The term “free zone” refers to designated areas in which companies are taxed very lightly and it enhances global market presence by attracting new business and foreign investments. For over a century, governments around the world have sought to boost and exploit the economic power of their particular regions and zones by designating them as “special” or “free” economic zones. The trend of establishing such zones or areas have gained momentum in the last four or five decades with countries accounting for small businesses and millions of direct or indirect jobs. The Middle East, especially the countries in the Persian Gulf, for some and other reasons, have particularly embarked on such a trend. The current paper tries to highlight benefits and challenges faced by free trade zones in Iran, Turkey and the United Arab Emirates, taking into account recent global financial crises.
