Special Economic Zones in the OIC Region:
Learning from Experience
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illustrates the significant range in the density of firms within selected SEZs in OIC
Member Countries. Whilst the availability of data restricts the size of the sample which can be
analysed it can be observed that some zones are more successful than others in attracting
enterprises to the zones. It is recorded that there is an average of 8.8 firms per hectare within
the analysed economic zones; ranging from 32.4 firms per hectare within the Ras Al Khaimah
FTZ to 0.06 firms per hectare within the Ogun Guangdong FTZ.
A similar pattern is observed when analysing the number of jobs per hectare within selected OIC
SEZs. An average of 318 jobs per hectare is recorded, ranging from approximately 600 jobs per
hectare within the Tanjung Api-Api SEZ to 2 jobs per hectare within the Ma’an Development
Area.
It can be seen that those zones with well-established zone authorities and investment agencies
have become very successful at attracting both enterprises and generating jobs within their
respective zones. A good example of this are the Jebel Ali Free Zone and Ras Al Khaimah FTZ
which have generated a significant amount of employment and attracted a large number of
enterprises to set up in the zone. The ‘One Stop Shop’ approach to business development is
prevalent amongst many of the zones but those zones which offer a fully inclusive or ‘single
window’ service are observed to be more successful at attracting investment.
It should be acknowledged however that the sectoral focus of SEZs will also have a significant
impact on the density of enterprises and employment found within them. For example zones
which focus on logistics functions will contribute fewer enterprises per hectare given the larger
land requirements of these types of sectors. Equally, sectors which have less labour intensive
requirements will record smaller employment densities per hectare compared to more labour
intensive industries such as textiles and garments. It is therefore important to understand the
wider economic context when considering the economic success of SEZs and to consider a range
of indicators to facilitate this judgement.