Special Economic Zones in Saudi Arabia | Motaded

Special Economic Zones in Saudi Arabia

Following the Kingdom's Vision 2030, Saudi Arabia established Special Economic Zones with unique commercial systems. These zones enable foreign investors to conduct business in Saudi Arabia in ways that support the Vision and investor goals. The service integrates with our company formation services and legal consultation from zone selection through license issuance.

These zones provide incentives across industry, trade, import, and export. For foreign investors seeking Premium Residency alongside setup, we provide integrated service. Innovative startups can also enter through business incubators.

The Five Launched Zones

▸  King Abdullah Economic City Special Economic Zone (KAEC)

▸  Ras Al-Khair Special Economic Zone

▸  Jazan Special Economic Zone

▸  Cloud Computing and Informatics Special Economic Zone

▸  Integrated Industrial and Logistics Special Zone in Riyadh

King Abdullah Economic City (KAEC)

Located in Makkah Province, covering 60 km². Targets automotive supply chains, consumer goods, light electronics, pharmaceuticals, medical technologies, and logistics. For companies in the logistics and transport sector, KAEC is an ideal entry point through King Abdullah Port.

Ras Al-Khair Special Economic Zone

Located in the Eastern Province, covering 20 km². Focuses on shipbuilding, maintenance, repair, operations, and offshore drilling platforms.

Jazan Special Economic Zone

Located in Jazan, covering 26 km². Targets food processing, metal transformation, and logistics. Industrial companies benefit from our integrated HR services for hiring and managing skilled labor.

Investment Incentives in the Above Three Zones

▸  5% corporate income tax for 20 years.

▸  0% withholding tax permanently on profit repatriation — integrated with Zakat and tax services for managing annual declarations.

▸  0% deferred customs duties on goods entering the zones.

▸  Flexible regulations supporting foreign talent for the first five years through streamlined visa issuance.

▸  0% VAT on goods exchanged within and between the zones.

▸  Exemption from operational fees for foreign employees and their families.

Cloud Computing and Informatics Special Economic Zone

Headquartered in Riyadh, with the ability to establish and operate data centers across Saudi Arabia. Contributes to targeted investments worth USD 20 billion by 2030 in the technology sector via foreign and local investment in data and AI.

Key incentives include:

▸  Special tax treatment aligned with OECD double taxation avoidance principles.

▸  Exemption from operational fees for foreign employees and their families.

▸  Competitive electricity costs at USD 0.05/kWh.

▸  Flexibility to provide cloud services and establish/operate data centers across the Kingdom.

Integrated Industrial and Logistics Special Zone in Riyadh

Located near King Khalid International Airport, Riyadh. Targets consumer products, computer parts, pharmaceuticals, food and medical supplies, aerospace, luxury goods, jewelry, and precious metals. Direct integration with our energy sector and finance & fintech services for multi-sector companies.

Competitive advantages include:

▸  0% corporate income tax.

▸  Tax exemptions for 50 years.

▸  VAT exemptions.

▸  Withholding tax exemptions (subject to specific criteria).

▸  0% VAT on services, manufacturing, or assembly.

▸  Exemptions on money transfer taxes (subject to criteria).

▸  VAT exemptions for goods under customs suspension.

▸  Promote foreign investment in Saudi Arabia by offering relaxed regulations and incentives within free zones.

▸  Encourage growth of service-based businesses, especially for foreign business registration in Saudi Arabia.

▸  Attract international expertise and foster innovation within Saudi Arabia's service sector.

▸  Contribute to Vision 2030 by diversifying the economy away from oil dependency.

▸  100% foreign ownership for businesses operating in designated free zones.

▸  Tax exemptions on selected activities, with reduced tariffs — integrated with accounting services for declaration follow-up.

▸  Simplified regulatory requirements compared to mainland operations.

▸  Strategic location for accessing regional and global trade opportunities.

▸  Access to world-class infrastructure available within the free zones.

▸  Freedom to repatriate profits without restrictions.

1. Consultation: Identify the most suitable free zone and license type. Begin with a consultation session with our team.

2. Document Preparation: Compile all necessary documents, including business plan, identity, and lease agreement. Includes certified translation services for foreign documents.

3. Submit Application: Submit to the Economic Cities and Special Zones Authority (ECZA) overseeing your selected location.

4. Approval & Payment: Await approval, pay applicable fees, and proceed with company formation.

5. License Issuance: Once approved, receive your Free Zone Service License. Continue with our HR services for staffing and payroll management.

To assess your eligibility for one of the Special Economic Zones, schedule a consultation session or contact us directly. Our integrated services include business setup, HR services, Zakat and tax, visa issuance, and Premium Residency for investors.

 

Official References

▸  Economic Cities and Special Zones Authority (ECZA) — sez.gov.sa.

▸  Ministry of Investment (MISA) — misa.gov.sa.

▸  Zakat, Tax and Customs Authority (ZATCA) — zatca.gov.sa.

▸  Saudi Vision 2030 — vision2030.gov.sa.

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