Special Economic Zones in the OIC Region:
Learning from Experience
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 Legal and regulatory framework should specifically consider investor requirements;
 Investment promotion agencies or ‘one-stop-shops’ are effective tools for targeting
inward investment in SEZs and to facilitating a significantly more attractive
environment for potential investors;
 Fiscal incentives should be focused on the sectors and strategies which are being
targeted by the proposed zone programme and should not be used as the main
differentiator between competing zones.
Economic Success Factors
 The correct choice of SEZ target industry-sectors should be based on a robust feasibility
study to ensure that the comparative advantages of the country, region or site are fully
utilised and that the key challenges and risks have been considered;
 When designing SEZ programmes consideration should be given to trade policy,
strategic and sectoral focus, zone typology, policies on domestic participation and
policies on access to local market to ensure favourable conditions for facilitating
backward and forward linkages between the SEZ and domestic economy; and
 There should be a clear vision from the inception of an SEZ programme on which
economic impacts are being targeted and the extent of the impacts. These should be
monitored on a regular basis to ensure that targets are being met.
Physical / Spatial Success Factors
 Zone should be designed to exploit pre-existing advantages that are the products of
concentration, such as the presence of existing infrastructure such as ports or airports
which offer international connectivity;
 Site selection should considered early on in developing a national SEZ strategy and
should utilise a number of key criteria linked to target industry-sectors and associated
investors and tenants;
 The provision of high quality infrastructure is a key comparative advantage when
looking to attract FDI;
 Options for governments and zone authorities to work with development partners or to
secure PPP arrangements with the private sector to facilitate investment in
infrastructure can be successful models of infrastructure financing and operation.