Somaliland Special Economic Zones Law, No: 93/2021

This law is made for the following purposes; 1) To regulate the establishment, development, operation and maintenance of Special Economic Zones in the Republic of Somaliland. 2) To establish the legal framework and mechanisms for the regulation and administration of activities within the special economic zones with due regard to the principles of openness, competitiveness and transparency, and 3) To enable environment for the development of all aspects of special economic zones including; development of integrated infrastructure facilities, creation of incentives for economic and business activities and to remove of impediments to economic or business activities that generate profit for enterprises in areas designated as special economic zones. Furthermore, the specific purpose for designating special economic zones include; a) to promote and facilitate local and foreign investment in the Republic of Somaliland; b) to create and expand employment opportunities; c) to stimulate economic growth in existing and new business sectors through the sustainable development of new Special Economic Zones; d) to develop new infrastructure and rehabilitate existing infrastructure; e) to encourage the private sector to participate in the development, operation and maintenance of Special Economic Zones including the development of Infrastructure; to promote an investment and trade environment in-line with international best practices; f) to create an attractive regulatory framework and conducive business environment for local and foreign investors, including through the creation of a one stop shop and entitlement to a package of fiscal and non-fiscal incentives; g) to promote financial and industrial cooperation between the Republic of Somaliland and foreign countries through technology-intensive industries that will modernize the country’s industrial sector and improve productivity levels by utilizing new technological and managerial know-how; and h) To enable the Special Economic Zones to operate outside the Customs Territory, within the framework of the Constitution and the national sovereignty and territorial integrity of the Republic of Somaliland. The law provides that, among others, all Special Economic Zones (SEZ) in the Republic of Somaliland shall be operated on a common user basis without any unfair or discriminatory practice against any actual or prospective SEZ User or SEZ Resident. The law establishes the Somaliland Special Economic Zones Authority, which shall have exclusive regulatory jurisdiction over all Special Economic Zones. The commercial activities which may be carried out within a Special Economic Zone include industrial, logistics, retail, residential, commercial, and any other activities permitted under the applicable License.