RIYADH: 4 particular financial zones are to be established in Saudi Arabia, Crown Prince Mohammed bin Salman introduced on Thursday.
The purpose of the brand new zones, which might be positioned in Riyadh, Jazan, Ras Al-Khair and King Abdullah Financial Metropolis, is to open up new alternatives for worldwide buyers, the Saudi Press Company reported.
“Saudi Arabia is open for enterprise and welcomes buyers from all around the globe to see first-hand the historic alternatives now we have to supply,” the crown prince stated.
“The brand new particular financial zones launched at present will considerably impression how enterprise is finished within the nation, create tens of 1000’s of jobs, and contribute billions of riyals to our gross home product.”
The zones will make the most of the Kingdom’s strategic location to create new hubs for companies throughout key development sectors in order that they will launch and increase firms and applied sciences that may assist form the long run, in response to the SPA.
They are going to assist present nationwide methods and create new hyperlinks with worldwide frameworks, constructing on the aggressive benefits of every area of the nation to assist key sectors equivalent to logistics, superior manufacturing, know-how, and different precedence sectors within the Kingdom, it added.
The advantages to firms of working within the zones will embrace: aggressive company tax charges; exemption from customs duties on imports, manufacturing inputs, equipment and uncooked supplies; one hundred pc overseas possession of firms; and adaptability to draw and rent the very best expertise worldwide.
The zones may even present super alternatives for creating the native financial system, producing jobs, and localizing provide chains, officers stated. They’re stated to signify a continuation of long-running initiatives that purpose to remodel the Kingdom into a world funding vacation spot and an important hub for world provide chains, by capitalizing on its place on the coronary heart of worldwide commerce routes.
Because of an in depth program of laws and incentives, the zones will supply rewarding and engaging advantages to overseas buyers, officers stated. This system may even enable for the acceleration of reforms required to facilitate enterprise in all elements of the Kingdom, they added.
The brand new zones construct on earlier free-zone initiatives within the Kingdom, together with the latest launch of an built-in particular zone for logistics at King Salman Worldwide Airport in Riyadh. Collectively, they signify the primary part of a serious, long-term program designed to encourage overseas direct funding, appeal to essentially the most gifted professionals from around the globe, and promote entrepreneurship and financial growth inside the Kingdom, officers stated.
The zones, which might be regulated by the Financial Cities and Particular Zones Authority, will present contemporary options to the challenges many world companies face as they try to localize and strengthen provide chains, they added, and assist the Kingdom make the most of key macroeconomic shifts to create a very differentiated enterprise setting, activating new sectors and worth chains.
Saudi Minister of Funding Khalid Al-Falih, who’s the chairman of the Financial Cities and Particular Zones Authority, stated: “That is an thrilling second. We’re proud to see the launch of those 4 particular financial zones that provide the prospect for overseas buyers to have a stake on the earth’s quickest rising financial system.”
The Secretary-Basic of the authority, Mr. Nabil Khoja, added, “With massively engaging monetary incentives, world-class infrastructure, business-friendly laws and streamlined procedures for buyers, there has by no means been a greater time to be a part of Saudi Arabia’s financial success story. The zones will grow to be engines of development, growing the Kingdom’s export competitiveness, attracting expertise, boosting know-how and enhancing our world hyperlinks.”
Particular financial zones – or SEZs – are geographically outlined areas that facilitate particular financial actions, equivalent to funding, commerce and employment, by offering aggressive benefits and legislative frameworks that differ from the bottom financial system.
The zones launched at present cowl a variety of industries:
King Abdullah Financial Metropolis (KAEC) SEZ
The premier vacation spot for superior manufacturing and logistics, from vehicle provide chain and meeting to shopper items, ICT to MedTech. Set in a primary location on the Crimson Sea, lower than 90 minutes from Jeddah Airport, this 60km2 website gives unequalled entry to world commerce routes via King Abdullah Port, ranked the world’s most effective by the World Financial institution in 2022. Anchor investor Lucid, a frontrunner within the world EV trade, will produce 150,000 EVs a yr from its base in KAEC SEZ.
An industrial heart and key platform for commerce with fast-growing markets in Africa and Asia. Jazan SEZ gives entry to the biggest port within the area for export of products and import of supplies, serving to buyers profit from and contribute to large-scale infrastructure initiatives in Saudi Arabia and around the globe, backed by quick access to each pure and industrial sources. Jazan is a part of the Kingdom’s fertile southwestern area, offering alternatives for the manufacturing, processing and distribution of meals merchandise to cater for rising regional demand and meet meals safety challenges throughout the area.
Ras Al-Khair SEZ
A launchpad on the Arabian Gulf for leaders within the maritime trade, Ras Al-Khair SEZ is a completely built-in marine ecosystem, with a wealthy community of present buyers – 40% of the zone is already reserved – and myriad alternatives throughout shipbuilding and restore, offshore drilling and maritime worth chains.
Cloud Computing SEZ, positioned in King Abdulaziz Metropolis for Science and Expertise (KACST)
In King Abdulaziz Metropolis for Science and Expertise (KACST), a brand new Cloud Computing SEZ will function a hub for rising and disruptive applied sciences. A direct manifestation of the Kingdom’s ‘Cloud First’ coverage, the Cloud Computing SEZ underlines the Kingdom’s dedication to digital innovation and the fast-growing tech sector. The Zone is predicated round an progressive hybrid mannequin that enables buyers to ascertain bodily information facilities and cloud computing infrastructure in a number of places inside the Kingdom.