The Special Economic Zones (SEZs) in the Kingdom of Saudi Arabia are economic zones with special legislative frameworks and regulations tailored for economic activities to make these zones among the most competitive in the world by attracting high-quality investments, providing opportunities for local economic development, creating jobs, transferring technology, and localizing industries.
Administratively, SEZs fall under the jurisdiction of the Economic Cities and Special Zones Authority (ECZA). They are part of the National Investment Strategy, which seeks to expand investment horizons through qualitative investment attraction, technology transfer, and strategic sector development.
By 2040, the Kingdom aims for these zones to contribute about SAR97 billion to its Gross Domestic Product (GDP) and attract approximately SAR84 billion of foreign direct investment therein.
The Kingdom currently hosts five SEZs: King Abdullah Economic City Special Economic Zone, Ras al-Khair Special Economic Zone, Jazan Special Economic Zone, Cloud Computing Special Economic Zone, and Riyadh Integrated Special Logistics Zone.
Objectives of Saudi Arabia's SEZs
SEZs aim to strengthen the non-oil economy and increase local content by investing in new sectors through competitive incentives, creating an attractive environment for investors that contributes to providing diverse investment opportunities, promoting economic diversification and knowledge transfer, empowering supply chain sectors, incubating emerging industries in the Kingdom, and protecting the regulatory framework necessary for their growth and development. Furthermore, SEZs seek to solidify the Kingdom’s global position as a business hub, transforming it into a key logistics center and a major re-export market.
King Abdullah Economic City's Special Economic Zone
It is located in Makkah al-Mukarramah Province, ninety minutes from Jeddah Airport, this zone covers an area of sixty km². Its main areas of focus are automotive supply chains and assembly lines, electrical goods, information and communication technology (manufacturing of simple electronic devices), pharmaceuticals, medical technologies, and logistics services.
Ras al-Khair Special Economic Zone
It is located in the Eastern Province, one hundred km from al-Jubayl City, this zone spans twenty km². Its main areas of focus are shipbuilding, maintenance, repair, and operation, as well as offshore drilling platform maintenance, repair, and operation.
Jazan Special Economic Zone
It is located in Jazan Province and covers approximately 24.6 km². Its main areas of focus are food processing, mineral transformation, and logistics services.
Cloud Computing Special Economic Zone
This virtual SEZ is part of King Abdulaziz City for Science and Technology in Riyadh City, with a primary focus on cloud computing.
Riyadh Integrated Special Logistics Zone
It is located within King Salman International Airport in Riyadh City and spans three million m².
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