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Saudi Arabia Grants Licenses for Establishment of 4 Economic Zones

Minister of Investment Eng. Khaled Al-Falih addresses the Saudi Special Economic Zones Investment Forum on Monday. (Asharq Al-Awsat)
Minister of Investment Eng. Khaled Al-Falih addresses the Saudi Special Economic Zones Investment Forum on Monday. (Asharq Al-Awsat)
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Saudi Arabia Grants Licenses for Establishment of 4 Economic Zones

Minister of Investment Eng. Khaled Al-Falih addresses the Saudi Special Economic Zones Investment Forum on Monday. (Asharq Al-Awsat)
Minister of Investment Eng. Khaled Al-Falih addresses the Saudi Special Economic Zones Investment Forum on Monday. (Asharq Al-Awsat)

The Saudi government is seeking to develop special economic zones based on modern and innovative designs, with the aim to attract foreign direct investments and shape the future of regional and global markets.

Ministers, officials, and local and international experts attended the launch of the Saudi Special Economic Zones Investment Forum on Monday, which saw the announcement of new investment deals exceeding 27 billion riyals ($7.2 billion).

Hosted by the Economic Cities and Special Zones Authority (ECZA), in partnership with the Saudi Program for Attracting Regional Headquarters of International Companies, the forum witnessed extensive sessions that highlighted Saudi Arabia’s position as a future investment destination and the importance of special economic zones in diversifying the country’s sources of income.

During the event, licenses for the establishment of four Special Economic Zones (SEZs) were awarded to the King Abdullah Economic City’ (KAEC) SEZ, Ras Al-Khair SEZ , Jazan SEZ, and Cloud Computing SEZ.

Eng. Khaled Al-Falih, Minister of Investment, said the Saudi government concluded in 2022 deals for the private sector worth 285 billion riyals ($76 billion) in various fields, including cars, information and communication technology, agriculture and space, as well as petrochemicals, mining and renewable energy.

He revealed that the investment sector in Saudi Arabia grew by 31 percent during 2022, to exceed one trillion riyals ($266.6 billion), for the first time in the history of the Kingdom.

The minister underlined that the social, economic and commercial indicators have proven the extent of investor confidence in the Saudi infrastructure. He added that the new special economic zones were designed based on a futuristic and innovative outlook, with a focus on attracting foreign direct investment and maximizing opportunities for major industries.

Minister of Finance Mohammed Al-Jadaan stated that the economic zones help achieve sustainable development and contribute to attracting investments and generating job opportunities.

He added that the economic cities would benefit from Saudi Arabia’s strategic location to establish new clusters of companies across the main growth sectors, which would contribute in shaping the future of regional and global markets.

According to Al-Jadaan, the special zones target specific investors in certain sectors to reduce competition between the primary economy and the special economic cities.

Bandar AlKhorayef, Minister of Industry and Mineral Resources, said the private economic zones in Saudi Arabia would greatly benefit the local economy, as they are an important component of economic diversification.

He stressed that the zones would serve re-export products and help create a large commercial movement in the next stage.

AlKhorayef revealed that the private economic zones focus on various industries related to ship manufacturing, mining and renewable energy industries, to promote investments that help expand services and create added value.

Meanwhile, Nabil Khoja, Secretary General of ECZA, told Asharq Al-Awsat that the volume of investments in the special economic zones in the coming period would top 116 billion riyals ($30.9 billion), given the efforts made to achieve the targets set to support the foundations of the Saudi economy.

Khoja predicted an influx of more investments in the coming phase, noting that each economic zone was characterized by qualitative industries and provided a package of incentives and enablers.

The forum discussed the opportunities offered by the special economic zones and the promising growth potential they provide to investors around the world.

Talks also touched on key topics that dealt with Saudi Arabia’s strengths, including the supportive and competitive regulatory environment, the strategic geographical location that boosts the country’s position as a vital center for supply chains and logistics services, and the advanced digital infrastructure capable of supporting ICT companies and the global cloud computing system.

The forum reviewed the latest developments in the Saudi program that focuses on attracting regional headquarters of international companies.

Some of the most important advantages offered by the special economic zones in Saudi Arabia include competitive tax rates and exemption from customs duties on imports, production inputs, machinery and raw materials.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.