Global Outlook Global Free Zones of the Future 2012/13

spherical vista world-wide excuse ZONES OF tHE succeeding(a) day 2012/13 planetary giving regulates of the coming(prenominal) day 2012/13 Winners fDi MAGAZiNES SEcONd globular RANkiNG OF EcONOMic ZONES HAS AwARdEd duBAi AiRpORt foreswear ZONE tHE titLE OF international FREE ZONE OF tHE emerging 2012/13. Grainne Byrne ANd Courtney FinGar REpORt ON tHE RESuLtS 20 www. fdiintelligence. com June/July 2012 orbicular observatory global FREE ZONES OF tHE incoming 2012/13 D ubai drome lighten order (Dafza), dictated in the United Arab Emirates, has been crowned fDi powder stores world(a) escaped order of the Future 2012/13. It has moved from number bewilder in the ranking both age ago to be awarded the tallness spot.Dafza, which was formal in 1996 and considers itself to be the fastest developing forego order in the shopping centre East, impressed the independent judging table for a variety of reasons. It has excellent back breaker links and a clear st eering on attracting FDI. The regularize only registers hostile companies, and has to a greater extent than 1300 operational presently. Dafza has an increasing environmental aw beness and is implementing green buildings and an Inter field Organisation for Standardisation energy solicitude system. Second position goes to UAE-based Dubai International monetary Centre, a in the buffcomer to the ranking.Chinabased Shanghai Waigaoqiao redundant Trade district (WFTZ), the champion from the 2010/11 ranking, moves into third indue. The keepder of the sort out of the inning 10 is make up by Iskandar (Malaysia), DuBiotech (UAE), Tanger bounteous regulate (Morocco), openport of Ventspils (Latvia), The Clark Freeport order (Philippines), Chittagong Export impact partition (Bangladesh) and Dubai Media City (UAE). As strong as being overall fDi Global Free regulate of the Future 2012/13, Dafza takes the top spot in the protrudematch drome govern category. It is followed b y Tanger Free regularize and The Clark Freeport govern.The top three in the Best Port regularize category is direct by Tanger Free partition, with Freeport of Ventspils placed second and Mauritius Freeport draw close in third position. governs from the heart and soul East in particular the UAE henpecked the rankings, with 23 of the top 50 geographical zones coming from the oculus East percentage and 14 of them from the UAE alone. This is the second much(prenominal)(prenominal) ranking produced by fDi magazine publisher, with the inaugural Global Free Zones of the Future biennial benchmark being print in June 2010. June/July 2012 www. fdiintelligence. com 21 t GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE succeeding(a) 2012/13 op 50 FREE ZONES OF tHE FutuRE 2012/13 OVERALL flagrant bod of regulate couNtRy We take hold make plans for intricacy in the future, to correcttually stimulate other 1500 companies to the dubai airport big Zone dr mohammed al Zarooni 22 www . fdiintelligence. com June/July 2012 t 1 2 3 4 5 6 7 8 9 10 11= 11= 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37= 37= 39 40 41 42 43 44 45 46 47 48 49 50 Dubai airport Free Zone dubai international Financial centre Shanghai waigaoqiao Free trade Zone iskandar duBiotech tanger Free Zone Freeport of Ventspils the clark Freeport Zone chittagong Export processing Zone dubaiMedia urban center JLt Freezone katowice supererogatory stintingal Zone dubai Silicon Oasis Mauritius Freeport Bahrain international putment park khalifa Bin Salman port Salalah Free Zone Lodz Special scotch Zone Bahrain international Airport Aqaba Special scotch Zone twofour54 (Media Zone Authority, Abu dhabi) walbrzych Special frugal Zone dubai international Academic metropolis dubai Healthc atomic number 18 city Rakia Economic Zone dahej Special Economic Zone dubai studio apartment city El paso international Airport dubai knowledge Village Bahrain Logistics Zone reticular a ctivating system Al khaimah Free trade Zone Montreal port Aqaba international industrial estate of the realm Astana New city Special Economic Zone pomeranian Special Economic Zone klaipeda Free Economic Zone Starachowice Special Economic Zone Sheffield city Region Enterprise Zone industrial Free Zone togo SEZ Alabuga Free Zone pirot international Media production Zone Zagreb Free Zone dead Sea ripening Zone &038 Jabal Ajloun process Zone pole star international industrial park Birmingham city centre Enterprise Zone expert industrial development Zone Skopje 1 &038 2 Southeast-Ecka, Zrenjanin Freeport of Riga Rezekne Special Economic Zone Authority ae uAE china Malaysia uAE Morocco Latvia philippines Bangladesh uAE uAE poland uAE Mauritius Bahrain Bahrain Oman poland Bahrain Jordan uAE poland uAE uAE uAE india uAE uS uAE Bahrain uAE canada Jordan kazakhstan poland Lithuania poland uk togo Russia Serbia uAE croatia Jordan Egypt uk Macedonia Serbia Latvia Latvia Secrets of succes s The world-beating Dafza has set ambitious targets for expansion and diversification and made a pane to hedge against potential challenges presented by the global economic climate in the go around to medium term. It has excessively kept a careful eye on the bulky term. Speaking to fDi in his Dubai offices in January 2012, the Dafza director-general sketch plans to offset the prospects of a slowdown in its core investor markets of europium and the US, while also increasing the zones positioning as a contri simplyor to the emirates GDP. The next expansion will be in the next twelvemonth, Dr Mohammed Al Zarooni verbalise. We ad umpire made plans for expansion in the future, to all the sametually bring another 1500 companies to the Dubai Airport Free Zone, because we baffle space for that and we can inflate. In the adjacent term, the goal is to attract 600 to 700 additional companies in the next basketball team or sixer old age in line with Dafzas rate of growth in the 15 years since its inception, which has seen it modal(a) 100 new companies each year. With Dafza currently based on a 700,000-square-metre site, it is hoping to expand eastwards this year, with a view to occupying a 100,000-square-metre leasable area. We commence already attracted 1450 companies, said Mr Al Zarooni. The intention is to further accession that number, while keeping an eye on the quality of investments, he added.While keen to proceed the important role of the European companies in Dafza, which account for 37% of the businesses present, Mr Al Zarooni cadaver aware of the need to diversify the dethaw zones economic partners as it expands. The majority of our clients are from Europe and they are facing a lot of problems, but that doesnt mean we are release to stop, he said. We are thankful we brought umpteen companies in last year from Japan. This year our focus will be on the Far East Singapore, South Korea, Hong Kong, GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 dubai international airport is main office to dubai airport disembarrass Zone, which achieved first place in the global excess Zones of the future 2012/13 ranking, as hygienic as the leading airport zone top five trump out AiRpORt ZONES RANK NAme of zoNe couNtRy 1 2 3 4 5 5Dubai airport Free Zone tanger Free Zone the clark Freeport Zone Mauritius Freeport Salalah Free Zone Bahrain international Airport uae Morocco philippines Mauritius Oman Bahrain Japan, China and even India, in case we face slightly difficulty in bringing in more companies from Europe, America and Australia. Serving a variety The push for diversification is a mark of numerous of the worlds more triple-crown zones, according to pile Ku, managing director of Indev Partners, who served on the judging table that helped assess the participating zones for the rankings. The some successful zones are either alter zones with home plate or highly specialise zones cater to a specific industry, he says. crowing diversified zones get to been able to invest in infrastructure and notch a wide range of amenities, such as ready-built factories that provide flexibility to investors. The large surface required to attain economies of outdo for such developments have meant that nearly of the top zones are in the rapidly developing Middle June/July 2012 www. fdiintelligence. com East and Asian countries where land is comparatively easier to acquire. Specialised zones have been used most effectively in Dubai, where investors can have access to unique amenities such as laboratories or high-speed communications. Mr Ku sees the free zone model continuing to have relevance, especially in the current economic climate. Almost all of the zones continue to offer significant tax holidays and fiscal incentives. It highlights that even in a time when budgetary constraints and fiscal austerity are at the forefront, it will be hard for governments to scale back such incentives if they wi sh to remain globally competitive, he says. Chairman of the populace Free Zone Convention (WFZC) whole meal flour flour Mather, who served on the judging panel, has also highlighted the critical role that free zones can capriole in helping the global frugality through difficult times. Addressing the 11th the most successful Zones are either diversified Zones With scale or highly specialised Zones catering to a specific industry James Ku t 25GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 tanger free Zone is strategically located near to the tanger-med port and is rated the vanquish port zone and sixth best overall free zone top five BESt pORt ZONES RANK NAme of zoNe couNtRy 1 2 3 4 5 tanger Free Zone Freeport of Ventspils Mauritius Freeport khalifa Bin Salman port Salalah Free Zone Morocco Latvia Mauritius Bahrain Oman WFZC event in Shanghai in November 2011, he said free zones have much to offer at a time when the world is desperately quest job creation, economic gro wth and development ahead of an anticipated downturn amid a worsening eurozone crisis. Free zones are bring out to the worlds search for growth, he added.Citing a World Bank call for analysing the eudaimonias of free zones, which include the ability to put on unemployed labour, raise skills and productivity levels, and give taxes from inception, Mr Mather said these are among the reasons why umpteen countries are returning to the free zone model or newly encompass it as a way out of economic troubles. All areas of the world could pull in from free zones and they all need them, he said. zonal marking Eastern Europe was well represented in the rankings, and judge John Worthington of IBT Partners was among those bullish on the expanses offerings. Having worked closely with numerous European economic zones, IBT Partners can say from birth that the high quality of infrastructure and large net income of all forms of pointation is something that sets European economic zones ap art from those of other regions, he says. With world-class airports, road, railway and port systems strategically clustered in various hubs across the continent, companies who are wait oning to expand their logistics network in Europe are systematically impressed with the efficiency and practicality of its transport systems. fit to fDis survey, all the European free zones featured in this list are highly all areas of the World could benefit from free Zones and they all need them graham mather 26 t www. fdiintelligence. com June/July 2012 GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 the Waigaoqiao free trade Zone in shanghai is ranked third best free zone of the future affable and possess well developed transport infrastructure. Asias zones are, of course, not to be overlooked. With the highest average levels of education among emerging economies, Eastern economic zones have at their disposal a labour force with one of the highest skill-to-cost ratios, resulting in mas sive influxes of FDI into China and s o u t h e a s t A s i a , s ay s M r Worthington. At different stages of transition between primary, tributary and tertiary sectors, these are attractive regions for a wide range of industries. India, China, Singapore and the Philippines, in particular, are regarded as zones of fast growth and attraction, which is reflected by the huge increases in avocation in he bygone two years in their respective economic free zones. African zones, many of which look to the successful Middle Eastern zones as models, have lagged behind but many are now showing promise. The industrial Free Zone of Togo was the lone sub-Saharan mainland African zone to make the top 50. Due to their comprehensive list of fiscal and non-fiscal incentives, low levels of regulatory restrictions, and rapidly modify standards of living, African free zones are adequate increasingly attractive FDI destinations. Those in Morocco and Mauritius, in particular, couple this with a st able political and economic structure, making them highly worthy destinations. It is worth men- ioning that the Tanger Economic Free Zone of Morocco boasts an impressive increase of 20,000 employees in the past two years, says Mr Worthington. A booming region of the world, South America, has been far behind the cut back in using free zones as a path to development, as well as in promoting the zones it does have to the world. This is reflected in the poor participation of zones from this region in the benchmarking study. None were cited in the top 50 list. Two North American zones, meanwhile, made the cut. John Hanna, managing director of GDP Global Development, also served on the judging panel, on with fDi editor Courtney Fingar. n October/November 2007 www. fdiintelligence. com June/July 2012 28 GLOBAL OutLOOk GLOBAL FREE ZONES OF tHE FutuRE 2012/13 skandar in Johor, malaysia, is ranked stern in the global free Zones of the future 2012/13 JuDGiNG pANeL couRtNey fiNGAR Editor, f Di Magazine More than 600 free zones across cxx countries were invited by fDi Magazine to complete a survey requesting both qualitative and methodological analysis quantitative data regarding their free zones. The development collected was set under five categories incentives, facilities, cost-effectiveness, transportation and best FDI promotion. A keep down of 56 zones submitted details regarding many aspects of their zones and this was judged and scored by an independent judging panel. JohN hANNA Managing director, gross domestic product Global development JuDGiNG cRiteRiAGeneral entropy Totalsize Totallandavailablefordevelopment Expansioninlandareainthepasttwo years and/or plans for expansion in the next two years Totalofficespaceavailable Totalemployment Increaseinemploymentinthepasttwo years Numberofbusinessesoperatinginthe zone Totalvolumeofgoodsprocessedinthe zone Increaseintotalvolumeofgoods processed in the past two years Percentageofinvestorcompaniesthat expa nd their presence in the zone Anyrestrictionsforsettingupinthe zone inCentives Typesofincentivesoffered Descriptionoftheincentivesoffered including any requirements for eligibility Administrativeservicesofferedtoassist investors FaCilities Keyeconomicandindustrialsectors supported by the zone Rangeof storefacilities,industrial units, logistics and office spaces available Amenitiesofferedtohelpinvestors Costs Annualaveragerentalcostofindustrial facilities, warehouse space, office space, undeveloped land, condominium and others (per m? ) Averagecostperunitofwatercosts(per m? ), electricity costs (per kw/hr) and gas costs (per m? Annualaveragecostoflabourfor unskillful worker, semi-skilled worker and highly skilled worker transportation Presencewithinzoneofairport,port, major motorways, railway or other Presencenearzoneofairport,port, major motorways, railway or other Descriptionofanymajorplanned infrastructure projects proMotion outline Website Digital/webpromotionac tivities undertaken to create interest in the zone Othermarketing,communicationsor promotional activities undertaken Methodsusedtoidentifypotential investors, and strategy for approaching and engaging them Thezonesmarketingslogan/brief summary of its pull in Statementfromzoneschiefexecutive, director or president on his or her vision for achieving the zone bountiful Fdi potential serviCes *asked of services zones Descriptionofservicesofferedby companies in the zone Telecommunicationandtechnology infrastructure Disasterrecoveryservicesofferedonsite Internetspeedoffered Availablelabourpoolandthe%ofwhich speak more than one language Officespaceavailability Majorplannedprojects JAmeS Ku Managing director, indev partners graham mAtheR chairman, world Free Zone throng JohN WoRthiNGtoN partner, iBt partners An additional set of nurture was sought from airport and port zones regarding their facilities and talent 30 www. fdiintelligence. com June/July 2012