In a significant move, Saudi Arabia has officially granted licenses to four new Special Economic Zones (SEZs) on Monday. These newly established economic zones are strategically located in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City, situated north of Jeddah.
During the Saudi Special Zones Investment Forum in Riyadh, Minister of Investment Khalid Al-Falih, who also serves as the chairman of the Economic Cities and Special Zones Authority (ECZA), presented the licenses along with other ministers.
In his opening remarks at the forum, Al-Falih highlighted the role of Special Economic Zones in bolstering the Kingdom's capabilities to leverage its regional and international economic agreements. He emphasized the significant deals closed across various sectors, such as automotive, information and communication technology (ICT), agriculture, aerospace, petrochemicals, mining, and renewable energy, with a total value of SR285 billion.
Al-Falih stated, "The Kingdom inspires confidence across multiple social, economic, and business indicators — from investor sentiment and trust in government to digital competitiveness, road connectivity, cybersecurity, and quality of port operations."
He further added, "Our SEZs are purpose-built to maximize opportunities and minimize friction across key industries, focusing on attracting foreign direct investment (FDI) and supporting Saudi Arabia's vision for industrial development."
Globally, Special Economic Zones are experiencing a resurgence as part of a broader trend known as the 'Industrial Policy comeback.' These zones, supported by attractive incentive packages and innovative approaches, aim to attract FDI in targeted supply chains.
The newly established SEZs in Saudi Arabia leverage the country's strategic location as a global trade hub. They provide an ideal environment for businesses operating in key growth sectors to launch and scale their companies and technologies, shaping the future of the Kingdom.
These Special Economic Zones align with national strategies while fostering connections with international frameworks. Leveraging the unique competitive advantages of each region, they actively support crucial sectors such as logistics, advanced manufacturing, technology, and other priority industries for Saudi Arabia.
Companies operating within the newly established SEZs can enjoy several benefits, including competitive corporate tax rates, exemption from customs duties on imports, machinery, raw materials, and production inputs, 100 percent foreign ownership of companies, and flexibility in attracting and hiring top talent from around the world.
The establishment of these Special Economic Zones marks another significant step in Saudi Arabia's journey towards economic diversification and attracting foreign investment.
