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 overall category crowns the world's best zones, as well as the best ones in each single region. 

GLOBAL WINNERS

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Winner: Dubai Multi Commodities Centre, UAE 

Dubai Multi Commodities Centre (DMCC) has cemented its reputation as the world’s leading SEZ, being named Global Free Zone of the Year for the ninth straight year. In line with the record year for foreign investment into free zones globally, 2022 was DMCC’s most successful on record. Over the 12 months it attracted 3049 new businesses, bringing its number of tenants to around 23,000 and making it fundamental to Dubai’s success as a magnet for foreign direct investment (FDI). DMCC claims it now attracts 11% of the emirate’s total FDI inflows.

Although impressive, these numbers aren’t what convinced this year’s judges to award DMCC top honours. Instead, it came down to the zone’s sophisticated, all-encompassing business community, which is committed to sustainability and caters to large multinationals, small and medium-sized enterprises (SMEs). 

On top of personalised business support, DMCC offers access to capital through partnerships with the likes of venture capital firm Brinc and fintech Channel VAS. It has also pioneered a suite of value-added services designed for its key sectors, including handling and storage centres for agri-goods, commodity exchanges, and digital platforms for online trading solutions. This sector-driven approach is in line with its clustering strategy, which has created interconnected business hubs that allow tenants to network and trade with suppliers and peers. One new example is the DMCC Gaming Centre, which has grown to over 100 members since its launch in December 2022.

DMCC’s supporting infrastructure is second to none and has made the zone a place where people work, live and play. Its Jumeirah Lakes Towers district is one of Dubai’s leading mixed-use areas, which includes housing, hotels, universities and more than 900 retail and food outlets. It supports DMCC’s more than 100,000 residents, making it a leading example of how free zones can stretch beyond business and become home to solid communities.

Over the past year, DMCC’s infrastructure has been further expanded in line with its ambitious sustainability goals. This includes work to reduce buildings’ carbon emissions, smart monitoring of utilities, and one of the UAE’s largest solar parking shade projects. These initiatives align with the DMCC board’s June 2023 pledge for the SEZ to become carbon neutral by 2050, which is one of the firmest net-zero commitments made by any free zone in this year’s awards. 

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Highly commended: China (Guangxi) Pilot Free Trade Zone 

China’s pilot free trade zone in the autonomous region of Guangxi has shot up the ranks in this year’s awards and made its leaderboard debut in second position. Judges were impressed by its efforts to leverage its position in the country’s south-west — along with its seaport and well-established land and air connections — to become a gateway for China’s engagement with the Association of Southeast Asian Nations (Asean). Home to the China-Asean Mercantile Exchange, the free zone is exploring new systems for information exchange with the Asean region. It has established an international logistics hub that connects 61 Chinese cities with Asean and beyond, and has launched its China-Asean Business Center. Going forward, it is working to establish a new trade corridor connecting the Guangxi region with Asean, which involves developing a land-sea gateway port and a transportation system with sea-rail interconnectivity. 

On the administrative side, the free zone’s port improvements have reduced the time needed for custom clearances to a maximum of 60 hours. Regarding sustainability, it is aiming to become a national benchmark for a low-carbon, circular economy. It runs various programmes supporting tenants’ use of sustainable finance and is developing a green petrochemical industry system as part of the region’s energy transition. To boost its appeal to investors, the free zone is pursuing smart city initiatives and constructing more housing, factories, and international schools that support the integration of Asean language education with technology, business and logistics.

Its benefits are geared towards firms of every size, testament to it taking home the Asia-Pacific award for both large tenants and SMEs. Recent highlight investments include the arrival of Nanning Tigo Semiconductor Co and data-cable manufacturer Longwell. Since it opened in 2019, China (Guangxi) Pilot Free Trade Zone has sought to become a demonstration model zone for cooperation with Asean. Our judges believe it is making great strides towards that goal. 

REGIONAL WINNERS AFRICA 

Winner: Mauritius Freeport, Mauritius

Mauritius Freeport maintains its grip as Africa’s leading SEZ, being named the continent’s leading zone for the third year running. More than half of its 800,000 metres square-footprint has been developed and features modern infrastructure such as customised warehouses, cold rooms, processing units, open air storage and offices. Tenants also benefit from the country’s extensive network of free trade agreements, which provide preferential market access to 70% of the world’s population.

Mauritius Freeport’s multifaceted offering encompasses efficient administration procedures that take less than one hour to register a company, fast-tracked utility connections for warehouses, and a new state-of-the-art customs clearance centre near the freeport’s closest airport. 

On the sustainability front, Mauritius Freeport is working to fulfil its obligations under the government’s commitment to achieve carbon neutrality in the industrial sector by 2030. It is encouraging potential investors to adopt climate-smart solutions for their projects and industrial firms will be able to generate renewable energy up to a maximum of 150% of their annual requirement. Mauritius Freeport also offers financial incentives and runs programmes to improve female entrepreneurship within the zone. 

The quality of its offering is reflected by the international companies that have invested over the past 12 months, which include Britain’s Kada Minerals, UAE’s Regency Pharma and India’s House of Lords Beverages. The Mauritius Freeport is not resting on its laurels, however, with its leadership team seeking new investments by conducting roadshows everywhere from India to South Africa to Europe. 

Highly commended: Suez Free Zone, Egypt

Egypt’s Suez Free Zone impressed the judges in various areas. By focusing on attracting labour-intensive projects, it has become a tool for enriching local knowledge, expertise and innovation. The management’s strategy is to create an ecosystem that promotes continuous learning and improved industrial capabilities.

Two of its most notable investments of late were by Indian-owned Galaxy Chemicals, which expanded production targeting the medical and disinfectant sectors and created 530 jobs, and France’s Schneider Electric, which added 400 jobs through a control panel manufacturing project. However, the Suez Free Zone’s strategy to attract and support SMEs is also commendable. It offers flexible leasing arrangements that cater to the business’s financial capabilities, tailored support services including access to finance, and industry clusters that allow SMEs to pool resources and foster exchanges. This strategy is paying off, with the likes of Dutch firm Van Oord Shipping Services Company, Geodrill Egypt and Gas German Cars setting up shop in the free zone over the past 12 months. Another key attraction for all these tenants is proximity to three of Egypt’s most important ports.

Suez Free Zone continues to work to improve the business environment for its tenants. Towards the fulfilment of net-zero targets, it is supporting the adoption of electric vehicles (EVs), providing training and workshops to foster a culture of sustainability, and is working with industry experts to decarbonise its operations.

REGIONAL WINNERS ASIA-PACIFIC 

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

See above

Highly commended: Waigaoqiao Free Trade Zone, China

A pioneer of the global SEZ concept, Shanghai’s Waigaoqiao Free Trade Zone has cemented its place in China’s business capital. It boasts trade ties with 219 countries, is the regional headquarters of 134 multinationals — one-seventh of the total in Shanghai — and houses some 10,000 foreign-backed companies from 123 countries. These include the likes of Siemens and Sotheby’s, both of which started new projects over the past year, plus smaller players such as Baxter Medical Instruments & Equipment and Shanghai Mediterraline International Logistics.  

With decades of experience under its belt, Waigaoqiao Free Trade Zone has honed the types of features long sought by companies when selecting a special economic zone. This includes business support packages tailored to a company’s specific needs by focusing on, for example, trade, fund settlement or data exchange. It also offers 24/7 customs clearance services and a one-stop shop to manage immigration matters for foreign workers. 

Despite being steeped in history, Waigaoqiao Free Trade Zone has shown its ability to evolve with the times, setting its sights on advancing key industries including biomedicine, semiconductors, intelligent manufacturing and auto. It is also pursuing a so-called Carbon Peak Action Plan, which includes developing a circular economy, greening construction projects and renewable energy generation. 

This balance — combined with geographical advantages, such as access to the world’s largest port, Shanghai — sees Waigaoqiao hold on to second place in fDi’s ranking of Asia-Pacific’s leading free zones. 

REGIONAL WINNERS EUROPE

Winner: Katowice Special Economic Zone

Policymakers across Europe have shown renewed interest in SEZs of late, with several countries rolling out their first programmes. For inspiration, they should look to Poland, which once again leads the Europe chapter of fDi’s Free Zones of the Year ranking. Katowice Special Economic Zone (KSEZ) beat out competition from 16 peers to retain pole position in the region, followed by Łódź Special Economic Zone in second place.

KSEZ’s all-encompassing offering includes streamlined business services, continued improvements to roads and surrounding infrastructure, and support for investors wanting to apply for EU funding for transport, environment, tourism and other qualifying projects. It is also developing a new business accelerator called KSSENON and expanding its Technopark in Gliwice.

Many of its most notable projects over the past year have been by European firms, including Italy’s Brembo, which established a new automotive brake disc production plant, and the Netherlands’ Phillips-Medisize, which opened a new battery materials facility. But it also backs programmes targeting countries further afield, such as the accelerator BraSilesia, which helps high-tech start-ups from Brazil expand into Poland.

Despite KSEZ’s achievements and new arrivals, it still has plenty of room to grow. Of its 2749 hectares of investment areas, more than 400 hectares are still available. In 2022, more than €12m was spent on preparing new investment areas while €240m has been earmarked for new infrastructure projects throughout 2023 and 2024. Testament to its far-reaching achievements, KSEZ is also recognised in this year’s categories for large tenants, SMEs, governance and sustainability. 

Highly commended: Łódź Special Economic Zone 

This year Łódź Special Economic Zone (Łódź SEZ) edged out competition from regional rivals to rank as Europe’s second best free zone. The judges were impressed by the SEZ’s manufacturing-focused programmes targeting specific countries and sectors. Its Re_Open UK programme helps Polish entrepreneurs offset the negative effects of Brexit — for example, by applying for a share of a €130m cash fund dedicated to helping businesses adapt to new trade conditions with the UK. 

Meanwhile, its start-up accelerator programme has attracted 38 foreign tech projects over the past 12 months, a fifth of these from Ukraine. Entrepreneurs from the war-torn country have credited the SEZ for helping them progress their technology and business plans despite the invasion by Russia. Part of its accelerator programme is dedicated to environmental, social and governance (ESG) solutions, for which Łódź SEZ offers financial incentives. One firm it recently supported under this programme is Indian start-up KlimaShift, which uses a plug-and-play artificial intelligence (AI) platform to reduce carbon emissions from small buildings.

Business development missions to Japan helped secure a €325m investment pledge in 2022 from Japanese air conditioner producer Daikin, the free zone’s biggest investment to date. Another achievement last year was the completion of re_connect, a collaboration space in the city centre that covers 2000 square metres and includes working areas, a showroom and even a metaverse functionality called Digital Alley.

Undoubtedly, the possibility of firms gaining up to 70% worth of tax exemptions in the form of state aid is a draw for investors. However, Łódź SEZ’s combination of business support services, infrastructure advances and a forward-thinking approach to technology and sustainability means it has much more to offer beyond financial incentives.

REGIONAL WINNERS AMERICAS

Winner: Coyol Free Zone, Costa Rica

Once again, Coyol Free Zone (CFZ) retains its title as the Americas’ leading free trade zone. CFZ is dedicated to life sciences and smart manufacturing, and is a pillar of Costa Rica’s status as a global hub for medical devices, pharma and biotech. The free zone is home to the likes of Medtronic, Abbott and Germany’s Bayer, which commenced local operations last year. Thanks to a diverse range of multinationals, plus a cohort of international SME tenants, CFZ has developed a rich onsite ecosystem of suppliers and offtakers.

The judges were particularly impressed by the free zone’s education drive. CFZ is looking to leverage the dynamism of the life sciences sector to provide quality employment to the people of Costa Rica. It is working with 15 local governments to improve the workforce’s skill set while its ‘Intégrate a Coyol’ programme aims to reduce the gap between traditional education and the needs of modern industry. To enable tenants to tap into the local work pool, CFZ operates transportation, training and employee sourcing programmes, plus recruitment services.

It follows that the free zone operates a social responsibility programme, which runs an annual accountability system aligned with the UN Sustainable Development Goals. CFZ benefits from geography too: it is located just five miles from the country’s biggest airport and close to its most important container ports, while Costa Rica’s proximity to the US makes it well placed for nearshoring opportunities. 

Highly commended: Cayman Enterprise City, Cayman Islands

With its focus on SMEs, Cayman Enterprise City (CEC) has developed a reputation as a leading free zone for growing companies looking to take advantage of its proximity to the US, business efficiency and enviable lifestyle. A new initiative that caught the judges’ attention this year is its introducer programme. This offers extra incentives to tenants who refer new SMEs to the free zone, in the form of cash bonuses or discounts to use in CEC’s various facilities.  

The judges were also impressed by its grassroot initiatives in pursuit of net-zero targets, such as creating a walkable community; EV charging; solar-powered lighting; water harvesting to maximise use of rainwater; and energy-efficient building designs and shade strategies. Also notable is the ongoing development of the free zone’s Socioeconomic Development Project, a 40,000-square-foot , three-storey building, which CEC claims will be the Cayman Islands’ first sustainable living, recreational, retail and commerce district designed as a platform for innovation. 

Over the past 12 months, CEC has seen several projects from interesting firms, particularly in the services sector. These include precious metals royalty and streaming firm Vox Royalty, a blockchain technology company focused on smart contracts that has raised $32m, and a legal-tech business that is part of an international law firm. 

REGIONAL WINNERS MIDDLE EAST 

Winner: Dubai Multi Commodities Centre, UAE

See above

Highly commended: Jebel Ali Free Zone, UAE

Dubai’s Jebel Ali Free Zone, also known as Jafza, first opened its doors in 1985 and nearly four decades later, it still hasn’t lost its shine. Jafza, the flagship free zone of logistics powerhouse DP World, is home to 9500 companies and generates more than Dh550bn ($150bn) in trade annually. Among its tenants are 500 logistics companies that provide surrounding businesses with supply chain, warehousing and storage solutions. 

The support services and infrastructure available to Jafza’s tenants are among the most advanced in the free zone area. It offers plots on both long- and short-term leases, and more than 1000 purpose-built warehouses suitable for both light industrial and general trading activities. Its fintech platform, DP World Trade Finance, helps firms meet their working capital requirements. From a governance perspective, tenants and their employees also have access to Jafza’s app, which offers more than 150 services related to registration, licensing, leasing, visas and human resources.

Among all the Middle East’s free zones, Jafza has unrivalled connections to both the region’s biggest port — its own Jebel Ali Port — and Al Maktoum International Airport, which is being expanded to become the world’s biggest. Jafza has soared up the rankings to place third overall, thanks to a stellar year of new arrivals and initiatives, while its forward-thinking strategies see it also land the overall award for sustainability and non-fiscal incentives. 

Free Zones Awards 2023

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