Saudi Arabia has announced the establishment of four new special economic zones to attract international investors and create job opportunities.
These Special Economic Zones (SEZ)s are located in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City and are expected to contribute billions of riyals to the country’s gross domestic product.
“The new Special Economic Zones will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our GDP,” Saudi Crown Prince Mohammed bin Salman said while announcing new zones.
Companies operating within the zones will enjoy benefits such as 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 globally. The zones will also provide opportunities for developing the local economy, generating jobs, and localizing supply chains.
Saudi Minister of Investment Khalid Al-Falih, who is the chairman of the Economic Cities and Special Zones Authority, said: “This is an exciting moment. We are proud to see the launch of these four special economic zones that offer the chance for foreign investors to have a stake in the world’s fastest-growing economy.”
Nabil Khoja, the authority’s secretary general said, “The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology, and improving our global links.”
Four new Special Economic Zones in KSA
The zones will support key sectors such as logistics, advanced manufacturing, technology, and other priority areas in the Kingdom, building on the competitive advantages of each region of the country.
- King Abdullah Economic City (KAEC) SEZ — This 60 square km zone on the Red Sea specializes in advanced manufacturing and logistics. It offers access to global trade routes through King Abdullah Port and will be the production base for 150,000 electric vehicles from anchor investor Lucid.
- Jazan SEZ — This will be an industrial center with the largest port in the region for export and import. It provides opportunities for the manufacturing, processing, and distribution of food products and contributes to large-scale infrastructure projects in Saudi Arabia and around the world.
- Ras Al-Khair SEZ — A fully integrated marine ecosystem on the Arabian Gulf that caters to the maritime industry. It has a rich network of existing investors and opportunities across shipbuilding and repair, offshore drilling, and maritime value chains.
- Cloud Computing SEZ — The King Abdulaziz City for Science and Technology (KACST) will be a hub for emerging and disruptive technologies that would offer investors opportunities to establish physical data centers and cloud computing infrastructure in multiple locations within the Kingdom. It reflects the Kingdom’s commitment to digital innovation and the fast-growing tech sector.