In geopolitics, free zones and other types of special economic zones used to facilitate global trade and investment usually fly under the radar. However, these commercial entities, in which the rules of business are laxer than those in the national territory, are fast becoming prominent features of controversial strategic partnerships emerging across the Middle East. In turn, beyond serving as commercial incubators for select industries, free zones have now started to act as bellwethers for the geopolitical and economic reconfigurations underway across the broader Middle East.
That’s particularly true when it comes to relations between Israel and the United Arab Emirates. Following the announcement of a normalization agreement between the two in August, Israeli Prime Minister Benjamin Netanyahu mentioned that his country would import from the UAE free zones, saying that “we know that we will get good prices,” and hinting that further engagement would follow.
