A Special Economic Zone (SEZ) is a designated geographic area within a country that is subject to special economic regulations and policies that differ from those applied to the rest of the country. The purpose of creating SEZs is to attract foreign investment, boost exports, and create jobs.

SEZs typically offer a range of incentives to companies that operate within them, such as tax breaks, customs duty exemptions, relaxed regulations on labor and environmental standards, and streamlined bureaucratic procedures. This makes it easier and more cost-effective for businesses to set up operations in the SEZs and carry out their activities.

SEZs are often created around ports, airports, or other transportation hubs, to take advantage of their connectivity to international markets. They can be set up by governments or by private companies with government support.

SEZs have been used by many countries around the world as a tool for economic development and job creation. Some of the most successful SEZs are located in China, India, and Southeast Asia.