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SPOTLIGHT ON TURKISTAN ADVERTISEMENT FEATURE

WHY INVEST IN SEZ TURKISTAN? • Governmental support • Multifunctionality • Tax and customs preferences, free land lease • Young and skilled workforce • Well-developed transport systems • Abundant natural resources • Ease of access to Europe and Asia

A NEW DEVELOPMENT VECTOR OF ANCIENT TURKESTAN Being the cradle of the Turkic culture, Turkestan offers high-potential investment opportunities in Central Asia

Known for its extensive natural TOURIST ATTRACTION for 25 years. Investors also get a free land lease resources and the highest population Turkestan is one of the ancient and sacred cit- with modern infrastructure until 2043 and density in Kazakhstan, Turkestan has an ies in Central Asia. The entire city center built governmental stability guarantees. immensely rich history and welcomes as the unique architectural complex consisted The residents of SEZ will avoid all bureau- the foreign investors to execute projects of the tomb of Rabia Sultan Begim, Timur’s cratic barriers and will get instant access to the in tourism, manufacturing, agribusiness, granddaughter, the tombs of the Kazakh single-window system, that runs all registra- and civil construction. According to the khans and the representatives of the nobility, tion and licensing procedures and provides business risk analysis made by A.T.Kearney and Khoja Ahmed Yasawi Mausoleum, the 24/7 support. consulting company, Turkestan region is the UNESCO World Heritage site. Being a major Investors can also take advantage of the safest location for investing in the country. stopover on the Great Silk Road, throughout its Turkestan’s strategic location, which provides Last year Turkestan became the adminis- history the city has always attracted pilgrims easy access to the largest and most dynamic trative center of the Turkestan region, given and tourist from all over the world. markets in the world via the international both new opportunities and challenges to It is still one of the most attractive tourism transport corridor “Western Europe-Western boost the infrastructure development and anchors for foreign visitors. The region played China” and Russia-Central Asia railroad. urbanization. In order to promote competitive as a good host for almost 1.2 million tourists in opportunities of the region and increase 2017, 1.5 million tourists in 2018, and 2 million HONORING THE PAST, CREATING investment attractiveness, the Government visitors in the first half of 2019. THE FUTURE on October 28, 2018, established the The Government targets the increase in Currently, 123 projects for a total of $703m are “TURKISTAN” special economic zone. the number of foreign visitors up to 5 million being implemented on the territory of the spe- people by 2025. The foreign direct investment cial economic zone “TURKISTAN”. The projects STRATEGIC IMPORTANCE in the tourism sector is considered as a corner- include the construction of hotels, touristic sites, Nursultan Nazarbayev, the First President of stone of economic development. residential, sports and administrative complexes, the Republic of Kazakhstan, sets an ambitious manufacturing plants, and infrastructure. goal for the “TURKISTAN” SEZ to become the INVESTMENT INCENTIVES The SEZ management company commits regional economic driver by creating attrac- Turkistan SEZ consists of five zones: historical to fostering private-sector development and tive investment conditions and promoting the center (297 ha), administrative and business attracting FDI while holding in high regard to brand of Turkestan as the ancient clerical capi- center (1350 ha), logistics hub (967 ha), indus- Turkestan’s rich history and spiritual impor- tal of the Turkic world. Having solid credentials, trial zones with available greenfields (365 ha) tance for the Turkic world. it is considered as the instrument to get things and brownfields (35 ha). Commanding 3014 done in accordance with the long-term eco- hectares worth territory, it is a great asset for Sponsored by nomic strategy of Kazakhstan. those who value flexibility and professionalism. According to the Government’s SEZ welcomes the investors who are inter- Comprehensive Plan for the Socio-Economic ested to give their commitments to invest in Development of the Turkestan Region until infrastructure, tourism, civil construction, manu- 2024, 116 projects worth 3.1 billion US dollars facturing of building materials, and agribusiness. from the republican and local budgets includ- In return, any investor will enjoy the variety ing modern infrastructure development will be of opportunities with no restrictions to capital implemented in a five year period. and all types of tax and customs exemptions CONTENTS

Published by The Financial Times Ltd, Bracken House, 1 Friday Street, London EC4M 9BT, UK Tel: +44 (0)20 7873 3000. Editorial fax: +44 (0)1858 461873.

Staff members can be contacted by dialing +44 (0)20 7775 followed by their extension number Editor-in-Chief Courtney Fingar 6365 [email protected] Deputy Editor Jacopo Dettoni 4339 [email protected] Global Markets Editor Sebastian Shehadi 3186 [email protected] Global Investment Reporter Alex Irwin-Hunt 6437 [email protected] Production Manager Richard Gardham 6367 [email protected] Deputy Production Editor Andrew Petrie 6230 [email protected] Executive Editor Brian Caplen 6364 [email protected] Art Director Paramjit Virdee 6535 [email protected] Advertisement Executive Sophie Horton 4830 [email protected] Global Business Director Adrian Northey 6333 [email protected] Associate Publisher Charlotte Lloyd +34 (0)682736571 [email protected] Associate Publisher Luke McGreevy +971 (0)4 391 4398 [email protected] Publishing Director Angus Cushley 6354 [email protected] B2B Marketing Manager Lauren Drew 4462 [email protected] Senior Marketing Executive Jay Seenundun 6896 [email protected] 04 Global winners 14 Winners – editor’s choice awards Magazine customer services CDS Global, Tower House, Lathkill 04 Winners – regional 16 Opinion: Dr Samir Hamrouni, Street, Sovereign Park, Market Harborough, Leics, UK. LE16 9EF chief executive of the World [email protected] 08 Winners – SMEs Free Zone Organization tel: 0845 456 1516 (customer services) 01858 438417 (overseas), fax: +44 (0)1858 461 873 10 Winners – large tenants 20 Bespoke awards The Financial Times adheres to a self-regulation regime under the FT Editorial Code of Practice: www.ft.com/editorialcode Printed by Walstead Group in the UK 12 Winners – specialism awards Registered Number: 227590 (England and Wales) ISSN: 1476-301X © Financial Times Ltd 2019. FDI is a trade- mark of Financial Times Ltd 2019. “Financial Times” and “FT” are registered trademarks and service marks of the Financial Times Ltd. All rights reserved. No part of this publication may be reproduced or used in any form of advertising without prior permission in writing from the editor. No responsibility for loss occasioned to any person acting or refraining from acting as a result of material in this publication can be accepted. On any specific matter, reference should be made to an appropriate adviser. Registered Office: Bracken House, 1 Friday Street, London EC4M 9BT, UK Reprints are available of any fDi Magazine article, with your company logo and contact details inserted if required (minimum order 100 copies). For details telephone 0207 873 4816. For one-off copyright licences for reproduction of fDi magazine articles telephone 0207 873 4871. Alternatively, for both services e-mail [email protected]

October/November 2019 www.fDiIntelligence.com 3 GLOBAL FREE ZONES OF THE YEAR 2019

Global Free Zones of the Year 2019 – Winners THE UAE’S DMCC TAKES HOME THE TOP PRIZE IN fDi’S GLOBAL FREE ZONES OF THE YEAR FOR A FIFTH CONSECUTIVE YEAR. NAOMI DAVIES REPORTS

Winner:Global Highly commended Winners – DMCC, United Arab Emirates Katowice Special Economic Zone, Poland global For the fifth consecutive year, DMCC of Katowice Special Economic Zone has the United Arab Emirates has outper- been highly commended in this year’s formed all other entrants to be awarded awards. Since the beginning of 2018, the the title of fDi’s Global Free Zone of the zone has attracted 66 new projects and Year for 2019. The zone is home to more €1.14bn in new investment across a than 16,000 companies, which employ range of sectors including automotive, some 60,000 people, and is strategically metallurgical, chemical, plastics and located in the heart of Dubai, offering food processing. The zone, which is investors a broad range of potential cus- located in the Slaskie and Opolskie prov- tomers and service providers on their inces, benefits from robust logistics doorstep. The collective economic infrastructure, including two motor- impact of DMCC’s member companies ways, a railway network, three interna- represents a contribution of more than tional airports, an inland port and a 10% towards Dubai’s GDP. transshipment terminal nearby. It also “CUSTOMER-CENTRICITY Several prestigious multinational cites its highly qualified labour market, IS AT THE CORE OF OUR companies across a range of sectors investment land infrastructure and APPROACH, AND TODAY WE joined DMCC in 2018, including availability of industrial and office Edelman, AmCham, Kentech, Mahindra buildings as reasons to invest. In the past ARE PROUD TO HELP OVER and Engie. DMCC is committed to con- year the zone, in co-operation with local 16,000 COMPANIES GROW verting leads into licences by investing partners, has invested more than €14m THEIR ENTERPRISE. TO BE heavily in its digital transformation in preparing investment land and OFFICIALLY RECOGNISED strategy, prioritising customer services extended its properties by 30% (the and drastically reducing the bureau- equivalent of 773.4 hectares). AS THE NUMBER ONE FREE cracy connected with setting up a busi- ZONE IN THE WORLD IS ness. Its Sales Transformation initiative SOMETHING SPECIAL, AND was launched in 2018, shortening on- SUGGESTS THAT OUR boarding turnaround time, documentation requirements, the know your cus- Winners – STRATEGY IS WORKING” tomer process, and automated third- regional Ahmed Bin Sulayem, executive chairman and CEO, DMCC party approval processes. Other initiatives launched in 2018 include the Winner:Africa DMCC Help Centre, a one-stop online Tanger Med Zones, Morocco platform through which members can find all relevant frequently asked ques- Tanger Med Zones has been crowned tions, guidelines, videos and policies, Africa’s winner. Strategically located and the Cost Calculator tool, which on the Strait of Gibraltar and at the helps estimate the cost of setting up a conjunction of major maritime business in the free zone. routes, the zone offers access to target

4 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

markets in both Europe and Africa. It is home to more than 900 companies fDi Global Free Zones of the Year in various sectors such as automotive, – Top 10 Zones Globally aeronautics, logistics and textiles. Tanger Med Zones attracted several Rank Free zone Country new investments from companies 1 DMCC United Arab Emirates including Valeo, Magneti Marelli and 2 Katowice Special Economic Zone Poland Varroc. Investors continue to settle in 3 Subic Bay Freeport Zone Philippines the zone due to its ‘plug and play’ pol- 4 Zona Franca de Bogotá Colombia icy, highly skilled and multilingual talent pool and attractive tax regime 5 Tanger Med Zones Morocco exoneration. 6 Jebel Ali Free Zone UAE 7 Panamá Pacífico Panama Highly commended:Africa 8 Łódź Special Economic Zone Poland Djibouti International Free Trade Zone, 9 Mundra Special Economic Zone India Djibouti 10 Djibouti International Free Trade Zone Djibouti

A newcomer to fDi’s Global Free Zones of the Year awards, Djibouti International zone. Located on the western coast of Free Trade Zone (DIFTZ) has been highly India in the Gulf of Kutch, the zone is commended among African zones. Since home to major multinationals such as opening in July 2018, DIFTZ has wel- Thermax and Britannia Industries. comed more than 50 companies work- Initiatives have been taken to further ing in the logistics, manufacturing and bolster logistics infrastructure at the energy sectors including Safa Group, site, including the establishment of a Soram Industries and China Merchants. new liquefied natural gas- and liquefied The overall vision is to develop further petroleum gas-handling terminal, which complementary services and initiatives ensures the availability of raw material for those operating in DIFTZ, including a for the units. In addition, a 21-kilometre major industrial zone, a financial zone railway connection has been established and a business leisure district. The first to connect Mundra SEZ to the nearest of these to come to fruition will be the railway head and to Adani Logistics, a sis- industrial zone, which will include a ter company of the zone. Sector-specific ship repair facility, dry docks and a mul- clusters for textiles, chemicals, electron- tipurpose port. It will also enhance trade ics and warehousing are currently being in the Horn of Africa and expand the developed within the zone. country’s economic diversification, building on five major pillars of indus- Winner:Europe try: energy, petrochemicals, metal forg- Katowice Special Economic Zone, Poland ing, maritime and building materials. (See Global awards) Winner: Asia-Paciﬁc Subic Bay Freeport Zone, Philippines Highly commended: Europe Łódź Special Economic Zone, Poland Subic Bay Freeport Zone has been named the top free zone for the Asia-Pacific Łódz Special Economic Zone’s forward- region. The former US naval base is a hub thinking approach to increasing tenant for tourism, industrial, commercial and numbers is evident in its initiatives, financial investment, and multination- which include the StartUpSpark2.0 als including Hitachi Mechatronics, accelerator, Strefa RozwoYou training Citic Hotel and PTT Thailand have cho- programme and the implementation of sen to locate in the zone. In order to facil- 5G technology. In 2018, one-third of itate future expansion, the Subic Bay investment projects in the zone were Metropolitan Authority (SBMA) sought from existing clients, further bolstering the co-operation of neighbouring local its reputation as a place where investors government units to secure additional want to expand their business. Germany- areas for development. After a series of based Haering, a producer of detailed dialogues and consultations, the SBMA parts for major automotive brands received pledges to allocate more 21,000 including Mercedes, BMW, Audi and hectares for the zone’s expansion. Volkswagen, invested almost €58m to expand its operations and now employs Highlycommended:Asia-Paciﬁc more than 2150 workers in the zone. Mundra Special Economic Zone, India Investment shows no sign of slowing and, within the next three to four years, Mundra Special Economic Zone is India’s the zone is planning to fully use the largest port-based, notified and func- 8000-square-metre investment plot tional, multi-product special economic located next to its headquarters in

October/November 2019 www.fDiIntelligence.com 5 GLOBAL FREE ZONES OF THE YEAR 2019

Highly commended – Africa Walbrzych Special Economic Zone Invest- Winners Djibouti International Free Trade Zone, Park, Poland Djibouti Winner – Americas Winner – Asia-Pacific Zona Franca de Bogotá, Colombia OVERALL WINNER Turkistan Special Economic Zone, Highly commended – Americas DMCC, UAE Kazakhstan Panamá Pacífico, Panama Highly commended Highly commended – Asia-Pacific Winner – Middle East Katowice Special Economic Zone, Poland Subic Bay Freeport Zone, Philippines Jebel Ali Free Zone, UAE Winner – Europe Highly commended – Middle East REGIONAL WINNERS Łódź Special Economic Zone, Poland Ras Al Khaimah Economic Zone, UAE Winner – Africa Highly commended – Europe Tanger Med Zones, Morocco Free Port of Ventspils, Latvia SPECIALISMS WINNERS Highly commended – Africa Winner – Americas Agribusiness ZPE Uberaba, Brazil Djibouti International Free Trade Zone, Corporación Zona Franca Santiago, Aluminium Special Economic Zone Djibouti Dominican Republic Pavlodar, Kazakhstan Winner – Asia-Pacific Highly commended – Americas Appliances Łódź Special Economic Zone, Subic Bay Freeport Zone, Philippines Zona Franca de Bogotá, Colombia Poland Highly commended – Asia-Pacific Winner – Middle East Automotive Tanger Med Zones, Morocco Mundra Special Economic Zone, India DMCC, UAE Aviation Liepaja Special Economic Zone, Winner – Europe Highly commended – Middle East Latvia Katowice Special Economic Zone, Kizad, UAE BPO Zona Franca Santander, Colombia Poland Financial and professional services Highly commended – Europe LARGE TENANT WINNERS Birmingham City Centre Enterprise Zone, Łódź Special Economic Zone, Poland Winner – Global UK Winner – Americas Free Port of Ventspils, Latvia IT Innopolis SEZ, Russia Zona Franca de Bogotá, Colombia Highly commended – Global KPO and IT outsourcing Zona Franca de Highly commended – Americas Tanger Med Zones, Morocco Bogotá, Colombia Panamá Pacífico, Panama Winner – Africa Logistics Liepaja Special Economic Zone, Winner – Middle East Tanger Med Zones, Morocco Latvia DMCC, UAE Highly commended – Africa Medical devices Coyol Free Zone, Costa Highly commended – Middle East Onne Oil & Gas Free Zone, Nigeria Rica Jebel Ali Free Zone, UAE Winner – Asia-Pacific Oil and gas Onne Oil & Gas Free Zone, Shanghai Waigaoqiao Free Trade Zone, Nigeria SME WINNERS China Pharmaceuticals Special Economic Zone Winner – Global Highly commended – Asia-Pacific St Petersburg, Russia DMCC, UAE Special Economic Zone Pavlodar, Robotics Daegu Gyeongbuk Free Highly commended – Global Kazakhstan Economic Zone, South Korea Łódź Special Economic Zone, Poland Winner – Europe Steel Arvand Free Zone, Iran Winner – Africa Free Port of Ventspils, Latvia Textiles Special Economic Zone Ontustik, Tanger Med Zones, Morocco Highly commended – Europe Kazakhstan

Łódz city centre to construct additional and more than 2500 people are trained office and conference space. in areas including updating tax, logistics and foreign trade issues. Employees in Winner:Americas the zone also have access to the ‘Rutas Tu Zona Franca de Bogotá, Colombia Zona’ shared mobility programme and a wellness centre, which features a gym Zona Franca de Bogotá has been named and leisure classes. In terms of sustaina- the leading free zone for the Americas. bility, the zone forms part of the steering In 2018, more than one-quarter of all committee of the local network of the companies in the zone were multina- UN Global Compact in Colombia. tionals from a range of industries including business, IT and knowledge process Highly commended:Americas outsourcing, data centre services and Panamá Pacíﬁco, Panama the industrial sector. The zone has launched a portfolio of consulting and More than 280 companies, ranging from training programmes aimed at strength- start-ups to multinationals, have estab- ening the competitiveness of companies lished operations in Panamá Pacífico in Zona Franca de Bogotá and other free and employ more than 10,000 staff. Due zones. Through its Unifranca educa- to the zone’s public-private partnership, tional alliance with seven universities investors are afforded comprehensive and the National Learning Service, 24 government support with 17 entities in titled training programmes are offered situ for administrative, fiscal, customs, as well as the ZFB Bilingual Programme migratory and labour procedures. The

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have expanded their facility sizes over ing for training, coaching and/or post- Methodology the past year. Its Workforce Protection graduate studies for SME employees. fDi’s Global Free Zones of the Year Awards Programme will bring added benefits to Start-ups can also benefit from finan- 2019 acknowledge the most promising employees across the zone and infuse cial assistance and business expertise free zones across the world. For this year’s $354m back into Dubai’s economy. Jafza through the StartupSpark2.0 and S5 awards, fDi invited free zones, government has also waived $9.53m in customer accelerators. entities and investment promotion bodies fines to create a business environment to complete a short survey detailing their that promotes growth and reduces costs Winner:Africa zone’s attractiveness, facilities and incen- and is now offering five- and 10-year visas Tanger Med Zones, Morocco tives offered to investors. In total, 85 to entrepreneurs and specialist in- entries were received from free zones demand talents, which will bolster work- Tanger Med Zones has been named across the world. A panel of judges from fDi force retention. Africa’s best free zone for SME compa- was appointed and studied each location. nies and hosted more than 54 new SME Judges nominated their winning and projects in 2018. It provides small rental runner-up locations in each region, as well spaces dedicated to start-ups in its off- as their top zones for SME and Large Winners – shoring services area and has organised Tenant categories. In addition, some loca- multiple workshops and fairs to help fos- tions which were particularly outstanding SMEs ter growth and enhance their business have been acknowledged with honourable network connections. Tanger Med Zones mentions and bespoke awards. We have Winner:Global also offers access to its freight commu- also compiled a top ten ranking of zones, DMCC, UAE nity exchange website, a new mutual ser- based on the weighting model as follows. vice that simplifies the connection WEIGHTING DMCC recognises that SMEs are the between SMEs and tenants already set up % increase in occupied space 2017-2018 10 backbone of Dubai’s economy and as for logistic services. Number of SMEs 2018 1.25 such has accelerated efforts to attract and support them. The zone launched % increase in SMEs 2017-2018 2.5 Highlycommended:Africa several key initiatives in 2018 to Nominal increase in SMEs 2017-2018 2.5 Djibouti International Free Trade Zone, enhance choice and efficiency for its Number of large tenants 2018 1.25 Djibouti members, including its Made for Trade % increase in LTs 2017-2018 2.5 Live international roadshow, its Sales Djibouti International Free Trade Zone Nominal increase in LTs 2017-2018 2.5 Transformation scheme, and the online has a range of initiatives and incentives Total number of employees 2018 2.5 DMCC Help Centre. DMCC has also col- designed to support new companies, % increase in number of employees 2017-2018 5 laborated with leading property devel- including SMEs, and ensure they are Nominal increase in employees 2017-2018 5 oper Emaar to introduce the United fully integrated into, and benefit from, Total scores of judges’ results 65 Arab Emirates’ first work-from-home Djibouti’s infrastructure network. Its project. This unique opportunity allows Port Community System programme, quality of infrastructure within the zone investors in Emaar co-living communi- launched in July 2018, offers a paperless ranks consistently among the highest in ties to obtain a company incorporation tool for single-point entry, thus reduc- Central America, with ports, airports, and a three-year business licence resi- ing regulatory burdens on smaller com- continental highways and the Panama dence visa and operate their business panies. Tenants in Djibouti Free Trade Canal in close proximity. The zone also from the comfort of their own home. Zone benefit from: 0% tariff measures; offers residential benefit programmes With the rise of freelancers and flexible 0% corporate income tax; 0% personal with access to beaches, restaurants and working schedules, this ownership income tax for foreign employees; 0% national parks among other recrea- scheme has already had more than 200 VAT; 0% property tax; 0% dividend tax; tional activities. investors involved to date. DMCC also and a stable local currency pegged to hosts Astrolabs, the only Google tech the US dollar. Winner:MiddleEast hub in the Middle East and north Africa DMCC, UAE region, which is home to more than 160 Winner:Asia-Paciﬁc start-ups and entrepreneurs. Turkistan Special Economic Zone, (See Global awards) Kazakhstan Highly commended:Global Highlycommended:MiddleEast Łódź Special Economic Zone, Poland Turkistan Special Economic Zone has Jebel Ali Free Zone, UAE been named the leading free zone in the In 2018, Łódz Special Economic Zone Asia-Pacific region for SME tenants. The Jebel Ali Free Zone (Jafza) contributes completed construction of a zone offers several programmes specifi- more than 23.8% to Dubai’s GDP, gener- 12,270-square-metre warehouse and cally for SMEs, including 21 state grants ating $93bn-worth of trade and sustain- production space consisting of eight and five regional grants, as well as sup- ing more than 135,000 jobs. As a leading 1270-square-metre modules to fulfil port programmes and loans with low- business hub between Asia, Europe and SME demand for light production interest rates and deferred payment Africa, and with a history of more than space. Due to growing demand from options. Initially, the industrial zone of three decades, Jafza focuses on long- investors, including Japan-based food the SEZ consisted of 36.67 million square term customer relationships. Jafza manufacturer Takaokaya, the zone is metres of greenfield land but in order to builds alliances with global investors by already planning to build another facil- attract start-ups and SMEs, an additional providing them with world-class infra- ity. Łódz SEZ also bolsters support 343,741 square metres of old factory structure and support. Major names through its Strefa RozwoYou training space was adjoined, which has ready-to- include Adidas, ArcelorMittal, General programme, which distributes training use buildings and is currently undergo- Motors and Siemens. About 460 tenants vouchers to cover up to 80% of financing modernisation.

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Winner:Americas Editor’s Choice Corporación Zona Franca Santiago, Winners – Awards Dominican Republic Large tenants Corporación Zona Franca Santiago was Export boosters judged the best free zone in the Americas Winner:Global Free Port of Ventspils, Latvia region for SMEs. The zone offers a specific Free Port of Ventspils, Latvia Sohar Free Zone, Oman entrepreneurship programme for SMEs as Tanger Med Zones, Morocco well as the Altice StarLab Bootcamp, Free Port of Ventspils has been named Freezone 4.0 which aims to support those with entre- the top global free zone for large ten- Zona Franca de Bogotá, Colombia preneurial spirit to transform their tech- ants, following a 46% increase in its Gateway award nology-based ideas into businesses. Its industrial output compared with 2017. Djibouti International Free Trade Zone, annual ‘Futuros Empresarios’ programme Ventspils is part of one of the most cost- Djibouti is aimed at the children of employees of effective territories in Europe and offers Hamriyah Free Zone Authority, UAE companies in the Víctor Espaillat Mera several tax incentives. The zone also Sohar Free Zone, Oman Industrial Park and other northern free provides tailor-made facilities and Investment retention zones. Zona Franca Santiago also supports ready-for-development sites for poten- Inhdelva Free Trade Zone, Honduras clients throughout the legal and permit- tial clients, plus user-specific infrastruc- Maximising resources ting process and its Cegesta Talent ture including all underground infra- Free Zone Sabac, Serbia Management Centre aims to simplify and structure, fibre-optic cables and Ones to watch accelerate the recruitment process for approach roads. Construction of new Djibouti International Free Trade Zone, companies in the zone. units will increase the zone’s rentable industrial space by 25%, and represents Djibouti an investment of $12.9m. Navoi Free Economic Zone, Uzbekistan Highly commended:Americas Turkistan Special Economic Zone, Zona Franca de Bogotá, Colombia Kazakhstan Highlycommended:Global In 2018, Zona Franca de Bogotá launched Tanger Med Zones, Morocco Overcoming adversity its ‘Zona de Enlace’ initiative, which FEZ Gomel-Raton, Belarus aims to help 41 small businesses from Tanger Med Zones is a global logistics gate- Site conversion five locations across western Bogotá to way connected to 186 ports worldwide Subic Bay Freeport Zone, Philippines reach their potential. With the support and provides a processing capacity of 9 Supporting surrounding area of local experts from the Bogotá million containers, 7 million passengers, Free Zone Pirot, Serbia Chamber of Commerce, the companies 700,000 trucks and 1 million vehicles. The focus on strengthening their administra- zone is currently developing an additional Highlycommended:Asia-Paciﬁc tive, financial and innovation capabili- 220-hectare extension to be delivered by Subic Bay Freeport Zone, Philippines ties, before establishing commercial ties the end of 2019, and has more than 45 to sell their products and services to the plants under construction for its tenants. Subic Bay Metropolitan Authority part- companies in the zone. nered with the Land Bank of the Winner:Africa Philippines to provide loan facilities to Winner:MiddleEast Tanger Med Zones, Morocco SMEs and other logistics-focused compa- DMCC, UAE nies as part of the agency’s port market- (See Global awards) ing initiative. (See Global awards) Highlycommended:Africa Winner:Europe Highlycommended:MiddleEast Onne Oil & Gas Free Zone, Nigeria Łódź Special Economic Zone, Poland Kizad, UAE Onne Oil & Gas Free Zone is a hub for oil (See Global awards) In the third quarter of 2018, Kizad and gas activities in sub-Saharan Africa launched its Entrepreneurship and and has attracted several of the world’s Highlycommended:Europe Incubation Centre, offering cost-effective largest oil companies, including Total Free Port of Ventspils, Latvia work spaces, offices and licensing and ExxonMobil. Investors have access to options to enhance the entrepreneur- numerous business, financial, customs Free Port of Ventspils offers municipality ship and SME ecosystem in the United and immigration incentives, including support and business incubation ser- Arab Emirates and support Abu Dhabi’s zero corporate tax, 100% foreign owner- vices for start-ups and SMEs. This economic vision. Businesses can be set up ship and free movement in and out of includes round-the-clock free service at at the centre in just 24 hours, then con- the zone. Onne Oil & Gas Free Zone pro- the zone’s Business Support Centre and nect with like-minded individuals to col- motes its activities by attending and Business Incubator, and a support pack- laborate and innovate at a competitive organising oil and gas-related confer- age including access to co-working space cost. Following local government direc- ences and exhibitions. and office premises. Free Port of tives, to support start-ups and SMEs, Ventspils has a close co-operation with Kizad now offers business licences at no Winner:Asia-Paciﬁc its local government, which provides a cost for the first two years of operations. Shanghai Waigaoqiao Free Trade Zone, good foundation for entrepreneurship In addition, the dual-licensing system China and for implementing business-friendly enables free zone companies to apply for policies. The zone is currently imple- an additional domestic economic zone Shanghai Waigaoqiao Free Trade Zone menting an ICT industry growth strat- licence at a nominal cost so they can has been recognised as the best free zone egy to support ICT start-ups. offer their services outside the zone. for large tenants in the Asia-Pacific

10 www.fDiIntelligence.com October/November 2019 SPOTLIGHT ON DGFEZ ADVERTISEMENT FEATURE tively easy to finance capital through mutual cooperation and the risk of sole investment can be largely dispersed.

Q4. WHAT HAS BEEN THE RESULT OF PROMOTING THE JOINT VENTURE AS AN ATTRACTION STRATEGY? The most representative case is DGFEZ linking Tae Gang Steel, an auto part company that participated in CES (Consumer Electronics Show) in the US in January this year, and Cartech, located in Opelika, Alabama, USA. Tae Gang Steel and Cartech have invested USD8 million in the Yeongcheon District to build a new plant and introduce new facilities. Commissioner Inseon Lee personally visited Opelika and searched for American companies that could invest in Korea, and produced the joint investment between Cartech and Tae Gang Steel. She prepared the connection with the companies in Daegu-Gyeongbuk through going back and forth between Opelika and Yeongcheon. Commissioner / Inseon Lee Moreover, two or three companies that showed interested in investing in Daegu- Gyeongbuk during DGFEZ’s investment attraction activities in Southeast Asia last year are currently reviewing joint investment in the DGFEZ MAKES Suseong and Gyeongsan Districts. Q5. WHAT ARE YOUR FUTURE PLANS AND DEVELOPMENT DIRECTIONS BASED ON THE ACHIEVEMENTS UNTIL THE GRADE NOW? The reason for the existence of free economic Daegu-Gyeongbuk Free Economic Zone Authority ranked at the zones lies in the globalization of regional top grade in the evaluation of 7 free economic zones nationwide economies. We plan to focus on attracting foreign companies to provide good jobs to local youths and leading the advancement-globali- Q1. IN 2019, THE DAEGU-GYEONGBUK ness strategy, which evaluate the organiza- zation of local companies through providing FREE ECONOMIC ZONE AUTHORITY tion’s vision and core values. the optimal management environment and (DGFEZA) ACHIEVED THE HIGHEST The continued promotion of comprehen- settlement conditions so that foreign- RATING, S, IN THE KOREAN sive support policies that meet the needs of invested companies can freely conduct eco- GOVERNMENT’S FREE ECONOMIC the company such as preemptively establish- nomic activities. ZONE PERFORMANCE EVALUATION. ing mid- and long-term development strate- At the moment, there are resident WHAT KIND OF EVALUATION IS IT? gies that include innovative growth strategies smart factory companies in Yeongcheon, The Free Economic Zone Performance to lead the 4th industrial revolution in accord- Gyeongbuk and the robotics-related compa- Evaluation, which was first introduced in 2010, ance with the Ministry of Trade, Industry and nies, such as Hyundai Robotics, have settled is annually conducted on all free economic Energy’s Second Basic Plan for Free Economic into Daegu Technopolis so the city has been zones nationwide by the Ministry of Trade, Zones, and generating joint ventures through acting as a catalyst for improving the corpo- Industry and Energy. It evaluates the overall export consultations and investment briefings rate environment of Daegu-Gyeongbuk to the performance of the free economic zones in to support resident companies seem to have global standards. DGFEZA will strive to become the previous year. been ideal factors. an forward base so that these companies will The evaluation committee consisting of revitalize the local economy and become a 16 private experts conducts the evaluation in Q3. YOU ARE STRATEGICALLY base for Korea’s innovative growth. the order of written review, on-site inspection PROMOTING JOINT VENTURES. IN THIS and main evaluation during February to June, ASPECT, WHAT KIND OF ADVANTAGES 2019, and the contents is composed of 14 DOES DGFEZ HAVE? Sponsored by items in 2 areas, including organization opera- Twenty-three out of 27 DGFEZ overseas tion, leadership of the head, development investment cases have been or are currently business and investment attraction strategy, in the form of joint venture. To attract more investment attraction of foreign and domestic joint venture types, DGFEZ has been promot- companies, and the number of jobs of resi- ing excellent investment conditions in the dent companies. regions by continuously identifying demands for joint ventures with foreign companies and Q2. WHAT IS THE BACKGROUND OF THE holding joint briefing sessions with local com- SELECTION OF THE TOP RATING? panies. Foreign companies unfamiliar with In this evaluation, DGFEZA was ranked in the domestic laws, norms and procedures can top grade by acquiring the S ratings in 8 quickly enter the overseas market with part- items, including development strategy, lead- ners that can compensate for their weak- ership of the head and development businesses. Another advantage is that it is rela- GLOBAL FREE ZONES OF THE YEAR 2019

region. Located in one of the fastest grow- Americas. The zone plays host to and operating in the zone can be up to ing regions in China, the Yangtze River numerous industrial companies such 50% cheaper than in other zones in the Delta, the zone attracted investment as Daimler, DHL and Fibertex. In 2018, region. Investors can also benefit from from several multinationals including the zone received the ‘Partners in fully customisable support based on Siemens, Mitsubishi, RWE and Arrow Logistics’ award from Kuehne + Nagel their own needs. In 2018, Rakez imple- Electronics. The zone aligns its develop- in recognition of its work on the chal- mented measures to improve the ease of ment with China’s national strategic lenges posed by the logistics sector on doing business in the zone, including plan to develop Shanghai into an interna- the global environment. It is the largest opening three new service centres pro- tional economic, financial, trading and free zone in Latin America in logistics viding a one-stop experience, and the shipping centre and makes determined processes and, by the end of 2018, had launch of Portal 360, an online self-ser- efforts to facilitate business registration, originated more than 237,000 foreign vice platform that offers clients access to operation and retention. By the end of trade operations. its services 24/7. the first quarter of 2019, 99 multinational corporations had set up their Asia- Highly commended:Americas Pacific headquarters in the zone, more Panamá Pacíﬁco, Panama than anywhere else in mainland China. Winners – Various multinationals including Highlycommended:Asia-Paciﬁc Maersk, PPG Industries, Dell, FedEx, Specialism Awards Special Economic Zone Pavlodar, Lacoste and PepsiCo have operations in Kazakhstan Panamá Pacífico. Investors benefit Agribusiness from good telecommunications and ZPE Uberaba, Brazil Special Economic Zone Pavlodar is one logistics infrastructure as well as class of the largest and most successful invest- A offices and warehouses. The More than 100 companies in ZPE ment areas in Kazakhstan. The zone PanAmerican Corporate Centre, an Uberaba work in the meat business, spans 1200 hectares and is home to 30 industrial area of 96 hectares located in from livestock genetic improvement, companies including the multinationals the western area of the zone, is home to products and services to commodities Chimec, Posco and China Machinery international companies in the hi-tech and technology. Well-known fertiliser Engineering Corporation. Investors ben- manufacturing and logistics services brands Yara, Mosaic and FMC have also efit from tax exemptions, provision of sectors, such as 3M, J Cain, 3PL, BASF invested in the zone, while VLI is also land for free, low tariffs for public utili- and TLA, among others. The project has planning to open a new intermodal hub ties, proximity to the Russian, Chinese developed about 210,000 square metres specifically designed to handle cargo and central Asian markets, and accessi- of space. An additional 15-hectare area such as grains and sugar. bility to mineral resources. In May 2019, is currently being developed, about SEZ Pavlodar became the regional office 85,000 square metres of which will be Aluminium for the World Free Zones Organization arranged into six warehouses that will Special Economic Zone Pavlodar, in Central Asia. have access roads, loading platforms Kazakhstan and parking lots for employees. Winner: Europe Kazakhstan’s aluminium production is Free Port of Ventspils, Latvia Winner:MiddleEast centred in the Pavlodar region due to an Jebel Ali Free Zone, UAE abundance of bauxite. Special Economic (See Global awards) Zone Pavlodar has attracted numerous Jebel Ali Free Zone (Jafza) has been investors in the aluminium sector includ- Highlycommended:Europe crowned the Middle East’s best free zone ing Kazfoil, a manufacturer of aluminium Wałbrzych Special Economic Zone Invest- for large tenants. Multinationals such as foil with an annual production capacity Park, Poland BASF, China Cosco Shipping, Ericsson, of 25,000 tonnes, and JSC Aluminum of Hitachi and Indian Oil have operations Kazakhstan, which produces 1.5 million The automotive industry is the leading in the zone, whose quality-driven value- tonnes of aluminium oxide a year. sector in Wałbrzych Special Economic added services and incentives enable cus- Zone Invest-Park, securing investment tomers to access huge business opportu- Appliances from corporations including Toyota, nities in the region with ease and effi- Łódź Special Economic Zone, Poland Mercedes-Benz and Volkswagen. Located ciency. Jafza’s integrated one-stop shop in south-west Poland, the zone benefits for trade and logistics has helped it Since the zone’s launch in 1997, more from a long regional tradition of indus- repurpose its value proposition for com- than 20 companies from the household trial production and proximity to panies operating out of the zone and is appliances sector have invested in the Germany and the Czech Republic. In now an integral part of DP World’s stra- Łódz Special Economic Zone, including addition to income tax exemptions and tegic focus on a phased growth journey Whirpool, Miele and BSH, creating more attractive investment plots, Wałbrzych across its business divisions globally. than 5000 jobs. Łódz SEZ actively aims to SEZ offers administrative, human attract new companies and their suppli- resources and accounting support and Highly commended:MiddleEast ers to the zone. In 2018, UK-based Hellyar access to a network of reliable profes- Ras Al Khaimah Economic Zone, UAE Plastics invested more than €4.2m in a sional suppliers and partners. new factory, stating that the Łódz region Ras Al Khaimah Economic Zone (Rakez) is the centre of home appliances produc- Winner:Americas is home to more than 14,500 companies tion in Poland and throughout Europe. Zona Franca de Bogotá, Colombia spanning 100 different countries includ- In May 2019, the zone co-organised the ing Ashok Leyland, Franke and Knauf. second Household Appliance Congress, Zona Franca de Bogotá has been named Multinationals have chosen Rakez due to the largest CEO summit in the industry. best free zone for large tenants in the its cost-effectiveness, since setting up More than 300 guests attended the event

12 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

to exchange ideas and discuss topics cru- nance centre in the coming years to ser- cial for the sector with important repre- vice Boeing aircraft. “THE TWO fDi AWARDS sentatives and experts, including gov- FOR THE BIRMINGHAM CITY ernment representatives. Businessprocessoutsourcing CENTRE ENTERPRISE ZONE Zona Franca Santander, Colombia UNDERLINE OUR POLICY Automotive Tanger Med Zones, Morocco Two of the largest companies in Zona OF BACKING HIGHLY Franca Santander are in the customer ser- DELIVERABLE, Tanger Med Zones hosts the Renault vices sector. Majorel (formerly Arvato) was INFRASTRUCTURE-LED Nissan Mitsubishi Alliance Plant, which the zone’s first foreign investor and is Africa’s largest automotive plant with anchor company in the global services PROJECTS FOCUSED ON a total production capacity of 450,000 sector, while Accedo was the first major GROWING OUR ECONOMY” cars a year. Thanks to Tanger Med Zone’s English-speaking operation in the region, Tim Pile, chair, Greater Birmingham and Solihull Local Enterprise Partnership automotive cluster, Morocco is the top providing live chat and telephone sup- country in Africa in the automotive port to companies in Europe and the US. industry and fifth largest automotive Under agreements established by Majorel, exporter to Europe worldwide. Accedo, SENA and the government of Santander, several bilingual courses have Aviation been introduced, improving the offering Liepaja Special Economic Zone, Latvia of qualified staff for its call centres.

Liepaja International Airport is inte- Financialand professionalservices grated with Liepaja Special Economic Birmingham City Centre Enterprise Zone, Zone and offers daily flights operated by UK airBaltic airlines. In connection with the airport’s runway renovation and upcom- Birmingham City Centre Enterprise Zone ing technical training programme, air- has been instrumental in supporting the Baltic Pilot Academy has decided to open expansion of key growth sectors in the a new flight base and aircraft mainte- city. In October 2018, banking giant

SPOTLIGHT ON LIEPAJA SEZ ADVERTISEMENT FEATURE Liepaja Special Economic Zone (LSEZ) is technical MRO hangar to service Boeing air- among top free zones in Baltics recog- crafts. This is a result of complex offer forma- nized by international industry players. tion to investors consisting of available loca- Combination of a growing ice-free port, tion, infrastructure and specialist training pro- an international airport and developing indus- gram proposal. Liepaja SEZ has a unique trial areas provides unique location for sus- employment attraction program in coopera- tainable growth. Five new factories com- tion with the industrial tenants. pleted during last year, five under construc- As main upcoming project is creation of tion, and 7 are in design phase. Investment of new industrial 120 ha park in former territory 45 million euro in the port infrastructure like of metallurgical plant with 120 MW electricity, dredging deeper access channels, building gas, rail network and close proximity to the new access roads and railway parks. port. This will is excellent location for energy There are 5 active business parks operat- consuming manufacturing. ing in the Liepaja SEZ, offering almost 400,000m2 of production facilities. Port ste- Liepaja – a city that combines global vedoring companies are building new ware- scope with the benefits of a small town. houses, open storage areas and are able to provide multimodal logistics solutions. Learn more about Liepaja: The Liepaja Port is the fastest growing [email protected] port in the Baltic Sea region. In the last two www.liepaja-sez.lv years, the Liepaja Port has made an increase of its cargo turnover by more than ten per INDUSTRIAL cent and has reached a record cargo turnover of 7,54 million tons. Regular ferry line depar- tures between Liepaja and Lubeck in Sponsored by TRADITIONS Germany makes Liepaja port a gateway of new German car deliveries to the Baltic states. IN LIEPAJA AirBaltic airline operates daily flights to Liepaja International Airport. Besides there is The main factor for another international airport just 60 km away. sustainable growth The Liepaja airport is main flight base for the AirBaltic Training Pilot Academy. In the upcoming years there will be built an aircraft GLOBAL FREE ZONES OF THE YEAR 2019

infrastructure network, Djibouti International simplified, meaning companies in the Winners – Editor’s Free Trade Zone offers companies access to Navoi Free Economic Zone have addi- at least 13 landlocked African countries and tional customs privileges. Today, tenants of Choice Awards free trade networks across Africa. the zone are exempted from customs duties Hamriyah Free Zone, the second larg- for imported equipment, raw materials and Exportboosters est and fastest growing industrial free zone in production components. Over the past year, In 2018, Free Port of Ventspils saw a 46% the United Arab Emirates, is spread across 30 the territory of the economic zone has been increase in its industrial output compared square kilometres of land and has a 14-metre increased twice and the full Navoi region with 2017 and experienced the highest deep-water port and a seven-metre deep has been declared a free economic zone. growth of exports per capita out of all of inner harbour. The zone is uniquely located Established in October 2018, Turkistan Latvia’s major cities. Almost 90% of all pro- at the intersection between three conti- Special Economic Zone in Kazakhstan has duction was exported, the zone’s best per- nents, is connected to 230 global cities by already made major development strides, formance since 2002 when its industrialisa- land, sea and air and allows investors to serve offering undisturbed access to the west tion policy was launched. a growing market of 2 billion people. Europe-west China transnational transport Oman’s Sohar Free Zone has also been The Sohar Port South expansion will corridor, preferences andincentives, free land highlighted as an export booster, having increase trade flows in Oman, allowing ships and governmental guarantees. Investors can recentlysignedanagreementwithAlTamman to directly call at the port, and welcome a also take advantage of the Eurasian Union Indsil FerroChrome for the expansion of the greater variety of customers in the future. and other Kazakh trading partnerships. company’s facility in Sohar to produce The added land area at the port will addition- 112,500 tonnes of ferrochrome per year, and ally support the creation of new and sustain- Overcomingadversity with Sanvira Industries for the construction of able jobs in Sohar Free Zone. Sohar has The Gomel region in Belarus suffered heav- a new calcined petroleum coke plant. The established itself as a gateway to the boom- ily due to the Chernobyl disaster in 1986, zone’sPortSouthexpansionbooststhezone’s ing markets of the Persian Gulf through with many people choosing to relocate and reputation as a logistics hub in the region and excellent road systems, international air- foreign investors apprehensive about lin- will increase trade flows in Oman. ports and key rail links. gering radiation. FEZ Gomel-Raton was Tanger Med Zones in Morocco has established to overcome this stigma and grown its total export turnover from €7.2bn Investment retention bring jobs back to the area. In 2018, 48.1% in 2017 to €8.3bn in 2018. Major manufac- Following the post-election riots of 2017, of all investments made in the Gomel region turers currently destock in the zones, Inhdelva Free Trade Zone in Honduras had were in the free economic zone and 43.8% including brands in the automotive, aero- to work strenuously to retain investors. In of all goods exported from the region were nautic, renewable energy, textile and logis- order to secure investment from a US-based made by its residents. tics sectors such as Bosch, Siemens, Valeo, sports apparel company, the zone offered a Renault, Magneti Marelli and Denso. comprehensive support plan from the off- Site conversion set including access to 21 engineers, its Subic Bay Freeport Zone in the Philippines Freezone4.0 best law firm and insurance companies, as is recognised as one of the world’s most Zona Franca de Bogotá has been awarded well as establishing partnerships with elec- successful military base conversions. the Freezone 4.0 award. During 2018, the trical; heating, ventilation and air-condition- Established in 1992 following the pullout of zone started the Free Trade Zones 4.0 move- ing; and telecommunications companies. the US Navy from what was the biggest ment, with the objective of transforming free As a result, the company has already started American military base outside of continen- zones into maximum competitive environ- its pre-construction process and is due to tal US, the zone was created to generate ments through AI, automation and analytical open at the end of 2020. alternative employment to some 25,000 projects. The zone also received a Building former base workers. With employment fig- Performance Institute certification from Maximisingresources ures now running at 135,000, and cumula- Icontec and the Chamber of Commerce of The success of Free Zone Sabac in Serbia is tive investments at about $10bn, Subic has Bogotá for its innovative practices, the first a result of years of continuous efforts by the proven to be a forward-looking free zone and only free-trade zone in Colombia to do so. local authorities, from planning to land grounded on a mission to bring about a sus- Zona Franca de Bogotá has high levels of con- acquisition and infrastructure develop- tainable local economy and promote inclu- nectivity, with 15 broadband operators, and ment. The zone is run by a management sive growth among its stakeholders. offers flexible, scaleable and turnkey real team of just four people, and over the years Currently, Subic Bay Freeport continues this estate solutions for business process out- has been completely structured, imple- mission to include nearby communities in sourcing, IT outsourcing and knowledge pro- mented and financed by the city of Sabac. its development by serving as an anchor cess outsourcing companies. It also has five Free Zone Sabac is the result of a structured destination for investment and tourism, and datacentres,four ofwhichhavebeen granted and organic growth based on understand- by creating opportunities for employment. tierthreecertificationbytheUptimeInstitute. ing company needs. Supportingsurroundingarea Gateway award Ones towatch Free Zone Pirot in Serbia has been credited The inauguration of Djibouti International Launched in July 2018, Djibouti Inter- for supporting its surrounding area. For the Free Trade Zone in 2018 has placed Djibouti national Free Trade Zone has been high- first time, 11 hectares of free zone territory at the forefront of the African continental lighted as ‘one to watch.’ In less than a year, is being extended to the underdeveloped free-trade movement. Positioned on the the zone has welcomed more than 50 com- and devastated neighbouring municipali- world’s busiest maritime trade routes, the panies from around the world, working in the ties of Dimitrovgrad and Babušnica. The zone has received the Gateway award in rec- logistics, manufacturing and energy sectors. expansion will see the creation of 121 jobs. ognition of its facilitation of global trade to According to a decree by the president Eco Rubber will start production in reach the African continent. Supported by of Uzbekistan on May 15, 2019, the proce- Dimitrovgrad in 2019, investing €2.5m in a the country’s $15bn world-class multimodal dure for selecting investment projects was new plant recycling waste tyres.

14 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

DR SAMIR HAMROUNI What makes a successful free zone? THE CEO OF THE WORLD FREE ZONES ORGANIZATION OUTLINES THE ATTRIBUTES THAT ARE ESSENTIAL TO FLOURISHING FREE ZONES

very free zone is unique, designed for different purposes depending on the E host territory. A developing landlocked country will not look for the same benefits as a mature coastal economy. Socioeconomic conditions will define the government’s goals for its free zone. These will shape the free zone’s structure, target clients and scope. The success of a free zone is defined by the level of business excellence it achieves and by its economic contribution to its host government’s goals. These can range from boosting exports and jobs, to knowledge transfer and secondary benefits beyond the free zone itself. There are, however, core elements that a free zone must provide to fulfil its purpose.

A good match The basic principle is to match the free zone’s design to the country’s development priorities and to the means a government can access. This requires prudent investment in a specific indus- “THE BASIC PRINCIPLE IS try sector that is sustainable over time, possibly with a private development partner. Free zone TO MATCH THE FREE ZONE’S benefits can sometimes take longer to material- DESIGN TO THE COUNTRY’S ise than initially expected and careful invest- DEVELOPMENT PRIORITIES” ment planning will account for that. The aim is for long-term benefits to flow smoothly and essential to convince clients to set up in a free continuously into the host economy. zone. This demands good governance tools to It is also important to set up a free zone ensure adequate compliance. Important rules within easy reach of reliable infrastructure to define include environmental policies, that is relevant to the industry sector served. labour standards and even safety. Along with This includes adequate physical as well as concrete incentives, specific regulation is one human assets, along with efficient administra- of the most effective tools to attract investors. tive procedures. For example, a hi-tech-focused The key is to structure these advantages to free zone in a country with poorly trained ensure everyone extracts appropriate benefits labour resources will fail, as will a manufactur- in a sustainable way. ing free zone without effective transport Free zones can only prosper if marketed routes to ports and cities. properly. This requires an adequate budget for Moreover, in the digitisation era, it is regional promotion to encourage collabora- equally crucial to offer simple administrative tion and synergies, and global promotion to processes that leverage technology to better attract investment from multinational enter- serve free zone clients. Without these ele- prises active in the global value chain. Only ments, a free zone may fail before it even starts. then can free zones truly deliver the local prosperity that they are meant to foster. ■ Reliable regulation Finally, a free zone is only as strong as the regu- Dr Samir Hamrouni is CEO of the World Free lation it provides. A reliable legal framework is Zones Organization.

16 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

HSBC relocated its UK headquarters from Knowledgeprocess outsourcingand London to Birmingham and already IToutsourcing “OUR INNOVATIVE employs more than 2500 staff at the new Zona Franca de Bogotá, Colombia ENVIRONMENT BRINGS head office. In 2019, multinational pro- TOGETHER WORLD-CLASS fessional services company PwC will relo- Zona Franca de Bogotá offers flexible, cate to the One Chamberlain Square scaleable and turnkey real estate solu- SOCIAL AND BUSINESS building in the Paradise development, tions for business process outsourcing, INFRASTRUCTURE WITH attracted by the high-quality office space, IT outsourcing and knowledge process UNIQUE TAX PREFERENCES central location and support from the outsourcing companies. Investors PROVIDED BY THE SPECIAL zone’s relocation service. Projects such as including UK-based multinational tele- these contribute to the city’s position as a coms company BT, Spain-based business ECONOMIC ZONE” leading business, professional and finan- process management company Digitex Renat Khalimov, CEO, Innopolis SEZ cial services hub. and Brazil-based IT management company Tivit have established operations in IT the zone. Innopolis SEZ, Russia Logistics More than 16,000 highly skilled IT spe- Liepaja Special Economic Zone, Latvia cialists nationwide are willing to relocate to Innopolis and are awaiting jobs Liepaja Port is the fastest growing port in and housing to become available. More the Baltic Sea region. Its cargo turnover than 150 IT specialists graduate from increased by 16% in 2017 and 14.4% in Innopolis University every year, 95% of 2018 to reach a record 7.53 million whom take up their first employment tonnes. There are five active business with a company in the zone. A new parks, offering almost 400,000 square industrial park is currently under devel- metres of production facilities. The opment that aims to attract IT-related port’s stevedoring companies have built manufacturing companies in areas such new warehouses and open storage areas as robotics, microelectronics, additive and can provide multimodal logistics technologies and prototyping. solutions. Production output in

October/November 2019 www.fDiIntelligence.com 17 GLOBAL FREE ZONES OF THE YEAR 2019

Katowice Special Economic Zone, Poland Togliatti, Russia Bespoke Kizad, UAE Katowice Special Economic Zone, Klaipeda Free Economic Zone, Lithuania Poland Awards La Lima Free Zone & Business Park, Lipetsk Industrial Special Economic Zone, Costa Rica Russia 5G readiness Liepaja Special Economic Zone, Latvia Sharjah Airport International Free Zone Łódź Special Economic Development Lipetsk Industrial Special Economic Zone, Authority, UAE Zone, Poland Russia Skopje, North Macedonia Academic collaboration Łódź Special Economic Zone, Poland Special Economic Zone Pavlodar, Panamá Pacífico, Panama Panamá Pacífico, Panama Kazakhstan Skopje, North Macedonia Panapark Free Zone, Panama Tanger Med Zones, Morocco Special Economic Zone Production and Parque Central Zona Franca, Colombia Zona Franca de Bogotá, Colombia Industrial Type Alabuga, Russia Ras Al Khaimah Economic Zone, UAE Port development Access to raw materials Rezekne Special Economic Zone, Latvia Liepaja Special Economic Zone, Latvia Special Economic Zone Pavlodar, Shanghai Waigaoqiao Free Trade Zone, PPP Kazakhstan China Gabon Special Economic Zone, Gabon Cluster development Skopje, North Macedonia Real estate flexibility Free Port of Ventspils, Latvia Special Economic Zone Pavlodar, Panapark Free Zone, Panama Special Economic Zone St Petersburg, Kazakhstan Recruitment assistance Russia Special Economic Zone St Petersburg, Coyol Free Zone, Costa Rica Connectivity Russia Red tape reduction Djibouti International Free Trade Zone, Walbrzych Special Economic Zone Invest- Cayman Enterprise City, Cayman Islands Djibouti Park, Poland Djibouti International Free Trade Zone, Free Zone Pirot, Serbia Zona Franca del Pacífico, Colombia Djibouti Łódź Special Economic Zone, Poland Zona Franca Tayrona, Colombia Kizad, UAE Panamá Pacífico, Panama Facilities upgrades Lipetsk Industrial Special Economic Crossborder collaboration Cayman Enterprise City, Cayman Islands Zone, Russia Free Port of Ventspils, Latvia Dubna Special Economic Zone, Russia Subic Bay Freeport Zone, Philippines Special Economic Zone Ontustik, Kazakhstan Las Americas Free Zone, Dominican Relocation services Special Economic Zone Production and Republic Birmingham City Centre Enterprise Industrial Type Alabuga, Russia Lipetsk Industrial Special Economic Zone, Zone, UK Panama Pacífico, Panama Russia Smart strategies CSR initiatives Ramanujan IT City SEZ, India Jebel Ali Free Zone, UAE Corporación Zona Franca Santiago, Flexible space Start-up support Dominican Republic Klaipeda Free Economic Zone, Lithuania Free Port of Ventspils, Latvia Parque Central Zona Franca, Colombia Incentives Łódź Special Economic Zone, Poland Deployment of technology Free Economic Zone Taraclia, Moldova Tanger Med Zones, Morocco Cayman Enterprise City, Cayman Islands Free Zone Pirot, Serbia Skills development Jebel Ali Free Zone, UAE Rezekne Special Economic Zone, Latvia Cayman Enterprise City, Cayman Islands La Lima Free Zone & Business Park, Sohar Free Zone, Oman Łódź Special Economic Zone, Poland Costa Rica Industry 4.0 Panamá Pacífico, Panama Lipetsk Industrial Special Economic Daegu Gyeongbuk Free Economic Zone, Skopje, North Macedonia Zone, Russia South Korea Special Economic Zone Production and Mahindra World City, Chennai, India Innopolis SEZ, Russia Industrial Type Alabuga, Russia Zona Franca de Bogotá, Colombia Katowice Special Economic Zone, Poland Zona Franca Santander, Colombia Diversity initiatives Łódź Special Economic Zone, Poland Supplier development Cayman Enterprise City, Cayman Islands Infrastructure upgrades Balti, Moldova Zona Franca de Bogotá, Colombia Arvand Free Zone, Iran Sustainability Economic impact Free Port of Ventspils, Latvia Corporacion Zona Franca Santiago, Djibouti International Free Trade Zone, Hamriyah Free Zone Authority, UAE Dominican Republic Djibouti Jebel Ali Free Zone, UAE DLF Cybercity Chennai, India Gabon Special Economic Zone, Gabon Las Americas Free Zone, Dominican DLF Cybercity Gurugram – Bldg 14 and 6, Jebel Ali Free Zone, UAE Republic India Efforts to improve transparency Liepaja Special Economic Zone, Latvia Mahindra World City, Jaipur, India Shanghai Waigaoqiao Free Trade Zone, Panamá Pacífico, Panama Talent pool China Skopje, North Macedonia Rezekne Special Economic Zone, Latvia Expansions Subic Bay Freeport Zone, Philippines Tech transfer Atlantic Free Zone, Morocco Zona Franca Tamboril, Dominican Republic Katowice Special Economic Zone, Poland Balti, Moldova International expansion Thought leadership Cayman Enterprise City, Cayman Islands Jebel Ali Free Zone, UAE DMCC, UAE Coyol Free Zone, Costa Rica Local transport Trade facilitation DMCC, UAE Klaipeda Free Economic Zone, Lithuania City of El Paso – FTZ 68, US Dubna Special Economic Zone, Russia Marketing slogan Industrial Park Great Stone, Belarus Free Port of Ventspils, Latvia DMCC, UAE Shanghai Waigaoqiao Free Trade Zone, Free Zone Pirot, Serbia Turkistan Special Economic Zone, China FTZ 78, US Kazakhstan Workforce amenities Hamriyah Free Zone Authority, UAE New investments DLF Cybercity Gurugram – Bldg 14 and 6, Industrial Park Great Stone, Belarus Daegu Gyeongbuk Free Economic Zone, India Industrial Special Economic South Korea Katowice Special Economic Zone, Zone Togliatti, Russia Dubna Special Economic Zone, Russia Poland Inhdelva Free Trade Zone, Honduras Industrial Special Economic Zone Klaipeda Free Economic Zone, Lithuania

18 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

Liepaja SEZ is growing on average by Steel graduate from the university, and since more than 10% annually, and reached Arvand Free Zone, Iran the first class, 70% of graduates have €271m in 2018. received employment offers. In April Steel is a priority sector for the Arvand 2019, the Agency for Strategic Initiatives Medicaldevices Free Zone. Kaveh Arvand Steel Co is plan- named Alabuga Corporate University Coyol Free Zone, Costa Rica ning to expand its operations in the zone among the top three HR development and will construct direct reduction units projects in Russia. Since its launch in 2007, Coyol Free with a steel-making capacity of 2 million Zone has hosted 28 leading global com- tonnes and heavy rolling stock, with a Cluster development panies, seven of which were ranked capacity of 1.4 million tonnes per year. n Free Port of Ventspils is focused on among the top 30 medical device com- developing its ICT cluster to support the panies in the world. Coyol Free Zone has Textiles development of ICT start-ups. The zone’s the highest concentration of the top Special Economic Zone Ontustik, comprehensive ICT development strat- medical devices companies in all Latin Kazakhstan egy is supported by the Business Support America and exported more than Centre, Ventspils University College and $1.98m in 2018, representing 1.2% of Special Economic Zone Ontustik, located the Digital Centre. The Free Port Costa Rica’s GDP. Medical devices are in the Yenbekshy district of Shymkent, is Authority recently started construction the top export product in Costa Rica fast becoming a hub for the textiles on a new science and innovation centre, and the zone represents 63% of all med- industry, attracting investment from which will encourage engineering and ical device exports, a figure that is companies in various sub-sectors. These digital thinking among children, and expected to grow. include Ekohim, a manufacturer of syn- facilities for ICT business offices and thetic ropes, cords, laces and netting; other support measures. Oilandgas Azala Cotton, a producer of mixed yarn; n A pharmaceutical cluster was estab- Onne Oil & Gas Free Zone, Nigeria SG Style, which sews men’s suits; and lished in Special Economic Zone St Ongud Group, a manufacturer of foot- Petersburg in 2013 following the imple- Onne Oil & Gas Free Zone is the only wear and other leather goods. mentation of a state programme to free trade zone dedicated exclusively to develop the pharmaceutical and medi- the oil and gas industry. Several oil cal industry in Russia. The cluster con- majors have established operations in tinues to grow, as shown by biotechnol- the zone, including Royal Dutch Shell, Winners – ogy company CJSC Biocad, the zone’s Total, Chevron and ExxonMobil. These largest resident, which is due to open a multinationals benefit from the zone’s Bespoke Awards new phase of its pharmaceutical com- strategic location adjacent to the Niger plex in 2019. The zone also plans to open Delta, which holds one of the world’s Academiccollaboration a new innovation centre by 2021 in order largest reserves of oil and gas, and easy n Panamá Pacífico has excellent part- to attract more residents. accessibility to other production loca- nerships with universities and institutions in sub-Saharan Africa. The zone is tions. Local companies and residents Connectivity near an international airport and have access to the Aden and Incae post- n Djibouti’s multimodal infrastructure boasts a helipad to sustain its daily off- graduate programmes as well as the network includes the Doraleh shore operations. Inadeh technical training courses. Five Multipurpose Port, which has the fastest schools are located within the zone, TEU rate in Africa, and the continent’s Pharmaceuticals including French High School, currently first transnational train line, the Addis Special Economic Zone St Petersburg, under expansion; Magen David; Ababa-Djibouti railway. Over the coming Russia Knightsbridge School; Saint Mary’s months, the railway will also be con- College; and Howard Academy, which nected to Djibouti International Free Novartis is one of the largest companies has a cultural collaboration agreement Trade Zone, creating an unprecedented in Special Economic Zone St Petersburg, with a primary school in Dayu, China. link for companies in the zone to both investing more than $150m in its pro- n Tailor-made programmes have been global maritime trade routes as well as duction complex. At total capacity, the created at the University of St Cyril & one of the most dynamic economies in factory can produce 1.5 billion units of Methodius and the University of Bitola the world. solid dosage forms per year and in the to develop potential employees for four n Construction of the Pan-European future, will develop more than 20 inno- organisations that have invested in Corridor X, which connects the city of vative drugs and generics. Currently, Skopje in North Macedonia: Adient, Belgrade to Sofia and Istanbul, will bol- the factory employs 174 people, and Johnson Matthey, Kromberg & Schubert ster Free Zone Pirot’s strategic position eventually expects to employ more than and Dräxlmaier. These programmes are in the Balkans. The interchange that 350 staff. predominantly focused on mechanical connects the Corridor X highway and and electrical engineering, as well as the zone is located 300 metres from the Robotics computer science, and have resulted in entrance to Free Zone Pirot. A logistics Daegu-Gyeongbuk Free Economic Zone, many student scholarships and intern- centre has also been constructed with South Korea ships throughout the years. two main infrastructural parts: a rail- n In 2018, the first 100 specialists gradu- road terminal plus 35 hectares of infra- South Korea-based robot company ated from Alabuga Corporate University, structure land for warehouses, plants Samick THK has recently agreed to invest the education project launched by and other supportive facilities, which $15m in Daegu-Gyeongbuk Free Special Economic Zone Production and will enable haulers to shift transit goods Economic Zone. As demand for its prod- Industrial Type Alabuga in 2016 to help from road to railway. ucts grows, the company expects to find the zone’s most ambitious execu- n Łódz Special Economic Zone is the establish a robotics cluster in Daegu. tives. This year’s group was the fourth to world’s first 5G economic zone. The zone

20 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

implements 5G technology at investors’ n As part of a working visit to the Special headquarters and, through its S5 pro- Economic Zone Production and “MODERN FREE ZONES gramme, educates enterprises on the Industrial Type Alabuga in Russia, the HAVE TO OFFER THEIR potential of 5G and then supports devel- managing company of Kazakhstan’s USERS COMPREHENSIVE oping applications for the 5G network Special Economic Zone Ontustik met that will accelerate their business. with Alabuga’s representatives and with CONDITIONS FOR n Strategically located just minutes the Investment Development Agency of CONTINUOUS INNOVATION, from ports, airports, continental high- the Republic of Tatarstan. AND PROGRESS, FOR THE ways and the Panama Canal, Panamá n Special Economic Zone Production OVERALL BENEFIT AND Pacifíco is ideally located to serve and Industrial Type Alabuga is continu- national and international markets. The ing to execute its joint partnership pro- PROSPERITY OF SOCIETY” zone boasts an airport within its limits ject with TEDA, one of the largest special Dragan Kostic, director, Free Zone Pirot in addition to the Hub of the Americas at economic zones in China. Negotiations Tocumen Airport, just 28 kilometres first started in 2016, and in 2018 the away. Moreover, two of the three largest joint project’s business plan was pre- ports in the Americas region are within sented to TEDA management during a 10-kilometre radius of the zone as well Tatarstan president Rustam Minni- as a railroad that carries cargo and pas- khanov’s visit to China. sengers from the Pacific to the Atlantic n Panamá Pacífico has extensive pro- and back again. grammes with PSA Port and Balboa Port (also in Panama) to expand com- Crossbordercollaboration mercial relations between them and n Latvia’s Free Port of Ventspils is proac- companies in zone. PSA Port completed tively working on its signed co-operation its second expansion phase in 2018 agreement with Industrial Park Great with a capacity of 2.5 million TEUs and Stone in Belarus, and is an active mem- several companies such as J Cain, BP ber of the Belt and Road International Logistics, Alliance Transport Logistics, Transport Alliance, which aims to 3M, LAPP, KPMG, Arturo Araúz strengthen regional co-operation with Customs Agency and TLA Group meet countries in Asia. periodically to understand this new

October/November 2019 www.fDiIntelligence.com 21 GLOBAL FREE ZONES OF THE YEAR 2019

business synergy and exchange market reach its maximum potential. Piciz, the updates. free zone management software developed by ZFB, is the latest leading technol- CSR initiatives ogy software in the Colombian market. n The corporate social responsibility There is a solid internationalisation programme in the Dominican plan, that will open doors to countries Republic’s Corporación Zona Franca such as the Dominican Republic, Costa Santiago allows employees, their fami- Rica, Panama, Guatemala, Mexico, lies and nearby residents to benefit Argentina and Peru. from opportunities that support their well-being. The zone’s Cooperativa La Diversityinitiatives “OUR RED TAPE REDUCTION Aurora initiative was launched to help n In 2018, Cayman Enterprise City was AWARD VALIDATES OUR provide a better quality of life for Zona involved in the launch of Women Code COMMITMENT AND Franca employees, with help for sav- Cayman. The initiative set out to support ings, loans and basic needs. Its breast women in technology to become active THE COMMITMENT OF cancer awareness campaign is held contributors to the Cayman Islands’ digi- ABU DHABI TO MAKE annually and has seen more than 4400 tal economy, to empower women who POLICIES, SYSTEMS AND studies carried out. code to pursue creative technology- PROCESSES SIMPLE AND n Parque Central Zona Franca has imple- driven careers, and to nurture support - mented a number of corporate social networks that foster leadership and BUSINESS FRIENDLY” responsibility initiatives in the fields of encourage professional growth in tech- Samir Chaturvedi, CEO, Kizad sport, education and community man- nology. Due to overwhelming interest in agement activities, among others. the free code education programme, the initiative was incorporated as non-profit Deploymentoftechnology and a curriculum was formalised. The n In December 2018, Cayman Enterprise zone continues to prioritise quality expe- City launched an online community for riences, develop innovative opportuni- its members with the aim of supporting ties, and deliver first-rate programming innovation and providing engaging to ensure that Caymanians and residents opportunities to collaborate. As a practi- of all backgrounds receive the right sup- cal resource and attractive online plat- port and encouragement to develop into form, the website enhances the overall leaders and active contributors to the zone experience with features including evolving global economy. community polls, competitions, event n Zona Franca de Bogotá runs the calendars, club pages, discounts and spe- Initiate ZFB Diversity and Inclusive pro- cial offers. gramme that seeks employment inclu- n DP World’s flagship Jebel Ali Port is sion with a difference. In total, 65 com- on schedule to become the first in the panies located in the zone were informed world to install a new, intelligent high about the equal opportunity pro- bay storage system called Boxbay that gramme, 23 were trained and a job fair will be ready in time for the Dubai Expo was held, which registered more than 2020. The pilot project under way at 2000 participants. Jebel Ali Terminal 4 is a fully automated stacking system for containers up to 11 Economic impact storeys high, capable of delivering the n On a domestic level, the pilot phase capacity of a conventional terminal in alone of Djibouti International Free one-third of the surface area. Trade Zone has boosted Djibouti’s GDP n La Lima Free Zone & Business Park in by 11%. With hopes to become the larg- Costa Rica has implemented a QR code est free-trade zone in Africa, the zone is system for reporting anomalies at the set to generate more than 350,000 jobs park. If employees see that something is in the next 10 years, most of which will not working properly, they can scan the be taken up by Djiboutians. code to report it. n In an effort to encourage long-term n In 2018, Lipetsk Industrial Special sustainability, Gabon is seeking to diver- Economic Zone launched a new digital sify its economy away from being pri- platform enabling companies to apply marily oil dependent. Gabon Special for tenancy online. Economic Zone is a catalyst in this jour- n Mahindra World City in Chennai, ney, generating close to 5000 direct jobs India, has developed an app for the city and an equal number of indirect jobs. that offers information for companies The zone has a 38% share in the total and their employees such as cab book- containers exported out of the country ings, handyman services, train and bus and has seen FDI flows of close to $1.7bn. times, emergency contacts and ambu- n Jebel Ali Free Zone contributes to lance support. almost one-quarter of Dubai’s GDP, gen- n As part of its Free Trade Zones 4.0 erating $93bn-worth of trade and sus- movement, Zona Franca de Bogotá uses taining more than 135,000 jobs. AI, automation and analytical projects to According to a report from Boston

22 www.fDiIntelligence.com October/November 2019 SPOTLIGHT ON COYOL FREE ZONE ADVERTISEMENT FEATURE ble if the appropriate human talent does not exist. Every day, more than 15,000 employees works in Coyol Free Zone, 54% of them are women and more than 50% of them uses Coyol Free Zone transportation services. In order to facilitate the availability and accessibility of this talented workforce and balance their capabilities with the needs of the industry, Coyol Free Zone has developed strategic programs that satisfy the Sourcing, Training and Selection needs of the companies creating the right conditions for their success, including bus transportation and people sourcing, preselection and training programs. Due to the strategic location, positive social progress indexes, average length of schooling and the high rate of people with concluded university studies around the area of influence, companies have access to the largest trained, competitive and committed human talent pool in Costa Rica.

INFRASTRUCTURE, INNOVATION AND EDUCATION, PILLARS OF THE FUTURE Coyol Free Zone is the first and best at one- stop-shop solution by offering our clients the convenience of a one-stop-service provider that coordinates with an open book concept all the pre-construction, execution, budget control, and delivery processes, throughout an experienced construction management team. As a result, our clients will receive a tailor-made turn-key building to comply with strict international quality standards, among them FM Global, ISO: 9001 and LEED Certification. COYOL FREE ZONE Providing a fully redundant electrical grid, intelligent digital meters, renewable sources A SMART-PARK WHERE INNOVATION, EXPERIENCE for generation and storage of electricity, and AND ADAPTABILITY CONVERGE the most innovative trends of A/C systems, Coyol Free Zone has become the first Smart Park in Costa Rica and has the capacity to offer With more than 20 years of experience thirds of the world market, a stable democracy the best and most efficient quality of energy to developing and managing industrial and the commitment to promote education. ensure success of the operations of its estab- parks, and 12 years since the commence- With an extension of 264 acres of land, lished companies. ment of this successful project, Coyol Coyol Free Zone excels for its proximity to the The digital economy, innovation and Free Zone does business in a sustainable Juan Santamaría International Airport, direct higher value added of its production processes way and in a privileged location. access to the main highways and the most are the challenges of the medical and techno- Consistently awarded and recognized as a important seaports in the country offering a logical industry, and Coyol Free Zone is Top Free Zone in Latin America and The privileged geographical destination for com- responding by creating an important Caribbean, Coyol Free Zone offers much more panies to establish their operations. Today, Innovation and Training Center which will per- than tax incentives and outstanding infrastruc- Coyol Free Zone hosts the operations of 29 mit not only training and education from the ture. It is the base of manufacturing operations companies, 7 of them among the top 30 basic fundamentals to advanced manufactur- for 7 of the top 30 medical devices companies Medical Device companies in the world: Abbot, ing MSc programs by the TEC University, to the in the world, currently integrated in an ecosys- Phillips, Medtronic, Coopervision, design and developing of prototypes of the tem of 29 companies. This proves our proven Smith&Nephew, Hologic and beyond. Also newest medical devices and parts of the world. know-how in the construction of buildings for offers a strong synergy with a key player: Steris, All of the above are the reasons why our the Life Sciences Industry, and offers the ser- a company which provides electron beam clients have chosen us and 70% expand vices required to support the successful oper- sterilization services within the park. their operations in Coyol Free Zone in the ation of a Life Sciences company in Costa Rica. Consequently, exports go directly to end mar- last 12 years. During the last years, the Life Science kets with a Certificate of Origin of Costa Rica, Industry has become a strategic sector for resulting in significant savings in duties, trans- Costa Rica’s economy showing a consistent portation and warehousing. dynamism. Today, Medical Devices Sector is By developing a Life Sciences cluster with Sponsored by the most important manufacturing export of on-site suppliers and contractors, Coyol Free Costa Rica, and Coyol Free Zone represents Zone provides the ideal conditions for Original 63% of them with more than US$1,976 million Equipment Manufacturers (OEMs) to operate in exports during 2018. and an important market for suppliers of the medical devices industries. WHAT IS OUR SECRET? CostaRicastandsout,amongotherattributes,for WE ALSO DEVELOP OUR HUMAN TALENT its talented people, a preferential access to two All of the previous success wouldn’t be possi- GLOBAL FREE ZONES OF THE YEAR 2019

Consulting Group, the economic activi- equipment for the production of radial ties of Jebel Ali Port and Jebel Ali Free automotive tyres and inner tubes. Zone are also helping the United Arab n FTZ 78, Tennessee, US: In April 2018, Emirates to reduce its economic depend- FTZ 78 invested in a $50,000 warehouse at ence on the fossil fuel industry by con- its site 2 Decherd Plant, which added an tributing 14.9% to the UAE’s non-oil GDP additional 8000 square metres of acti- in 2017. DP World’s Parks & Free Zones, vated area. In December of 2018, it comprising Jafza, the National Industries expanded Stamping Bay 8 at its Site 1 Park and Dubai Auto Zone, account for Smyrna Plant, adding 4000 square metres almost 24% of Dubai’s FDI flows. of activated space. This has allowed tenant Nissan to work more effectively. “FIFTY-FIVE RUSSIAN AND Expansions n Hamriyah Free Zone Authority, UAE: n Atlantic Free Zone, Morocco: Saint SOEX invested $5.64m in a new plant on FOREIGN COMPANIES HAVE Gobain expanded its facility three a 30,000-square-metre site. The company SUCCESSFULLY RUN THEIR times, to reach a total area of 92,905 markets and recycles used textiles and BUSINESSES IN SEZ ST square metres. plans to export 50% of its products to PETERSBURG AND THE n Balti, Moldova: Dräxlmaier has Africa and 25% each to the Middle East NUMBER OF RESIDENTS extended its presence in the zone by and eastern Europe. almost 4645 square metres since 2016, n Industrial Park Great Stone, Belarus: IS CONSTANTLY GROWING” reaching a total 6700 employees by the In 2017, IPG Photonics Corporation (US) Tamara Rondaleva, general director, end of 2018 and a turnover of more than acquired a land plot of 3.6 hectares for SEZ St Petersburg €500,000. the construction of a laser equipment n Cayman Enterprise City, Cayman assembly plant. During the construction Islands: Maples Technology SEZC began it was decided to expand the project and with a team of three developers in 2012 in 2018 an additional land plot of 6.9 and is now a team of 39. The company hectares was purchased. has recently taken on more space to ena- n Industrial Special Economic Zone ble it to reach 51 employees by the end of Togliatti, Russia: In June 2019, the zone 2019 and 69 in just over 745 square approved a new resident, pharmaceuti- metres of office space within the next cal production company Ozon Medica. two years. The zone is fitting out and fur- This is Ozon Group’s third project in the nishing Maples Technology’s serviced zone and it is the largest non-automotive office expansion space on its behalf as investor in SEZ Togliatti. well as upgrading its current space, n Inhdelva Free Trade Zone, Honduras: which will include an investment from Grupo Logistico América is currently in the zone of more than $400,000. the process of expanding its operations n Coyol Free Zone, Costa Rica: In 2018, by 7200 square metres. Medtronic began producing spinal n Katowice Special Economic Zone, orthopaedic products in a building span- Poland: Rockwell Automation will invest ning 2915 square metres. It is currently €26m in the construction of a new build- in the process of expanding, with a ing to increase the production capacity building of 6610 square metres. of industrial automation elements. n DMCC, UAE: Astrolabs, the only n Kizad, UAE: DHL started with 1395 Google tech hub in the Middle East and square metres and within 10 months north Africa region, expanded its office expanded to a 6040-square-metre facility. to add 670 square metres of co-working n Klaipeda Free Economic Zone, space. Astrolabs is now home to more Lithuania: Albright International, an than 160 start-ups and entrepreneurs. automotive electronic switches pro- n Dubna Special Economic Zone, ducer, has completed its 1800-square- Russia: Anchor resident Promtech- metre plant extension, in addition to the Dubna JSC, a manufacturer of cables and existing 2200 square metres with an harnesses, units and other components investment of €3m. This led to a produc- of electrical equipment and pipe systems tion capacity increase of at least 30%. for the aviation, space and defence n La Lima Free Zone & Business Park, industries, is building its seventh pro- Costa Rica: Zollner, which makes printed duction facility in Dubna SEZ. circuit boards for the automotive indus- n Free Port of Ventspils, Latvia: Immer try and specifically for brands such as Digital will build a second factory, cov- Tesla and BMW, plans to double its foot- ering 6000 square metres, doubling print in the zone. It currently occupies manufacturing power, increasing sales 4830 square metres. volume and almost tripling the number n Liepaja Special Economic Zone, of employees. Latvia: DG Terminals invested €2.6m to n Free Zone Pirot, Serbia: In the past few build new liquid cargo storage tanks. In years Tigar Tires has invested €250m in doing so, the total liquid cargo storage production facilities, warehouses, capacity in the port of Liepaja has offices, machinery and equipment. In reached 75,000 cubic metres. 2019 it will invest an additional €49m in n Lipetsk Industrial Special

24 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

Economic Zone, Russia: Fondital plans nature. The total area of the new facili- to expand through building a new $22m ties will be about 30,860 square metres casting facility. and represents an investment of n Łódz Special Economic Zone, Poland: Rbs3.72bn ($57m). UMA Investments, a subsidiary of n Wałbrzych Special Economic Zone Kellogg, will invest about €75m to Invest-Park, Poland: Daimler plans to expand its operations in the zone and open a plant producing batteries for create 40 new jobs, bringing its total electric vehicles in the zone, in addition number of staff in the zone to about 500. to its existing investments. n Panama Pacífico, Panama: FedEx is n Zona Franca del Pacífico, Colombia: In expanding its storage facility to include the first quarter of 2019, Furukawa “WE ARE MORE THAN GLAD new pharmaceutical operations. In decided to expand its operational area by TO BELONG TO THIS GLOBAL 2019, the company added new business 40% to meet demand in Latin America lines and will also take on an additional due to the zone’s strategic location and COMMUNITY OF FREE 5600 square metres for a new client in closeness to Buenaventura, the principal ZONES RECOGNISED the technological industry. seaport of Colombia on the Pacific Ocean. BY fDi MAGAZINE” n Panapark Free Zone, Panama: n Zona Franca Tayrona, Colombia: Guillermo Kattan Salem, president, Inhdelva Free International Bottling Services, which Carport has expanded its enlistment Trade Zone already occupies one hectare in the centre to 1100 square metres. zone, plans to expand by 9200 square metres. By early 2019, 4600 square Facilitiesupgrades metres had already been developed. n In November 2018, Cayman Enterprise n Parque Central Zona Franca, City officially broke ground on the first Colombia: In June 2017, O-tek moved its phase of a new 21.5-hectare mixed-use third pipeline of production to the zone. development. The 25-year, $500m devel- The expansion represented an invest- opment project will create about 92,905 ment of $15.3m and saw employee num- square metres of world-class office space, bers increase from 60 to 160. residential areas, restaurants and ameni- n Ras Al Khaimah Economic Zone, UAE: ties, which will create a variety of job Nordic Energy FZC, an oil field equip- opportunities for Caymanians and help ment manufacturer, moved from a to further diversify the Cayman econ- shared workstation facility to a land omy. The new urban campus will pro- space of 10,000 square metres. vide a purpose-built hub for digital busi- n Rezekne Special Economic Zone, nesses across a variety of sectors includ- Latvia: Woodworking company Verems, ing fintech, blockchain, biotech the largest tenant in the zone, launched research, envirotech, media and digital a new expansion project in 2018. The marketing, among others. company plans to build a new n In 2018, Russia’s Dubna Special 10,000-square-metre plywood facility Economic Zone started construction on and to increase plywood production two new innovative and technological from 46,000 cubic metres to 85,000 centres, each composed of a production cubic metres by 2020, thus increasing area and office and administrative prem- plywood production volume by 85%. In ises. The resident companies plan to total, it is planned that long-term invest more than $11m into their pro- investments will total up to €49.8m. jects and create almost 400 jobs. n Shanghai Waigaoqiao Free Trade n Las Americas Free Zone in Dominican Zone, China: Glencore Co increased capi- Republic has started construction on a tal by $510m. new 50,000-square-metre business park. n Skopje, North Macedonia: Kemet is The zone will also invest about $4.3m in expanding with a new R&D and global the construction of a new 4090-square- customer service centre that will metre industrial warehouse and refur- employ 50 people and offer support in bishment of more than 13,005 square 20 languages. metres of existing warehouses. n Special Economic Zone Pavlodar, n In 2018, Lipetsk Industrial Special Kazakhstan: Giessenhaus, a manufacturer Economic Zone in Russia launched a spe- of alloyed aluminium, plans to imple- cialised engineering centre designed for ment three additional projects to produce the automated management of remote aluminium profiles, refractory materials facilities and technological processes. It and hot dip galvanisation in 2019. The provides 24/7 operational dispatch man- project represents a total investment of agement of all engineering systems on $65m and will potentially create 150 jobs. site, including those of its resident man- n Special Economic Zone St Petersburg, ufacturers. It has significantly enhanced Russia: CJSC Biocad plans to open the network reliability and reduced costs. second phase of its pharmaceutical com- n India’s Ramanujan IT City SEZ has plex for the development and produc- established a new convention centre tion of biological substances and fin- that can accommodate 1500 people for ished pharmaceuticals of biological meetings and training programmes.

26 www.fDiIntelligence.com October/November 2019 SPOTLIGHT ON TANGER MED ZONES ADVERTISEMENT FEATURE

TANGER MED ZONES: FIRST FULLY INTEGRATED PLATFORM IN AFRICA AND MEDITERRANEAN REGION The combination of cutting-edge technology and geographical proximity to Europe result in creating a competitive proposal that helps investors to strengthen their position with both existing and future customers

Thanks to its unique position – strategi- • Build to suite option lease setup cally located on the Strait of Gibraltar, • Ready-to-use industrial plots for sale 14km away from Spain, at the conjunc- • Ready-to-use modular warehouse units for tion of major maritime routes– Tanger lease Med offers extensive access to target • Specialized import-export access inside markets through Tanger Med Port, work- Tanger Med Port ing in perfect synergy with the industrial platform that comprehends parks and TANGER MED ZONES INCENTIVES: free zones under the umbrella of Tanger Today, Tanger Med Zones is a base to many Med Zones. international companies who enjoy both a sta- Tanger Med Zones, the industrial platform ble, efficient, and robust economic environ- of Tanger Med, constitutes a logistics and ment, and a competitive combination of industrial hub that is fully connected to global across 77 countries and five continents. The incentives, and benefits. This includes total trade flows and beyond, providing a platform following strong fundamentals have enabled exemption from the VAT, patent and urban for competitiveness. Developed over a total Tanger Med Zones to meet the expectations of taxes, dividend and profit shares, registration area of 16 million square meters, Tanger Med global players and successfully attract first- fees and stamp duty on capital operations; Zones has successfully attracted today 900 class international players from Germany, plus five years’ exemption from corporate tax multinational companies from 30 nationalities Japan, Korea, France, China, India, UK, and the (with a rate of only 8.75% after that). all over the world, creating 90 000 Jobs. USA among others. Tanger Med Zones has capitalized on its The flourished business environment proximity to Europe, and relatively economical makes Tanger Med today the ideal place for human resources skills and experience to successful foreign investments. Sponsored by work towards building a strong, open, and Tanger Med Zones offers a value proposi- market-oriented economy. The Moroccan tion for these companies: experienced workforce has pulled many global • A one-stop-shop for registration and firms attention as they regularly choose to incorporation process conduct their activity within. • 25 Km from-to Tanger Med Port Tanger Med Port, a global transshipment • 24-hour customs services gateway, with 9 million TEU of container • Additional established 500 Ha free zone capacity, is connected to 186 ports worldwide land. GLOBAL FREE ZONES OF THE YEAR 2019

developed projects and support for ten- the zone to about 30 square kilometres. ants adapting to Industry 4.0. Each dis- Infrastructure improvements are also trict specialises in four major industries, being carried out, including new cus- namely IT convergence, advanced medi- tom-built warehouses, a new container cal, advanced parts/materials and energy. terminal and container depot. Onsite n Innopolis SEZ in Russia is developing labour accommodation capacity will a new industrial park that aims to attract also increase to more than 25,000 work- big manufacturing companies in ers with the addition of a new IT-related industries such as robotics, Accommodation City facility. microelectronics, additive technologies, n Despite the challenging global trade prototyping and others. outlook, DP World, the owner of Jebel n Poland’s Katowice Special Economic Ali Free Zone in the United Arab “THESE ACCOLADES ARE Zone offers various engineering pro- Emirates, plans to invest up to $370m in CLEAR STATEMENTS OF grammes in automation, robotics and 2019, as much as half of it going towards OUR COMMITMENT TO innovations. In 2018, the zone launched new equipment, warehousing, accom- the Silesian Competence Centre of modation, land development and roads. FACILITATE THE GROWTH Industry 4.0 in collaboration with the n Las Americas Free Zone on the OF BUSINESSES FROM Silesian University of Technology. The southern coast of the Dominican ALL OVER THE WORLD” centre guides investors through the digi- Republic is investing in the installation Ramy Jallad, group CEO, Ras Al Khaimah tal transformation process; raising of a new two-way fibre optic link with Economic Zone awareness about the benefits of digitali- GPON technology. sation and helping investors establish n In addition to its port development Taj serviced apartments have also been more dynamic companies. plan and airport renovation, Liepaja established in the zone, which clients n In September 2019, Łódz Special Special Economic Zone in Latvia is plan- can book for a long or short stay. Economic Zone in central Poland ning to transform a former metallurgical launched the first and only Technical plant into a business park with excellent Incentives School of Automation & Robotics in infrastructure. The land area of 120 hec- n Free Economic Zone Taraclia offers Poland in collaboration with Ceramika tares together with the production facili- various incentives including exemption Tubadzin, Delia Cosmetics and Miele ties amounts to 85,000 square metres. from income tax for three years when Technika. Supported by the Ministry of n The Panamanian government is cur- investing $1m in the fixed capital of the National Education, the school will pro- rently developing infrastructure that will company and/or the development of the vide training for automation and robot- make Panama Pacífico the best-con- zone’s infrastructure; exemption from ics technicians. In 2019, the zone also nected area in the country. The expan- income tax for five years when investing launched the StartupSpark2.0 accelera- sion of the Pan-American Highway to $5m and 0% VAT for equipment, machin- tor and scouts for start-ups with prod- eight lanes is already under construction ery, raw materials and goods. ucts/services within the Industry 4.0 sec- as well as a fourth bridge over the Panama n Investors in Serbia’s Free Zone Pirot tor (for example, AI, virtual reality, aug- Canal, which will be ready in 2024. The have access to general country-level mented reality, robotics, automation and zone has also just inaugurated the incentives including low tax rates; no cybersecurity). In its first round, 20 start- ‘Borinquen Highway,’ an exclusive cargo VAT and customs duty on imported raw ups were matched to business partners. way that will save time and money for all materials; no customs duty on imported logistics companies in the Pacific area. machinery and spare parts; and no cus- Infrastructure upgrades n Due to increased interest from foreign toms duty and VAT on construction n Iran’s Arvand Free Zone has invested in companies, Skopje in Macedonia has materials. Companies also benefit from various infrastructure projects in the past started construction on the new Skopje incentives provided by the city of Pirot 12 months including the development of 3 zone, spanning 48 hectares. Skopje including no local taxes. a new $1.47m industrial site, $1.76m has also been working on developing n Rezekne Special Economic Zone in improvement in electricity infrastructure the infrastructure at remaining zones Latvia offers competitive operating costs, and $434,000 in equipping schools and across the country; an interconnect is favourable tax incentives and other state education centres in the region. currently being built in the Prilep Free aid measures that enhance return on n Free Port of Ventspils on Latvia’s west- Zone and an interchange in the Struga/ investment. Companies can apply for an ern coast is investing in new rental pro- Ohrid Free Zone. immovable property tax discount rang- duction space. The zone will invest n In the final quarter of 2018, the Subic ing from 80% up to 100%, as well as set- $12.9m in three new buildings spanning Bay Metropolitan Authority rolled out a ting up free customs zones to ease logis- 11,000 square metres, generating an massive infrastructure programme to tics of services/products and customs increase of 25% in the Free Port rehabilitate existing facilities in the procedures within the EU. Authority’s supply of rental industrial Subic Bay Freeport Zone in the western n Oman’s Sohar Free Zone offers a cor- real estate. It is currently in the process of Philippines, and developed new ones to porate tax holiday of up to 25 years; 0% renovating access roads to the port and boost its attractiveness. These included a personal income tax; 100% foreign own- industrial sites as part of a five-year pro- 14.35m peso ($276,000) slope protection ership; no sales restrictions to the Gulf ject representing $23.3m as well as con- project and 9.3m peso El Kabayo road Co-operation Council on payment of structing three new parking lots, upgrad- rehabilitation project. local duty; and no minimum capital ing its general port infrastructure and n Zona Franca Tamboril has started requirements. constructing a new storage area. work on two major expansion projects. n Hamriyah Free Zone Authority in the The first zone is in its second stage and Industry4.0 Sharjah emirate of United Arab Emirates involves investing in 37,160 square n Daegu Gyeongbuk Free Economic will carry out the third phase of its zone metres of rent space and about 1000 new Zone in South Korea has strategically expansion, increasing the total area of jobs. The second initiative is a second-

28 www.fDiIntelligence.com October/November 2019 SPOTLIGHT ON KATOWICE ADVERTISEMENT FEATURE

THE KATOWICE SPECIAL ECONOMIC ZONE (KSSE) No. 1 in Europe!

Katowice Special Economic Zone – “WE HAVE RECENTLY this year include: Fossung Poland, a South known as KSSE – is one of the most suc- Korean company planning to invest 368m cessful SEZs in Poland, covering a 2750- ATTRACTED A RECORD NUMBER Polish zloty and employ at least 80 people at ha area and having created 80,000 jobs OF NEW INVESTMENTS IN Kędzierzyn-Koźle; Cobex Polska, a Germany since it was established in 1996. WHICH SMALL AND company planning to invest 175m Polish zloty Located in the country’s south around the - and take its headcount up by at least 24 peo- cities of Katowice, Kraków, Gliwice, and Opole, MEDIUM SIZED ENTERPRISES ple to almost 320 employees; Kirchhoff Polska, the zone was ranked by fDi Magazine as the HAVE A GROWING PART. WE a German company planning to invest more overall best economic zone in Europe for 2019 FOCUS ON THE DEVELOPMENT than 172m Polish zloty and to take on 10 new and number two globally. It also won the top employees to maintain its headcount at 666 spot in the magazine’s European rankings for OF ENTREPRENEURSHIP, staff; and Sokpol, a Polish company expecting the years 2015 to 2017. WHICH HAS BEEN to invest 124m Polish zloty and to hire 15 new It is the leading SEZ in Poland in terms of the CONFIRMED BY OUR RESULTS” staff to keep its headcount at 314 individuals. total number of investment projects and jobs DR JANUSZ MICHAŁEK, PRESIDENT OF THE The zone has developed an automotive created. Almost 400 companies now operate at KATOWICE SPECIAL ECONOMIC ZONE cluster, called Silesia Automotive and KSSE and small- and medium-sized enterprises Advanced Manufacturing (SA&AM), which acts account for 40% of the investment made there. firms, including Szcześniak Pojazdy Specialne, as a platform for cooperation and the It is regarded by experts as the ‘driving motor of which makes vehicles for the army and fire ser- exchange of ideas and experience among the automotive sector’ and the automotive sec- vice, and ZU Rosa, which produces lamps and automotive companies. It organises regular tor makes up 60% of the total investment there. street illumination. meetings around various themes, including “For many years the Katowice Special This year the zone has attracted a key new e-mobility and Industry 4.0. The cluster has Economic zone has been a leader in attracting investor to the region: SK Innovation, a South attracted around 100 companies and institu- FDI in Poland,” says Dr Janusz Michałek, presi- Korean company coming to Poland for the first tions from the automotive and electro-mobil- dent of KSSE. time. It plans to invest more than 1bn Polish ity sectors already. “We have recently attracted a record num- zloty in a manufacturing plant for lithium-ion Omron Electronics, a Japanese company, ber of new investments in which SMEs have a battery separators at Dąbrowa Górnicza. It has set up a ‘laboratory of industrial robots’ growing part. We focus on the development of expects to employ at least 300 new staff by the that is the first of its kind in Poland and unique entrepreneurship, which has been confirmed end of 2021. in Europe – a further sign of KSSE’s status as a by our results. “At KSSE we know what our competitive centre of innovation. Companies have already invested advantage is and we look after it,” says Barbara €8.14bn at KSSE.” Piontek, a professor at WSB University and The zone attracts investors from all over vice-president of KSSE. “It is the perfect loca- Sponsored by the world who represent many industries, tion; well prepared infrastructure; professional including metals, plastics, electric and elec- investor services; availability of contractors; tronic, glass products, household equipment, sales markets, including internal demand; rela- and food, as well as automotive. Prestigious tions with public institutions; the environment companies operating there include: Opel of business institutions; as well as creative and Manufacturing Poland, FCA Poland, Mokate, well educated staff, which meet the needs of Electrolux, TRW, Magna, and Żywiec Zdrój. the market and our investors.” KSSE is also popular with many family Other big investments made at the zone GLOBAL FREE ZONES OF THE YEAR 2019

ary free zone park located in the north- facility together with Ferro Mining HK west part of the Dominican Republic CAG and the Metallurgical Corporation near the port of Manzanillo, covering of China. The plant will produce tita- more than 929,030 square metres. nium dioxide, silicon dioxide, vanadium pentoxide and alloyed steels, and repre- Marketingslogan sents a total investment of $2.5bn. DMCC, UAE: ‘Made for trade’ n Tanger Med Zones, Morocco: Hands Turkistan Special Economic Zone, Corporation is investing €400m in a new Kazakhstan: ‘Honouring the past, creat- factory and creating 1000 direct jobs. It ing the future’ will be built on an area of 26 hectares. n Zona Franca de Bogotá, Colombia: “WE CELEBRATE THE FACT Newinvestments Global Training Aviation is establishing THAT THE EXCELLENT n Daegu Gyeongbuk Free Economic its first training centre for the aeronauti- Zone, South Korea: Samick THK plans to cal sector in South America in the zone PERFORMANCE OF invest $15m in the zone. As the display on an area of 1812 square metres. LIPETSK SPECIAL ECONOMIC market grows in China and South ZONE GAINS DESERVED Korea, the demand for linear motion Redtapereduction RECOGNITION IN fDi’s guide products has soared and the com- n Cayman Enterprise City has devel- pany is expected to establish a robotic oped a comprehensive support pro- RANKINGS” cluster in Daegu. gramme, including a client experience Dmitriy Dudarev, CEO, Lipetsk SEZ n Dubna Special Economic Zone, team that helps new tenants and their Russia: PSK Pharma opened a facility for employees settle into life in the Cayman manufacturing products for the treat- Islands. A minimum capital investment ment of asthma and chronic obstructive is not required and permits, visas, trade pulmonary diseases in January 2019. The certificates and turnkey office solutions project represents an investment of are conveniently bundled into afforda- about $31m. ble serviced packages and delivered by n Industrial Special Economic Zone the zone via a streamlined process, Togliatti, Russia: Gomma Line, a com- which removes bureaucratic red tape. pany specialising in the production of n Launched in July 2018, The Port rubber and metal parts and tools, is the Community System is a paperless tool first Serbian investor in SEZ Togliatti. available to all companies in Djibouti The company plans to produce car com- International Free Trade Zone. It pro- ponents in the zone and its key customer vides a 24/7 single point of entry for is Avtovaz-Renault-Nissan. import and export information n Katowice Special Economic Zone, exchange, processing documentation Poland: SK Innovation is investing online at any time for businesses requir- €335m in a new factory producing lith- ing it and ensuring smooth coordina- ium-ion battery separators and ceramic tion between air, sea, land and rail trade. coated separators used in electric cars. It n Kizad focuses on four key elements – is expected to create 300 jobs. speed, cost, scale and simplicity – to n Lipetsk Industrial Special Economic ensure that business can be conducted Zone, Russia: Syngenta has invested smoothly and reliably. Businesses can be more than $23m in a new facility for set up within 24 hours with onsite plant protection substances. paperwork processing for licensing, n Sharjah Airport International Free clearances, approvals and permits. Kizad Zone Authority, UAE: Rexton ensures easy and convenient access to Technologies will open a Dh60m key markets in the Middle East through ($16.3m) light-emitting diode (LED) light multimodal connectivity which includes manufacturing plant and laboratory at immediate access to Khalifa Port with its headquarters in SAIF Zone. The firm, more than 1000 port-to-port connec- the manufacturing arm of Kingston tions, five international airports, uncon- Holdings, said the development will be gested highways and an upcoming rail- the largest LED light factory in the way network. Middle East and north Africa. n In 2018, Lipetsk Industrial Special n Skopje, North Macedonia: Economic Zone launched a new digital- Gerresheimer is investing $30m in a new ised procedure for companies applying for plant, the largest investment to date in tenancy. The new format compresses appli- the zone. The project will be developed cation processing time to just one day. The in five phases, with 400 jobs created dur- zone has also developed voting software ing the first phase. The company plans to for its expert council members in collabo- hire highly skilled engineers, computer ration with one of its tenants, Digital Tech. scientists and electrical engineers. n The Subic Bay Metropolitan Authority n Special Economic Zone Pavlodar, has implemented several in-house meas- Kazakhstan: China Machinery Engin- ures to speed up transactions for compa- eering Corporation, a construction and nies in the Subic Bay Freeport Zone, engineering company, is opening a new including paperless transactions;

30 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

and training sessions; school visits; sci- enhancement. Participants with the ence, technology, engineering and math- highest results were offered internships ematics programming; an annual in the zone. internship programme, and other activi- n Zona Franca Santander in Colombia ties that highlight the Cayman Islands’ provides a wide range of training courses local workforce. with a focus on bilingualism in the n Łódz Special Economic Zone is the English language; safety culture and pro- only zone in Poland distributing train- tection of international trade; opera- ing vouchers through its Strefa tional training; changes and opportuni- RozwoYou training programme. These ties in new free-trade zone regulations; vouchers enable companies to receive up and analysis and visualisation of data to 80% of financing for training, coach- with a view to developing new business “IT IS A TRUE PRIVILEGE TO ing and/or postgraduate studies for SME models in big data. BE ACKNOWLEDGED BY fDi. employees. More than 1000 companies have benefited from the subsidy, with Sustainability OUR NEXT MAJOR AMBITION 6000 employees taking part in 2623 n In the past year, Corporación Zona IS STRENGTHENING OUR development services. In 2018, the zone Franca Santiago has installed the PORTFOLIO OF ELECTRIC allocated funds worth almost €6m and Dominican Republic’s largest rooftop VEHICLES AND RENEWABLE the second edition, which started in July photovoltaic power plant, generating two 2019, will distribute almost twice as megawatts of clean energy for park users. ENERGY COMPANIES” much, at €10m. Beneficiaries were n DLF Cybercity Chennai aims to be one Eimantas Kiudulas, general manager, Klaipeda trained in a range of areas including of the greenest and safest workplaces in Free Economic Zone team management, law, streamlining India. The zone is self-sustainable and logistics and several vocational courses has been awarded with an LEED plati- increased frequency of bids and awards such as industrial pneumatics, construc- num certification by the US Green committee meetings; continuous train- tion and the operation of bearings and Building Council. ing of personnel; and monitoring of lean manufacturing. n DLF Cybercity Gurugram – Bldg 14 compliance to ISO certifications. n Pánama Pacífico maintains strong and 6 has received LEED platinum certi- partnerships with universities, institu- fication from the US Green Building Start-upsupport tions and recruitment firms, in order to Council as well as the ‘Sword of Honour’ n Free Port of Ventspils has launched provide a pipeline of talent to resident from the British Safety Council in the Business Support Centre, a newly companies. There are several free courses Occupational Health and Safety. The self- created entity dedicated to servicing new and training programmes on offer. sustainable zone is supported by best-in- start-ups. It will offer access to consulta- Technical training is provided in shared class infrastructure aimed at energy effi- tions, project managers, legal advice, services, logistics and maritime sectors, ciency including a captive power station accountant services and mentoring. The among other areas. An alliance for and solar power panels. facility will feature co-working space intern recruitment for companies, n Mahindra World City in Jaipur has and office premises and host network- Explorer Works, has been established. introduced a public bicycle-sharing ser- ing events. n The government in Skopje is willing to vice. A fleet of 50 bicycles is now availa- n In 2019, Łódz Special Economic Zone aid investors with their labour force ble at convenient docking stations for launched StartupSpark2.0, an accelera- requirements through customised voca- shared use by associates and visitors. An tor combining the potential of start-ups tional training programmes. integrated app-based sharing system will with the experience, resources and infra- Additionally, Germany-based Kostal, one also be rolled out at a later point. A structure of 11 corporations including of the zone’s resident companies and a highly efficient irrigation management Airbus, Procter & Gamble, Ericsson, PwC, supplier of technologically advanced system using 100% recycled water has Siemens and Bosch. Through the pro- electronic, electromechanical and been implemented to reduce water con- gramme, the zone aims to accelerate mechatronic products, offers a recruit- sumption and maximise coverage at more than 65 start-ups by 2021, offering ment programme for engineering posi- minimal cost. Street lights will also be €40,000 of financial support, technologi- tions by offering high school and college retrofitted with smart LED lights for cal and legal assistance and access to cli- students internships, with the possibil- more precise control of illumination ents. The project is three times as big as ity of future employment. management, to use less energy and had previously existed in terms of the n In 2018, Russia’s Special Economic reduce the zone’s carbon footprint. amount of money granted for start-ups. Zone Production and Industrial Type n Tanger Med Zones provides small rental Alabuga launched a training project for Tradefacilitation spaces dedicated specifically to start-up manufacturing industry workers in n As part of a $250,000 improvement companies in its offshoring services zone. Tatarstan. Research showed that the four project, El Paso International Bridges It also organises multiple workshops and most in-demand professions at local fac- recently augmented access from US fairs aimed at start-ups, to enhance their tories were mechatronics, automation of Customs and Border Protection to better business network connections. management systems, energetics and facilitate the traffic flow for cargo chemistry. The zone then decided to imports into the area on the US/Mexico Skillsdevelopment implement educational programmes for border. A $96m project has been n Cayman Enterprise City actively con- these professions at Yelabuga’s engineer- launched to improve access for commer- nects special economic zone companies ing college. The team also launched the cial cargo traffic into and out of Mexico with local talent through a number of 100 Executives programme, as part of and the US, which will facilitate future initiatives: an online jobs portal; access which SEZ experts visited 23 Russian expansion in City of El Paso FTZ 68. This to the zone’s marketing platform for universities and held intensive courses project includes 16 new bridges, install- recruitment services; code workshops for soft skills and leadership skills ing retaining walls, installing an intelli-

32 www.fDiIntelligence.com October/November 2019 GLOBAL FREE ZONES OF THE YEAR 2019

gent transportation system, and erecting nickel, 70,000 tonnes of manganese, 700 large overhead sign structures. This pro- million tonnes of refractory clay, 315 mil- ject will optimise the traffic connecting lion tonnes of oil and 148 billion cubic the Cordova Bridge to US Interstate 10 metres of natural gas. The total value of and US Highway 54, and alleviate the balance reserves of solid minerals in the major congestion that affects the cargo Pavlodar region is estimated at $460bn. and private transportation from this international port of entry. Shanghai WaigaoqiaoFreeTrade n In 2018, for the convenience of exist- Zone, China ing and potential investors, Industrial Shanghai Waigaoqiao Free Trade Zone Park Great Stone opened a new customs has awarded for its efforts to improve clearance point, allowing all customs transparency. The zone has been “TO BE RECOGNISED AS procedures to be carried out directly in strengthening its efforts to open up and the park. attract international investors by explor- A SPECIALIST IN BPO AND n Shanghai Waigaoqiao Free Trade ing institutional innovations in the SKILLS DEVELOPMENT Zone has established a trade supervision fields of investment, trade, finance and ENCOURAGES US TO system to reduce red tape and paper- regulation. An investment management CONTINUE TO GENERATE work for business registration and opera- system was built on pre-establishment GREATER OPPORTUNITIES tion, as well as a regulatory system national treatment and a negative list to focused on transforming government improve openness and transparency. In FOR THE DEVELOPMENT functions, to provide a stable regulatory addition, temporary adjustments have OF BUSINESSES AND environment. In addition, its financial been made on both national and local HUMAN TALENT” innovation system is aimed at capital levels to laws and regulations to provide Margarita María Herrera Calle, CEO, account convertibility and opening up legal guarantees for the zone. Zona Franca Santander the financial services sector to attract foreign capital and help domestic com- KlaipedaFreeEconomicZone, panies to go global. Lithuania Klaipeda Free Economic Zone has been Workforce amenities recognised for its flexible space initia- n DLF Cybercity Gurugram – Bldg 14 tives. The zone will invest €4.5m to and 6 is working to provide a best-in- launch FlexStart 2, a larger successor to class workplace experience with a strate- FlexStart, its universal rentable manufac- gic location, plus future-ready infra- turing space launched in 2017. FlexStart structure and transport systems, com- projects can be adapted to suit individual bined with bespoke leisure amenities. manufacturing, warehousing or retail Competitive rates for day care help pro- clients in one to two months. Klaipeda vide a work-life balance while safety and Free Economic Zone has also won an security measures have garnered ‘Sword award for local transport, after negotiat- of Honour’ recognition from the British ing with CityBee, a car- and bicycle-shar- Safety Council in Occupational Health ing scheme provider, to make bicycles and Safety. free to use for all employees in the zone. n In 2019, Katowice Special Economic It has also successfully negotiated a new Zone announced plans to open a new public transport route. From now on, programme called ‘Employee+ two bus routes covering most of Klaipeda Apartment+’. The zone will invest will connect the zone to the city, running €4.65m in 100 fully furnished apart- from the early to late hours and in line ments within two years. with companies’ most popular shifts. n Klaipeda Free Economic Zone has launched the FEZ Exchange, a series of JebelAliFreeZone,UAE seminars, events and workshops for Jebel Ali Free Zone has been awarded for members of the local community. The its international expansion capabilities. events cover topics such as production Over the past 18 months, owner DP automation, marketing, HR, finance and World has expanded its global portfolio industrial real estate. The zone’s current with acquisitions from India to Chile members and external speakers take and the Caspian Sea to the Russian part and the initiative seeks to foster Arctic in multiple, yet related, busi- knowledge and expertise sharing. nesses. Companies based in the zone will be able to plug into this expanding net- Special EconomicZonePavlodar, work of more than 150 operations such Kazakhstan as marine and inland terminals, mari- Special Economic Zone Pavlodar has been time services, logistics and ancillary ser- acknowledged for its access to raw mate- vices, supported by technology-driven rials. The Pavlodar region has huge trade solutions. Jebel Ali Free Zone’s reserves of mineral resources, including smart strategies have also been recog- 12.7 billion tonnes of coal, 3.5 million nised. The zone recently introduced a tonnes of copper, 150 tonnes of gold, new system in collaboration with the 14,000 tonnes of cobalt, 251,000 tonnes of Dubai Chamber that allows all free

October/November 2019 www.fDiIntelligence.com 33 GLOBAL FREE ZONES OF THE YEAR 2019

real estate offer is designed for all types ematics as well as economics. The local and sizes of clients and their needs. community is multilingual, with more Through the Build To Suit programme, than 85% of people speaking Russian, the zone can construct buildings tai- and about 70% up to the age of 40 having lored to the needs its customers, ranging a good command of English. from 2500 square metre to one hectare for medium or large customers, and Katowice Special EconomicZone, macro lots served from more than one Poland hectare for large companies to multina- Katowice Special Economic Zone has tionals. The zone also provides support been recognised for its tech transfer through consultations and expert pro- activities. The zone has extended the fessional advice on topics such as obtain- scope of its pre- and post-investment ser- ing a business licence, legal, tax, labour, vices and has been facing new chal- logistics, customs, foreign trade and pay- lenges related to the passing of new reg- “FREE ZONES NOWADAYS roll management. ulations on the special economic zone. SHOULD SHAPE THEIR Katowice SEZ has been concentrating on SOURCES OF CoyolFreeZone, CostaRica FDI with a high engineering potential, COMPETITIVENESS IN Coyol Free Zone has been awarded for its the implementation of which will ena- recruitment assistance. In May 2019, ble the transfer of technology. It has also ORDER TO LEVERAGE THE Coyol Free Zone launched a recruitment actively helped the implementation of OPPORTUNITIES COMING data base with more than 39,000 poten- new automation processes and robotics FROM THE FOURTH tial candidates. Access is offered to its at companies operating in the region. INDUSTRIAL REVOLUTION” resident companies’ HR teams, to help One example is Poland’s first Innovation them find potential candidates to fit Lab by Omron, which provides robotised Sandra Ezmale, CEO, Rezekne SEZ Authority their job requirements production objectives and support for specialists in robotics. zone-based companies, from SMEs to BirminghamCityCentreEnterprise large enterprises, to obtain a Dubai Zone, UK DMCC,UAE Chamber membership certificate. The Birmingham City Centre Enterprise Zone DMCC has been recognised for its integrated system is aimed at improving has been acknowledged for its relocation thought leadership. The zone launched the ease of doing business in the city, services. The Enterprise Zone Programme the second edition of its thought leader- and offers smart online services that add Board recently approved an additional ship report, The Future of Trade, gener- value to companies. two-year extension to the Relocation ating more than 20,000 downloads and Services Project, extending it to March 31, placing Dubai in a strong position as a LiepajaSpecialEconomicZone, 2020. The project was launched in 2015 to world authority on global trade as well Latvia support Birmingham’s inward invest- as providing the market with a view of Liepaja Special Economic Zone has been ment proposition to provide both an how trade will unfold over the next 10 recognised for its port development incentive to relocate on enterprise zone years. The zone organises a series of activities. The zone is currently investing sites and an aftercare service. The project international events annually, as well as €25m in developing infrastructure continues to support businesses relocat- hosting the Knowledge Series, a regular including dredging the port waterway ing in the area, such as PwC, which will programme of lectures, workshops and access canal and inner port to reach a be relocating and taking occupancy of all seminars exclusively for DMCC mem- depth of 14 metres for servicing four floors of 1 Chamberlain Square on bers. These events help to educate profes- Panamax-type vessels; constructing a the Enterprise Zone Paradise site. sionals working across the free zone new berth to service Panamax vessels; about the most pressing current issues and implementing the breakwater Balti,Moldova in business and society. Through its repairs. New railway tracks will also be Balti has been credited for its efforts to international engagement strategy, installed to increase rail carriage speed improve supplier development. It offers DMCC promotes not only itself but also and reduce turnaround time in the port. a programme that connects local SMEs free zones as an economic concept, with with multinational companies’ supply the ultimate goal of driving trade GabonSpecialEconomic Zone, chain in the automotive sector. The aim through Dubai. Gabon of the initiative is to provide support and Gabon Special Economic Zone has assistance for local companies, to meet ŁódźSpecialEconomic received an award for its public-private the quality and reliability required of Development Zone,Poland partnerships (PPP), one of the few suc- multinationals and to help them to get In recognition of its status as the first cessful PPP policies in Africa. The zone in contact as suppliers. 5G economic zone worldwide, Łódz started as a partnership between the Special Economic Zone has been recog- government of Gabon and Singapore- RezekneSpecialEconomicZone, nised for its 5G readiness. The zone runs based food and industrial raw materials Latvia the S5 accelerator programme, together company Olam International. The zone Rezekne Special Economic Zone offers with industry, start-ups, administration has since generated almost 5000 direct investors access to a well-educated and and academia, to develop the first jobs, 5000 indirect jobs and close to highly skilled talent pool. The Rezekne industrial use cases of 5G technology. $1.7bn in FDI. Academy of Technologies, and voca- Łódz Special Economic Development tional training institution the Rezekne Zone received more than €3m in EU PanaparkFreeZone, Panama Technical School, produce graduates in a funding to reach out to start-ups and Panapark Free Zone has been com- diverse range of subjects including sci- SMEs in order to create and commer- mended for its real estate flexibility. Its ence, technology, engineering and math- cialise 5G solutions. n

34 www.fDiIntelligence.com October/November 2019 SPOTLIGHT ON ATLANTIC FREE ZONE ADVERTISEMENT FEATURE ABOUT MEDZ MEDZ is a subsidiary of CDG Group, Morocco’s first institutional investor, that supports sectoral policies launched by public bodies. MEDZ has set up more than 20 business parks (including AFZ) in high-potential sectors, such as automotive, aeronautics, agro-industry, offshoring and tourism, to provide quality infrastructure for firms and attract foreign investment. MEDZ has provided space to over 300 firms and about 100 multinationals, such as PSA, Eaton, Aerolia, Lear, Delphi, DELL, IBM… Today, MEDZ parks employ more than 85,000 people, meaning that the companie has enabled profitable foreign investments in Morocco.

“Receiving the “Bespoke - Award Expansions” is an honor for MEDZ. This award is testimony to the attractiveness of Morocco and Atlantic Free Zone, corroborated by the steady increase in investments that have given convincing results in terms of jobs created (more than 30,000). These achievements motivate us to improve our offer within the park and our services to support industrial operators in their busi- ATLANTIC FREE ZONE: A ness and their growth. We will continue to work to create sustainable conditions of competitiveness for HUB OF INVESTMENT our customers and maintain their trust.” – M. OmarElyazghi, OPPORTUNITIES Chairman of MEDZ Atlantic Free Zone (AFZ) is an integrated industrial zone that In addition, Atlantic Free Zone offers: primarily targets automotive suppliers and subcontractors, • International standing infrastructures. industrial logistics and industry support services • A competitive real estate offer. • Varied range of services: facility and property WINNER AWARD FOR: houses a complex car manufacturer and its management (infrastructure maintenance, “Bespoke - Award Expansions” local suppliers. safety, waste management, car parks…) and • An open zone dedicated for the local market. support services. A STRATEGIC LOCATION • One-stop shop, with key administrative ser- Atlantic Free Zone is located at the heart of In the free zone, very advantageous adminis- vices: customs office, investment regional Rabat-Kenitra region, between Casablanca et trative, customs and tax incentives are granted, office, municipality… Tangier, the most important economic areas including: • An integrated training offer: creation of of Morocco. This is an exceptional geographi- • Exemption from Corporate Tax for the first 5 a specialized training institute in the automo- cal location to develop its business, thanks to years. tive trades. several assets: • Reduction of the corporation tax to 8.75% for • State aid for investment and training. • Proximity to Western markets, reinforced by the next 20 years. • Professional and pleasant work environment. several free trade agreements that give access • Exemption from the Value Added Tax and • A solar farm that supplies part of the plants to one billion consumers market. customs duties. on green energy. • 3 hours from the main European capitals and • Simplification of customs procedures. close to the kingdom’s main ports and airports. • Free repatriation of profits and capital. Contact us and lear more about AFZ: • Excellent connectivity to major transport [email protected] routes. A TAILOR-MADE OFFER AND MANY www.medz.ma • Available and qualified human resources, at a ASSETS THAT FAVOR COMPANIES’ competitive cost. COMPETITIVENESS • Presence of natural gas through a 55-kilom- Atlantic Free Zone offers a competitive and Sponsored by eter pipeline. flexible offer, through: • Equipped plots of land, from 1,700 to AN ATTRACTIVE INDUSTRIAL PARK 26,000 m². Atlantic Free Zone is structured around 3 • Turnkey buildings. zones, with a total area of 500 hectares: • Rental of office desks. • A free zone dedicated for exporting • Intermediary services: construction companies. services, the connection with real estate • The extension of this free zone, which companies…