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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

Bin Habrish to Asharq Al-Awsat: Hadhramaut on Threshold of New Era

Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
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Bin Habrish to Asharq Al-Awsat: Hadhramaut on Threshold of New Era

Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)

After nearly 500 days spent in the mountains and highlands, Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut and commander of the Hadhramaut Protection Forces, has returned to the provincial capital, Mukalla, declaring what he described as the beginning of a “new phase” that will shape a different future for Yemen’s largest eastern governorate.

In an interview with Asharq Al-Awsat from his residence overlooking the Arabian Sea, Bin Habrish said Hadhramaut is currently experiencing “a state of stability and reassurance,” which he attributed to the steadfastness of its people and to Saudi support and intervention that came “at the right time.”

He said the current ambition is to build a state based on institutions under which all citizens are united, while preserving Hadhramaut’s distinct character. Bin Habrish also affirmed his commitment to integrating the Hadhramaut Protection Forces into “fair” state institutions.

Addressing security concerns, he described terrorism as “manufactured” and said it has no social base in Hadhramaut. He accused external powers and local actors of exploiting it for their own agendas, while stressing readiness to confront terrorism in all its forms.

Bin Habrish offered his account of the recent handover of military camps led by the Nation’s Shield Forces, saying the achievements were made possible by the resistance of Hadhramaut’s people on their own land, and by Saudi support and what he called the Kingdom’s “honest and decisive” stance at a critical moment.

He said this outcome would not have been possible without the “genuine bond” between Hadhramaut’s society and Saudi Arabia, adding that this relationship has helped restore security and stability to Mukalla after what he described as unnecessary turmoil.

“We were not satisfied with the arrival of forces and the internal conflict and fighting that followed,” he said, adding that some parties felt emboldened and left no room for dialogue.

He accused the Southern Transitional Council of deploying its forces and “fully occupying the governorate,” stressing that Hadhramaut belongs to its people and that any mistake should have been addressed locally, not imposed by force. “We were compelled to resist,” he said, citing home raids and pursuits as “wrong and unjustified.”

Open Channels with Saudi Arabia

Bin Habrish credited Saudi Arabia’s leadership — King Salman bin Abdulaziz, Crown Prince Mohammed bin Salman, Defense Minister Prince Khalid bin Salman, along with the Special Committee and the Joint Forces Command — for Hadhramaut’s current stability.

He said coordination with the Kingdom takes place “at the highest levels,” with open channels and no barriers, praising Saudi intentions and expressing deep appreciation for its support.

A New Era

Bin Habrish said Hadhramaut is entering a new era rooted in its traditions of peace, wisdom, and culture. He reiterated calls for self-rule based on historical grounds, describing it as the minimum requirement for enabling Hadhramaut to build its institutions and deliver services.

He urged unity, mutual compromise, and prioritizing the governorate’s interests, saying: “We forgive and open a new page. We are not seeking revenge. What matters is that Hadhramaut remains at the center of decision-making. Without it, there can be no development.”

Interviews

President of Madagascar to Asharq Al-Awsat: Three-Pillar Economic Plan to Revive the Country

President of Madagascar Michael Randrianirina (Presidency)
President of Madagascar Michael Randrianirina (Presidency)
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President of Madagascar to Asharq Al-Awsat: Three-Pillar Economic Plan to Revive the Country

President of Madagascar Michael Randrianirina (Presidency)
President of Madagascar Michael Randrianirina (Presidency)

President of Madagascar Michael Randrianirina said his country views Saudi Arabia as its “main partner” in the phase of “refoundation” and in building a new development model, revealing to Asharq Al-Awsat a three-pillar economic plan aimed at restoring political and institutional stability, activating structural sectors, and improving the business environment to attract investment, with a focus on cooperation in mining and natural resources, including rare minerals.

In his first interview with an Arab newspaper since assuming office in October, Randrianirina said in remarks delivered via Zoom from his presidential office that Madagascar “possesses real potential in energy, agriculture, mining, tourism, and human capital,” stressing that driving national revival requires consolidating institutional stability and building balanced partnerships with countries such as Saudi Arabia in order to translate potential into tangible outcomes for citizens and youth.

Three-Pillar Economic Plan

The president explained that his plan is based on three main pillars. The first focuses on restoring political and institutional stability through a clear transitional roadmap, the establishment of an executive body to manage and review projects, and the formation of a supporting committee to ensure an orderly and transparent transition.

The second pillar centers on investment in structural sectors, including energy, ports, digital transformation, health, and mining, in partnership with Saudi Arabia and other partners, with the aim of removing the main obstacles to economic revival.

The third pillar, he said, targets creating an attractive environment for investors by improving the business climate, strengthening public-private partnerships, activating special economic zones, and leveraging regional frameworks such as the African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC) to open broader African markets through Madagascar.

Strategic Partnership and “Investment-Ready” Projects

On plans to enhance economic, investment, and trade cooperation between Saudi Arabia and Madagascar, Randrianirina said his objective is to build a long-term strategic partnership within a clear institutional framework and through flagship projects with tangible impact for both countries.

He proposed the creation of a joint Madagascar–Saudi investment body, to be known as “OIMS,” to coordinate and finance projects in energy, ports, health, digital governance, mining, agriculture, and tourism. He noted that Madagascar is simultaneously preparing a package of investment-ready projects aligned with Saudi Vision 2030 and Africa’s regional integration, in order to provide organized and secure opportunities for Saudi capital and expertise.

Saudi Arabia as the “Main Partner”

Randrianirina emphasized that Madagascar considers Saudi Arabia a key partner in priority sectors. In energy and refining, he said the country plans to establish a national oil refinery, supply fuel directly from the Kingdom, and jointly develop heavy oil resources in western Madagascar.

In ports and logistics, he pointed to efforts to modernize and expand the ports of Toliara and Mahajanga to position Madagascar as a logistics and energy hub in the Indian Ocean.

Regarding digital transformation and secure governance, he said Madagascar aims to launch a secure national digital platform for public administration and security, drawing on Saudi experience.

He also highlighted mining and natural resources, including rare minerals, as a cornerstone of cooperation, with the goal of improving valuation and ensuring traceability of Malagasy gold and other mineral resources in a transparent and mutually beneficial manner. He further expressed interest in the health sector, proposing the establishment of a royal health complex in Antananarivo, followed by a gradual expansion of similar facilities in other regions.

Planned Visit to Riyadh

The President said Madagascar is working with Saudi authorities to arrange an official visit in the near future, with the date to be determined in coordination with the Kingdom.

He described the visit as an important opportunity to meet and engage with Crown Prince Mohammed bin Salman, noting that Vision 2030 has brought about a qualitative transformation in the Kingdom’s image and economic trajectory. He said Saudi Arabia has strengthened its role as a major player in economic modernization, energy diversification, digital transformation, and global investment, while maintaining its central role in the Arab and Islamic worlds.

He added that the reforms and major projects achieved under the vision are a source of inspiration for Madagascar’s refoundation efforts, expressing a desire to benefit from the Saudi experience in areas including energy, infrastructure, digital transformation, health, and natural resource development.

The president said he hopes the visit will include meetings with the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman, as well as sectoral meetings covering energy, ports, digital transformation, health, mining, defense and security, trade, culture, and sports, alongside discussions on establishing the joint investment body.

Historical Links with the Arab World

Randrianirina noted that Madagascar had historical links with the Arab world prior to the arrival of Western powers, explaining that Arab sailors, traders, and scholars reached its coasts and left their mark on certain languages, place names, and customs.

Three Major Challenges

The president acknowledged three main challenges facing his country: poverty and food insecurity, lack of infrastructure, and weak institutions. He said a large segment of the population still lives in poverty and that food security is not guaranteed in several regions, stressing that addressing these challenges requires investment in agriculture and rural infrastructure and the search for partners to support sustainable value chains that improve farmers’ incomes.

On infrastructure, he said the capacity of the energy and port sectors remains insufficient, hindering growth and trade, noting that upcoming discussions with Saudi Arabia focus on projects such as the refinery, heavy oil development, the ports of Toliara and Mahajanga, and digital infrastructure. He added that repeated crises have weakened institutions, and that his government is working to strengthen the rule of law, anti-corruption mechanisms, and public investment governance through independent oversight and transparent reporting to restore trust.

Combating Corruption

The President said financial corruption is a serious problem in Madagascar as it undermines public trust and diverts resources away from development. He explained that the anti-corruption strategy is based on three levels: establishing an executive body with clear procedures, independent audits, and periodic reporting; using digitalization to improve traceability and reduce misuse; and strengthening anti-corruption bodies while supporting judicial independence.

When asked about allegations of financial corruption linked to the previous leadership, he said his focus is on institutions rather than personal accusations, stressing that addressing any allegations falls under the jurisdiction of the competent judicial and oversight bodies, which must be protected from political interference and allowed to operate in accordance with the law and due process.

Duty to the Country and Its Youth

The president concluded by saying that he assumed office out of a sense of duty toward the country and its youth, noting that young people represent a significant demographic weight in Madagascar and are demanding change, dignity, and a better future through jobs, education, stability, and opportunities within their own country.

 

Interviews

Microsoft President: Saudi Arabia is Moving from Exporting Oil to Exporting Artificial Intelligence

Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
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Microsoft President: Saudi Arabia is Moving from Exporting Oil to Exporting Artificial Intelligence

Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 

As Saudi Arabia accelerates its national transformation under Vision 2030, the region’s technology landscape is undergoing a decisive shift. For the first time, “the region is not merely participating in a global transformation, it is clearly leading it,” said Naim Yazbeck, President of Microsoft for the Middle East and Africa, in an interview with Asharq Al-Awsat.

Yazbeck argued that Saudi Arabia now stands at the forefront of what he called “a historic turning point not seen in the past century,” defined by sovereign cloud infrastructure, artificial intelligence, and national innovation capabilities.

He noted that Saudi Arabia’s rapid progress is driven by clear political will, explaining that the state is not simply modernizing infrastructure, but views AI as a strategic pillar comparable to the historical role of oil. While oil underpinned the economy for decades, AI has emerged as the new resource on which the Kingdom is staking its economic future.

According to Yazbeck, the recent visit of Crown Prince and Prime Minister Mohammed bin Salman to the United States underscored this shift, with AI and advanced technologies taking center stage in discussions, reflecting Saudi Arabia’s intent to build a globally influential knowledge economy.

This direction marks the start of a new phase in which the Kingdom is no longer a consumer of imported AI technologies but a developer of local capabilities and a producer of exportable knowledge, strengthening technological sovereignty and laying the foundation for an innovation-driven economy.

A Distinctive Tech Market

Yazbeck stressed that the regional landscape, especially in Saudi Arabia, is witnessing an unprecedented shift. Gulf countries are not only deploying AI but also developing and exporting it. The Kingdom is building advanced infrastructure capable of running large-scale models and providing massive computing power, positioning it for the first time as a participant in global innovation rather than a mere technology importer.

He pointed to a common sentiment he encountered in recent meetings across Riyadh’s ministries, regulatory bodies, national institutions, and global companies: “Everyone wants to be ahead of AI, not behind it.” Ambition has translated into action through revised budgets, higher targets, and faster project timelines.

He added that Saudi institutions now demand the highest standards of data sovereignty, especially in sensitive financial, health, and education sectors. The regulatory environment is evolving rapidly; Saudi Arabia has modernized its cybersecurity, data governance, cloud, and AI frameworks faster than many countries worldwide, turning regulatory agility into a competitive asset.

Yazbeck emphasized that success is not measured by the number of AI projects but by their alignment with national priorities, productivity, healthcare, education, and cybersecurity, rather than superficial, publicity-driven initiatives.

The ‘Return on Investment’ Equation

According to the Microsoft official, building an AI-driven economy requires more than advanced data centers. It begins with long-term planning for energy production and the expansion of connectivity networks. He further said that running large models demands enormous electrical capacity and long-term stability, which the Kingdom is addressing through strategic investments in renewable energy and telecommunications.

Yazbeck said return on investment is a central question. Nationally, ROI is measured through economic growth, job creation, higher productivity, enhanced innovation, and stronger global standing. At the institutional level, tangible results are already emerging: with tools such as Copilot, employees are working faster and with higher quality, shedding routine tasks and redirecting time toward innovation. The next phase, he added, will unlock new business models, improved customer experiences, streamlined operations, and higher efficiency across sectors.

Sovereignty and Security

Digital sovereignty is now indispensable, Yazbeck said. Saudi Arabia requires cloud providers to meet the highest accreditation standards to host sensitive national systems, which are criteria Microsoft is working to fulfill ahead of launch. Once the new cloud regions in Dammam go live, they will become part of the Kingdom’s sovereign infrastructure, requiring maximum protection.

Microsoft invests billions annually in cybersecurity and has repelled unprecedented cyberattacks, an indicator of the threats national infrastructure faces. The company offers a suite of sovereign cloud solutions, data-classification tools, and hybrid options that allow flexible operation and expansion. Yazbeck noted that sovereignty is not a single concept but a spectrum that includes data protection, regulatory control, and local hosting all play critical roles.

Data: The Next Source of Advantage

Yazbeck identified data as the decisive factor in AI success. He warned that any model built on unclean data becomes a source of hallucinations. Thus, national strategy begins with assessing the readiness of Saudi Arabia’s data landscape.

He revealed that the Kingdom, working with SDAIA, the Ministry of Communications, and national companies, is constructing a vast, high-quality data ecosystem, laying the groundwork for competitive Arabic language models.

He also called for a robust framework for responsible AI, saying that speed alone is not enough. He stressed that safe and trustworthy use must be built from the start, noting that Microsoft is collaborating with national bodies to craft policies that prevent misuse, protect data, and ensure fairness and transparency.

Skills: A National Advantage

Human capability is the true engine of national power; Yazbeck underlined, pointing that infrastructure means little without talent to run and advance it. He stated that Saudi youth represent the Kingdom’s greatest competitive advantage.

Microsoft has trained more than one million Saudis over the past two years through programs with SDAIA, the Ministry of Communications, the Ministry of Education, and the MISK Foundation. Its joint AI Academy has graduated thousands of students from over 40 universities, and it has launched broad programs to train teachers on AI tools in education.