Main Ingredients of a Successful Free-Zone

Abstract

Free zones are described as economic zones in which goods and services are subject to internal or external trade. As a general rule, the main characteristics of free zones are to have 100% of foreign ownership, the ease of repatriation of capital and profits, tax-free operations, among other advantages. Now, as a standard practice, there are extremely important elements required for successful free zones such as location and accessibility, government support, the town's livelihoods, and a clear regulatory framework. On the other hand, there are certain characteristics that are seen as good to have as strong human capital, a work environment and strong marketing and regional visibility. In this paper, ten key ingredients or components of a successful Foreign Trade Zone are highlighted. These elements need to be acquired in order to have a successful free zone, so that it can contribute to the country's economy. It should be noted that these key ingredients would certainly foster the success of a free zone if they were adopted, implemented in the field and closely monitored.