Export Processing Zones: what can Brazil learn from the United Arab Emirates?

Reposicionamento econômico internacional. Atração de capital produtivo. Ambientes regulatórios voltados à inovação. Planejamento territorial com visão de desenvolvimento. Mitigação de riscos jurídicos e fiscais em operações globais.

The history of the United Arab Emirates is noteworthy not only for its rapid growth, but above all for the way in which this growth was planned and executed. Among the instruments adopted, one that stands out and deserves special mention was the creation of Export Processing Zones (EPZs), or special economic zones (such as the emblematic “Jebel Ali Free Zone” (Jafza). These are areas with their own tax, regulatory, and exchange rate regimes, aimed at attracting foreign companies and boosting international trade.

Starting in the 1980s, the Emirates began to structure these zones with the goal of diversifying an economy that was previously overly dependent on oil.

Since then, the Emirates have created dozens of zones with specific vocations: technology (Dubai Internet City), healthcare (Dubai Healthcare City), financial services (DIFC), logistics, heavy manufacturing (Khalifa Industrial Zone Abu Dhabi – Kizad), among others. All operate under legal frameworks that are distinct from the rest of the territory, with 100% foreign ownership permitted, broad tax exemptions, exchange freedom, implementation of extensive infrastructure, and, above all, legal certainty, an element that tends to weigh heavily in international investment decisions.

This strategy had a measurable impact: thousands of foreign companies set up operations in the country, contributing around 30% of national exports and generating significant direct and indirect employment. Today, the zones function not only as economic hubs, but also as logistical and diplomatic hubs, connecting the Emirates to different markets and regional blocs.

What does this experience invite us to reflect on?

The Emirates model is not universal, nor is it directly applicable. Each country has its own legal, geographical, and institutional constraints. But the experience suggests paths forward:

• Differentiated regulatory environments can be useful tools when connected to a clear vision of development.

• Legal certainty (efficiency) is as important as, if not more important than, tax incentives.

• The thematic specialization of zones, divided into strategically connected blocks, tends to create more robust productive ecosystems based on synergies between companies and sectors.

• The connection of zones with logistics infrastructure and international channels is critical to their success.

These elements do not point to a ready-made recipe, but they show the importance of aligning law, economic policy, and institutional governance with an integrated vision of the future.

And what about Brazil? What about the Manaus Free Trade Zone?

This reflection becomes even more interesting when we connect this discussion to the Manaus Free Trade Zone (ZFM) — the oldest and best-known special economic zone in Brazil.

Created in 1967 with the objectives of territorial integration of the Amazon, national security, and regional development, the ZFM has a consolidated legal framework, with constitutional provisions (Art. 40 of the ADCT) and its own infra-constitutional legislation. Its structure also offers exemptions from IPI, PIS, Cofins, and other federal taxes, with an incentive model that, although effective for decades, has been questioned regarding its current ability to promote innovation and international integration.

Unlike the Emirati EPZs, which are essentially focused on exports and innovation, the ZFM is mainly oriented toward the Brazilian domestic market.

Although its economic and social contribution is significant, with more than 100,000 direct jobs and a strong impact on the North region, the model needs strategic updating.

• The question that arises is not whether the ZFM is outdated, but how it can evolve:

• Could it take on a more internationalized role, taking advantage of its geographical location to connect to trade flows in Latin America?

• Would it be possible to stimulate “thematic clusters” and integrated production chains, as has been done in the Emirates?

Is there room for synergy between the ZFM and future Brazilian EPZs, with a focus on exports, innovation, and regional specialization?

Conclusion: economic zones as strategic spaces

EPZs, Free Trade Zones, Innovation Districts, or Technology Parks: all these structures share a common feature: they are regulatory differentiated territories, created to fulfill specific public policy functions. They may or may not be successful. It all depends on the institutional project that supports them, the long-term vision that articulates them, and the legal stability that protects them.

The experience of the United Arab Emirates shows that it is possible to use the law to create strategic development environments that go beyond the logic of subsidies or incentives. It is a matter of designing spaces with a vocation, identity, and direction. Brazil, with its continental size and productive diversity, has much to explore, as long as it thinks of its economic zones not only as tax exceptions but as platforms for the future.