The announcement about the new economic zones, which are located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City, north of Jeddah, is line with the Crown Prince’s commitment to strengthening Saudi Arabia’s prime position as a global investment destination.
In a statement carried by Saudi Press Agency, the Crown
Prince said, “Saudi Arabia is open for business, and welcomes investors from
all around the world to see first-hand the historic opportunities we have to
offer. The new Special Economic Zones, launched today, will significantly
impact how business is done in the country, create tens of thousands of jobs,
and contribute billions of riyals to our GDP.”
The new zones draw on Saudi Arabia’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 Special
Economic Zones (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 percent foreign ownership of companies, and
flexibility to attract and hire the best talent worldwide.
The new SEZs 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, these
SEZs offer rewarding and attractive offers for foreign investment. This 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 at 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 Special Economic Zones, 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, the SPA reported.
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