RIYADH: Saudi Arabia took a significant step forward on Monday as it officially issued licenses to four new Special Economic Zones (SEZs). The newly established economic zones are situated in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City, located north of Jeddah.
During the Saudi Special Zones Investment Forum in Riyadh, Minister of Investment Khalid Al-Falih, who also serves as the chairman of the Economic Cities and Special Zones Authority (ECZA), handed out the licenses to representatives of the SEZs, alongside other ministers.
In his opening remarks at the forum, Al-Falih highlighted the role of Special Economic Zones in bolstering the Kingdom’s capabilities to leverage its regional and international economic agreements. He stated, “We have closed SR285 billion worth of deals across various sectors ranging from auto to ICT, from agriculture to aerospace, and from petrochemicals to mining and renewable energy.”
Al-Falih further emphasized the Kingdom’s appeal to investors, stating, “The Kingdom inspires confidence across multiple social, economic, and business indicators—from investor sentiment and trust in the government to digital competitiveness, road connectivity, cybersecurity, and quality of port operations.”
He added, “Forward-looking, innovative, and focused on attracting FDI, our SEZs are purpose-built to maximize opportunities and minimize friction across key industries.”
Al-Falih highlighted the global resurgence of SEZs as part of a broader trend in industrial policies, where these zones are used to attract foreign direct investment (FDI) in targeted supply chains through large incentive packages. He stated, “Globally, we’re seeing SEZs gain renewed relevance as part of a broader ‘Industrial Policy’ ‘comeback’ trend, where large incentive packages and a new generation of SEZs are used to attract FDI in targeted supply chains.”
SEZs to Capitalize Saudi Arabia’s Strategic Location
These new Special Economic Zones capitalize on Saudi Arabia’s strategic location at the heart of global trade, creating hubs for businesses operating in key growth sectors to launch and scale their companies and technologies that will shape the future.
The Special Economic Zones (SEZs) align with existing national strategies and establish new linkages with international frameworks, leveraging the competitive advantages of each region to support key sectors, including logistics, advanced manufacturing, technology, and other priority sectors for the Kingdom.
Companies operating within the newly established SEZs will enjoy several benefits, including competitive corporate tax rates, exemption from customs duties on imports, production inputs, machinery, and raw materials, 100 percent foreign ownership of companies, and flexibility to attract and recruit the best global talent.
With the issuance of these licenses, Saudi Arabia aims to foster an attractive investment environment and drive economic diversification while harnessing the potential of its various regions.
