In Part One, we discussed Border Economic Zones (SBEZ) as strategic tools for enhancing economic development and cross-border integration between countries. They are defined as “dual-project hubs” aimed at developing infrastructure, facilitating logistics services, and encouraging trade and investment, thereby opening avenues for cooperation between neighboring cities. These zones differ from conventional special economic zones in their dual or multi-party characteristics, joint management, dual infrastructure, and more precise legal and regulatory frameworks, which strengthen guarantees for investors and the residents of border areas. Part One also addressed the motivations for establishing these zones, starting with achieving balanced development in border regions, facilitating cross-border trade, and extending to supporting regional integration, while emphasizing the complex economic, social, institutional, and legal dimensions, as well as the importance of good governance and legal safeguards that balance the interests of investors with the needs of local populations, making these zones a lever for sustainable development and political stability.
The opportunity has now arisen in this part to explore some promising Asian experiences.
Starting from Southeast Asia… Where the story is told for generations to come
The existing special economic zone between Johor and Singapore – The Johor-Singapore Special Economic Zone (JS-SEZ) – constitutes a “bold” model of international economic integration. What began as an expected competition between Malaysia and Singapore due to geographical proximity, transformed in early 2025 into a unique initiative, through which the strengths of both countries were combined rather than their weaknesses: the strategic location of the state of Johor with its promising economic resources on one hand, and Singapore’s robust economy on the other, with the aim of enhancing bilateral trade and economic relations and consolidating the strategic partnership.
This initiative materialized with the establishment of a special economic zone in the state of Johor, southern Malaysia (JS-SEZ), covering a total area of more than 3,500 square kilometers, with joint funding from both countries. At its core, it mirrors the “twinning” model existing between Shenzhen and Hong Kong, based on the geographical proximity of Johor and Singapore and the strength of the ties between them.
The plan is for this joint special economic zone to include nine (9) main areas: Johor Bahru Waterfront, Iskandar Puteri, Tanjung Pelepas, Tanjung Langsat – Kong-Kong, Senai – Skudai, Kulai – Sedenak, Desaru – Penawar, Forest City, and Pengerang.
These strategically located areas are expected – as indicated by specialized studies – to play a crucial role in enhancing economic development and positioning the zone as a major center for investment and industrial growth. Among their distinguishing features are the numerous incentives they provide, ranging from special tax arrangements to visa exemptions, and extending to training incentives to attract companies and support various sectors, including manufacturing, the digital economy, agri-food, and logistics. Among the tax incentives effective from 1/1/2025, companies operating in advanced industries such as artificial intelligence, aviation, and medical devices will benefit from a corporate tax rate of 5% for up to 15 years. Skilled labor will also benefit from an income tax rate of 15% for a period of 10 years. The special economic zone is expected to strengthen supply chains, alleviate restrictions on land and labor, and drive increased investment. According to the outlined plans, the zone is anticipated to attract 50 projects within the first five years, rising to 100 projects by 2035, providing 20,000 jobs for skilled workers.
Forgotten Kazakhstan… Where the Hidden Jewel of Central Asia Lies
In line with emphasizing Kazakhstan’s vision to strengthen its economic
infrastructure, leverage its geographical advantages and investor-friendly policies, and consolidate its role as a vital link in Eurasian trade and industrial networks, a new special economic zone was launched in mid-2025 in Korkyt Ata Special Economic Zone in the Kyzylorda region. It extends over an area of 550 hectares and features a strategic location near the international transport corridor between Western Europe and Western China, enhancing its marketing potential as a center for industrial growth and regional trade.
The zone aims to promote competitive industrial production, attract domestic and foreign investment, and facilitate the import of advanced technologies. Its location is expected to influence access to Central Asian markets and beyond. By 2049, according to studies and statistics, the zone is projected to attract investments exceeding $290 million USD. In the same context, the role of the Khorgos International Center for Border Cooperation (ICBC) along the Kazakhstan-China border stands out as unique, facilitating cross-border trade and joint projects in an integrated vision aligned with the strategic Belt and Road Economic Initiative. The center was established in 2005 over a total area of 560 hectares, of which 217 hectares are on the Kazakh side and 343 hectares on the Chinese side.
The Khorgos Center is considered a pivotal hub for trade between China and Central Asia, extending to the European continent. Trade volume through the center underwent significant changes between 2022 and 2024. In 2022, trade volume reached approximately $10 billion USD, an increase of 15% compared to 2021. In 2023, it grew by 20%, reaching $12 billion USD, and in 2024, it increased by only 4%, reaching approximately $12.5 billion USD. The volume of goods passing through the center from the beginning of this year until June amounted to 22.2 million tons, an increase of 4.3% compared to the same period last year.
According to experts, the center has provided more than 1,135 permanent jobs as of 31/3/2025. The number of jobs is expected to double by the end of 2026 with the launch of the anticipated infrastructure projects.
The opportunity remains open in the next (Part Three), as we highlight the most prominent Gulf experiences, before returning to the Lebanese–Syrian model, where the joint economic zone project along the border between the two countries raises precise questions about the feasibility of the experiment, balancing economic development ambitions with the challenges of political tensions and structural divisions.
To be continued…