The zones, located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City, are part of the kingdom’s commitment to strengthening its position as a global investment destination….reports Asian Lite News
Saudi Arabian Crown Prince and Prime Minister His Royal Highness Mohammed bin Salman Al Saud have launched four new special economic zones in the kingdom.
The zones, located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City, are part of the kingdom’s commitment to strengthening its position as a global investment destination, the Saudi Press Agency reported on Thursday.
The Crown Prince said the new zones would have a substantial impact on how business is done in the kingdom, create tens of thousands of jobs, and contribute billions of riyals to the kingdom’s GDP, Xinhua news agency reported.
“Saudi Arabia welcomes investors from all around the world to see first-hand the historic opportunities we have to offer,” he added.
The crown prince added that the new zones draw on the Kingdom’s strategic location 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.
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The SEZs will support existing national strategies and create new linkages with international frameworks, building on the competitive advantages of each region to support key sectors including logistics, advanced manufacturing, technology and other priority sectors for the Kingdom, he added.
Benefits for companies operating in the new zones include competitive corporate tax rates, exemption from customs duties on imports, 100-percent foreign ownership of companies, and favourable policies to attract and hire talents worldwide, among others.
The crown prince emphasized that 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, capitalizing on its position at the heart of global trade routes, at the crossroads between East and West.
The launch of the new economic zones came on the heels of several other similar projects in the kingdom, including the launch of the integrated logistics special zone at King Salman International Airport in Riyadh in November 2022.
Together, they represent the first phase of the kingdom’s long-term programme to encourage foreign direct investment, attract the most talented professionals worldwide, and promote entrepreneurship and economic development.
King Abdullah Economic City (KAEC) SEZ
The premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods, ICT to MedTech.
Set in a prime location on the Red Sea, less than 90 minutes from Jeddah Airport, this 60km2 site offers unrivalled access to global trade routes through King Abdullah Port, ranked the world’s most efficient by the World Bank in 2022.
Anchor investor Lucid, a leader in the global EV industry, will produce 150,000 EVs a year from its base in KAEC SEZ.
Jazan SEZ
An industrial centre and key platform for trade with fast-growing markets in Africa and Asia.
Jazan SEZ offers access to the largest port in the region for the export of goods and import of materials, helping investors 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.
Jazan is part of the Kingdom’s fertile southwestern region, providing opportunities for the manufacturing, processing and distribution of food products to cater for growing regional demand and meet food security challenges across the region.
Ras Al-Khair SEZ
A launchpad on the Arabian Gulf for leaders in the maritime industry, Ras Al-Khair SEZ is a fully integrated marine ecosystem, with a rich network of existing investors – 40% of the zone is already spoken for – and myriad opportunities across shipbuilding and repair, offshore drilling and maritime value chains.
Cloud Computing SEZ
Located in King Abdulaziz City for Science and Technology (KACST). In KACST, a new Cloud Computing SEZ will serve as a hub for emerging and disruptive technologies.
A direct manifestation of the Kingdom’s ‘Cloud First’ policy, the Cloud Computing SEZ underlines the Kingdom’s commitment to digital innovation and the fast-growing tech sector.
The Zone is based around an innovative hybrid model that allows investors to establish physical data centres and cloud computing infrastructure in multiple locations within the Kingdom. It will open up new gateways for investors worldwide to capitalize on the rapidly growing global cloud market, expected to be worth 834 billion USD by 2027.
Saudi Arabia’s favourable geographic location, at the heart of major trade routes and supply chains, with access to more than 70% of the world’s population within 8 hours, adds to the zones’ appeal, along with the Kingdom’s young, highly educated population of more than 34 million, expansive natural resources and stable, rapidly growing capital markets.
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