The announcement about the new economic zones, which are located in Riyadh, Jazan, Ras al-Khair, and King Abdullah Economic City, north of Jeddah, is in line with the Saudi Crown Prince Mohammed Bin Salman’s commitment to strengthening Saudi Arabia’s prime position as a global investment destination.
In a statement carried out by Saudi Press Agency, the Crown Prince said: “Saudi Arabia is open for business, and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer. The new Special Economic Zones, launched today, will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our GDP.”
The new zones draw on Saudi Arabia’s strategic location at the heart of global trade, creating new hubs for businesses across key growth sectors to launch and scale the companies and technologies that will shape the future. The Special Economic Zones (SEZs) will support existing national strategies and create new linkages with international frameworks, building on the competitive advantages of each region to support key sectors including logistics, advanced manufacturing, technology and other priority sectors for the Kingdom.
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Benefits for companies operating in the new SEZs include competitive corporate tax rates, exemption from customs duties on imports, production inputs, machinery, and raw materials, 100 percent foreign ownership of companies, and flexibility to attract and hire the best talent worldwide.
The new SEZs will provide tremendous opportunities to develop the local economy, generate jobs and localize supply chains. They represent a continuation of the Kingdom’s long-running initiatives to transform into a global investment destination, and a vital hub for global supply chains, capitalizing on its position at the heart of global trade routes, at the crossroads between East and West. With a detailed program of regulations and incentives, these SEZs offer rewarding and attractive offers for foreign investment. This program will allow for the acceleration of the required reforms to facilitate doing business in all parts of the Kingdom.
These four SEZs build on previous free zone initiatives in the Kingdom, including the recent launch of the integrated logistics special zone at King Salman International Airport in Riyadh, the SPA reported.
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