Eritrea’s future growth and prosperity is based on a market economy, which gives the private sector a leading role. It encourages private investment from both domestic and foreign investors. In particular, the government in its newly established Free Zone in its ports and in tourism related projects. It offers significant incentives for such investors. Favorable investment policy, in particular, relates to taxes, foreign exchange regulations, labor laws, business licensing and guarantees.
All are intended to encourage investments that help to develop and utilize the natural resources of the country, create and expand job opportunities, encourage the introduction of new technology, equitable regional growth and participation of small and medium scale enterprises. Eritrea’s vast area of the Red Sea and its coastline holds great potential and opportunity for exploitation as a tourist industry, fisheries and shipping services.
The Red Sea is the main line of the international shipping lines to/from Europe which makes it one of the busiest shipping routes in the world. Unlike other free zones of middle income countries, investors in Eritrea will enjoy selling their products in the world markets without any constraints because Eritrea is not subject to restrictions on market entry of its free zone products by the World Trade Organization (WTO) and all fees and charges are less expensive than any of the other free zone competitors in the region at all levels.
Source: Tourism Information Booklet 2013