Special Economic Zones in the OIC Region:
Learning from Experience
2
The predominant typology has changed from Traditional EPZs to more mixed special economic
zones with multiuse developments incorporating industrial, commercial, residential and even
tourism activities. Some are moving to highly specialised developments focusing on high-end
services such as ICT and biotech. Another trend is to see the increasing importance of private
sector involvement and a move away from purely publically funded schemes.
In countries which initially developed SEZ formats for industrial growth, from the 1950s to the
1970s, the ongoing focus has tended to be on the continuation or closure of existing SEZs in the
context of national economic policy reforms. In contrast, a number of countries which
implemented SEZs more recently from the 1980s and into the 2000s, have increasingly focused
on how to enhance their zones' competitiveness in the context of the thousands of other zones
now in operation. One of the most pressing challenges for SEZs globally therefore, and
particularly new ones coming on-stream now, is how to assert a unique investment proposition
that maximises competitiveness and goes beyond standard format infrastructure provision or
increasingly common forms of fiscal incentivisation.
As the number of SEZs increases globally and they are increasingly seen as a policy tool to attract
investment it will also become increasingly important for zones and countries to look beyond
administrative borders and develop integrated approaches to SEZ development; particularly
with regards to legal and regulatory frameworks such as export policies and fiscal incentives.
SEZ Development in OIC Member Countries
In total it is estimated that there are approximately 242 SEZs operating within 33 OIC Member
Countries. SEZ development has been a key focus within the Middle East with the UAE (20%),
Saudi Arabia (11%), Iran (9%), Jordan (6%) and Oman (4%) accounting for approximately half
of all SEZs within OIC Member Countries.
Comparative analysis indicates that the most common typology recorded within OIC Member
Countries are Free Trade Zones (FTZs), following by Export Processing Zones (EPZs), Hybrid
EPZs and Special Economic Zones (SEZs). Analysis of these zones show that they cover a very
broad range of common sectors similar to those recorded globally within SEZ programmes.
Analysis of spatial characteristics found that like many global trends, SEZs within OIC Member
Countries were typically located close to both port and airport infrastructure nodes with some
of the most successful SEZs incorporating port development either within or adjacent to the
zone.
Analysis of employment and enterprise statistics, whilst limited by reliability and availability,
indicates that there is a significant range in the density of employment and firms between SEZs
within OIC Member Countries. However it is noted that those zones with well-established zone
authorities and investment agencies have become very successful at attracting both enterprises