Saudi Crown Prince and Prime Minister Mohammad bin Salman bin Abdulaziz announced on Thursday the launch of four new Special Economic Zones (SEZ) in the Kingdom.
The new zones are King Abdullah Economic City (KAEC) SEZ; Jazan SEZ; Ras Al Khair SEZ and Cloud Computing SEZ located in King Abdulaziz City for Science and Technology (KACST), according to a report by the state-owned Saudi Press Agency (SPA).
The report said the four SEZs 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.
It said they will offer competitive corporate tax rates, duty-free imports of machinery and raw materials, 100 percent foreign ownership, seamless set-up procedures, and flexibility in employing foreign labour.
The zones launched cover a wide range of industries:
King Abdullah Economic City (KAEC) SEZ is positioned as a premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods to ICT and MedTech. The SEZ, spanning 60 square kilometres, is connected to Jeddah Airport and King Abdullah Port. Anchor investor Lucid will produce 150,000 EVs a year from its base in KAEC SEZ.
Jazan SEZ is positioned as industrial centre and key platform for trade with fast-growing markets in Africa and Asia with access to the largest port in the region. The SEZ will also provide opportunities for the manufacturing, processing and distribution of food products.
Ras Al-Khair SEZ focuses on marine industry with opportunities across shipbuilding and repair, offshore drilling and maritime value chains.
Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST) is based around an innovative hybrid model that allows investors to establish physical data centres and cloud computing infrastructure in multiple locations within the Kingdom.
(Writing by SA Kader; Editing by Anoop Menon)