{
  "id": 12554156,
  "title": "The next generation of economic zones will compete on ecosystems, not incentives",
  "url": "https://urgent.news/2026/10/07/the-next-generation-of-economic-zones-will-compete-on-ecosystems-not",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-07T04:48:00.000Z",
  "source": {
    "name": "Gulf News",
    "slug": "gulf-news",
    "url": "https://gulfnews.com/opinion/op-eds/the-next-generation-of-economic-zones-will-compete-on-ecosystems-not-incentives-1.500700357"
  },
  "original_language": "en",
  "account": "The United Arab Emirates initially created its free zone model to offer businesses a supportive regulatory environment, efficient processes and access to essential infrastructure and markets. However, the most successful zones have transformed into comprehensive business ecosystems, offering valuable lessons for markets aiming to attract international investment. JAFZA, a prime example of this evolution, thrives due to its strategic location near Jebel Ali Port, robust international connectivity and a dense concentration of businesses. This creates an interconnected network for companies to access suppliers, customers, logistics services and other firms within a broader network. This environment holds significant value beyond any individual incentive provided to a company.\n\nSimilar trends can be observed across the UAE's specialised economic zones, such as Dubai Internet City, which focuses on technology and digital enterprises, and Masdar City, prioritising clean technology and sustainability. Other zones have emerged around sectors like healthcare, manufacturing, media and financial services. A common thread among these zones is their design to cater to businesses' practical requirements and the ecosystems required for their expansion.\n\nWhile taxation, regulation, infrastructure and operating costs remain crucial considerations, companies now closely examine the surrounding environment when making investment decisions. Factors such as access to talent, professional and financial services, dependable partners, efficient movement of goods and capital, and connectivity to neighbouring markets can significantly influence a business's long-term viability. Thus, an economic zone may possess enticing incentives yet fail to cultivate a sustainable investment ecosystem if it lacks an effective support network.\n\nThis principle holds particular relevance for South Asia, a region experiencing rapid growth with a significant population, talent pool, and burgeoning consumer and business markets. South Asia also boasts longstanding commercial ties with the Gulf. As investment flows between the two regions intensify, the next step involves bolstering institutional infrastructure to facilitate the entry and operation of international businesses in the region. This includes streamlining the establishment of operations, fostering relationships with local partners, accessing professional services, and navigating varying regulatory landscapes. By doing so, economic zones can alleviate some of the complexities associated with investing in South Asia.",
  "summary": "When the UAE began developing its free zone model, the proposition was relatively straightforward: businesses could establish themselves in a supportive regulatory environment, benefit from efficient processes and gain access to infrastructure and international markets. Over time, however, the most successful zones have developed into much broader business ecosystems, and that evolution offers…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}