Prince Mohammad bin Salman bin Abdulaziz, Crown Prince, Prime Minister and Chairman of the Council for Economic and Development Affairs, launched on Thursday four new Special Economic Zones in Saudi Arabia in line with his commitment to strengthening the Kingdom's position as a global investment destination.
The new Special Economic Zones are located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City.
Crown Prince Mohammad stressed that Saudi Arabia welcomes investors from all around the world to see first-hand the historic opportunities it has to offer. The new Special Economic Zones (SEZs) will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to the GDP, he said.
He added that the new zones draw on the Kingdom’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 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.
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% foreign ownership of companies, and flexibility to attract and hire the best talent worldwide.
Crown Prince Mohammed emphasized that the new zones 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 for business activities, these SEZs offer rewarding and attractive offers for foreign investment. The 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 in the King Salman International Airport in Riyadh. Together, they represent the first phase of a major, long-term program aimed at encouraging foreign direct investment, attracting the most talented professionals from around the world and promoting entrepreneurship and economic development within the Kingdom.
The SEZs, regulated by the Economic Cities and Special Zones Authority, provide new solutions to the challenges facing many global businesses as they look to localize and strengthen their supply chains. They will help the Kingdom take advantage of key macroeconomic shifts to create a truly differentiated business environment, activating new sectors and value chains.
