Klaipėda FEZ highly commended in fDi Intelligence’s Global Free Zones rankings

The Klaipėda Free Economic Zone (FEZ) has been awarded the prestigious “Highly Commended” recognition in the annual ranking of free zones in the European region by fDi Intelligence, a publication focusing on foreign direct investment analysis.

In the Global Free Zones of the Year 2024 report, Klaipėda FEZ was commended fo its focus on leveraging disruptive forces and trends.

“The judging panel recognised the zone’s focus on leveraging disruptive forces and trends, including energy security, the buildout of more defence capabilities in Europe, and nearshoring. In late 2023, Lithuania approved defence investments in its free zones. The judges also acknowledged Klaipėda FEZ’s efforts to improve transparency and uphold good governance standards, which include the private operator’s decision to publish its annual results,” the report states.

This year, the top spot among European industrial zones went to the Katowice Special Economic Zone. Thus, the “Highly Commended” award places Klaipėda FEZ effectively in second place in Europe, with no other free zones in the region receiving this distinction.

Additionally, Klaipėda FEZ earned an “Honourable Mention” in the non-financial incentives category, recognizing its quick launch strategy and a focus on vibrant investor community.

“Going beyond the ‘typical’ incentives, Klaipeda emphasised its ‘speed of launch’ package, combining multiple factors. In combination with the emphasis on its active business community, I recommend Klaipeda FEZ for a special mention.” Andreas Baumgartner from the Jury writes.

According to Klaipėda FEZ CEO Eimantas Kiudulas, competition among global free zones – and between nations and regions – has intensified in recent years, making this recognition from the Financial Times group significant for Lithuania.

“Lithuania’s competitive advantage has always been its speed and flexibility. In recent years, both Klaipėda FEZ and Lithuania as a whole have made significant strides in green energy and are prepared to welcome investors looking to reshore production to the home region or grow the defense sector. It’s gratifying to see these efforts acknowledged globally, but we must continue to make decisions every day that simplify the investment process,” said Kiudulas.

He added that despite the resilience of Lithuania’s economy, investor perceptions of the region remain cautious, necessitating ongoing efforts to enhance its investment appeal.

“Every new investor, even if subsidized in some form, creates stable and well-paid jobs for decades and strengthens the country’s overall security. On the other hand, recent developments in Lithuania  highlight significant untapped potential in non-financial areas, such as reducing bureaucracy, leveraging international marketing and networking opportunities, and engaging high-level political leadership,” said Kiudulas.

Klaipėda FEZ has previously been recognized by fDi Intelligence for its achievements in quick launch, sustainability, innovation and contributions to the economy.

Currently, approximately 2,800 people are employed by companies operating within Klaipėda FEZ, with the broader territory providing jobs for around 5,000 individuals.

In 2023, the total turnover of the 46 companies holding Klaipėda FEZ investor status reached €1.34 billion. Over the past decade, FEZ investors have paid €78 million in personal income tax, the majority of which has directly supported the city of Klaipėda’s budget. During the same period, these investors have also contributed €558 million in VAT and social security taxes, benefiting national and social security budgets.