Saudi Arabia’s crown Prince and Prime Minister, Mohammed bin Salman has launched four new special economic zones (SEZs) as a part of the Kingdom’s initiative to focus more on various burgeoning sectors such as advanced manufacturing, cloud computing, and medical technology.
The zones are titled the ‘King Abdullah Economic City’ (KAEC) SEZ, ‘Jazan’ SEZ, ‘Ras Al Khair’ SEZ and ‘Cloud Computing’ SEZ located in King Abdulaziz City for Science and Technology (KACST).
The zones are also part of the kingdom’s efforts to achieve Saudi Arabia’s economic development goals under the Vision 2030 strategy.
According to Eng Khalid Al-Falih, chairman of the economic cities and special zones authority and minister of investment, the SEZs will “offer the chance for foreign investors to have a stake in the world’s fastest-growing economy.”
The SEZs will cover a wide range of industries, and will ensure seamless economic activities such as investment, trade and employment, “by providing competitive advantages and legislative frameworks that differ from the base economy,” the statement said.
Through this program, Saudi Arabia will be able to “fast-track certain reforms and facilitate the ease of doing business across the country.”
Companies will receive both fiscal and non-fiscal incentives, which include competitive corporate tax rates, duty-free imports of machinery and raw materials, 100% foreign ownership, seamless set-up procedures, and flexibility to employ foreign labour, the statement said.
King Abdullah Economic City (KAEC) SEZ
Saudi Arabia’s King Abdullah Economic City (KAEC) SEZ will be home to advanced manufacturing and logistics. This will range from automobile supply chain and assembly to consumer goods, ICT to MedTech, the statement said.
The 60-kilometre square zone will be located on the Red Sea, less than 90 minutes from Jeddah Airport. The zone will have access to global trade routes through the King Abdullah Port.
In addition, the zone will be home to electric vehicle manufacturer Lucid, which aims to produce 150,000 EVs per year from KAEDC SEZ.
Jazan SEZ
The Jazan SEZ, will be an “industrial centre and key platform” for trade with markets in Africa and Asia.
Jazan SEZ will offer access to the largest Saudi port in the kingdom for the export of goods and import of materials, allowing investors to “benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world, backed by easy access to both natural and industrial resources.”
In addition, the 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
Ras Al-Khair SEZ is a comprehensive marine ecosystem that provides numerous opportunities for investors in the maritime industry.
Forty percent of the zone has already been allocated to investors, and it offers prospects in shipbuilding and repair, offshore drilling, and maritime value chains.
The zone aims to be a platform for leaders in the maritime sector to expand their operations in the Arabian Gulf.
Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST)
King Abdulaziz City for Science and Technology (KACST) is establishing a new Cloud Computing SEZ to promote emerging and disruptive technologies.
This zone is based on a hybrid model that allows investors to establish physical data centres and cloud computing infrastructure in various locations in Saudi Arabia.
The country’s strategic location, which has access to over 70% of the world’s population within eight hours, adds to the appeal of the zones.