The 2023 iteration of fDi Intelligence’s flagship Global Free Zones of the Year award comes at a very unique juncture for free trade zones (FTZs) and special economic zones (SEZs) worldwide.
On the one hand, geopolitical and trade fragmentation boost their business proposition as free trade safe havens.
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“We are not in a period of deglobalisation” Martin Ibarra, strategic advisor to the World Free Zones Organization’s (WFZO) board, tells fDi. “Instead, this is re-globalisation.”
On the other hand, the push for a global minimum tax, combined with other initiatives to introduce more transparency and better governance limit their room for manoeuvring.
“The incoming 15% global minimum corporate tax can help prevent governments from offering generous fiscal incentives, especially tax holidays, and shift their focus towards improving the business environment,” Douglas Zeng, a senior economist at the World Bank, tells fDi.
Data tracked by greenfield foreign direct investment (FDI) monitor fDi Markets shows that private sector demand for FTZs has never been stronger, with free zones worldwide racking up record levels of FDI in 2022 and 2023.
On top of that, a growing number of countries are launching new FTZ and SEZ programmes to diversify their economies, better level them up, and introduce better regulations and practices.
In this wider context, the judging panel of fDi’s Global Free Zones of the Year awards — which consisted of three external judges and two from fDi — assessed submissions from 69 free zones around the world.
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Dubai’s DMCC once again confirmed its status as the world’s best free zone. It was followed by China (Guangxi) Pilot Free Trade Zone which made a remarkable leaderboard debut in second place.
Dubai Silicon Oasis won top recognition for its SME strategy, and the DMCC for its large tenant strategy.
In line with the industry’s evolution, new awards have been introduced this year. They recognise the most promising zones that have opened in the past two years (Rising stars), those with the best offering for manufacturers (Industrial champions), and those zones excelling in sustainability, quality of governance, non-fiscal incentives and infrastructure investment.
Liverpool City Region Freeport in the UK received the favour of the judges as the top rising star; UAE’s first free zone, Jebel Ali Free Zone (Jafza), led the charge of the regional industrial champions featured in the awards.
In the excellence awards, Jafza won top recognition for sustainability and non-fiscal incentives, and DMCC for quality of governance and infrastructure investment.
And don’t miss the honourable mentions, where each one of our judges pick single zones that stood out for specific reasons not covered by the main awards.
Follow the links below to access all the insights and awards.
Free Zones Awards 2023
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