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[The central defining aspects of modern free zones in the Gulf reveal important characteristics of the region’s political economy. Barring minor variations, Gulf free zones offer clients eligibility for full foreign ownership, unfettered access to expatriate labor, and preferential treatment concerning customs, taxes, and other fees. The issues of foreign ownership, expatriate labor, and fees not only possess deep historical foundations in Gulf Arab states but also remain persistent—and, at times, contentious—features of the region’s political economy. These economic institutions are intertwined with free zone development, having shaped the development of these entities and themselves been influenced by the evolution of the region’s free zone system. The persistence of these economic institutions delineates free zones from their onshore counterparts. As institutional arrangements change, free zones must also adapt.]
Published: Apr 14, 2021
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