Middle East

– Featured Times Kuwait Times Kuwait Times Kuwait Times Kuwait

In light of the ambitious future plans of the countries of the Gulf Cooperation Council region, the number of special economic zones is set to increase significantly in the near future, especially in Saudi Arabia and the UAE.

But surprisingly, the GCC countries have over 70 economies, 47 of which are in the UAE alone, while Saudi Arabia and Oman each have 10. Qatar 2.

In a recent report, MEED magazine said that in the 1980s there were less than 200 special economic zones around the world, so special economic zones, including logistics centers, free zones and industrial clusters, have seen remarkable growth around the world. increase. Over 7,000 people in about 140 countries.

The report highlights that the GCC countries are at the forefront of this growth, and for good reason. That is, the geographical advantages enjoyed by the Gulf States in East-West relations have remained strong over the centuries.

At a time when the global competition to attract companies to special economic zones remains fierce, the Middle East will seamlessly connect billions of people through the most advanced airports and ports on the planet, as well as business-friendly special economic zones. is tied to

When it comes to SEZs (Special Economic Zones), it is imperative to provide solutions that benefit the countries investing in the SEZs and the companies that use them, not just the quantity.

This will enable private companies to contribute to the national economy, create jobs, and stimulate innovation in exchange for SEZs that offer economic incentives, customized costs and benefits, seamless business operations, and world-class infrastructure. , means that it is important to drive and enable economic diversification. Factors of strong economic development.

A world-famous example is the Jebel Ali Free Zone (Jafza). When it was launched in 1985, there were only 19 companies in the region. But now Jafza accounts for nearly 24% of his foreign direct investment in Dubai. This free zone includes 9,000 registered companies from over 130 countries, employs over 135,000 people and generates trade of AED 454 billion ($123.6 billion) in 2021. , an increase of 19% per year.

Looking to the future, how can the benefits of the SEZ be enhanced in the future? There is no doubt that technology and sustainability must play an important role.

The Internet of Things, advanced robotics, 3D printing and big data are reshaping our world and global value chains and will undoubtedly be central to the transformation of the GCC Special Economic Zones.

Special economic zones must rise to the challenge of sustainability. Bahrain, the United Arab Emirates and Saudi Arabia have all committed to net zero emissions targets for 2050 to 2060, and the industry is responsible for 30% of the world’s carbon dioxide emissions, making industry groups We must work together to achieve our goals.

Therefore, the proximity of industrial groups should be used to accelerate the transition to clean energy, improved energy efficiency, and new technologies such as carbon capture.

The region, which will eventually be home to 9 million people, will run on 100% renewable energy and aims to be a world leader in areas such as artificial intelligence, advanced robotics, data centers and virtual reality.

Since 1985, the Gulf region has learned a lot about maximizing the benefits of special economic zones, but some lessons stand out.

1 – A collection of interconnected businesses or industries, such as Dubai Media City, which brings together a media community of self-employed individuals, SMEs and global media brands.

2 – The close convergence of competing firms inevitably leads to increased productivity and innovation as firms seek to overtake each other.

3 – Proximity drives not only collaboration and partnerships leading to new products, processes, services and revenue streams that drive sector growth, but iteration as well.

4 – Clusters intensively attract skilled professionals and workforce. Because these people share valuable knowledge and create a focused pool of talent.

5 – For SMEs and growing businesses, clusters offer opportunities to thrive, learn from industry leaders, leverage economies of scale, and explore innovative areas that can transform the industry.

6 – Provide close access to critical suppliers and partners, especially given the impact of the pandemic on supply chains

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https://timeskuwait.com/news/kuwait-lags-far-behind-in-gulf-in-the-establishment-of-economic-zones/ – Featured Times Kuwait Times Kuwait Times Kuwait Times Kuwait

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