RIYADH: 4 particular financial zones are to be established in Saudi Arabia, Crown Prince Mohammed bin Salman introduced on Thursday.
The goal of the brand new zones, which shall 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 world wide to see first-hand the historic alternatives now we have to supply,” the crown prince mentioned.
“The brand new particular financial zones launched in the present day will considerably affect how enterprise is completed within the nation, create tens of hundreds of jobs, and contribute billions of riyals to our gross home product.”
The zones will reap the benefits of the Kingdom’s strategic location to create new hubs for companies throughout key progress sectors in order that they will launch and increase corporations and applied sciences that may assist form the longer term, in accordance with the SPA.
They’ll 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 similar to logistics, superior manufacturing, expertise, and different precedence sectors within the Kingdom, it added.
The advantages to corporations of working within the zones will embody: aggressive company tax charges; exemption from customs duties on imports, manufacturing inputs, equipment and uncooked supplies; 100% overseas possession of corporations; and suppleness to draw and rent one of the best expertise worldwide.
The zones can even present large alternatives for creating the native economic system, producing jobs, and localizing provide chains, officers mentioned. They’re mentioned to symbolize a continuation of long-running initiatives that goal to remodel the Kingdom into a worldwide 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 rules and incentives, the zones will provide rewarding and engaging advantages to overseas buyers, officers mentioned. This system can even permit 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 symbolize the primary part of a significant, long-term program designed to encourage overseas direct funding, entice probably the most proficient professionals from world wide, and promote entrepreneurship and financial improvement throughout the Kingdom, officers mentioned.
The zones, which shall be regulated by the Financial Cities and Particular Zones Authority, will present contemporary options to the challenges many world companies face as they try and localize and strengthen provide chains, they added, and assist the Kingdom reap the benefits of key macroeconomic shifts to create a really differentiated enterprise surroundings, 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, mentioned: “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 this planet’s quickest rising economic system.”
The Secretary-Basic of the authority, Mr. Nabil Khoja, added, “With vastly engaging monetary incentives, world-class infrastructure, business-friendly rules 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 change into engines of progress, rising the Kingdom’s export competitiveness, attracting expertise, boosting expertise and bettering our world hyperlinks.”
Particular financial zones – or SEZs – are geographically outlined areas that facilitate particular financial actions, similar to funding, commerce and employment, by offering aggressive benefits and legislative frameworks that differ from the bottom economic system.
The zones launched in the present day cowl a variety of industries:
King Abdullah Financial Metropolis (KAEC) SEZ
The premier vacation spot for superior manufacturing and logistics, from car provide chain and meeting to shopper items, ICT to MedTech. Set in a first-rate location on the Crimson Sea, lower than 90 minutes from Jeddah Airport, this 60km2 website affords unequalled entry to world commerce routes by means of King Abdullah Port, ranked the world’s best by the World Financial institution in 2022. Anchor investor Lucid, a pacesetter within the world EV business, will produce 150,000 EVs a 12 months from its base in KAEC SEZ.
An industrial middle and key platform for commerce with fast-growing markets in Africa and Asia. Jazan SEZ affords 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 world wide, backed by easy accessibility 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 business, 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 Know-how (KACST)
In King Abdulaziz Metropolis for Science and Know-how (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 throughout the Kingdom.