Introduction to Free Zone

Free Zones form part of a recognised Trade Facilitating Mechanism.


They are usually designed to stimulate trade and export activities and to attract Direct Foreign Investment (DFI). There are over 850 Free Zones in the World. However, World Bank statistics record over 50% to be failures, most especially in the developing world.

Reasons for failure include:

  • Inept application of the project.
  • Inadequate assessment.
  • Political and economical instability.
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