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ECZA Sec-Gen to Asharq Al-Awsat: SEZ is Ready to Attract Investors

King Abdullah Economic City (SPA)
King Abdullah Economic City (SPA)
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ECZA Sec-Gen to Asharq Al-Awsat: SEZ is Ready to Attract Investors

King Abdullah Economic City (SPA)
King Abdullah Economic City (SPA)

 

The Economic Cities and Special Zones Authority (ECZA) is currently considering incentive packages and necessary exemptions tailored to the requirements of each region and the targeted investments. This includes developing flexible regulations aimed at fostering investor confidence in qualitative projects.

The Special Economic Zones (SEZ) hold the potential to unlock new avenues for development in Saudi Arabia. They are part of initiatives aimed at transforming the Kingdom into a premier global investment destination and a vital hub bolstering global supply chains.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz launched the four special economic zones last April, with strategic locations in Riyadh, Jazan, Ras al-Khair, and King Abdullah Economic City, north of Jeddah.

Sec-Gen of ECZA Nabil Khoja believes that the flexibility of the legislative environment and quick response to the changing needs of investors is one of the essential elements of the success of SEZ.

In an interview with Asharq Al-Awsat, Khoja revealed that regulations are being prepared, considering the most critical international experiences to facilitate the procedures for investors to enter the SEZ.

The Sec-Gen pointed out that the special economic zones were designed to increase investments in several new sectors, from assembling cars, manufacturing electronic devices, logistics services, building ships, and offshore platforms.

Given the Kingdom's potential, he expected that the SEZ would witness more investments during the coming period as an economic power that leads the fastest-growing major economies.

Asked about the Authority's achievements and plans, Khoja said the Investment Forum was hosted after Crown Prince Mohammed bin Salman announced the launch of four special economic zones on April 13.

The forum marked the initial step in showcasing the advantages of these zones and their role in fostering the development and diversification of the Saudi economy, as well as enhancing the investment environment.

In this short period, SEZ successfully attracted initial investments of approximately 47 billion SAR. Moreover, the total value of additional ongoing investments has reached 116 billion SAR across vital sectors, including the maritime, mining, industrial, logistics services, and modern technologies sectors.

The launched SEZs are ready to attract investors, and a large part of their infrastructure has been completed. Several companies are establishing or conducting their operations within the geographical boundaries of these zones, such as Lucid, International Maritime Industries, and Alibaba.

Khoja also expects increased investments during the coming period, especially since international investors are aware of the promising new opportunities.

Asharq Al-Awsat asked the Sec-Gen about the tools and incentives the economic zones utilize to attract investments. He explained that investing in SEZ provides a world-class operating environment supported by an integrated infrastructure that includes all basic services.

He noted that it provides an integrated package of competitive advantages and financial, administrative, and legislative incentives that enable international companies to achieve their commercial goals and ambitions and help them expand their business in the region.

The establishments will receive a package of incentives, including reductions in corporate income tax, tax exemptions, customs duties on goods entering the SEZ, and exemption from fees for resident workers and their family members.

Companies also benefit from value-added tax exemption, depending on the sector or commercial activity, and a package of flexible and business-friendly regulations attracting foreign talent.

Khoja recalled that SEZs are designed to increase investments in several new sectors, including car assembly, electronics, logistics services, shipbuilding, and offshore platforms.

The ECZA is responsible for studying incentive packages and exemptions according to the needs of each region and according to the investments it targets.

In response to a question about the legislative environment that attracts investors, the expert indicated that the flexibility of the legislative environment and the speed of response to the investors' changing needs are two of the essential elements of the SEZ's success.

The Authority is keen to ensure the integration of the SEZ with the leading economy by setting clear criteria for accepting investment applications, which would limit the possibilities of self-optimization and unfair competition.

Asked about the targeted global factories and the advantages of economic zones, Khoja explained that they provide new opportunities for investors according to the competitive advantages of each region.

The promising opportunities will significantly impact investors to overcome the most important challenges related to the delivery of raw materials and products to consumers and suppliers and consolidate the Kingdom's role as a link that enhances efficiency.

The Ras al-Khair SEZ hosts the most advanced marine basin in the region, which will provide a wide range of integrated manufacturing services for companies operating in the maritime sector.

King Abdullah Economic City's special economic zone provides advanced infrastructure and integrated service facilities that support the requirements of companies in promising sectors.

The Jazan zone also provides investment opportunities in the food and mineral processing industries to meet the market's needs.

SEZ supports the Kingdom's tendencies to promote innovation and entrepreneurship in various sectors, in line with Vision 2030, by attracting direct investments in several promising sectors, he said.

He noted that it provides tremendous opportunities that benefit the local economy and supports the growth of entrepreneurs and startups.

He noted that the presence of companies will lead to a significant increase in service demand, representing an exceptional opportunity to conclude partnerships with local suppliers and enhance the integration of the local supply chain.

Khoja explained that the new regions will provide favorable opportunities for cooperation and partnership between local and international investors of different sectors and business sizes.

It will contribute to creating an environment that improves the competitiveness of Saudi exports, strengthening the Kingdom's position as a leading global investment destination, and opening new horizons for development.

The Sec-Gen explained that ensuring the success of any initiative, cooperation, coordination, and concerted efforts requires the collective effort of different teams working together.

He indicated that the Authority has channels of communication with all stakeholders to place the Kingdom on the map of SEZ through cities that compete regionally and globally.

The Authority acts as an organizational umbrella for an integrated system that includes 43 government agencies concerned with facilitating the work of the new SEZ.

He indicated that the Authority coordinates with various government agencies, including Modon, to achieve the desired goals of the new SEZ and contribute to achieving the goals of Vision 2030.

Asharq Al-Awsat asked Khoja about the government's Shareek program. He noted that SEZs play an integral role in the basic economy by targeting new strategic investment sectors and establishing an integrated financial, administrative, and legislative incentives system.

He declared that it contributes to the development of the non-oil economy, the promotion of local content, and the increase of exports.

The objectives of the special economic zones traverse with the Sharee program, said Khoja, adding that they complement each other and support the Kingdom's endeavors to improve the business environment and help private sector companies achieve their investment goals.

They also support the local market with more qualitative opportunities and create promising sectors that contribute to enhancing the flow of foreign investment, diversifying the local economy, facilitating the transfer of knowledge, and enhancing confidence in the investment system in the Kingdom.

During the recent meeting with representatives of international companies and investors, Khoja recalled they were interested in the advantages offered by the new special economic zones and the exceptional opportunities they provide in vital sectors and industries.

All these factors support national strategies by developing local capabilities, encouraging industrial renaissance, and contributing to the growth of the Saudi economy as a leading center for business.

In a record time, the Special Economic Zones were able to attract billions of dollars in investments, but the launch of the four zones is only the beginning, said Khoja.

He told Asharq Al-Awsat that the new special economic zones have a pivotal and vital role in promoting local content and knowledge transfer by supporting the establishment of local startups and accelerating their growth.

The special economic zones support the Kingdom's efforts to promote a culture of innovation and entrepreneurship in various sectors.

It works to facilitate the transfer of knowledge and advanced technology by attracting international companies and benefiting from their technical and operational expertise.

The new cloud computing special economic zone in Riyadh is a gateway that allows investors to innovate and expand the horizons of the fastest-growing technology in the world.

He explained that the region adopts a business model based on innovation, allowing investors to establish data centers and cloud computing infrastructure in multiple locations within the Kingdom.

It will positively affect establishing specific industries and building specialized local capabilities.

Khoja concluded that all these activities undoubtedly contribute to the creation of direct and indirect jobs, the participation of national competencies, and the transfer of expertise in the targeted sectors.

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Interviews

Obeidat to Asharq Al-Awsat: Mystery Sniper Killed Wasfi Tal

Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
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Obeidat to Asharq Al-Awsat: Mystery Sniper Killed Wasfi Tal

Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)

Former Jordanian Prime Minister Ahmad Obeidat, who died earlier this month, was both a key player and a witness to sensitive chapters in his country’s history.

Obeidat began his career in the 1970s as an assistant director of intelligence, later serving as head of the General Intelligence Department until 1982. At the height of the Palestinian-Jordanian confrontation, he was abducted by the Popular Front for the Liberation of Palestine before the events of September 1970.

He also served for two years as interior minister before King Hussein appointed him prime minister in early 1984, a post he held until April 1985, concurrently serving as defense minister.

For more than 15 years, Obeidat remained at the center of decision-making. He later took on roles drawing on his legal background, from chairing the Royal Commission that drafted the National Charter in the early 1990s to serving in human rights and judicial positions, most recently as head of the board of trustees of the National Center for Human Rights until 2008.

Weeks before Oct. 7, 2023, the day of the Al-Aqsa Flood Operation, Asharq Al-Awsat met Obeidat in Amman. The interview had been scheduled for publication in October 2023, but the major developments that followed led to its postponement, particularly as Obeidat addressed contentious issues, notably Jordanian-Palestinian relations.

In the first part of the interview, Obeidat revisits his formative years, when his political and professional journey began as a law student in Baghdad on the eve of the July 14, 1958 revolution, before returning to Iraq after the fall of the monarchy amid sweeping regional transformations.

The account moves to his early professional life in Jordan, from a brief stint in legal practice to joining the Public Security Directorate, then serving in the Political Investigations Office, which formed the nucleus of organized intelligence work. It concludes with a detailed narrative of the establishment of the General Intelligence Department in 1964, its early structure and founding members, at a time when the Jordanian state was rebuilding its institutions in an intensely turbulent region.

Asked where he was when the 1958 revolution broke out in Iraq, Obeidat said he had completed his first year in law studies and returned to Jordan for the summer break.

“While I was in Irbid, news arrived of the July 14 revolution in Iraq that overthrew the monarchy. After the summer break ended, I went back to Baghdad, where a republican government under Abdul Karim Qassem had taken power,” he recalled.

The return was not easy. “We faced difficulties on the road. The border between Jordan and Iraq was nearly closed, so we had to return via Damascus and then through desert routes to Baghdad. It was an exhausting journey,” he added.

Obeidat left Baghdad in 1961 after completing his final exams. “On the last day of exams in the fourth year, I went home, packed and returned to Jordan the same day. The border between Baghdad and Amman had reopened.”

Among his contemporaries at law school was Saddam Hussein, who studied in the evening section. Obeidat said he saw him only once by chance. “He was with others, one of whom later became a governor,” he revealed.

He returned to Baghdad again in 1983 as Jordan’s interior minister to attend a conference of Arab interior ministers, more than two decades after graduating. There, he met his Iraqi counterpart, Saadoun Shaker. “It was an ordinary relationship,” Obeidat said, describing the ties as largely ceremonial.

From customs to intelligence

After returning to Jordan in 1961, Obeidat initially considered practicing law. But limited opportunities in Irbid and his family’s financial constraints led him to seek public employment.

He was appointed to the Customs Department in Amman, where he worked for several months before joining the Public Security Directorate in April 1962 as a first lieutenant following three months of training at the police academy.

At the time, there was no separate intelligence agency. Public Security included a branch handling general investigations. Soon after, the Political Investigations Office was formed, staffed by legal officers from the army and Public Security, including Mudar Badran and Adeeb Tahaoub from military justice, alongside Obeidat and Tariq Alaaeddin from Public Security.

The office handled cases referred by security and official bodies, including military intelligence and the Royal Court. After reviewing its work, the late King Hussein ordered the establishment of a legally grounded intelligence body. The General Intelligence Law was issued in 1964, formally creating the department, explained Obeidat.

Mohammad Rasoul Al-Kilani became its first director, followed by Mudar Badran, then Nadhir Rashid. Al-Kilani briefly returned before Obeidat assumed the post, succeeded later by Tariq Alaaeddin.

The shock of 1967

Recalling the 1967 war, Obeidat described it as “a defeat, not a setback. A military, political, psychological, and social defeat in every sense.”

He said there was no institutional intelligence view on Jordan’s participation. “The political opinion of a figure of Wasfi Tal’s stature was that entering the 1967 war was a mistake. He was not in office, but he remained close to the king and influential,” said Obeidat.

According to Obeidat, King Hussein believed Israel would occupy the West Bank whether Jordan participated or not.

“Participation was a gamble that might succeed or fail. The catastrophe was discovering that the Egyptian air force had been destroyed within half an hour,” he added.

Despite the bitterness, he said: “We did not fear for the regime, but we sought to contain public anger and absorb the shock.”

September and the assassination of Wasfi Tal

Obeidat first met Yasser Arafat after the events of September 1970. He confirmed that Arafat left Amman with an official Arab delegation to attend the Cairo summit and returned immediately afterward.

He recalled being informed mid-flight of the death of Egyptian President Gamal Abdel Nasser. “King Hussein was deeply affected.”

On the assassination of Prime Minister Wasfi Tal in Cairo, Obeidat said the gunmen who confronted Tal at the hotel entrance were not responsible for the fatal shot. “The fatal bullet came from behind, from a sniper in another unseen location. To this day, the sniper has not been identified,” he added.

He rejected the notion that Tal had been reckless. “Wasfi was not a gambler. He had a distinct political project,” he stressed.

Obeidat said the Black September Organization accused Tal of ordering the expulsion of fedayeen from forested areas in Jerash and Ajloun. He denied that Tal was directly responsible, saying the clashes began after fedayeen attacked a police station and killed officers, prompting a spontaneous army response.

Abduction without interrogation

Before September 1970, Obeidat was abducted by the Popular Front for the Liberation of Palestine while serving as assistant intelligence director.

Armed vehicles stopped his car as he was leaving his home in Jabal Al-Taj with his family. He and his brother-in-law were taken to the Wehdat camp. “We were treated politely. We drank tea. No one asked me a single question,” he recalled.

After several hours, he was driven to another house in Amman and later returned home. The next morning, members of Fatah took him briefly to one of their offices, only to release him on foot without explanation.

“Not a single question was asked,” Obeidat said. “It was bewildering.”

He resumed his duties after ensuring his family’s safety. “At the time, intelligence, like any official institution, was threatened and targeted,” he said, reflecting on one of the most volatile periods in Jordan’s modern history.

Interviews

Microsoft Saudi Head Affirms Kingdom Entering AI Execution Phase

Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
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Microsoft Saudi Head Affirms Kingdom Entering AI Execution Phase

Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)

Riyadh’s hosting of the Microsoft AI Tour this week delivered a headline with concrete weight: customers will be able to run cloud workloads from a local Azure data center region starting in the fourth quarter of 2026.

The announcement was more than a technical update. It marked a shift in posture. Saudi Arabia is no longer testing artificial intelligence at the margins. It is moving decisively into execution, where infrastructure, governance, skills development, and enterprise adoption align in a single direction.

For Turki Badhris, president of Microsoft Saudi Arabia, the timing reflects years of groundwork rather than a sudden push.

“Confirming that customers will be able to run cloud workloads from the Azure data center region in the fourth quarter of 2026 gives organizations clarity and confidence as they plan their digital and AI journeys,” Badhris told Asharq Al-Awsat on the sidelines of the event.

“Clarity and confidence” may sound procedural, but they are strategic variables. Government entities and large corporations do not scale AI based solely on pilot projects.

They move when they are assured that local infrastructure is available, regulatory requirements are aligned, and long-term operational continuity is secured. The announcement of the new Azure region signals that the infrastructure layer is no longer a plan, but a scheduled commitment nearing implementation.

From pilots to production

Saudi Arabia’s AI story has unfolded in phases. The first focused on expanding digital infrastructure, developing regulatory frameworks, and strengthening cloud readiness. That phase built capacity. The current phase centers on activation and use.

Badhris said the conversation has already shifted. “We are working closely across the Kingdom with government entities, enterprises, and partners to support readiness, from data modernization and governance to skills development so that customers can move from experimentation to production with confidence.”

The distinction is fundamental. Pilots test potential. Production environments reshape workflows.

Companies such as Qiddiya Investment Company and ACWA Power illustrate that transition. Rather than treating AI as isolated pilot initiatives, these organizations are embedding it into daily operations.

ACWA Power is using Azure AI services and the Intelligent Data Platform to optimize energy and water operations globally, with a strong focus on sustainability and resource efficiency through predictive maintenance and AI-driven optimization.

Qiddiya has expanded its use of Microsoft 365 Copilot to enable employees to summarize communications, analyze data, and interact with dashboards across hundreds of assets and contractors.

AI is no longer operating at the margins of the enterprise. It is becoming part of the operating core, a sign of institutional maturity. The technology is shifting from showcase tool to productivity engine.

Infrastructure as strategic signal

The Azure data center region in eastern Saudi Arabia offers advantages that go beyond lower latency. It strengthens data residency, supports compliance requirements, and reinforces digital sovereignty frameworks.

In highly regulated sectors such as finance, health care, energy, and government services, alignment with regulatory requirements is not optional; it is essential.

Badhris described the milestone as part of a long-term commitment. “This achievement represents an important milestone in our long-term commitment to enable real and scalable impact for the public and private sectors in the Kingdom,” he said.

The emphasis on scalable impact reflects a more profound understanding: infrastructure does not create value on its own, but enables the conditions for value creation. Saudi Arabia is treating AI as core economic infrastructure, comparable to energy or transport networks, and is using it to form the foundation for productivity gains.

Governance as accelerator

Globally, AI regulation is often seen as a constraint. In the Saudi case, governance appears embedded in the acceleration strategy. Adoption in sensitive sectors requires clear trust frameworks. Compliance cannot be an afterthought; it must be built into design.

Aligning cloud services with national digital sovereignty requirements reduces friction at scale. When organizations trust that compliance is integrated into the platform itself, expansion decisions move faster. In that sense, governance becomes an enabler.

The invisible constraint

While generative AI dominates headlines, the larger institutional challenge often lies in data architecture. Fragmented systems, organizational silos, and the absence of unified governance can hinder scaling.

Saudi Arabia's strategy focuses on data modernization as a foundation. A structured and integrated data environment is a prerequisite for effective AI use. Without it, AI remains superficial.

Another global challenge is the skills gap. Saudi Arabia has committed to training three million people by 2030. The focus extends beyond awareness to practical application. Transformation cannot succeed without human capital capable of integrating AI into workflows.

Badhris underscored that skills development is part of a broader readiness ecosystem. Competitiveness in the AI era, he said, is measured not only by model capability but by the workforce’s ability to deploy it.

Sector transformation as economic strategy

The Riyadh AI Tour highlighted sector use cases in energy, giga projects, and government services. These are not peripheral applications but pillars of Vision 2030. AI’s role in optimizing energy management supports sustainability. In major projects, it enhances execution efficiency. In government services, it improves the citizen experience.

AI here is not a standalone industry but a horizontal productivity driver.

Positioning in the global landscape

Global AI leadership is typically measured across four pillars: compute capacity, governance, ecosystem integration, and skills readiness. Saudi Arabia is moving to align these elements simultaneously.

The new Azure region provides computing. Regulatory frameworks strengthen trust. Partnerships support ecosystem integration. Training programs raise skills readiness.

Saudi Arabia is entering a decisive stage in its AI trajectory. Infrastructure is confirmed. Enterprise use cases are expanding. Governance is embedded. Skills are advancing.

Badhris said the announcement gives institutions “clarity and confidence” to plan their journey. That clarity may mark the difference between ambition and execution. In that sense, the Microsoft tour in Riyadh signaled that infrastructure is no longer the objective, but the platform on which transformation is built.

Interviews

Italian Defense Minister to Asharq Al-Awsat: Relations with Saudi Arabia at an Unprecedented Strategic Strength

Guido Crosetto said Rome and Riyadh are working to support the success of the ongoing negotiations between Washington and Tehran (Italian Ministry of Defense).
Guido Crosetto said Rome and Riyadh are working to support the success of the ongoing negotiations between Washington and Tehran (Italian Ministry of Defense).
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Italian Defense Minister to Asharq Al-Awsat: Relations with Saudi Arabia at an Unprecedented Strategic Strength

Guido Crosetto said Rome and Riyadh are working to support the success of the ongoing negotiations between Washington and Tehran (Italian Ministry of Defense).
Guido Crosetto said Rome and Riyadh are working to support the success of the ongoing negotiations between Washington and Tehran (Italian Ministry of Defense).

Italian Defense Minister Guido Crosetto said relations between Rome and Riyadh have reached an unprecedented level of strategic strength, noting that the two countries are working to build genuine partnerships based on joint development, integrated supply chains, skills transfer, and the development of local capabilities.

In an interview with Asharq Al-Awsat, Crosetto stressed that cooperation between Italy and Saudi Arabia has become essential for strengthening peace and stability in the Middle East, adding that both countries are working together to support the ongoing negotiations between the United States and Iran in order to prevent regional escalation.

Speaking on the sidelines of the World Defense Show in Riyadh, the minister described the Saudi economic environment as highly attractive, noting that the event reflects the Kingdom’s growing pivotal role in technological and industrial innovation and provides a platform for discussing future scenarios and emerging technologies.

Strategic Strength

Crosetto said relations between Saudi Arabia and Italy are “excellent” and “at an unprecedented stage of strategic strength.”

He noted: “Political understanding between our leaders has established a framework of trust that translates into tangible and structured cooperation in the defense sector, both militarily and industrially. Our countries share fundamental principles: reliable partnerships, honoring commitments, the importance of diplomacy, and adherence to international law. This makes our cooperation stable, predictable, and oriented toward the long term.”

The Italian minister said the Saudi economic environment is highly attractive (Asharq Al-Awsat)

Dialogue Between the Armed Forces

Crosetto noted that dialogue between the armed forces of the two countries is ongoing and includes the exchange of operational expertise, doctrines, strategic analyses, and regional scenario assessments, adding that this “enhances interoperability and mutual understanding.”

He stressed that the Red Sea and the Arabian Gulf are two closely interconnected strategic regions, and their security represents a shared interest for Italy and Saudi Arabia.

"In this context, cooperation between Rome and Riyadh is essential to strengthening peace and stability in the Middle East, with particular attention to supporting political solutions in Lebanon, Gaza, and Syria, as well as advancing the ongoing negotiations between the United States and Iran, which are a critical element in preventing regional escalation.”

According to the minister, “this political commitment is complemented by a practical commitment,” noting that Italy is among the most active Western countries in providing healthcare to Palestinian civilians through medical evacuations, the transport of humanitarian aid, and the deployment of naval medical capabilities. He described this as “a concrete example of how military tools can serve humanitarian and stabilization objectives.”

Meeting Between the Crown Prince and Meloni

The Italian defense minister said the meeting between Prime Minister Giorgia Meloni and Saudi Crown Prince and Prime Minister Mohammed bin Salman gave strong momentum to bilateral relations.

“At the military level, cooperation is expanding in training, logistics, military doctrine, technological innovation, maritime security, and the protection of critical infrastructure. There is also growing interest in emerging domains, including cyberspace, outer space, and advanced systems.”

Saudi Crown Prince Mohammed bin Salman meets with Italian Prime Minister Giorgia Meloni in AlUla, January 2025 (SPA).

He continued: “At the industrial level, we are moving beyond the traditional client-supplier relationship and seeking to build real partnerships based on joint development, integrated supply chains, skills transfer, and the development of local capabilities.”

Saudi Arabia a Key Partner for Italy’s Energy Security

Crosetto emphasized that cooperation between Italian companies and their Saudi counterparts in defense capabilities, technology transfer, aviation projects, and shipbuilding is fully aligned with Saudi Vision 2030, which aims to strengthen the Kingdom’s industrial, technological, and human capital base.

“Italian companies’ contributions are not limited to providing platforms; they also include expertise, training, and engineering support. This approach extends beyond the defense sector to infrastructure, technology, tourism, and major projects such as NEOM, highlighting the complementarity between our economies.”

He continued: “Cooperation also includes the energy sector and the energy transition, as Saudi Arabia is a key partner for Italy’s energy security, with growing collaboration in hydrogen and renewable energy. In addition, there is an emerging strategic focus on critical and strategic raw materials, a sector in which the Kingdom is investing heavily and which could see significant growth in both industrial and technological cooperation.”

Saudi Economic Environment Highly Attractive

Crosetto said the recent Italian 'Industry Days' forum held in Riyadh, organized in cooperation between the two countries’ defense ministries, sent a very strong signal of expanding bilateral cooperation, attracting both small and medium-sized enterprises and major industrial groups and leading to the creation of tangible operational links.

“The Saudi economic environment is highly attractive, featuring major public investments, a streamlined tax system, incentives for materials and equipment, and double-taxation avoidance agreements, making the Kingdom a strategic industrial partner.”

He added: “Trade exchange is not limited to the defense sector. Italian products are in strong demand in other sectors such as machinery, fashion, design, and pharmaceuticals. Bilateral agreements exceeding €10 billion include major companies such as 'Leonardo' and 'Fincantieri'.”

Visit of Prince Khalid bin Salman

The Italian defense minister said the visit of his Saudi counterpart Prince Khalid bin Salman, to Rome, strengthened dialogue between the two countries, noting that discussions “covered diverse sectors, from space to naval domains, and from aviation to helicopters, with a primary focus on military cooperation, training, and the exchange of joint strategic analyses.”

Prince Khalid bin Salman during his meeting with Italian industrial companies in Rome, October 2024 (SPA).

World Defense Show in Riyadh

Crosetto said Saudi Arabia’s hosting of the third edition of the World Defense Show reflects the Kingdom’s growing central role in technological and industrial innovation and provides a platform for discussing future scenarios, emerging technologies, and cooperation models.

“I believe it is important for a country with promising investment prospects such as Saudi Arabia to host an international event that enables direct dialogue with the world’s leading companies in a continuously expanding sector.”

Italian Defense Minister Guido Crosetto (Italian Ministry of Defense).

He concluded: “In this context, I am confident that the model of cooperation between Italy and the Kingdom - based on dialogue, mutual trust, and a long-term vision - represents an example of how to combine strategic interests, innovation, and responsibility.

"On this basis, we will continue working side by side to strengthen a partnership that goes beyond the present, contributes to regional stability, and creates tangible opportunities for our two countries and for the international community as a whole.”