The Special Economic Zone typically includes a “geographically limited area, usually physically secured (fenced-in); single management or administration; eligibility for benefits based upon physical location within the zone; separate customs area (duty-free benefits) and streamlined procedures.

The creation of special economic zones may be motivated to attract Foreign Direct Investment (FDI). The benefits a company gains by being in a Special Economic Zone may mean that it can produce and trade goods at a lower price, aimed at being globally competitive. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation, trading, quotas, customs and labour regulations.