On 13th April 2023, Crown Prince and Prime Minister Mohammed bin Salman launched four new Special Economic Zones (SEZs) in Saudi Arabia. These zones will be located in Riyadh, Jazan, Ras al-Khair, and King Abdullah Economic City, north of Jeddah. This announcement is in line with the Crown Prince's commitment to bolstering Saudi Arabia's position as a global investment destination.
The Crown Prince stated that "Saudi Arabia is open for business, and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer. The new Special Economic Zones, launched today, will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our GDP."
The new SEZs are strategically located at the heart of global trade, creating new hubs for businesses across key growth sectors to launch and scale the companies and technologies that will shape the future. These zones will support existing national strategies and create new linkages with international frameworks. They will build on the competitive advantages of each region to support key sectors, including logistics, advanced manufacturing, technology, and other priority sectors for the Kingdom.
Companies operating in the new SEZs will benefit from competitive corporate tax rates, exemption from customs duties on imports, production inputs, machinery, and raw materials. They will also enjoy 100 percent foreign ownership of companies and flexibility to attract and hire the best talent worldwide.
The new SEZs will provide tremendous opportunities to develop the local economy, generate jobs, and localize supply chains. They represent a continuation of the Kingdom's long-running initiatives to transform into a global investment destination and a vital hub for global supply chains. These SEZs offer rewarding and attractive offers for foreign investment, accelerating the required reforms to facilitate doing business in all parts of the Kingdom.
The zones are regulated by the Economic Cities and Special Zones Authority, providing new solutions to the challenges facing many global businesses as they look to localize and strengthen their supply chains. They will help the Kingdom take advantage of key macroeconomic shifts to create a truly differentiated business environment, activating new sectors and value chains.
The launch of these four new SEZs in Saudi Arabia is a significant milestone in the country's journey to becoming a global investment destination. These zones will create new opportunities for local businesses, generate jobs, and promote economic development within the Kingdom. The Crown Prince's vision for a transformed and diversified economy is seemingly taking shape.
