Here’s what you need to know about new SEZs

Crown Prince Mohammed bin Salman

Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Council of Economic and Development Affairs (CEDA), announced launching four special economic zones (SEZs). The zones are titled the King Abdullah Economic City (KAEC) SEZ, Jazan SEZ, Ras Al Khair SEZ and Cloud Computing SEZ.

The new SEZs aim at enhancing the Kingdom’s competitive ability, developing national capabilities, encouraging industrial renaissance, contributing to Saudi economic growth and supporting local start-ups.

The KAEC SEZ is situated in northern Jeddah, on the Red Sea. It seeks to remap regional trade routes.

It is a full-service commercial port that delivers world-class service. The port was named the 2nd Most Efficient Port Globally according to a 2022 World Bank report.

KAEC will become the hub of two major electric vehicle (EV) manufacturers.

The city also aspires to cover medical technology as it provides a key opportunity for local manufacturing instead of importing.

Jazan SEZ is located near mining and mineral sources locations. It has access to Saudi Arabia’s third largest port.

It will be an “industrial centre and key platform” for trade with markets in Africa and Asia.

Further, Jazan SEZ will provide opportunities for the manufacturing, processing and distribution of food products to meet regional demand as well as address food security challenges across the Kingdom.

Ras Al-Khair SEZ is located near the Eastern Province, which is the Kingdom’s industrial center in the vicinity of oil and gas roads in the Arabian Gulf.

Ras Al-Khair SEZ is a comprehensive marine ecosystem that provides a world-class infrastructure and a major market for foreign and regional firms.

The Kingdom’s newest industrial port is a unique port for major regional and global markets.

The cloud computing SEZ directly embodies the policy of “Cloud Computing First” in Saudi Arabia. It reaffirms Saudi Arabia’s commitment to proceeding with digital innovation and enhancing the fast-growing technology sector.

It adopts an innovation-based business profile that allows investors to set up data centers and cloud computing infrastructure across the Kingdom, to enhance the region’s cloud position as a prime platform of IoT, Blockchain, Big Data, AI and Web3.