More than 3,500 special economic zones or free trade zones spread across 130 countries handle $3.5 trillion worth of exports annually, according to a latest report by the Organization for Economic Cooperation and Development.
With global exports reaching $15.46 trillion, the share of free zones has crossed 22.63%. Of this, free zones or export processing zones in Asian countries handle $2.4 trillion worth of trade–leading the free zone output in the world while free zones in the Middle East handle $552 billion worth of exports, CPIFinancial reported.
Free zones add $500 billion worth of trade-related value globally while 66 million people are employed by companies registered within such zones, according to the report.
The UAE has over 45 free zones with 10 new under construction. Among the existing 45, more than 30 are in Dubai, making it the region with highest number of free zones. The country also has one of the highest number of free zones in the world that offers foreign investors 100% foreign ownership in companies registered with any of these free zones.
“Free zones have been instrumental in developing the economies of many countries around the world. One of our key objectives is to raise awareness of the benefits that free zones can bring in terms of enhancing foreign direct investment and trade; promoting cultural diversity; driving innovation and skills development; creating new jobs and industries, as well as bringing stability to the global economy and prosperity to nations,” said Mohammed Alzarooni, chairperson of World Free Zones Organization and director of Dubai Airport Freezone.
