‎A look at SEZs target industries, incentives

‎A look at SEZs target industries, incentives

Saudi Arabia launched its first five Special Economic Zones with special commercial regulations to accelerate the economic diversification, while enabling investors to do business across the Kingdom.

These zones will have a backing of industrial sectors as well as commercial activities to help investors develop their businesses regionally and globally through a market with global links.

These zones are King Abdullah Economic City (KAEC), Ras Al Khair SEZ in Eastern Province, Jazan SEZ in Jazan Province, Cloud Computing SEZ located in King Abdulaziz City for Science and Technology (KACST) in Riyadh Province, in addition to the Integrated Logistics SEZ in Riyadh.

King Abdullah Economic City (KAEC) is located in Makkah, spanning 60 square kilometers (km). It seeks opportunities in automobile supply chain and assembly, consumer goods, electronic light manufacturing (ICT), MedTech, advanced pharmaceuticals and logistics.

Ras Al-Khair SEZ is situated in the Eastern Province and extends on 20 square km. It targets shipbuilding and MRO, rig platforms, offshore drilling and maritime value chains.

Jazan SEZ is based in Jazan, spanning 26 square km and targets food processing, metals conversion and logistics services.

Investment incentives in the three SEZs include:

- 5% corporate income tax up to 20 years.

- 0% withholding tax permanently for repatriation of profit from