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Special Economic Zones in the OIC Region:

Learning from Experience

57

Table 4-4

summaries the comparative analysis between the selected SEZs within OIC Member

Countries against key evaluation criteria. It can be observed that the most successful zones in

terms of total employment and numbers of firms, were those zones which were located in close

proximity to major port infrastructure with large capacity for movement of imports and exports.

In particular it can be seen that those zones with a sectoral focus on the export / re-export of

goods and heavy industrial activities generated the most jobs per hectare whilst those focused

on light manufacturing activities such as textiles and pharmaceutical products generated the

least number of jobs.

As previously discussed it was also observed that those member countries with established zone

authorities and investment agencies were the most successful in terms of employment and

enterprise generation indicating that these are key factors to success.

Whilst this section has attempted to identify key drivers of success within benchmarked OIC

member country SEZs, it should be acknowledged that factors which contribute to success are

also likely to be very context specific. The importance of prevailing economic conditions should

be acknowledged and this is reflected in the comparative analysis of zones such as Jebel Ali

within the UAE (an advanced development economy) and those zones such as Lekki Free Zone

which is located within a developing economy.

4.4

Key Successes of SEZ Development in OIC Member Countries

Some of the most successful SEZ programmes within OIC Member Countries have managed to

facilitate the evolutionary development of zones from first stage enclave-type zones focused on

employment and skill upgrading through increasing FDI volumes in export orientated activities

to second stage diversification of the production base of the domestic economy. In a number of

cases it is apparent that the economic diversification of domestic economies has been facilitated

by the introduction of SEZs and attracting new manufacturing and service industries to replace

or supplement traditional resource based economies. As mentioned earlier i

n Box 2,

the United

Arab Emirates has been one of the most successful economies globally at implementing the free

zone model to attract high value activities to achieve their objectives of diversifying into non-oil

sectors.