information collected was set beneath five categories incentives, facilities, cost-effectiveness, transportation and best FDI promotion. A total of 56 zones submitted details regarding many aspects of their zones and this was judged and scored by an independent judging panel. crapper hANNA Managing director, Gdp Global development JuDGiNG cRiteRiAGeneral inForMation Totalsize Totallandavailablefordevelopment Expansioninlandareainthepasttwo years and/or plans for expansion in the next two years Totalofficespaceavailable Totalemployment Increaseinemploymentinthepasttwo years Numberofbusinessesoperatinginthe zone Totalvolumeofgoods processinthe zone Increaseintotalvolumeofgoods processed in the past two years Percentageofinvestorcompaniesthat e xpand their presence in the zone Anyrestrictionsforsettingupinthe zone inCentives Typesofincentivesoffered Descriptionoftheincentivesoffered including any requirements for eligibility Administrative runofferedtoassist investors FaCilities Keyeconomicandindustrialsectors supported by the zone Rangeofwarehousefacilities,industrial units, logistics and office spaces available Amenitiesofferedtohelpinvestors cost Annualaveragerentalcostofindustrial facilities, warehouse space, office space, undeveloped land, condominium and others (per m? ) Averagecostperunitofwater be(per m? ), electricity costs (per kw/hr) and gas costs (per m? Annualaveragecostoflabourfor un virtuoso(prenominal) worker, semi-skilled worker and highly skilled worker transportation Presencewithinzoneofairport,port, major motorways, railway or other Presencenearzoneofairport,port, major motorways, railway or other Descriptionofanymajorplanned infrastructure projects forward motion strateGy Website Digit al/webpromotionactivities undertaken to create following in the zone Othermarketing,communicationsor promotional activities undertaken Methodsusedtoidentifypotential investors, and system for approaching and engaging them Thezonesmarketingslogan/brief compact of its appeal Statementfromzoneschiefexecutive, director or chairman on his or her vision for achieving the zone full Fdi potential serviCes *asked of services zones Descriptionofservicesofferedby companies in the zone Telecommunicationandtechnology infrastructure Disasterrecoveryservicesofferedonsite Internetspeedoffered Availablelabourpoolandthe%ofwhich blab more than one language Officespaceavailability Majorplannedprojects throng Ku Managing director, indev partners GRAhAm mAtheR chairman, world Free Zone convention JohN WoRthiNGtoN partner, iBt partners An additional set of information was sought from airport and port zones regarding their facilities and capacity 30 www. fdiintelligence. com June/July 2012