Freezex2002

Free Zone	Emirate
Saadiyat Free Zone	Abu Dhabi
Cert Technology Park	Abu Dhabi
Jebel Ali Free Zone	Dubai
Dubai Airport Free Zone	Dubai
Dubai Technology, E-Commerce & Media Free Zone	Dubai
Dubai Customs Automobile Zone	Dubai
Dubai Investment Park	Dubai
Dubai Textile City	Dubai
Gold & Diamond Park	Dubai
Hamriyah Free Zone	Sharjah
Sharjah Airport International Free Zone	Sharjah
Ajman Free Zone Authority	Ajman
Sheikh Ahmed Bin Rashid Port & Free Zone	Umm Al Quwain
Ras Al Khaimah Free Trade Zone	Ras Al Khaimah
Fujairah Free Zone	Fujairah

The Concept of Free Zones

Initially, free zones were created to attract foreign investment and promote foreign trade. They were notified areas where special laws operated with regard to ownership, taxation, recruitment of labour, value addition and income repatriation. As globalisation gained ground, free zones became the preferred areas for foreign investment as they offered the most cost effective mix of factors of production, transportation and distribution in addition to benefits numerated earlier.

It was, therefore, no surprise that a growing number of economies took the "free zone route" to ensure prosperity for their future generations. Free zones are the "pilot projects" of globalisation, the economic bridgeheads that will link the global economy. Capital will chase free zones because of the manufacturing and/or trading advantages they offer. They are here to stay till the process of globalisation is completed.

Free Zones in the Gulf

The oil rich Gulf region which comprises Saudi Arabia, Bahrain, Qatar, UAE, Oman and Kuwait has commenced a massive economic diversification programme in order to eliminate dependence on oil. This is witnessed in the growth of the manufacturing, non oil trading and service sectors. UAE has 11 free zones including two technology parks (please see box), Saudi Arabia has two (with a third coming up at Yanbu) and Kuwait one. Bahrain and Oman have announced setting up of new free zones. Iraq, located in the Gulf region but now not a part of the Gulf Co-operation Council, has three free zones and has announced its intention to set up one more. These free zones clearly indicate that the Gulf countries have chosen the "free zone route" for their transition from an oil based economy to a non oil economy.