Saudi Arabia’s Crown Prince Mohammed bin Salman launched four new special economic zones in the Kingdom to strengthen its position as a global investment destination, state news agency SPA reported on Friday.
Companies operating within these zones can expect to receive several benefits including, competitive corporate tax rates, exemption from customs duties on imports, production inputs, machinery and raw materials, and flexibility to hire the most competent talent from anywhere in the world.
In addition, foreigners will enjoy 100 percent ownership of their companies in the four economic zones which are situated in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City.
The Crown Prince said: “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. The new Special Economic Zones, launched today, will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our GDP.”
The Special Economic Zones (SEZs) are expected to further “develop the local economy, generate jobs, and localize supply chains,” according to SPA.
Nazar Musa, CEO, PRO Partner Group, told Al Arabiya English: “The announcement by Crown Prince Mohammed bin Salman on the establishment of four new special economic zones in Saudi Arabia means a number of things for the Saudi Arabian economy and the expanding opportunities for businesses looking to set up in the Kingdom.”
“Outside of the economic benefits that will arise from the Special Economic Zones such as competitive corporate tax rates, exemptions on customs duties and potentially attractive legal framework, these zones will create an attractive sector campus atmosphere, and should offer a significant draw for companies much like what we saw during the commercial development of the Freezone areas in the UAE.”
“These creative ‘hubs’ will open opportunities for knowledge sharing and talent and human capital acquisition for companies that set up in these economic zones. This development in Saudi Arabia is the next logical step in a bid to compete against its neighboring GCC countries to attract foreign companies and significant inward investment.”