Investor Presentaiton
MENA-OECD
INVESTMENT
Possible Constrains to the Success of EZs in MENA
PROGRAMME
Incentive Framework
Design and Facilities
•Despite the reliance on other incentives, MENA
governments still resort to excessive tax
incentives without the use of sunset clauses,
leading to windfall gains.
•The need to avoid undue competitive
disadvantages among firms (e.g. domestic firms
outside zones)
•The lack of thorough cost benefit analysis of
incentives being used.
•A country's situation where some zones have
tax incentives and others don't leads to
competition among free zones based on tax
incentives thus creating distortions. Incentive
packages are not sufficiently encouraging
linkages with the local economy and sometimes
impede them.
•Land designation and land allocation
processes are not well established.
•Off-site infrastructure is not well developed
for zone sites.
•Utilities provision is not reliable.
• Lack of business development services such
as quality control and standardisation.
•Lack of efficient promotion and marketing of
zones
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