Saudi Arabia has launched four special economic zones (SEZ) to offer new incentives and opportunities to foreign investors and to strengthen its position as a global business center.
The four new zones are located in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City, Saudi officials announced on April 13.
Saudi Crown Prince Mohammed bin Salman launched the initiative, saying: “Saudi Arabia is open for business and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer.” He expressed hopes that the new zones would “create tens of thousands of jobs, and contribute billions of riyals to our gross domestic product.”
The zones will be regulated by the Economic Cities and Special Zones Authority. “The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology, and improving our global links,” said Nabil Khoja, the authority’s secretary-general.
Saudi Minister of Investment Khalid Al-Falih, who is the chairman of the authority, expressed excitement over the launch of new economic zones, which provides foreign investors the opportunity to invest in the world’s fastest-growing economy.
Four new economic zones
The zones cover a wide range of industries including:
- King Abdullah Economic City (KAEC) SEZ: This 60 square km site on the Red Sea (90 minutes from Jeddah Airport) is for advanced manufacturing and logistics. It offers access to global trade routes through King Abdullah Port. U.S.-based electric car manufacturer, Lucid, will produce 150,000 EVs annually from its base in KAEC SEZ.
- Jazan SEZ: Located in Saudi Arabia’s fertile southwestern region, Jazan offers opportunities for the manufacturing, processing, and distribution of food products. This industrial center for trade with markets in Africa and Asia offers access to the largest port in the region.
- Ras Al-Khair SEZ: Described as a launchpad on the Arabian Gulf, this zone offers opportunities across shipbuilding and repair, offshore drilling, and maritime value chains for maritime industry leaders. 40% of the zone has already been reserved by investors.
- Cloud Computing SEZ: This hub in In King Abdulaziz City for Science and Technology (KACST) is for emerging and disruptive technologies based on the Kingdom’s ‘Cloud First’ policy. This zone invites investors to establish data centers and cloud infrastructure in Saudi Arabia, aiming to capitalize on the rapidly growing cloud computing market which is projected to reach $1,402 billion by 2030.
Saudi Arabia’s strategic location, young and educated population of over 34 million, ample natural resources, and stable capital markets add to the appeal of these zones.
