Prince Mohammad bin Salman bin Abdulaziz, Crown Prince, Prime Minister and Chairman of the Council for Economic and Development Affairs Image Credit: via Reuters

Riyadh: Saudi Arabia launched four new Special Economic Zones in the Kingdom, Crown Prince Mohammed bin Salman announced on Thursday.

The new Special Economic Zones which will be located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City, will open up new opportunities for international investors and will significantly impact how business is done in the country, the Saudi Press Agency reported.

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According to the statement, the special economic zone will create tens of thousands of jobs, and contribute billions of riyals to the Kingdom’s GDP.

Saudi SEZ
Image Credit: Twitter/@Spa_Eng

“The new zones draw on the Kingdom’s strategic location at the heart of global trade, creating new hubs for businesses across key growth sectors to launch and scale the companies and technologies that will shape the future,” the crown prince said.

“The Special Economic Zones (SEZs) will support existing national strategies and create new linkages with international frameworks, building on the competitive advantages of each region to support key sectors and other priority sectors for the Kingdom.”

Benefits for companies operating in the new SEZs include:

  • Competitive corporate tax rates;
  • Exemption from customs duties on imports;
  • Production inputs;
  • Machinery and raw materials;
  • 100 per cent foreign ownership of companies; and
  • Flexibility to attract and hire the best talent worldwide

The new Special Economic Zones will also provide tremendous opportunities to develop the local economy, generate jobs and localise supply chains.

It aims to continue the Kingdom’s long-running initiatives to transform into a global investment destination, and a vital hub for global supply chains.

This programme will allow for the acceleration of the required reforms to facilitate doing business in all parts of the Kingdom.

These four Special Economic Zones build on previous free zone initiatives in the Kingdom, including the recent launch of the integrated logistics special zone in King Salman International Airport in Riyadh.