Regulatory framework for SEZ includes incentives, advantages: Al-Falih

Khalid Al-Falih, Minister of Investment

Saudi Cabinet’s approval of the regulatory framework for Special Economic Zones (SEZ), set to enter into force at the beginning of April 2026, represents a fundamental step in developing the regulatory environment governing these zones, Minister of Investment and Chairman of the Board of the Economic Cities and Special Zones Authority (ECZA), Khalid Al-Falih, stated.

He noted that this move underscores the Kingdom’s commitment to enhancing its investment competitiveness at both the regional and international levels, and reflects its direction toward building a competitive and enabling investment environment that attracts high-quality investments and strengthens the role of SEZ as key drivers of growth and economic diversification. This will be achieved by enabling promising sectors to grow and remain sustainable, thereby contributing to achieving Saudi Vision 2030 objectives.

The minister explained that the regulatory framework forms part of an integrated regulatory ecosystem based on clarity of powers and the integration of roles among relevant entities. This is expected to accelerate licensing procedures, unify regulatory pathways, and enable competent authorities to perform their functions efficiently and with a high degree of flexibility within SEZs.

He emphasized that, in addition to regulatory aspects, the framework includes a package of incentives and specialized advantages aimed at enhancing the attractiveness of these zones. Among the most notable incentives and advantages are tax and customs exemptions and incentives, streamlined operational procedures, flexible ownership ratios, and the application of tailored Saudization frameworks aligned with the nature of economic activities within SEZs. These also include permitting the use of multiple languages for trade names and exempting investments in these zones from certain provisions of the Companies Law.