Saudi Arabia establishes four special economic zones to facilitate foreign investment
The newly established SEZs will provide opportunities for foreign investment and facilitate the acceleration of the required reforms to enable doing business in all parts of the country.
Crown Prince and Prime Minister Mohammad bin Salman bin Abdulaziz announced the launch of four new special economic zones (SEZs) in Saudi Arabia. These will be regulated by the Economic Cities and Special Zones Authority.
The SEZs will provide opportunities for foreign investment and facilitate the acceleration of the required reforms to enable doing business in all parts of the country. "Saudi Arabia is open for business, and welcomes investors from all around the world," said the Crown Prince.
He added that the SEZs will significantly influence how business is done in the country, lead to the creation of "tens of thousands of jobs" and "contribute billions of riyals" to the country's gross domestic product (GDP).
The new zones are King Abdullah Economic City (KAEC) SEZ, Jazan SEZ, Ras Al Khair SEZ, and Cloud Computing SEZ located in King Abdulaziz City for Science and Technology (KACST), as per a report by Saudi Press Agency.
The zones will work towards strengthening segments such as advanced manufacturing, logistics, technology and digital innovation, among others. This will be enabled by leveraging the different benefits that each region has to offer.
In line with Vision 2030, they are expected to reinforce Saudi's positioning as a global business hub and facilitate the achievement of the nation's economic development goals, added the report.
The SEZs will offer financial incentives, infrastructure, business-friendly regulations, as well as streamline procedures for investors, noted Nabil Khoja, Secretary-General of the Authority. They will also augment Saudi Arabia's export competitiveness, drawing talent, developing technology and improving its global links, he added.
Fiscal and non-fiscal incentives will be covered in the offerings for the companies operating in the zones. These benefits will also comprise competitive corporate tax rates, duty-free imports of machinery and raw materials, 100% foreign ownership, set-up procedures, and flexibility in the employment of foreign labour.
The zones fall in line with the country's aim to transform into a global investment destination, as well as a hub for global supply chains through capitalising on its positioning at the "heart of global trade routes".
These new SEZs have been built upon previous free zone initiatives in Saudi Arabia. This includes the recent launch of the integrated logistics special zone at King Salman International Airport in Riyadh.
Together, these represent the initial phase of a long-term program focused on fostering foreign direct investment, attracting global talent, and encouraging entrepreneurship and economic development in Saudi Arabia. They will help the country create a differentiated business environment, and activate new sectors, as well as value chains.
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Edited by Saheli Sen Gupta
