Special Economic Zones in the OIC Region:
Learning from Experience
19
2.7.2 Non-fiscal Incentives
Since most countries with SEZs offer some form of fiscal incentives, competition has increased
to attract investment as the number of zones worldwide has grown. Non-fiscal incentives,
related to the ease of operations within zones are therefore also key considerations for investors
when choosing where to locate.
Typical non-fiscal incentives can include:
 Single-window fast track clearances;
 Simplified export-import procedures and customs clearances;
 Ease of restriction on foreign workers;
 Repatriation of profits;
 100% foreign ownership; and
 Allowing sale of goods to the domestic tariff area.
Non-fiscal incentives which facilitate the ease of doing business within SEZs are now often cited
as more important to investors than the implementation of fiscal benefits, particularly with
regards to the provision of a genuine ‘one-stop-shop’ which can expedite the acquisition of
licenses and fast-track clearance processes. 16
Box 5 - Expedition of Permits and Clearances
16 A. Mukherjee et al. (2016) Special Economic Zones in India. ICRIER, India.
Philippines
The Philippines Export Processing Zone Authority (PEZA) has signed a Memorandum of
Agreement with the Department of Environment and Natural Resources, which has eased
environmental clearances. The authority also provided a 24 hour service to companies located
within the zones and can assist with processing visas for foreign nationals. In particular, foreign
nationals within a PEZA registered enterprise are allocated a special non-immigrant visa which
allows multiple entries.