In doing so,they not only have to contend with the challenges associated with a more difficult trade and investment climate.They face other challenges as well. One is the new industrial revolution,which could erode the importance of low labour costs,the traditional competitive edge of most SEZs.SEZs will need to anticipate trends in their targeted industries and adapt. But even more important is that,today,sustainable development-as embodied in the United Nations Sustainable Development Goals-must guide SEZ strategy and operations.In a break from the past,adopting the highest social, environmental and governance standards for zones is becoming a competitive advantage. The World Investment Report 2019 surveys the universe of SEZs today, provides an overview of SEZ laws and regulations,and assesses the sustainable development impact of SEZs.The report offers recommendations through three lenses:lessons learned from the past,a forward-looking perspective and a pioneering idea in the form of "SDG model zones". I hope that the report will inspire and reinvigorate efforts around the world to make investment work for development through SEZs.UNCTAD stands ready to support stakeholders in this endeavour. XwH众klh Mukhisa Kituvi Secretary-General of UNCTADMukhisa Kituyi Secretary-General of UNCTAD In doing so, they not only have to contend with the challenges associated with a more difficult trade and investment climate. They face other challenges as well. One is the new industrial revolution, which could erode the importance of low labour costs, the traditional competitive edge of most SEZs. SEZs will need to anticipate trends in their targeted industries and adapt. But even more important is that, today, sustainable development – as embodied in the United Nations Sustainable Development Goals – must guide SEZ strategy and operations. In a break from the past, adopting the highest social, environmental and governance standards for zones is becoming a competitive advantage. The World Investment Report 2019 surveys the universe of SEZs today, provides an overview of SEZ laws and regulations, and assesses the sustainable development impact of SEZs. The report offers recommendations through three lenses: lessons learned from the past, a forward-looking perspective and a pioneering idea in the form of “SDG model zones”. I hope that the report will inspire and reinvigorate efforts around the world to make investment work for development through SEZs. UNCTAD stands ready to support stakeholders in this endeavour. Foreword v