Glossary: investment promotion, zones and industrial land

Terms

Foreign direct investment (FDI)

An investment by a company from one country into a business or facility in another, such as building a plant, opening an office or buying a lasting stake in a local company.

Investment promotion agency (IPA)

A public body that markets a country, region or city to investors, answers their questions and helps them set up.

Special economic zone (SEZ)

A defined area with its own rules for investors, often lower taxes, simpler customs and faster permits, usually run by a zone authority or developer.

Free zone

A type of economic zone where goods can be stored, processed or re-exported with reduced or no customs duties.

Industrial park

An area planned and serviced for factories, warehouses and related businesses, usually divided into plots.

Land bank

A register of land available for investment, with each plot's size, services, price and status.

Serviced plot

A plot already connected to roads and utilities such as power, water and drainage, so construction can start sooner.

Greenfield investment

A new facility built on land that has not been developed before.

Brownfield site

Land that was used before, often for industry, and may need clearing or cleaning before new use.

Plug-and-play facility

A ready-built factory or warehouse an investor can rent and start using quickly.

Land allotment

The formal decision that assigns a plot to an investor, under the terms of the land owner or zone authority.

Usufruct right

The right to use land or property owned by someone else, and to benefit from it, for an agreed period.

Site selection

The process of choosing a location and a plot for a project by comparing land, infrastructure, costs, workforce and incentives.

Catchment area

The area around a site from which it can draw workers, customers or suppliers within a given travel distance.

Incentive stack

All the incentives an investor can combine for one project, for example tax holidays, customs exemptions and training grants.

One-stop shop

A single desk or online service that handles the permits and registrations an investor needs.

Public-private partnership (PPP)

A long-term contract in which a private company builds or runs public infrastructure or services, sharing risk with the public side.

Master developer

The company that plans and develops a large site, such as a zone or new city district, and sells or leases its plots.

Zoning

The rules that set what each plot may be used for, such as light industry, logistics, offices or housing.

Floor area ratio (FAR)

The total floor area a plot may hold, divided by the plot area.

Elevation profile

A chart of ground height along a line, used to check slopes for roads, rail sidings and building pads.

BIM (building information modelling)

A 3D model of a building in which each element, such as a column, door or roof panel, carries its own data.

Aftercare

The support an agency gives investors after they have set up, to help them stay and expand.