A Free Economic Zone (FEZ) is a designated area within a country where businesses can operate with fewer regulations and lower taxes. These zones are created to attract foreign investment, boost trade, and promote economic growth. Companies in an FEZ often benefit from customs duty exemptions and simplified administrative procedures. FEZs can vary in size and purpose, ranging from industrial parks to export processing zones. They are commonly found in countries like China, United Arab Emirates, and Singapore. By providing a favorable business environment, FEZs aim to stimulate local economies and create job opportunities.