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Data from fDi Markets shows that in 2024 almost half of all global FDI projects in free zones went to software, IT, and business and financial services, up from 18 per cent a decade earlier. Alongside flexible workplaces and IT infrastructure, the zone offers mentorships, internships and marketing support to companies through its non-profit partner Cayman Enterprise. The commission overseeing PCC's development has also appointed the International Alternative Dispute Resolution Centre in a bid to give legal certainty to investors.
Foreign direct investment in free zones is a mirror of broader trends in the global economy, including digitalisation and the shift to services. Data from fDi Markets shows that in 2024 almost half of all global FDI projects in free zones went to software, IT, and business and financial services, up from 18 per cent a decade earlier.
Free zones have evolved their offerings to capture this growing pool of investment into services. As such, the 2025 edition of fDi Intelligence's Global Free Zones of the Year awards again recognises the best knowledge zones, where the majority of tenants lease or acquire o ffic e space or other commercial facilities designed for the provision of services. The survey asked these zones questions about the main advantages they offer to services companies, their priority sectors and initiatives to improve their sustainability, governance, transparency and trust with stakeholders.
Winner: Dubai Multi Commodities Centre, UAE Dubai Multi Commodities Centre (DMCC) has been recognised as the world's leading free zone for knowledge-based industries. While DMCC was pipped to the post in the global ranking, its reputation as the foremost free zone for services activities remains intact. More than 25,000 companies have a base in DMCC across commodities, next-generation technologies and high-value services.
More than 8,000 new companies have set up in DMCC in the past three years, attracted in part by its launch of an AI centre and sustainability hub in 2024. The judges were particularly impressed by these new offerings in DMCC and its efforts to enhance governance and transparency.
DMCC has a disputes centre to support companies in mediation, conducts frequent fraud risk assessments and provides information to the UAE's ministry of economy in its anti-money laundering (AML) and countering of financing of terrorism (CFT). It has specific programmes to promote best practices in key industries including for the buying and selling of diamonds.
DMCC also received high scores for its fiscal incentives. These are designed to lower the cost of doing business and direct capital and talent towards high-growth sectors. Beyond corporate tax relief, DMCC offers subsidised company set-up and leasing packages to start-ups and SMEs in technology, artificial intelligence, gaming and blockchain. A $150mn accelerator fund in partnership with VC fir m Brinc provides additional support to blockchain and Web3 start-ups at DMCC's Crypto Centre.
Highly commended: Cayman Enterprise City, Cayman Islands The global runner-up in the world's best knowledge zones is Cayman Enterprise City. The free zone, founded in 2011, has evolved into a bustling innovation hub with 'plug-and-play' infrastructure for services companies. It guarantees full corporate, income and capital gains tax neutrality to investors until 2061 under the Cayman Islands SEZ Act.
Cayman Enterprise City is home to more than 400 companies across verticals like fintech, blockchain, life sciences and media. The judging panel gave high marks for its pitch to investors. Alongside flexible workplaces and IT infrastructure, the zone offers mentorships, internships and marketing support to companies through its non-profit partner Cayman Enterprise.
More than 150 annual events are held at Cayman Enterprise City, including tech meet-ups, hackathons and workshops. The judges scored the zone highly for its strategy in adapting to rising tariff and nontariff barriers.
Most of its main sectors, like fintech and software development, are unaffected by new US tariffs on goods brought into force since the beginning of 2025. But the zone has continued to evolve its value proposition through a perks programme which was founded in its modern form in 2000, dedicates its time to attracting technology, creative, and research and development activities.
Its strategy rests on close collaboration with educational institutes, such as the universities of La Laguna and Las Palmas de Gran Canaria. This offers a route for companies to access and develop talent for their needs. Several companies have recently established themselves in the zone. Drone company Skydweller and animation specialist Gigglebug are among them.
The judging panel were particularly impressed by ZEC's tailored fiscal incentives for its target service industries. These include a corporate tax rate of 4 per cent and a tax rebate on variable costs and R&D expenses. Tenants in the zone have the potential to benefit from a €2bn allocated fund for equity and loans to companies in the Canary Islands.
Initiatives with the Canary Islands Council also aim to provide companies with low-cost spaces fully equipped with electricity and water. Many of its programmes target start-ups seeking to access the EU market with the backing of local institutions and public funding.
Highly commended: Consorcio de la Zona Franca de Cádiz, Spain Cádiz Free Trade Zone Consortium (CZFC) has been awarded the runner-up in Europe's knowledge zones of the year. More than 350 companies are based at CZFC across its nine industrial estates and
city, built on 10mn square metres of reclaimed land from the Atlantic Ocean, began back in 2008. After years in development, the Lagos free zone has begun to bear fruit with a number of new commitments from companies.
MTN, Nigeria's largest telecoms operator, plans to establish its new headquarters in Eko Atlantic City. It joins several other companies that have pledged to relocate to the zone, including energy major Shell and First Bank of Nigeria, which is constructing a 40-storey o ffic e building at Eko.
The judging panel gave the highest marks for these recent wins and the suite of incentives the zone is offering prospective investors. These include support for intellectual property registration and protection and to fast-track visa and work permits for skilled workers. Recognition was also given for efforts to boost governance and transparency, such as through third-party audits of its environmental and social impact assessments.
Regional winners Asia-Pacific Winner: Port City Colombo, Sri Lanka The winner of the best knowledge zone in Asia-Pacific was Port City Colombo (PCC), Sri Lanka. The smart city project, built on a 269-hectare plot of reclaimed land off the coast of the South Asian country's commercial capital, was granted special economic zone status in 2021. After weathering a difficult economic period for Sri Lanka, PCC has secured some plans from investors.
Among them is a local subsidiary of IGT Holding | Sweden AB, a software and business process outsourcing services provider. In May 2025, IGT 1 Lanka signed an agreement to lease space in two office buildings in PCC's business centre.
The judging panel were impressed by PCC's offer to investors. It offers fiscal incentives including zero personal income tax for expatriate employees and exemptions on tax for developers and investing companies. The commission overseeing PCC's development has also appointed the International Alternative Dispute Resolution Centre in a bid to give legal certainty to investors.
Highly commended: Tanjung Lesung SEZ, Indonesia Tanjung Lesung, Indonesia's first
Copyright The Financial Times Limited Oct 9, 2025