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 situated in Riyadh, Jazan, Ras Al-Khair and King Abdullah Financial Metropolis, is to open up new alternatives for worldwide traders, the Saudi Press Company reported.
“Saudi Arabia is open for enterprise and welcomes traders from all all over the world to see first-hand the historic alternatives we now have to supply,” the crown prince mentioned.
“The brand new particular financial zones launched at this time will considerably affect 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 progress sectors in order that they will launch and increase corporations and applied sciences that can assist form the long run, in keeping with 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 corresponding to logistics, superior manufacturing, know-how, and different precedence sectors within the Kingdom, it added.
The advantages to corporations 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 corporations; and suppleness to draw and rent the very best expertise worldwide.
The zones can even present large alternatives for growing the native economic system, producing jobs, and localizing provide chains, officers mentioned. They’re mentioned to signify a continuation of long-running initiatives that goal to rework 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 world commerce routes.
Due to an in depth program of laws and incentives, the zones will provide rewarding and enticing advantages to overseas traders, officers mentioned. This system can 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 current launch of an built-in particular zone for logistics at King Salman Worldwide Airport in Riyadh. Collectively, they signify the primary section of a significant, long-term program designed to encourage overseas direct funding, appeal to probably the most proficient professionals from all over the world, and promote entrepreneurship and financial growth 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 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, mentioned: “That is an thrilling second. We’re proud to see the launch of those 4 particular financial zones that supply the prospect for overseas traders to have a stake on this planet’s quickest rising economic system.”
The Secretary-Basic of the authority, Mr. Nabil Khoja, added, “With vastly enticing monetary incentives, world-class infrastructure, business-friendly laws and streamlined procedures for traders, there has by no means been a greater time to be a part of Saudi Arabia’s financial success story. The zones will turn out to be engines of progress, 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, corresponding to funding, commerce and employment, by offering aggressive benefits and legislative frameworks that differ from the bottom economic system.
The zones launched at this time 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 primary location on the Pink Sea, lower than 90 minutes from Jeddah Airport, this 60km2 web site provides unmatched 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 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 provides entry to the biggest port within the area for export of products and import of supplies, serving to traders profit from and contribute to large-scale infrastructure tasks in Saudi Arabia and all over the world, backed by easy accessibility to each pure and industrial assets. 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 traders – 40% of the zone is already reserved – and myriad alternatives throughout shipbuilding and restore, offshore drilling and maritime worth chains.
Cloud Computing SEZ, situated 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 relies round an modern hybrid mannequin that permits traders to determine bodily information facilities and cloud computing infrastructure in a number of places throughout the Kingdom.