Saudi Arabia has launched four new Special Economic Zones (SEZ) in the kingdom to reinforce its position as a global investment hub, the Saudi Press Agency reported last week. The four zones will be located in Riyadh, Jazan, Ras al Khair, and King Abdullah Economic City.

Incentives for investors: Investors with companies operating in the zones benefit from fiscal and legislative incentives, including competitive tax rates, exemptions from customs duties on imports, full foreign ownership, streamlined administrative procedures, and less rigidity on regulations governing the employment of foreign workers, SPA reported separately.

What they said: The new SEZs will “significantly impact how business is done in the country, create tens of thousands of jobs, and contribute bns of riyals to our GDP,” Prince Mohammad bin Salman is quoted as saying. It will also help provide tremendous opportunities to develop the local economy and “localize supply chains,” bin Salman added.

The new zones will be distributed strategically across KSA and will each be specialized in specific industries, SPA added.

#1- King Abdullah Economic City (KAEC) SEZ: The 60-square-kilometer zone will specialize in manufacturing and logistics, including automobile supply chain and assembly, consumer goods, ICT and medtech. Located less than 90 km from Jeddah Airport, the new zone will have easy access to global trade through the airport. Furthermore, EV giant Lucid is slated to produce 150k EVs per annum from a new base at KAEC, SPA reported.

#2- Jazan SEZ: Located in the kingdom’s southwest corner, Jazan SEZ is within easy access of the large and well-equipped regional port of Jazan, which is the largest in the kingdom for the export of goods and import of raw materials and livestock. This zone will target trade with “fast growing markets in Asia and Africa,” SPA said. The zone will benefit from access to natural and industrial resources, and will provide avenues for the manufacture, processing, and distribution of foodstuffs due to its location in the fertile region of the kingdom.

#3- Ras Al-Khair SEZ: Located along the Arabian Gulf in KSA’s Eastern province, the SEZ is lined up to become a major platform and launchpoint for the region’s maritime industry. Shipbuilding and maintenance, as well as offshore drilling and maritime support services will comprise the focus of the new SEZ. 40% of investments at the new zone have already been accounted for, according to SPA.

#4 Cloud Computing SEZ: Located within Riyadh’s King Abdulaziz City for Science and Technology (KACST), this zone is positioned to “serve as a hub for emerging and disruptive technologies,” SPA reported. The zone is built on a “hybrid model” that allows investors to establish data centers and cloud computing infrastructure in locations across the kingdom.

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