Special Economic Zones
Special Economic Zones (SEZs) have been established in 120 countries to promote business and increase foreign investment. Stimulated by more liberal economic policies in these zones, as compared to the host countries' typical economic laws, a variety of institutional consortia have invested in more than 3,000 SEZ implementations worldwide.
In most cases, an SEZ is structured as a combination of public-private partnerships in which the public sector provides incentives such as infrastructure, equity investments, soft loans, and bond issues that enable a private sector developer to obtain a reasonable rate of return on the project.
Originated in the People's Republic of China in the 1980s, successful SEZs have developed small villages into major industrialized centers, supporting populations of 10 to 20 million citizens with jobs, their host countries with major economic growth, and their investors with substantial returns as well as the rewards of developing socially responsible, emerging market projects while limiting negative externalities. In recent decades, SEZs have been established in a wide range of geographies, including Brazil, India, Iran, Jordan, Kazakhstan, Pakistan, the Philippines, Poland, Russia and Ukraine.
SDG is singularly well-equipped to analyze the complex risk profiles, financial projections, and structural implementation issues surrounding development of Special Economic Zones. Our India and Asia-Pacific Practice has supported SEZs in that region as well as other geographies for many years, assisting clients in the participation decision, bidding process, development and integration planning, and financial modeling.