The private sector is the connecting link between free zones and the national economy

The private sector is the connecting link between free zones and the national economy
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Kamal Ebrahimi Kavari, an economic expert in free trade zones, in an interview with Mehr News stated that the key to sustainable development in free trade zones is the empowerment of the private sector. He said that in the new economic architecture, free trade zones are recognized as the driving engine of economic growth, attracting investment, and connecting with international markets. However, what can ensure the sustainability and dynamism of these areas is not merely governmental policies or physical infrastructures, but the active and capable role of the private sector.

He added: This sector, with its inherent agility and entrepreneurial spirit, can turn existing challenges into economic opportunities and drive the cycle of production, export, and employment in free zones. Empowering the private sector in free zones requires institutional, legal, and infrastructural groundwork.

The economic expert in free trade zones stated: Clear laws, tax incentives, easy access to banking facilities, reduction of bureaucracy, and investment security guarantees are among the basic pillars for strengthening the presence of private sector actors in these areas.

He continued: On the other hand, the expansion of supportive institutions, such as accelerators, growth centers, and venture capital companies, can lead to the strengthening of the entrepreneurial ecosystem in free zones. The private sector can also help reduce the financial burden on the government in developing these areas by participating in construction, infrastructural, tourism, industrial, and technological projects.

Ebrahimi Kavari noted: The experience of successful countries in developing free zones shows that the extensive and effective presence of the private sector not only increases economic efficiency but also strengthens the link between free zones and the national economy. Additionally, the active presence of the private sector in the field of export and supply chain accelerates the internationalization of the economy of free zones. Establishing industrial clusters, utilizing the capacity of small and medium-sized enterprises, and interacting with target markets all require a dynamic and competitive private sector.

He concluded: Policymakers in free zones should distance themselves from a solely governmental perspective on development and with a participatory approach, provide the grounds for the effective presence of the private sector. The path to sustainable development of free zones passes through empowering and trusting in the people’s capacities, which, if properly guided, can be the engine for a leap in production, export, and employment in the national economy.

News code: 6518502

Source: Mehr News Agency

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