Logo of Economic Cities and Special Zones Authority (ECZA)
Saudi Arabia launched its first five Special Economic Zones (SEZs) with special commercial regulations to accelerate the economic diversification, while enabling investors to do business across the Kingdom.
These zones will have a backing of industrial sectors as well as commercial activities to help investors develop their businesses regionally and globally through a globally-linked market.
These zones are King Abdullah Economic City (KAEC), Ras Al Khair SEZ in Eastern Province, Jazan SEZ in Jazan Province, Cloud Computing SEZ located in King Abdulaziz City for Science and Technology (KACST) in Riyadh Province, in addition to the Integrated Logistics SEZ in Riyadh.
KAEC is located in Makkah, spanning 60 square kilometers (kms). It seeks opportunities in automobile supply chain and assembly, consumer goods, electronic light manufacturing (ICT), MedTech, advanced pharmaceuticals and logistics.
Ras Al-Khair SEZ is situated in the Eastern Province and extends over 20 square km. It targets shipbuilding and MRO, rig platforms, offshore drilling and maritime value chains.
Jazan SEZ is based in Jazan, spanning 26 square km and targeting food processing, metals conversion and logistics services.
Investment incentives in the three SEZs include:
- 5% corporate income tax up to 20 years.
- 0% withholding tax permanently for repatriation of profit from SEZ into foreign countries.
- 0% customs duties on capital equipment and inputs inside SEZ.
- Flexible and supportive regulations around foreign talent during first five years.
- 0% VAT for all intra-SEZ goods exchanged within and between zones.
- Exemption from applicable fees on expats and their families.
Meanwhile, Cloud Computing SEZ in Riyadh seeks opportunities in the field of cloud computing services and will attract investments of $20 billion. This includes foreign direct investments (FDIs) and local direct investments in data and artificial intelligence by 2030.
Investment incentives in Cloud Computing SEZ include:
- Special tax treatment in line with the Organisation for Economic Cooperation and Development (OECD) principle to avoid double taxation and accommodates cloud services providers (CSPs) operating model.
- Exemption from applicable fees on expats and families.
- Electricity available at a competitive rate of $0.05/kWh for businesses.
- Flexibility to provide cloud computing services from SEZ, with the ability to build and operate data centers from all over the Kingdom.
Integrated Logistics SEZ is located adjacent to the King Khalid International Airport in Riyadh. It targets consumer products, computers, pharmaceuticals, food and medical industries, space, spare parts, discretionary goods, jewelry and precious metals.
Investment incentive packages in this zone comprises:
- 0% corporate income tax.
- Exemption from withholding tax subject to the set standards.
- Exemption from tax on repatriation of profit subject to the set standards.
- Tax Exemptions for 50 years.
- 0% VAT
- 0% VAT on goods subject to customs fees.
Saudi Arabia seeks to become a global investment force under Vision 2030; as the Kingdom's social and economic transformation creates opportunities for growth in many sectors and promising regions.
The exceptional and competitive SEZ sites also offer investors in the Kingdom an abundance of untapped opportunities for business growth and success.
Here is a look at Saudi Arabia's economy:
|
Economic Indicators (2022) |
|
|
Item |
2022 |
|
Non-oil revenue ($ bln) |
110 |
|
Value of Foreign Direct Investments (FDIs) in Saudi Arabia – 2021 ($ bln) |
19.3 |
|
Number of Factories (Factory) |
10518 |
|
Time required to establish companies, and issue company registers |
30 min. |
|
Labor force participation rate for women |
37 % |
|
Gross domestic product (GDP) growth rate |
8.7% |
|
Non-oil sector GDP growth |
5.4% |
|
Gross fixed capital formation (% of GDP) |
25% |
|
Budget Surplus ($ bln) 2022 |
28 |
|
Total Reserve Assets ($ bln) 2022 |
460 |
Comments
{{DisplayName}}
{{ElapsedTime}}