INTRODUCTION
Foreign investors face the inevitable strategy paradigm to determine how to maximize their profitability. The strategy, its internal operations, and its organization, must all be consistent with each other to create a competitive advantage toward competitors. In today’s global economy, supply chain’s disruptions can deeply affect the ability of a company to survive. Therefore, it is necessary that firms accurately select their ‘optimal location’ by assessing not only the logistic risks, but also the political and economic risks. The success of a company’s expansion depends on how it reacts to external pressures and its responsiveness to them.
Furthermore, companies must face problems constraining industry development, such as the absence of infrastructure and face long delays by regulatory agencies. Historically, the disparity from the South and North Italy, has led many companies to privilege a business expansion in the North of Italy. This divide, rooted in structural, geographical, and institutional differences, has resulted in a concentration of industrial capacity and economic wealth in the North, while the South has traditionally lagged in productivity and employment. However, as of 2026, the landscape is changing, with the South emerging as a strategic location for FDI due to major incentives, infrastructure development, and a “Single Special Economic Zone” (ZES Unica) initiative.
IN DEPTH
Competing in an emerging location requires companies to make an appropriate and early entry. By any measure, trade and foreign investment have risen significantly, shifting the attention to the potentiality of the southern regions of Italy. Despite the North’s superior infrastructure and logistics, the South is gradually emerging as a strong strategic location for manufacturing. The establishment, in 2024, by the Italian government, of the Special Economic Zone for the South of Italy, emphasizes the necessity to recognize the South as a growing strategic location for many foreign direct investors. The ZES in the Region of Campania was the first to become operational. The Naples ZES encompasses over 54 million square meters of land in the ports of Naples, Salerno, and Castellamare di Stabia, as well as industrial areas and transport hubs in 37 cities and towns in Campania.[1]
The Single Special Economic Zone (ZES Unica)
The Italian government has unified the individual special zones in the South into a single, massive ZES Unica, covering Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily. It aims to attract domestic and foreign investment to boost regional productivity, spur economic development and further integrate Italy’s south into global value chains.[2] Southern Italy has the potential to become a hub of international significance.
Tax Incentives:
Companies operating in the ZES Unica can benefit from tax credits for purchasing machinery, plants, equipment, and land through 2026–2028.
Simplified Procedures:
The ZES provides a “single authorization” mechanism, aiming to reduce the intense bureaucratic hurdles that have historically slowed investment in the region.
Funding:
The budget law provides significant funding for these tax credits: €2.3 billion in 2026, €1 billion in 2027, and €750 million in 2028.
High-Growth Sectors and Innovation:
Southern Italy is rapidly developing specialized ecosystems, attracting major international players in technology, aerospace, and advanced manufacturing.
Tech and Innovation:
Major companies such as Apple, IBM, Accenture, and Deloitte have already established specialized hubs in cities like Naples, Bari, and Catania.
Green Transition:
The NRRP (National Resilience and Recovery Plan), active through 2026, provides over €200 billion in funding, with significant portions aimed at green and digital infrastructure projects in the South.
Manufacturing and Export:
Despite historical issues, Southern Italy has seen a significant shift in its industrial base. As of 2026, 70% of southern exports are manufactured goods, challenging the notion that the region is only suitable for agriculture.
CONCLUSIONS
Southern Italy has the potential to become a hub of international significance leveraging its central Mediterranean location to connect Europe, North Africa, and the Middle East. Supported by a new ZES to simplify investment and tax incentives, the region is emerging as a critical logistics, renewable energy, and digital infrastructure hub.[3] In recent years, companies like IBM, Apple, Accenture and Deloitte have made significant investments in Naples, Bari, and Catania. These investments highlight a growing, yet previously untapped, innovation ecosystem in Southern Italy.
[1] https://2021-2025.state.gov/report/custom/b9a823ebe2/
[2] https://www.fdiintelligence.com/content/cd336a3e-d200-5c27-a3a4-fc66c90cb7f8
[3] https://www.strutturazes.gov.it/media/512erpb3/ps-light-sito-en.pdf
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