Four special economic zones are to be established in Saudi Arabia, Crown Prince Mohammed bin Salman announced on Thursday.
The aim of the new zones, which will be located in Riyadh, Jazan, Ras Al-Khair and King Abdullah Economic City, is to open up new opportunities for international investors.
“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 crown prince said.
“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 gross domestic product.”
The zones will take advantage of the Kingdom’s strategic location to create new hubs for businesses across key growth sectors so that they can launch and expand companies and technologies that will help shape the future, according to the SPA.
They will support existing national strategies and create new links with international frameworks, building on the competitive advantages of each region of the country to support key sectors such as logistics, advanced manufacturing, technology, and other priority sectors in the Kingdom, it added.
The benefits to companies of operating in the zones will include: competitive corporate tax rates; exemption from customs duties on imports, production inputs, machinery and raw materials; 100 percent foreign ownership of companies; and flexibility to attract and hire the best talent worldwide.
The zones will also provide tremendous opportunities for developing the local economy, generating jobs, and localizing supply chains, officials said.
They are said to represent a continuation of long-running initiatives that aim to transform the Kingdom into a global investment destination and a vital hub for global supply chains, by capitalizing on its position at the heart of global trade routes.
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