Special economic zones in the Gulf Cooperation Council region
At present there are over 5.4 thousand special economic zones worldwide. Only around one hundred special economic zones can be found in the Middle East and North African region, with almost half of them based in the United Arab Emirates alone. The goal of the special economic zones in the Gulf Cooperation Council region is to promote the process of economic diversification. Domestic and economic reforms by the governments of the region are being enacted to prepare their countries for a future without reliance on oil revenues.
The significance of special economic zones for this purpose is that they allow one hundred percent foreign ownership of businesses, normally restricted to GCC operations only. Furthermore, they have either very attractive tax breaks or in certain cases nil taxation regimes which also aid in appeal to foreign direct investment into the region.
Logistics hubs
Apart from establishing innovation hubs and cities, a leading branch of SEZs in the Gulf Cooperation Council region are the logistics centers and seaports. The region is an important junction for global sea cargo. Additionally, its seaports are crucial for transporting oil and gas commodities from the Middle East to the rest of the world.
