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Special Economic Zones in the OIC Region:

Learning from Experience

169

6.2.5

Institutional Frameworks

Some of the most successful SEZs within OIC Member Countries have established new

institutions to regulate, operate and develop SEZs. The ability of new institutions to operate

from a new and relevant mandate, including new systems and procedures, allows them to

provide a new set of skills and a new culture of performance, transparency and autonomy from

established government institutions.

In circumstances where countries are considering multiple SEZs or moving from a single SEZ to

a multiple zone country, then establishment of a single SEZ authority should also be considered

to regulate all of the zones. An overarching authority enables the leverage of existing expertise

and avoid the potential pitfalls of multiple authorities competing with one another and creating

investor confusion.

It is also key for the SEZ authority to have involvement from different government

departments/agencies, as well as the private sector – whether direct or indirect (i.e. sitting on

the board of the SEZ authority or just providing necessary input, e.g. granting of business

licenses / work permits).

There is also an important role for the private sector in the separation of regulation and

operation of SEZs. Whilst it is appropriate for the public sector to retain authority for regulating

economic zones, there is increasing evidence that the incorporation of the private sector into

the operation of zones can yield a number of benefits. This includes increased efficiencies as well

as investment in infrastructure on BOT agreements.

Examples from OIC Member Countries

Morocco – Tanger Med Zones

The TMSA was established as a special public – private agency with public prerogatives, tasked

with the responsibility of driving the economic transformation of the Tanger Med region. The

specific objectives of the agency are to focus on the execution of projects and to manage the large

land reserve which has been granted to it and through its subsidiaries manages the operation of

the Tanger Med Port and the Industrial Platform. This has been very successful through effective

cooperation with the private sector.