Special Economic Zones in Saudi Arabia
What are Special Economic Zones (SEZs) in Saudi Arabia?
Special Economic Zones (SEZs) are specific locations in Saudi Arabia that are designed with an aim to help companies grow quickly and easily. These zones offer special economic policies such as lower taxes, customs benefits, to attract foreign investment and boost economic diversification. SEZs have a major role in Saudi Arabia’s Vision 2030, helping the country to go beyond oil revenue and become a global business hub.
Why Special Economic Zones
Why set up your business in Special Economic Zones (SEZs)?
Setting up your business in Special Economic Zones (SEZs) in Saudi Arabia offers many advantages. Let’s take a look at them:
Tax Incentives
Corporate tax is as low as 5% for 20 years, with 0% withholding tax on profit repatriation to foreign investors. Additionally, there are exemptions on custom duties on imports and exports within the zones.
Simplified Regulations
Faster approvals and less paperwork with clear, simplified rules.
Access to Infrastructure
Get access to modern ports, logistics hubs, industrial parks and high-speed digital networks with world-class standards.
Strategic Location
Located near major global trade routes, with connectivity through airports, seaports, and highways, giving easy access to markets in Europe, Asia, and Africa.
100% Foreign Ownership & Profit Repatriation
Foreign investors can own 100% of their business and enjoy no restrictions on sending profits back home.
Workforce Benefits
Exemptions from operational fees for expatriate employees and flexible labour laws to attract skilled talent.
Type of Special Economic Zones in Saudi Arabia
Saudi Arabia has five main Special Economic Zones, each offering uinique advantages to support specific industries.
King Abdullah Economic City (KAEC) - Makkah Province (West)
Access to King Abdullah Port (world’s most efficient port), a major industrial and logistics hub, part of China’s Belt & Road Initiative trade route.
Logistics
Manufacturing
Automotive
Pharmaceuticals
MedTech (Medical Technology)
Consumer Goods
ICT (Information and Communication Technology)
Jazan Special Economic Zone - Jazan Province (Southwest)
Close to Jazan Port and major mines, supports heavy and agro-industries. It’s also a gateway to Africa and Asia markets.
Food Processing
Metal Conversion
Logistics
Mining
Ras Al Khair Special Economic Zone
It’s home to the largest shipyard in MENA with integrated infrastructure for maritime and heavy industries, which enables $14 billion maritime sector development.
Shipbuilding
Rig Platforms
Maritime Industries
Energy-Intensive Industries
Cloud Computing Special Economic Zone
Situated in King Abdulaziz City for Science and Technology (KACST), it focuses on data centers, AI, and tech R&D, and provides VAT exemptions on IT equipment.
Cloud Computing
IT Services
Digital Innovation
Riyadh Integrated Special Logistics Zone (RISLZ)
Located near King Khalid International Airport, with simplified customs processes, supports integrated logistics and cargo handling.
Logistics
Supply Chain Management
Book a FREE Consultation and we’ll get you started on your path to growth!
Schedule Free Consultation with our Business Advisor
Our team of seasoned business setup specialists is ready to support you every step of the way. Schedule your FREE consultation call today and get clear answers to your most important questions.
- Which business structure best aligns with your goals?
- Which Saudi jurisdiction is the best fit for your business type?
- How can your business take advantage of Saudi Arabia’s tax benefits?
- What are the essential steps to ensure a successful business formation?
Frequently asked questions (FAQs)
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
What industries are best for Saudi Arabia’s SEZs?
Logistics, manufacturing, mining, cloud computing, agro-industry, and energy are some fo the sectors that benefit most from SEZs.
How much time does it take to set up a business in SEZ?
The process is simpler, and it can be completed in a few weeks, depending on approvals and documentation.
What tax benefits are available?
Companies in SEZ enjoy 5% corporate tax rate for up to 20 years, 0% withholding tax and exemptions on customs duties.
Can foreign investors own their business fully in SEZ?
Yes, foreign investors can enjoy 100% foreign ownership and no restrictions on profit repatriation.
What support do you provide after setup?
We offer tax advisory, HR solutions, compliance, and assist with growing your business.