The 2023 iteration of fDi Intelligence’s flagship Global Free Zones of the Year awards recognise the best free zones across geographies and specialisations among the 69 that participated in the awards this year. The 'Best zones for large tenants' category crowns the world's best zones, as well as the best ones in each single region for their strategy to attract large multinational corporations as tenants. 

GLOBAL WINNERS

Advertisement

Winner: Dubai Multi Commodities Centre, UAE 

A driving factor behind DMCC’s reign as the world’s leading free zone is its unrivalled offering for the world’s biggest multinationals. Seamless business set-up services, personalised support teams and a focus on building supply chains within the zone have made it a hub for large companies. The network of 23,000 companies that call the DMCC home also enables large tenants to tap into new business opportunities and partnerships.

Other benefits include DMCC’s focus on forming strategic partnerships with external organisations to open new trade corridors for its tenants. It also builds strategic partnerships with key local and global entities as part of its remit to build specialised interconnected business ecosystems.

The list of large companies to set up in DMCC over the past 12 months is testament to its global and multi-sector appeal. It includes firms as diverse as PwC, Hyundai Steel Company, US food chain Krispy Kreme, and Careem Networks, a mobile app-enabled private car booking service owned by Uber. Existing large tenants that have expanded their footprint include pharmaceutical giant Sanofi-Aventis and Turkey-headquartered Karpowership. 

Despite already having a large pool of multinationals, DMCC is building to ensure there is space to accommodate new arrivals. This includes its 81-floor Uptown Tower, which is set to open this year and will be the new home of Trafigura, EDF, the Gemological Institute of America and many other large tenants.

Highly commended: China (Guangxi) Pilot Free Trade Zone 

Advertisement

In addition to being named Asia’s free zone of the year, the judges also highly commended China (Guangxi) Pilot Free Trade Zone for its success with large tenants. The free zone’s focus on building ties with south-east Asia has sparked a surge of infrastructure projects, such as improvements at the Qinzhou Port that benefit companies with links to Asean and beyond. 

The free zone constantly seeks to improve its business environment through policies dedicated to projects’ full life cycles, facilitating custom clearances and implementing sustainability objectives that help multinationals achieve their own ESG goals. Its large prospective workforce is another plus for large enterprises: the Guangxi region is home to 57.3 million people, with nearly a quarter aged between 14 and 35.

Standout projects by large tenants last year include a Rmb2.1bn ($290m) expansion by Guangxi Jingui Pulp & Paper, an Rmb8bn investment by supply chain and real-estate specialist Xiamen C&D, and a Rmb10.4bn investment in a battery material project by  Greatpower Technology, while the China National Petroleum Corporation also invested a substantial Rmb34.6bn in a refining and petrochemical transformation project.

REGIONAL WINNERS AFRICA 

Winner: Mauritius Freeport, Mauritius 

Mauritius Freeport is a key player in positioning the island as a gateway for trade and investment into Africa. It does this by organising events such as the Africa Partnership Conference, now in its third year, and offering services and benefits geared towards large tenants. These include top-notch logistics and warehousing facilities, financial incentives such as VAT and customs exemptions, 100% foreign ownership and free repatriation of profits. 

Recent improvements include the establishment of new display showrooms that can be rented by tenants, and a three-year extension of the timeframe to store goods in the freeport to further facilitate trade. 

Mauritius Freeport’s investment wins over the past year illustrate its cross-sector appeal. New arrivals include UAE-based Regency Pharma, South Africa’s Alpla Packaging, which processes PET plastic bottles, and Japan’s Sakurafresh Beverage and Food. It is proving particularly popular among French firms, with solar equipment maker Solar Transit, energy major TotalEnergies and sports equipment distributor City Sport all commencing new projects of late. 

Highly commended: Nkok Special Economic Zone, Gabon

Located on the west coast of Africa, Gabon has experienced a tumultuous few months, with a military coup leading to an army general being sworn in as the new president. While the country’s outlook as a whole is uncertain, Nkok Special Economic Zone in the north-west, which is owned and operated by pan-African industrial zones developer Arise IPP, was highly commended by judges this year for its strategy and success with large tenants. 

The SEZ is focused on the timber industry and, since its establishment in 2010, has evolved from an exporter of raw materials to the continent’s top exporter of veneer. It has now set its sights on becoming Africa’s biggest plywood exporter, helping to reduce the continent’s reliance on imports in the process. 

Large tenants that have recently expanded include Indian plywood manufacturer Greenply and Akiba Furniture, which is building new showrooms. On top of the SEZ’s single window approval facility and access to a 38-hectare wood park, its sustainability initiatives have helped attract tenants. It claims to be Africa’s first carbon-neutral industrial zone, operates a wood waste management system and has rolled out electric bikes for use throughout the zone.

REGIONAL WINNERS ASIA-PACIFIC 

Winner: China (Guangxi) Pilot Free Trade Zone, China   

See above

Highly commended: Waigaoqiao Free Trade Zone, China

When it comes to SEZs, the Waigaoqiao Free Trade Zone is a strong favourite among the world’s biggest firms. Some 138 of today’s Fortune 500 companies have undertaken projects in the Shanghai-based SEZ. Last year, its large tenant base grew thanks to a $180m investment by Siemens Drive Technology, a $290m project by US-headquartered Fisker Automotive and a $800m investment by Asian video-sharing platform Bilibili. 

Waigaoqiao’s efforts to minimise and streamline tenants’ administrative burdens include a so-called ‘three-in-one’ mechanism, which incorporates tailor-made services by the SEZ authority, business developers and the local government. It also offers a one-stop shop that handles immigration for foreign workers. 

From a logistics perspective, Waigaoqiao has much to offer large tenants. By virtue of its location in China’s business capital, it is connected to the world’s largest container port as well as Pudong International Airport, which is among the world’s busiest for cargo. Within the zone, infrastructure improvements continued in 2022, and included a $54.3m upgrade of warehouses and more than $18m-worth of road improvements. 

REGIONAL WINNERS EUROPE

Winner: Katowice Special Economic Zone, Poland

With its large availability of greenfield plots, competitive prices and well-established infrastructure, KSEZ continues to attract large companies seeking to locate in a European free zone. The Polish SEZ’s five-pillar strategy for attracting large tenants is clearly working. This consists of: a strong network of consulates, professional service firms and chambers of commerce; business ecosystems that offer local supply chains; supporting infrastructure; assistance with finding workers; and the presence of business clusters including for Industry 4.0, advanced manufacturing and renewable power. 

Its sustainability efforts, which were highly commended by judges this year, also align with larger companies’ net-zero targets. These include the establishment of an 88-hectare zone dedicated to renewable energy. 

New arrivals from Germany over the past year include Meiller Polska, which created 150 jobs with its €40m factory for the assembly of automotives and semi-trailers, and Monwell, which invested €51m in a new corrugated cardboard factory that created 35 jobs. In the same sector, Austria’s Eurobox expanded its existing operations by investing another €23.5m and hiring 25 new people for its cardboard packing factory
in KSEZ.

Highly commended: Łódź Special Economic Zone, Poland

In 2022, Łódź SEZ had its biggest investment win in its 26-year history. Daikin, a Japanese manufacturer of air conditioners, ventilation systems and heat pumps, chose the free zone to establish its biggest plant in Europe. With a price tag of more than €325m, a site covering 30 hectares and plans to hire 3000 people, it is the biggest investment in Łódź SEZ on record.  

The steps leading to the deal exemplify the free zone’s commitment to attracting business from the world’s biggest economies. Łódź SEZ’s management flew to Japan to meet with Daikin stakeholders; the site was equipped with new water and sewage systems; a new road was constructed to accommodate heavy transport; and assurances were obtained from local utilities that they had the capacity to reliably supply such a large project.

Łódź SEZ’s recent success with large companies extends beyond Daikin. Multinational automaker BorgWarner Mobility invested some €85m in a new production site, Belgian cold-chain logistics specialist Newcold invested €49m, while Austria’s MM Packaging invested more than €70m in the zone.

REGIONAL WINNERS AMERICAS

Winner: WTC Premium Industrial Park, Mexico

For businesses with a large turnover, logistics and ease of operations are often key priorities when searching for a free zone. It’s no surprise then that WTC Premium Industrial Park picks up this year’s Americas award for large tenants. Its 2100-hectare site in Mexico includes a customs office and the country’s biggest intermodal terminal, which gives tenants smooth connectivity to the US and Canada, while an agreement with private electricity provider IPS ensures access to power that is both reliable and exceeds the service offered by the national grid. Options either to purchase plots of land or rent spaces tailored to a business’s needs are other benefits. 

Big names to land in WTC Premium Industrial Park recently include heavy-hitters in the steel industry, such as US-headquartered Steel Dynamics and Germany’s Thyssenkrupp, which has hired 65 employees during the first phase of its operations. Multinational mobility firm BorgWarner has also started new operations and hired 380 people.

Highly commended: Manaus Free Trade Zone, Brazil

The other standout performer in the Americas for large tenants is the sprawling Manaus Free Trade Zone, which stretches more than 10,000 square miles. This includes its namesake city, which is the capital of the Amazonas region. With a history spanning more than 50 years, the SEZ has accumulated an eclectic mix of industries that provide inputs to larger firms’ operations such as electronics, two-wheeled vehicles, telecommunications and mechanics. This has created supply chains within the zone and, in turn, boosted tenants’ productivity. 

Other attractions include Manaus’s highly qualified workforce, thanks to its quality universities and training institutes, while all products manufactured in the zone receive a ‘Amazon rainforest brand’ seal. Such benefits have helped lure recent investments including a $38m project by electronics multinational Flextronics that will generate 483 direct jobs, plus expansion by the likes of Samsung, BMW Motorrad, Yamaha and PET plastic specialist Valgroup. 

Regional winners Middle East

Winner: Dubai Multi Commodities Centre, UAE

See above

Highly commended: Jebel Ali Free Zone, UAE

One of the factors underpinning Jafza’s second-place ranking among Middle Eastern free zones in this year’s awards is its success in attracting industry leaders. DP World’s flagship free zone is home to more than one-fifth of the world’s Fortune 500 companies and over the past year has grown its mix of large tenants. This includes German safety automation specialist HIMA, which chose Jafza for its regional headquarters, and Prime Aquaculture, which is building the region’s first shrimp recirculating aquaculture system within the free zone. For the latter, Jafza’s work to provide the supporting infrastructure and help obtain regulatory approvals exemplifies its efforts in supporting niche businesses. 

Other key benefits include customised sites for manufacturers; industry-specific warehousing such as cold chain facilities and chemical-grade warehouses for petrochemicals; and enhanced access to overseas markets via the network of 78 terminals operated by Jafza’s owner, DP World.

Free Zones Awards 2023

Contents