The proliferation of free zones across the globe means that new zones continue to emerge. In this vein, fDi Intelligence’s 2024 Global Free Zones of the Year Awards has recognised the best rising stars, or nascent zones founded since January 1 2022. 

The rising star survey explored the target sectors for these new zones, the main advantages they offer prospective tenant companies and any recent decisions by investors to locate or expand within them. A total of eight zones entered this category, with a winner and runner-up globally and in Asia-Pacific and the Americas.

GLOBAL WINNERS

Winner: Thames Freeport, UK

Thames Freeport has been crowned fDi’s global leading rising star zone. It includes the ports of Tilbury operated by Forth Ports, DP World’s London Gateway and the Ford engine plant in Dagenham, and offers tax relief for businesses beginning operations after being approved by the UK government in March 2023.

Due to its proximity to the Greater London metropolitan area, Thames Freeport pitches itself as a hub for companies seeking to serve a market of 18 million people, making up about a third of the population in the whole of England, within a 75-mile radius which includes the capital London. The zone is also well positioned for exporters, given it is connection to more than 130 ports in 65 international markets.

Buoyed by a 2022 decision to relocate Smithfield meat market and Billingsgate fish market to the zone, Thames Freeport aims to attract further food and drink companies. An early mover has been Belgium-based food and catering company Ranson Group, which announced plans to relocate to the zone at the end of 2023. Another notable project was a new warehouse facility opened by Germany’s DHL Supply Chain last year.

Aside from these recent wins, the judges recognised Thames Freeport’s robust approach to monitoring its own success. Alongside standard indicators like gross domestic product, foreign direct investment and local job creation, the zone tracks quality of life indicators, engagement from local communities and collaboration with academia. 

To create an enabling environment for innovation, Thames Freeport has also invested in 5G infrastructure, launched start-up incubators and accelerators and partners with local educational institutions to offer training programmes. It also ranked as the runner-up in Europe in fDi’s sustainability zone awards.

Highly commended: Guangxi Pilot Free Trade Zone Beihai Collaborative Development Zone, China

After being officially established as a development zone in January 2024, the Beihai area of the Guangxi Pilot FTZ has focused on the development of industries such as petrochemicals, equipment manufacturing, new materials and photovoltaics. Helped by a 595-kilometre coastline and port in the Beibu Gulf, Beihu is one of five cities in the Guangxi region to gain this status. It is part of broader efforts to promote co-operation between China and fast-growing markets in the Association of Southeast Asian Nations (Asean). 

The Beihai Collaborative Development Zone has a net-zero target of 2025, which aims to reduce emissions from major pollutants and improve governance of the environmental system. The judging panel was impressed by the zone’s outline of its benefits to investors and recent investment successes. It has secured Beihai Kingboard Green New Material Industrial Park plans to invest Rmb10.5bn ($1.48bn), and an offshore wind power industry base in the Beibu Gulf. 

EUROPE

Winner: Thames Freeport, UK

See above.

ASIA-PACIFIC

Winner: Guangxi Pilot Free Trade Zone Beihai Collaborative Development Zone, China

See above.

Highly commended: China (Guangxi) Pilot Free Trade Zone Fangchenggang Cooperative Development Zone

As another one of the five cities in the autonomous region of Guangxi to be granted coordinate development zone status in 2024, Fangchenggang is focused on the development of industries like textiles, pharmaceuticals, toys and furniture. The port city is part of efforts to boost co-operation between China and the Asean across the Pan-Beibu Gulf regional economy.

The judging panel recognised Fangchenggang FTZ’s approach to monitoring its own success, including standard indicators like trade volume and container throughput, as well as sustainable development indicators like green industry progress. Recent project wins in the zone include plans by Guangxi Chengyang Food to create 200 new jobs. 

Major improvements to infrastructure add to the zone’s appeal. A 46.9-kilometre high-speed railway line is being constructed to connect Fangchenggang to Dongxing, a port city connected to Vietnam. The zone is actively exploring a “two countries, one inspection” customs clearance system to boost trade within the China–Asean Free Trade Area.

AMERICAS

Winner: Activa Med & Tech Free Zone, Costa Rica

While still under development, the Activa Med & Tech Free Zone in the town of Grecia, Costa Rica, has high ambitions. Leveraging its proximity to planned facilities from multinationals like Johnson & Johnson and Avna Medical, the zone aims to provide an additional ecosystem for life sciences, semiconductors and advanced manufacturing companies.

While Costa Rica boasts multiple well-established free zones, Activa Med & Tech Zone’s position outside the greater metropolitan area (GMA) around the capital city San José grants it additional benefits. Alongside other incentives, the zone can offer prospective tenants 100% tax exemptions for up to 12 years, compared to eight years for zones within the GMA. 

The judging panel was impressed by the rising star’s succinct slogan, “Where ideas grow”, and its focus on creating positive community impact as well as economic growth. Activa is also concentrated on supporting companies with research and development activities within its zone.

Highly commended: Evolution Free Zone, Costa Rica

Another rising star in Costa Rica’s expanding free zone network is Evolution Free Zone (EFZ) — also in Grecia. Despite also still being under development, the industrial park has bold aspirations to create an ecosystem of companies across the life sciences, semiconductor and health services industries. 

Due to its position outside Costa Rica’s greater metropolitan area (GMA), EFZ can offer more favourable incentives than existing zones within the GMA. EFZ is being built by Code Development Group, which has more than 20 years of  experience in operating Coyol Free Zone. The judging panel was impressed by how this expertise is being leveraged to shape its attraction strategy and record some early wins.

Some five multinationals chose to set up in the free zone in 2023, including Intricon, Inari Medical, Trelleborg Healthcare & Medical and Accudyn. The final company, Johnson & Johnson Medtech, is planning its largest non-US investment in its history in EFZ. It expects to create 3000 direct jobs over the next three years. Sustainability is also at the core of EFZ’s approach with a target to reach net-zero emissions within the next three years.

Download the PDF to explore this year’s winners

Visit the online hub for the Global Free Zones of the Year 2024 awards

Do you want more FDI stories delivered directly to your inbox? Subscribe to our newsletters.

This article first appeared in the October/November 2024 print edition of fDi Intelligence