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 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 have now to supply,” the crown prince mentioned.
“The brand new particular financial zones launched at this time 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 development sectors in order that they’ll launch and develop corporations and applied sciences that may assist form the longer term, in line with the SPA.
They may help current nationwide methods and create new hyperlinks with worldwide frameworks, constructing on the aggressive benefits of every area of the nation to help key sectors reminiscent of logistics, superior manufacturing, expertise, 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 adaptability to draw and rent the perfect expertise worldwide.
The zones may 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 purpose to remodel the Kingdom into a worldwide funding vacation spot and a significant hub for world provide chains, by capitalizing on its place on the coronary heart of worldwide commerce routes.
Due to an in depth program of rules and incentives, the zones will provide rewarding and enticing advantages to overseas traders, officers mentioned. This system may even enable for the acceleration of reforms required to facilitate enterprise in all components 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 section of a serious, long-term program designed to encourage overseas direct funding, appeal to probably the most gifted professionals from all over the world, and promote entrepreneurship and financial improvement throughout the Kingdom, officers mentioned.
The zones, which might be regulated by the Financial Cities and Particular Zones Authority, will present recent options to the challenges many world companies face as they try to localize and strengthen provide chains, they added, and assist the Kingdom reap the benefits of key macroeconomic shifts to create a very 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 supply the possibility for overseas traders to have a stake on this planet’s quickest rising economic system.”
The Secretary-Common of the authority, Mr. Nabil Khoja, added, “With vastly enticing monetary incentives, world-class infrastructure, business-friendly rules 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 change into engines of development, growing 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, reminiscent of 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 vehicle provide chain and meeting to shopper items, ICT to MedTech. Set in a primary location on the Purple Sea, lower than 90 minutes from Jeddah Airport, this 60km2 website presents unequalled entry to world commerce routes by means of King Abdullah Port, ranked the world’s most effective by the World Financial institution in 2022. Anchor investor Lucid, a pacesetter within the world EV trade, will produce 150,000 EVs a yr from its base in KAEC SEZ.
An industrial middle and key platform for commerce with fast-growing markets in Africa and Asia. Jazan SEZ presents 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 initiatives in Saudi Arabia and all over the world, 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 totally built-in marine ecosystem, with a wealthy community of current traders – 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 revolutionary hybrid mannequin that enables traders to determine bodily knowledge facilities and cloud computing infrastructure in a number of places throughout the Kingdom.