New Special Economic Zones in Saudi Arabia

New special economic zones in Saudi Arabia were launched in April 2023, also known as SEZs. These zones were launched by Eng Khalid Al-Faith, chairman of the Economic Cities and Special Zones Authority and Minister of Investment.

Each of these zones is focused on different sectors, such as medical technology, cloud computing and advanced manufacturing technologies, that can easily provide opportunities for investors and entrepreneurs who wish to start a business in Saudi Arabia, one of the fastest-growing economies.  

After launching the Saudi Arabia special economic zones, Al-Falih expressed his gratitude to His Royal Highness Prince Mohammad bin Salman bin Abdulaziz, Crown Prince and Prime Minister.

Reasons to Start a Business in New Special Economic Zones

The Saudi Arabian government has made it hassle-free for new business investors and entrepreneurs by creating four new special economic zones (SEZs). Here are the benefits offered by these SEZs:

• The corporate tax is low comparatively. For almost 20 years, you can pay the least tax.     
• You don't have to pay import duties on specific products and raw materials. 
• Get tax breaks on profits sent outside the country.
• Recruitment of workers is easier for the first five years.
• Get a competitive utility rate.
• Zero VAT within the zones.
• Excessive employee benefits.
• Easy hiring of local sponsors.

All four SEZs are focused on specific industries depending on the resources available.

The Four Special Economic Zones in Saudi Arabia

Here is the list of four special economic zones in Saudi Arabia:

• King Abdullah Economic City - KAEC

King Abdullah Economic City (KAEC) is a Saudi special economic zone that is best for the following businesses:

• Information and communication technology
• Advanced manufacturing
• Automobile supply chain
• Automobile assembling
• Logistics
• MedTech

• Jazan 

Jazan (also called Jizan) SEZ is for the people who want to invest in infrastructure projects in Saudi Arabia. This zone provides well-constructed transportation access globally because of its large ports where imports and exports can be done easily. It also has easy access to industrial and natural resources. 

• Ras Al-Khair

Before knowing about what business you can incorporate here in this special economic zone in Saudi Arabia, you need to know that 40% of Ras Al-Khair is already reserved by businessmen who are looking to establish their companies. 

If you are someone who wishes to invest your capital in offshore drilling, maritime value chains, or in the shipbuilding or repairing sector, then this zone will be perfect for you. As already mentioned, you need to make it fast as the land is filling rapidly.

• King Abdulaziz City

This zone is completely dedicated to Cloud Computing and related businesses. By launching this special economic zone in Saudi Arabia, the country’s plan was to become a leading nation in digital technology. This SEZ is like a mini city buzzing with all the latest and modern technologies and cloud computing inventions. 

This zone is a bit different from other zones. King Abdulaziz City SEZ gives the opportunity to both Saudi and international investors to bump in and incorporate or expand their cloud market worth billions of dollars. 

Companies can build their own data centre or cloud systems in this zone, which is not that easy in all other Saudi special economic zones. 

If you all remember the Saudi Vision 2023 - the plan for diversification of Saudi Arabia’s economy, King Abdulaziz SEZ is a major part of that to take the country beyond oil supply. This initiative is a step to embrace the future of technology.

There are 59 new logistics zones upcoming to enhance global connectivity without any interruptions for the people who want to incorporate their business in Saudi Arabia. So, all these initiatives can attract investments by creating jobs and opportunities for business owners and by shaping the future of technology.
 

Benefits of setting up a company in Saudi’s Special Economic Zones

The following are the benefits of business setup in Saudi Arabia special economic zone:

• 100% foreign ownership.
• Well-planned trade routes.
• Easy availability of machinery.
• Exemptions on Customs duties.
• Best talent resources available.
• Easy accessibility to raw materials.
• Tax exemptions are good comparatively.
• Its strategic location makes import and export much easier.
• Ocean of opportunities for both local and international aspirants.
• Global investment chains for international supply chains can be the best opportunity for investors and entrepreneurs.
• Reasonable incentive programs provide rewarding and appealing opportunities for foreign investment.

Note: Saudi Press Agency (SPA) these Saudi Arabia Special Economic Zones can create a true impact on the nation’s economy.

End Note

Saudi Arabia is favourable for people who are looking to invest in one of the growing economies with the best trade routes. This nation has a young and highly literate population who can be a great resource for your business development. The natural resources present here and the rapidly growing economy are also a boon for entrepreneurs.

Investing in a completely new place can be daunting for some of you. Worry not; here is your one-stop solution, Commitbiz. We will assist you through the process and guide you to the most suitable economic zone for your business.