Saudi Arabia opens economic zone in push for foreign investment

Saudi Arabia opens economic zone in push for foreign investment

Saudi Arabia has unveiled its first integrated economic zone as it seeks to position itself as the region’s leading logistics hub and attract foreign investment, officials said.

Apple has agreed to set up its Middle East distribution hub in the 3mn-square-kilometre economic zone in Riyadh. The zone, which will be tax-free for companies for up to 50 years, is part of a plan to diversify the country’s economy away from oil.

The ambitions place Saudi Arabia in competition with its smaller Gulf neighbour the United Arab Emirates, whose tax-free zones such as Jebel Ali have made it a regional hub for multinationals.

Abdulaziz al-Duailej, head of the General Authority of Civil Aviation, said the creation of economic zones and cargo villages were key to “ensure we achieve its objective of being the leading logistical hub in the Middle East”.

The kingdom aims to handle 4.5mn tonnes of air freight by 2030, up from an expected 0.8mn tonnes this year.

Saudi Arabia wants companies doing business in the kingdom to establish their regional headquarters in the country by the start of 2024. Most multinationals’ regional HQs are based in the UAE, which is to impose a 9 per cent corporate tax next year outside of its