International Studies Journal (ISJ)

International Studies Journal (ISJ)

Trade Ventures and Free Zones: Dubai's Jebel Ali Free Zone Authority

Document Type : Extension Article

Author
Professor of Human Rights in Department of Political Science at California State University
Abstract
Fostering free trade zones, especially with the aim of promoting export, industrial projects, and transit of commodities, has become a regular feature of a globalizing world. Jebel Ali Free Zone Authority (Jafza) typifies the attempt by the Unite Arab Emirates' officials to respond to the needs of the international business community by allowing for numerous reforms and relaxation of business restrictions. Exemptions of all free zone companies from local laws and tax laws allow these companies to successfully operate within the area. Iranian economists have long advocated the creation of a similar free zone. The Anzaliport activities have raised the total value of Iran's exports from major non-oil trading partners. Anzali is a key point for the transit of goods between Iran and Russia. The importance of its location is underscored by its proximity to the Volga River and the Central Asian region. Goods transited to or from Anzali by way of Hamburg, Germany, can reach their destination much faster than when exported via Iran's southern ports. The advantages and opportunities offered by Anzaliport are numerous and merit particular attention by free traders. This study yields substantial evidence that free zones are the most effective way to promote regional trade agreements and to allure foreign investments.
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