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 SMEs' category crowns the world's best zones, as well as the best ones in each single region for their strategy to attract small and medium enterprises (SMEs) tenant. 

GLOBAL WINNERS

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Winner: Dubai Silicon Oasis, UAE

Dubai Silicon Oasis’s entry into this year’s leaderboard at number five was fuelled by its unrivalled SME strategy. The free zone, which was established in 2004 and is dedicated to knowledge and innovation industries, doubled its number of SME tenants last year. Among its new arrivals is CirrusLabs, a digital transformation and IT solutions provider headquartered in the US. Highlights among existing tenants include online payment platform Telr, which expanded its operations, and social app start-up ASKWHO, which raised $1m in funding. 

The free zone demonstrates its commitment to fostering a vibrant entrepreneurial culture through various programmes designed to support its start-up ecosystem. It is home to the Dubai Technology Entrepreneur Campus, which Dubai Silicon Oasis says is the biggest tech innovation hub in the Middle East. Its 10,000 square metres of workspace accommodates hundreds of businesses and entrepreneurs in an environment that fosters collaboration, while it also offers acceleration programmes, mentorship and funding opportunities for growing tech businesses. Another highlight initiative is Sandbox, a 12-month programme that expands early-stage entrepreneurs’ understanding of everything from markets and day-to-day business activities to product development and wellbeing.

Dubai Silicon Oasis’s administrative set-up has also been crafted with SMEs in mind. Streamlined business registration and licensing, modern amenities, sophisticated utilities, and specialised equipment for manufacturers ensure that smaller businesses can focus their limited resources on growing their ventures rather than paperwork. 

Highly commended: China (Guangxi) Pilot Free Trade Zone, China

Numbers alone reveal China (Guangxi) Pilot Free Trade Zone’s appeal among smaller firms. In 2022, the Chinese free zone attracted 2740 new SMEs into its community. They include Dongguan Rida International Freight Forwarding, which kickstarted a Rmb30m ($4.1m) project, plus logistics projects by Shenzhen Youtongda Supply Chain Management and Shenzhen Chefuwang Logistics Technology valued at Rmb80m and Rmb100m, respectively.

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The zone’s well-established transport network — including Qinzhou Port, which the free zone is upgrading — a strong local network of professional service firms and a focus on improved sustainability are all drawcards. But its lure among smaller firms is enhanced by a suite of policies dedicated to enhancing small tenants’ competitiveness, the clustering of industry associations that helps SMEs find specialised support, and a business improvement action plan rolled out last year that reduces tenants’ transaction costs. Other financial assistance includes an obligation to pay only half the resource tax of their bigger counterparts and so-called ‘bank-tax interaction’ whereby a bank lends at a reduced interest rate based on the borrower’s historical tax payments. Last year alone, 91,487 small businesses in the zone benefited from this loan scheme. Subsidised electricity pricing is also provided to SME tenants, which has collectively saved them over time an estimated Rmb25m.

REGIONAL WINNERS AFRICA 

Winner: Mauritius Freeport, Mauritius

After finishing in second place in this category last year, Mauritius Freeport fended off competition to be named Africa’s leading free zone for SMEs. The judges were impressed by its efforts to support entrepreneurs and small businesses that have been hit hard by inflation, the fallout from the pandemic and other global challenges. These include a 25% increase in the maximum value of grants offered under its SME Support Scheme, the write-off of loans outstanding more than 20 years, and a 50% reduction in port charges for exports. The SME interest-free loan scheme and the freight rebate scheme put in place during the height of Covid-19 have been extended. 

Other initiatives include preferential treatment of female-led small businesses for public procurements, and a three-year support programme for 120 SMEs that prepares them to obtain the ‘Made in Moris’ seal on their goods, attesting that these are made on the island. 

Notable new SME arrivals at the Mauritius Freeport come from a range of sectors and countries. They include Indian stationery supplier Visivel, South African spices and flavouring firm Spice-X Inno-Tivity, Britain’s KAT Sapphires, which processes precious and semi-precious stones, and Taiwanese ceiling specialist Yu Din Metal Works.

Highly commended: Lusaka South Multi Facility Economic Zone, Zambia

Located in Zambia’s capital, the Lusaka South Multi Facility Economic Zone (LSMFEZ) was highly commended by judges this year for its performance regarding SMEs. The free zone has dedicated spaces for smaller enterprises that can be rented and converted into production facilities. LSMFEZ also operates a one-stop shop to answer tenants’ queries, and big and small manufacturers are permitted to accelerate the depreciation on capital equipment and machinery. Further improvements are underway to benefit tenants’ sustainability goals. For example, the zone has allocated 600 of its 2100 hectares to become a green eco park, where the use of fossil fuels is expected to be prohibited. 

Its SME tenants base expanded last year with the arrival of some 15 businesses. These include Techmasters, which is building an LED light bulb manufacturing facility, pasta- and cereal-maker Java Foods, and Hyperlabs, which is building a factory to convert waste paper into egg trays. 

REGIONAL WINNERS ASIA-PACIFIC 

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

See above

Highly commended:  Sri City Special Economic Zone, India

Sri City in the southeast of India is a manufacturing-focused SEZ seeking to attract a diverse customer base, which includes everything from automotive to food and beverage, and plastic processing to pharmaceuticals. Its success in implementing this strategy is clear from the list of SME new arrivals and expansions over the past 12 months, among them auto industry supplier Brakes India, industrial gases firm Nova Air, and furniture supplier Redstar Plastics.

To woo smaller firms, Sri City provides plug-and-play warehouses that are connected to power, water and sewage networks, which eases their establishment within the zone. Other benefits include production-linked incentive schemes, infrastructure improvements and an in-house customs clearance single window that operates 24/7. Meanwhile, its location provides access to large markets and reduces logistics costs. Sitting to the north of Chennai, the free zone is within 100 kilometres of four sea ports, sits on a national highway, and forms part of the Chennai Bangalore Industrial Corridor.

REGIONAL WINNERS EUROPE

Winner: Katowice Special Economic Zone, Poland

KSEZ in the south of Poland is a leader on many fronts. In addition to taking home Europe’s top title for large tenants, the judges also consider it to be the region’s leading free zone for smaller businesses. One of its highlight offerings for SMEs is the KSSENON business accelerator which, in addition to its modern spaces to rent, houses a so-called competence centre equipped with labs that train tenants in Industry 4.0. KSEZ also runs programmes that aim to strengthen European SMEs’ sustainability and digitisation capacities, an accelerator that targets Brazilian entrepreneurs, and a scheme that supports tech transfer from Silesian University of Technology to the free zone’s smaller tenants. 

In addition to the number of Polish SMEs that have started operations in KSEZ of late, there have been two notable German investments. Machinery solutions provider Gebrueder Peitz Polska II invested €8m in its existing operations while auto technology firm MRS Electronic committed €6.1m to the creation of a new production plant.

Highly commended: Łódź Special Economic Zone, Poland

The suite of support services offered by Łódź SEZ to small and growing businesses makes it more akin to an incubator than an old-fashioned free zone. The manufacturing-focused SEZ, located in central Poland, offers to finance up to 80% of SMEs’ tech competence training of their workers. Over the past six years, some 4000 SMEs from the region have used this opportunity to train 13,000 workers.  

Other attractions include the Rethink Digital Hub, which offers SMEs advisory and implementation services regarding the internet of things (IoT), AI and cybersecurity. Funding and mentorship opportunities are also available via Łódź SEZ’s comprehensive network of investors and tenants, as well as an accelerator programme that has supported 20 foreign start-ups over the past 12 months. One impressive new arrival is Indian electric bike supplier Volektra, which chose the SEZ because of its business support offering, available grants and soft landing, and its access to the local market. 

REGIONAL WINNERS AMERICAS

Winner: Cayman Enterprise City, Cayman Islands

This year, CEC picks up not only the Americas award for SMEs, but also an honourable mention for its efforts in supporting the growth of these businesses. This includes services such as custom-built work environments and networking events for new arrivals to engage with the local business community, and networking events for SME professionals, who are made to feel part of a vibrant business community as soon as they arrive. A standout offering is its client experience and global mobility teams, which help new arrivals with everything from recruitment and marketing to speaking opportunities and local leisure activities. Its referral programme also offers benefits to existing and future SMEs. 

CEC is proving particularly popular with fintechs. During 2022, a crypto DeFi fund upgraded its local presence from a coworking space to a double office suite. Meanwhile, a software firm established itself in the zone and quickly upgraded from a coworking set-up to a custom-built work suite.

Highly commended: Zona Franca de Occidente, Colombia

The other Americas free zone recognised for its success with SMEs is Zona Franca de Occidente, located just outside Colombia’s capital Bogotá. Its achievements in attracting these tenants are underpinned by a multi-pronged strategy that targets small businesses. This includes a focus on sharing Zona Franca de Occidente’s benefits on social media — especially its Facebook group #Zonasfrancasencolombia — and at fairs and national business meetings. It also educates external businesses on the fiscal and non-fiscal benefits offered by its regime. 

Over the past year, it has successfully attracted SME businesses from a range of sectors. New arrivals include a pipe manufacturing plant, a logistics project to facilitate the sale of lighting fixtures, a manufacturer of labelling and packaging of liquors, and a 2000-square metre-facility for the import, storage and distribution of textiles.

REGIONAL WINNERS MIDDLE EAST 

Winner: Dubai Silicon Oasis, UAE

See above

Highly commended: Dubai Multi Commodities Centre, UAE

DMCC adds to its list of accolades in this year’s awards by being named the runner-up in the SME category among Middle Eastern free zones. Despite its size and success with large multinationals, DMCC maintains close attention to the detail and support necessary to help small businesses thrive. Its rental spaces include office sharing, and there is a strong networking and training programme. It also operates sector-specific centres, including for the handling and warehousing of agri goods, and digital platforms for online trading solutions. SMEs can tap into the $150m-worth of accelerator funding thanks to DMCC’s partnerships with venture capital firm Brinc and a growth fund offered via its partnership with investment firm DWF Labs.

Today, DMCC has more than 16,300 SME tenants, with many new arrivals over the past 12 months being drawn to its thriving tech ecosystem. They include blockchain infrastructure provider Ankr Protocol, metaverse firm Exarta and crypto asset management specialist SingularityDAO.

Free Zones Awards 2023

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